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<SEC-DOCUMENT>0001093672-06-000031.txt : 20060511
<SEC-HEADER>0001093672-06-000031.hdr.sgml : 20060511
<ACCEPTANCE-DATETIME>20060511082025
ACCESSION NUMBER:		0001093672-06-000031
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20060331
FILED AS OF DATE:		20060511
DATE AS OF CHANGE:		20060511

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEOPLES BANCORP OF NORTH CAROLINA INC
		CENTRAL INDEX KEY:			0001093672
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				562132396
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27205
		FILM NUMBER:		06828219

	BUSINESS ADDRESS:	
		STREET 1:		518 WEST C STREET
		CITY:			NEWTON
		STATE:			NC
		ZIP:			28658-4007
		BUSINESS PHONE:		8284645620

	MAIL ADDRESS:	
		STREET 1:		PO BOX 467
		CITY:			NEWTON
		STATE:			NC
		ZIP:			28658-0467
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>march31200610q.htm
<DESCRIPTION>10-Q FOR MARCH 31, 2006
<TEXT>
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    <title>
    </title>
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    <div><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>UNITED
                  STATES SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
              </td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
                  D.C. 20549</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="4" valign="top" width="38%">&#160;</td>
              <td align="left" colspan="5" valign="top" width="41%">&#160;</td>
              <td align="left" colspan="5" valign="top" width="30%">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
                  10-Q</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
                  X
                  ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OF
                  THE SECURITIES EXCHANGE ACT OF 1934</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the quarterly period ended: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>March
                  31, 2006</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OR</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
                  ]
                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OF
                  THE SECURITIES EXCHANGE ACT OF 1934</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="middle" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the transition period from __________ to __________</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>PEOPLES
                  BANCORP OF NORTH CAROLINA, INC.</u></strong></font></div>
              </td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
                  name of registrant as specified in its charter)</font></div>
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            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>North
                  Carolina</u></strong></font></div>
              </td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction of incorporation or organization)</font></div>
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            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="6" valign="top" width="45%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>000-27205</u></strong></font></div>
              </td>
              <td colspan="8" valign="top" width="34%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>56-2132396</u></strong></font></div>
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            </tr>
            <tr>
              <td colspan="6" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  File No.)</font></div>
              </td>
              <td colspan="8" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
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            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="6" valign="top" width="45%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>518
                  West C Street, Newton, North Carolina</u></strong></font></div>
              </td>
              <td colspan="8" valign="top" width="34%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>28658</u></strong></font></div>
              </td>
            </tr>
            <tr>
              <td colspan="6" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of principal executive offices)</font></div>
              </td>
              <td colspan="8" valign="top" width="34%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                  Code)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td colspan="14" valign="top" width="79%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(828)
                  464-5620</u></strong></font></div>
              </td>
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            <tr>
              <td colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
                  telephone number, including area code)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
                  by check mark whether the registrant (1) has filed all reports
                  required to
                  be filed by Section 13 or 15(d) of the Securities Exchange Act
                  of 1934
                  during the preceding 12 months (or for such shorter period that
                  the
                  registrant was required to file such reports), and (2) has been
                  subject to
                  such filing requirements for the past 90 days.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="9" valign="top" width="79%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes</font></div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>X</u></font></div>
              </td>
              <td align="left" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No</font></div>
              </td>
              <td align="left" valign="top" width="3%">&#160;___</td>
              <td align="left" valign="top" width="14%">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="14" valign="top" width="79%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" colspan="14" valign="top" width="79%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
                  by check mark whether the registrant is a large accelerated filer,
                  an
                  accelerated filer, or a non-accelerated filer. See definition of
                  &#8220;accelerated filer and large accelerated filer in Rule 12b-2 of
                  the
                  Exchange Act. (Check one):</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="17%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Large
                  Accelerate Filer </font></div>
              </td>
              <td align="left" valign="top" width="3%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="left" valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accelerated
                  Filer </font></div>
              </td>
              <td align="left" valign="top" width="3%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="4%">&#160;</td>
              <td align="left" valign="top" width="18%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-Accelerated
                  Filer</font></div>
              </td>
              <td align="left" valign="top" width="3%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                  X</font></div>
              </td>
              <td align="left" valign="top" width="14%">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" colspan="6" valign="top" width="81%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
                  by check mark whether the registrant is a shell company (as defined
                  in
                  Exchange Act Rule 12b-2 of the Exchange Act).</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="51%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes</font></div>
              </td>
              <td align="left" valign="top" width="3%">&#160;___</td>
              <td align="left" valign="top" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No</font></div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>X</u></font></div>
              </td>
              <td align="left" valign="top" width="14%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" colspan="6" valign="top" width="81%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" colspan="6" valign="top" width="81%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
                  the number of shares outstanding of each of the registrant's classes
                  of
                  common stock, as of the latest practicable date.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>3,439,297
                  shares of common stock, outstanding at May 10,
                  2006.</u></strong></font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div><br>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="top" width="9%">&#160;</td>
                <td valign="top" width="4%">&#160;</td>
                <td valign="top" width="67%">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX</strong></font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
                    I.</strong></font></div>
                </td>
                <td align="right" colspan="2" valign="top" width="71%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FINANCIAL
                    INFORMATION</strong></font></div>
                </td>
                <td valign="top" width="8%">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PAGE(S)</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    1.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                    Statements</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                    Balance Sheets at March 31, 2006 (Unaudited) and </font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                    31, 2005</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                    Statements of Earnings for the three months ended March </font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,
                    2006 and 2005 (Unaudited)</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                    Statements of Comprehensive Income for the three months </font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ended
                    March 31, 2006 and 2005 (Unaudited)</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                    Statements of Cash Flows for the three months ended March</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,
                    2006 and 2005 (Unaudited)</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6-7</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                    to Consolidated Financial Statements (Unaudited)</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8-10</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    2.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management's
                    Discussion and Analysis of Financial Condition</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                    Results of Operations</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11-18</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    3.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Quantitative
                    and Qualitative Disclosures About Market Risk</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    4.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Controls
                    and Procedures</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
                    II.</strong></font></div>
                </td>
                <td align="right" colspan="2" valign="top" width="71%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OTHER
                    INFORMATION</strong></font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    1.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                    Proceedings</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    1A.</font></div>
                </td>
                <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                <td align="left" valign="top" width="67%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                  Factors</font></td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    2.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unregistered
                    Sales of Equity Securities and Use of Proceeds</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    3.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Defaults
                    upon Senior Securities</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    4.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Submission
                    of Matters to a Vote of Security Holders</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    5.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                    Information</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    6.</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
                </td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signatures</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="9%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certifications</font></div>
                </td>
                <td align="left" valign="top" width="4%">&#160;</td>
                <td align="left" valign="top" width="67%">&#160;</td>
                <td align="left" valign="top" width="8%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24-26</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
        made in this Form 10-Q, other than those concerning historical information,
        should be considered forward-looking statements pursuant to the safe harbor
        provisions of the Securities Exchange Act of 1934 and the Private Securities
        Litigation Act of 1995. These forward-looking statements involve risks and
        uncertainties and are based on the beliefs and assumptions of management
        and on
        the information available to management at the time that this Form 10-Q was
        prepared. These statements can be identified by the use of words like &#8220;expect,&#8221;
&#8220;anticipate,&#8221; &#8220;estimate,&#8221; and &#8220;believe,&#8221; variations of these words and other
        similar expressions. Readers should not place undue reliance on forward-looking
        statements as a number of important factors could cause actual results to
        differ
        materially from those in the forward-looking statements. Factors that could
        cause actual results to differ materially include, but are not limited to,
        (1)
        competition in the markets served by Peoples Bank, (2) changes in the interest
        rate environment, (3) general national, regional or local economic conditions
        may be less favorable than expected, resulting in, among other things, a
        deterioration in credit quality and the possible impairment of collectibility
        of
        loans, (4) legislative or regulatory changes, including changes in accounting
        standards, (5) significant changes in the federal and state legal and regulatory
        environments and tax laws, (6) the impact of changes in monetary and fiscal
        policies, laws, rules and regulations and (7) other risks and factors identified
        in the Company&#8217;s other filings with the Securities and Exchange Commission,
        including but not limited to those described in Peoples Bancorp of North
        Carolina, Inc.&#8217;s annual report on Form 10-K for the year ended December 31,
        2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="10%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PART
              I.</font></td>
            <td colspan="2" width="89%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FINANCIAL
              INFORMATION</font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="10%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="4%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="85%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="10%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
              1.</font></td>
            <td colspan="2" width="89%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
              Statements</font></td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Assets</u></font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2006
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2005</u></font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and due from banks</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,959,163</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,468,999
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federal
                  funds sold</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,493,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,347,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,452,163
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19,815,999
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                  securities available for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">113,758,100
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">115,158,184
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  investments</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,804,449
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,810,749
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  securities</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119,562,549
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">120,968,933
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mortgage
                  loans held for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,571,200
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,247,900
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loans</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">590,564,977
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">566,663,416
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less
                  allowance for loan losses</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(7,649,364</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(7,424,782</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loans</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">559,238,634
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
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            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Premises
                  and equipment, net</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,705,399
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,662,153
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  surrender value of life insurance</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,363,484
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,311,757
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  interest receivable and other assets</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,178,541
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,034,239
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">730,279,615
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Liabilities
                  and Shareholders' Equity</u></font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deposits:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-interest
                  bearing demand</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">101,497,002</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">94,660,721
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOW,
                  MMDA &amp; savings</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">172,164,020
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">183,248,699
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Time,
                  $100,000 or more</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">184,315,220
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">152,410,976
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  time</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">155,538,776
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">152,533,265
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  deposits</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">613,515,018
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">582,853,661
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Demand
                  notes payable to U.S. Treasury</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">121,769
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,473,693
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
                  sold under agreement to repurchase</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,905,108
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">981,050
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FHLB
                  borrowings</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">69,500,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">71,600,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Junior
                  subordinated debentures</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,433,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,433,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  interest payable and other liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,800,560
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,585,217
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">706,275,455
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">675,926,621
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders'
                  equity:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Preferred
                  stock, no par value; authorized</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,000,000
                  shares; no shares issued</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  outstanding</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stock, no par value; authorized</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,000,000
                  shares; issued and </font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">outstanding
                  3,437,285 shares in 2006</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  3,440,805 shares in 2005</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">40,856,995
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">41,096,500
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                  earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,511,234
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,656,160
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  other comprehensive income (loss)</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,894,735</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,399,666</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholders' equity</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">55,473,494
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54,352,994
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and shareholders' equity</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">761,748,949</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">730,279,615
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                  accompanying notes to consolidated financial statements.</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
                  BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Earnings</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
                  months ended March 31, 2006 and 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2006
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2005
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  income:</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  and fees on loans</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,527,479</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,461,937
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  on federal funds sold</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,142
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,480
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  on investment securities:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">U.S.
                  Government agencies</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,021,674
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">848,356
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">States
                  and political subdivisions</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">192,750
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181,863
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">125,163
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">87,033
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  interest income</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,871,208
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,580,669
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  expense:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOW,
                  MMDA &amp; savings deposits</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">674,737
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">633,320
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Time
                  deposits</font></div>
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,987,731
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,789,677
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FHLB
                  borrowings</font></div>
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              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">885,690
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">711,776
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Junior
                  subordinated debentures</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">279,639
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">207,474
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">35,543
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,066
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  interest expense</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,863,340
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,346,313
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  interest income</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,007,868
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,234,356
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                  for loans losses</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">759,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">690,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  interest income after provision for loan </font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,248,868
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,544,356
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">losses</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-interest
                  income:</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Service
                  charges</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">924,945
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">805,260
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  service charges and fees</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">396,017
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">244,627
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                  on sale of securities</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(81,800</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mortgage
                  banking income</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">120,608
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,116
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insurance
                  and brokerage commissions</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,900
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,759
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Miscellaneous</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">474,209
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">375,306
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  non-interest income</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,937,879
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,638,068
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-interest
                  expense:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Salaries
                  and employee benefits</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,238,770
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,062,501
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Occupancy</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">988,396
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">969,066
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,475,312
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,227,280
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  non-interest expenses</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,702,478
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,258,847
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                  before income taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,484,269
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,923,577
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,249,200
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">646,800
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,235,069</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,276,777
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  earnings per share</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.59</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.34
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
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              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.33
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  dividends declared per share</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.10</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.09
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                  accompanying notes to consolidated financial statements.</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
                  BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Comprehensive Income</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
                  months ended March 31, 2006 and 2005 </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2006
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2005
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,235,069</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,276,777
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  comprehensive income (loss):</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                  holding losses on securities </font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">available
                  for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(678,354</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,602,733</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reclassification
                  adjustment for losses on</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">sales
                  of securities available for sale included</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                  net earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">81,800
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                  holding losses on derivative</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
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                  instruments qualifying as cash flow</font></div>
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">hedges</font></div>
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              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(446,705</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(319,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reclassification
                  adjustment for losses on</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">derivative
                  financial instruments qualifying as </font></div>
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              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cash
                  flow hedges included in net earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">196,101
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  other comprehensive loss,</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">before
                  income taxes</font></div>
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              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(847,158</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,921,733</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  tax expense (benefit) related to other</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">comprehensive
                  income:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                  holding losses on securities </font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">available
                  for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(264,218</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(624,264</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reclassification
                  adjustment for losses on</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">sales
                  of securities available for sale included</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                  net earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">31,861
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                  holding losses on derivative</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">financial
                  instruments qualifying as cash flow</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">hedges</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(196,113</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(124,251</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reclassification
                  adjustment for losses on</font></div>
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">derivative
                  financial instruments qualifying as </font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cash
                  flow hedges included in net earnings</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">76,381
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  income tax benefit related to</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">other
                  comprehensive income</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(352,089</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(748,515</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  other comprehensive loss,</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">net
                  of tax</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(495,069</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,173,218</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  comprehensive income </font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,740,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,559
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                  accompanying notes to consolidated financial statements.</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
                  BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Cash Flows</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
                  months ended March 31, 2006 and 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2006
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div>&#160;</div>
              </td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2005
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div>&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  flows from operating activities:</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,276,777
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                  to reconcile net earnings to</font></div>
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              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">net
                  cash provided by operating activities:</font></div>
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation,
                  amortization and accretion</font></div>
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              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">360,180
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">406,394
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                  for loan losses</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">759,000
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">690,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                  on sale of investment securities</font></div>
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              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">81,800
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recognition
                  of loss on sale of derivative instruments</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">196,101
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  of deferred gain on sale of premises</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5,224</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5,224</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain
                  on sale of repossessed assets</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13,368</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,067</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                  option compensation expense</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,423
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mortgage
                  loans held for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(323,300</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">692,825
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  surrender value of life insurance</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(51,727</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(114,392</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  assets</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,870,200</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(621,170</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  flows from investing activities:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                  of investment securities available for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,754,753</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,014,262</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from calls and maturities of investment securities available for
                  sale</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,574,444
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,060,492
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from sales of investment securities available for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,918,200
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                  of other investments</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,085,200</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,600,290</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from sale of other investments</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,091,500
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,917,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  change in loans</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(24,465,589</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5,904,998</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                  of premises and equipment</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(408,152</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(533,451</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from sale of repossessed assets</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">229,126
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42,696
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                  of derivative financial instruments</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(562,500</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                <div style="MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash used by investing activities</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(24,462,924</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(7,032,813</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  flows from financing activities:</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  change in deposits</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30,661,357
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,731,872
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  change in demand notes payable to U.S. Treasury</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,351,924</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100,317
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  change in securities sold under agreement to repurchase</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,924,058
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from FHLB borrowings</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">103,900,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">77,300,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Repayments
                  of FHLB borrowings</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(106,000,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(75,300,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from exercise of stock options</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">185,495
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">41,498
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stock repurchased</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(425,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  paid in lieu of fractional shares</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(4,700</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  dividends paid</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(379,995</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(345,141</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash provided by financing activities</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29,513,991
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,523,846
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  change in cash and cash equivalent</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,636,164
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,141,937</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents at beginning of period</font></div>
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              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,790,871
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents at end of period</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,452,163</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15,648,934
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
                  BANCORP OF NORTH CAROLINA, INC. AND SUBSIDIARIES</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Cash Flows, continued</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
                  months ended March 31, 2006 and 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2006
                  </u></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2005</u></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Unaudited)
                  </em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Supplemental
                  disclosures of cash flow information:</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  paid during the year for:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,932,390</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,410,312
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">319,500</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Noncash
                  investing and financing activities:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in unrealized gain (loss) on investment securities</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">available
                  for sale, net</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(364,197</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(978,469</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in unrealized gain (loss) on derivative financial</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">instruments,
                  net</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(130,872</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(194,749</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transfer
                  of loans to other real estate and repossessions</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29,610</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21,978
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transfer
                  of retained earnings to common stock for</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issuance
                  of stock dividend</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,274,087
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
                  accompanying notes to consolidated financial statements.</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">&#160;</div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">&#160;</div>
      <div id="HDR">
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PEOPLES
            BANCORP OF NORTH CAROLINA, INC. AND SUBSID</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IARIES</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
            to
            Consolidated Financial Statements (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Unaudited</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
            <u>Summary of Significant Accounting Policies</u></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            consolidated financial statements include the financial statements of
            Peoples
            Bancorp of North Carolina, Inc. and its wholly owned subsidiary, Peoples
            Bank
            (the &#8220;Bank&#8221;), along with the Bank&#8217;s wholly owned subsidiaries, Peoples
            Investment Services, Inc. and Real Estate Advisory Services, Inc. (collectively
            called the &#8220;Company&#8221;). All significant intercompany balances and transactions
            have been eliminated in consolidation.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            consolidated financial statements in this report are unaudited. In the
            opinion
            of management, all adjustments (none of which were other than normal
            accruals)
            necessary for a fair presentation of the financial position and results
            of
            operations for the periods presented have been included. Management of
            the
            Company has made a number of estimates and assumptions relating to reporting
            of
            assets and liabilities and the disclosure of contingent assets and liabilities
            to prepare these consolidated financial statements in conformity with
            generally
            accepted accounting principles. Actual results could differ from those
            estimates.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company&#8217;s accounting policies are fundamental to understanding management&#8217;s
            discussion and analysis of results of operations and financial condition.
            Many
            of the Company&#8217;s accounting policies require significant judgment regarding
            valuation of assets and liabilities and/or significant interpretation
            of the
            specific accounting guidance. A description of the Company&#8217;s significant
            accounting policies can be found in Note 1 of the notes to consolidated
            financial statements in the Company&#8217;s 2006 Annual Report to Shareholders which
            is Appendix A to the Proxy Statement for the May 4, 2006 Annual Meeting
            of
            Shareholders.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;
            <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Allowance
            for Loan Losses</u></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            following is an analysis of the allowance for loan losses for the three
            months
            ended March 31, 2006 and 2005:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
            <div align="left">
              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="94%">

                  <tr>
                    <td valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                        beginning of period</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,424,782</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,048,627
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                        for loan losses</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">759,000
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">690,000
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charge-offs</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(586,039</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,404,263</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recoveries</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">51,621
                        </font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">85,216
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
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                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        charge-offs</font></div>
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                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(534,418</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,319,047</font></div>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
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                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                        end of period</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,649,364</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,419,580
                        </font></div>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div><font size="2">(3)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
            Earnings Per Share</font></u></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
            earnings per common share is based on the weighted average number of
            common
            shares outstanding during the period while the effects of potential common
            shares outstanding during the period are included in diluted earnings
            per share.
            The average market price during the year is used to compute equivalent
            shares.
            All previously reported per share amounts have been restated to reflect
            a 10%
            stock dividend approved on April 20, 2006 by the Board of Directors of
            the
            Company.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            reconciliation of the amounts used in the computation of both &#8220;basic earnings
            per share&#8221; and &#8220;diluted earnings per share&#8221; for the three months ended March 31,
            2006 and 2005 is as follows:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
            <div align="left">
              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="94%">

                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: #ffffff thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>For
                        the three months ended March 31, 2006</u></font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td colspan="2" valign="bottom" width="14%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: #ffffff solid;">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        Earnings</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Common
                        Shares </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Per
                        Share Amount </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: #e2eef6 solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                        earnings per share</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6 thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,235,069</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: #e2eef6 thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,791,549
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.59
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: white;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                        of dilutive securities:</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                        options</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                        &#160;</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">85,484
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: white solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                        earnings per share</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,235,069</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,877,033
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.58
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
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<br></div>
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              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="94%">

                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: medium none;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>For
                        the three months ended March 31, 2005</u></font></div>
                    </td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: #ffffff solid;">
                      <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        Earnings</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Common
                        Shares </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Per
                        Share Amount </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="55%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: #e2eef6 solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                        earnings per share</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6 thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,276,777</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: #e2eef6 thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,795,301
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.34
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: white;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                        of dilutive securities:</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                        options</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                        &#160;</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58,653
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="55%" style="border-bottom: white solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                        earnings per share</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,276,777</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                    <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,853,955
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.33
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  </tr>

              </table>
            </div>
            <div style="PAGE-BREAK-AFTER: always"><br></div>
            <div style="PAGE-BREAK-AFTER: always">
              <div><font size="2">(4)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Derivative
                Financial Instruments and Hedging Activities</font></u></div>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company entered into a new interest rate floor contract with a notional
            amount
            of $45.0 million during the first quarter of 2006. This derivative instrument
            is
            used to hedge future cash flows of the first $45.0 million of certain
            variable
            rate home equity loans against the downward effects of their repricing
            in the
            event of a decreasing rate environment for a period of three years ending
            in
            January 2009. If the prime rate falls below 7.50% during the term of
            this
            contract, the Company will receive payments based on the $45.0 million
            notional
            amount times the difference between 7.50% and the weighted average prime
            rate
            for the quarter. No payments will be received by the Company if the weighted
            average prime rate is 7.50% or higher. The Company paid a premium of
            $562,500 on
            this contract. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
            <div><font size="2">(5)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock-Based
              Compensation</font></u></div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company has an Omnibus Stock Ownership and Long Term Incentive Plan (the
&#8220;Plan&#8221;)
            whereby certain stock-based rights, such as stock options, restricted
            stock,
            performance units, stock appreciation rights, or book value shares, may
            be
            granted to eligible directors and employees. A total of 354,046 shares
            were
            reserved for possible issuance under this Plan. All rights must be granted
            or
            awarded within ten years from the 1999 effective date.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
            the
            Plan, the Company granted incentive stock options to certain eligible
            employees
            in order that they may purchase Company stock at a price equal to the
            fair
            market value on the date of the grant. The options granted in 1999 vest
            over a
            five-year period. Options granted subsequent to 1999 vest over a three-year
            period. All options expire after ten years. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company did not grant any options during the three months ended March
            31,
            2006.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
            summary
            of the activity for the three months ended March 31, 2006&#160;is presented
            below:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
            <div align="right">
              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="94%">

                  <tr>
                    <td valign="bottom" width="34%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="11" valign="bottom" width="63%" style="border-bottom: medium none;">
                      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
                        months ended </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="34%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td colspan="11" valign="bottom" width="63%" style="border-bottom: black thin solid;">
                      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
                        31, 2006 </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="34%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                    </td>
                    <td align="left" colspan="2" valign="bottom" width="17%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                        </font></div>
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                        Option </font></div>
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                        Per Share</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                    </td>
                    <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                        Average Remaining Contractual Term (in years)</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                    </td>
                    <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Aggregate
                        Intrinsic </font></div>
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Value</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: medium none;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding,
                        beginning of period</font></div>
                    </td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">193,743
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13.41</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: medium none;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted
                        during the period</font></div>
                    </td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                        &#160;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-&#160;&#160;
                        &#160;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                        &#160;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">
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                        &#160;</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: #ffffff solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised
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                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13.27
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: #ffffff solid;">
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                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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                    <td align="right" valign="bottom" width="16%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13.42</font></div>
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                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.51
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="bottom" width="34%" style="border-bottom: #ffffff solid;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                        of shares exercisable</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176,829
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13.36</font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                    <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.46
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,412,582</font></div>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                  </tr>

              </table>
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          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company adopted Statement of Financial Accounting Standards (&#8220;SFAS&#8221;)
            No.&#160;123(R), Share-Based Payment (&#8220;SFAS No.&#160;123(R)&#8221;), on
            January&#160;1, 2006 using the &#8220;modified prospective&#8221; method. Under this method,
            awards that are granted, modified, or settled after December&#160;31, 2005, are
            measured and accounted for in accordance with SFAS No.&#160;123(R). Also under
            this method, expense is recognized for unvested awards that were granted
            prior
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            under SFAS No.&#160;123, Accounting for Stock-Based Compensation (&#8220;SFAS
            No.&#160;123&#8221;). </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company recognized compensation expense for employee stock options of
            $1,400 for
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            Company did not recognize any tax benefit on compensation expense from
            employee
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            was
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            stock options, which is</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
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              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            <div id="HDR">
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              </div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">expected
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            Company did not recognize any compensation expense for employee stock
            options
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            compensation under Accounting Principles Board Opinion No.&#160;25 and related
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            share if
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            No.&#160;123 as of March 31, 2005.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            <div align="left">
              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="94%">

                  <tr>
                    <td valign="bottom" width="29%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="49%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td colspan="2" valign="bottom" width="17%" style="border-bottom: medium none;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
                        months ended </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                      <div>&#160;</div>
                    </td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="29%" style="border-bottom: #ffffff solid;">
                      <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: #ffffff thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: medium none;">
                      <div>&#160;</div>
                    </td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #ffffff thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                      <div>&#160;</div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
                        31, 2005</font>&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  </tr>
                  <tr>
                    <td valign="bottom" width="29%" style="border-bottom: medium none;">&#160;</td>
                    <td width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: #e2eef6;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        earnings</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                      reported</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,276,777</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 9pt" align="left">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                        of grants</font></div>
                    </td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(43,195</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 9pt" align="left">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                        of forfeitures</font></div>
                    </td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,880
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: white;">&#160;</td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 9pt" align="left">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proforma</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #e2eef6 thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,241,462</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: #e2eef6;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                        earnings per share</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                      reported</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.34</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 9pt" align="left">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proforma</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.33</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td width="2%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: white;">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                        earnings per share</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                      reported</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                    </td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: white;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.33</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                  </tr>
                  <tr bgcolor="#e2eef6">
                    <td align="left" valign="bottom" width="29%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 9pt" align="left">&#160;</div>
                    </td>
                    <td width="2%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                    <td align="left" valign="bottom" width="19%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proforma</font></td>
                    <td align="right" valign="bottom" width="30%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                    </td>
                    <td align="right" valign="bottom" width="16%" style="border-bottom: #e2eef6;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.32</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
            options were granted during the three months ended March&#160;31, 2006 and 2005.
            The total intrinsic value (amount by which the fair market value of the
            underlying stock exceeds the exercise price of an option on exercise
            date) of
            options exercised during the three months ended March&#160;31, 2006 and 2005 was
            $141,000 and $14,000, respectively. No options vested during the three
            months
            ended March&#160;31, 2006 and 2005. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
            received from option exercises for the three months ended March&#160;31, 2006
            and 2005 was $185,000 and $41,000, respectively. The tax benefit for
            the tax
            deductions from option exercises totaled $56,000 and $6,000, respectively
            for
            the three months ended March&#160;31, 2006 and 2005.</font></div>
          <div>&#160;</div>
          <div>
            <div><font size="2">(6)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subsequent
              Event</font></u></div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            April
            20, 2006, the Board of Directors of the Company authorized a 10% stock
            dividend.
            As a result of the stock dividend, each shareholder will receive one
            new share
            of stock for every ten shares of stock they hold as of the record date.
            Shareholders will receive a cash payment in lieu of any fractional shares
            resulting from the stock dividend. The cash dividend will be paid based
            on the
            number of shares held by shareholders as adjusted by the stock dividend.
            All
            previously reported per share amounts have been restated to reflect this
            stock
            dividend.</font></div>
          <div>&#160;</div>
          <div><br></div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
              </div>
            </div>
            <div id="PN" style="PAGE-BREAK-AFTER: always">
              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="2">
              </div>
            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right">
              </div>
            </div>
          </div>
          <div>&#160;</div>
          <div align="center">
            <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

                <tr bgcolor="white">
                  <td width="13%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                    2.</font></td>
                  <td colspan="2" width="86%"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management's
                    Discussion and Analysis of Financial Condition and Results of
                    Operations</font></td>
                </tr>

            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Introduction</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management's
            discussion and analysis of earnings and related data are presented to
            assist in
            understanding the consolidated financial condition and results of operations
            of
            Peoples Bancorp of North Carolina, Inc. Peoples Bancorp is the parent
            company of
            Peoples Bank (the &#8220;Bank&#8221;) and a registered bank holding company operating under
            the supervision of the Federal Reserve Board. The Bank is a North
            Carolina-chartered bank, with offices in Catawba, Lincoln, Alexander
            Mecklenburg
            and Iredell counties, operating under the banking laws of North Carolina
            and the
            rules and regulations of the Federal Deposit Insurance Corporation (the
&#8220;FDIC&#8221;).
</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Overview</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
            business consists principally of attracting deposits from the general
            public and
            investing these funds in loans secured by commercial real estate, secured
            and
            unsecured commercial and consumer loans. Our profitability depends primarily
            on
            our net interest income, which is the difference between the income we
            receive
            on our loan and investment securities portfolios and our cost of funds,
            which
            consists of interest paid on deposits and borrowed funds. Net interest
            income
            also is affected by the relative amounts of interest-earning assets and
            interest-bearing liabilities. When interest-earning assets approximate
            or exceed
            interest-bearing liabilities, any positive interest rate spread will
            generate
            net interest income. Our profitability is also affected by the level
            of other
            income and operating expenses. Other income consists primarily of miscellaneous
            fees related to our loans and deposits, mortgage banking income and commissions
            from sales of annuities and mutual funds. Operating expenses consist
            of
            compensation and benefits, occupancy related expenses, federal deposit
            and other
            insurance premiums, data processing, advertising and other
            expenses.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
            operations are influenced significantly by local economic conditions
            and by
            policies of financial institution regulatory authorities. The earnings
            on our
            assets are influenced by the effects of, and changes in, trade, monetary
            and
            fiscal policies and laws, including interest rate policies of the Board
            of
            Governors of the Federal Reserve System, inflation, interest rates, market
            and
            monetary fluctuations. Lending activities are affected by the demand
            for
            commercial and other types of loans, which in turn is affected by the
            interest
            rates at which such financing may be offered. Our cost of funds is influenced
            by
            interest rates on competing investments and by rates offered on similar
            investments by competing financial institutions in our market area, as
            well as
            general market interest rates. These factors can cause fluctuations in
            our net
            interest income and other income. In addition, local economic conditions
            can
            impact the credit risk of our loan portfolio, in that local employers
            may be
            required to eliminate employment positions of borrowers, and small businesses
            and other commercial borrowers may experience a downturn in their operating
            performance and become unable to make timely payments on their loans.
            Management
            evaluates these factors in estimating its allowance for loan losses,
            and changes
            in these economic conditions could result in increases or decreases to
            the
            provision for loan losses. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
            business emphasis has been to operate as a well-capitalized, profitable
            and
            independent community-oriented financial institution dedicated to providing
            quality customer service. We are committed to meeting the financial needs
            of the
            communities in which we operate. We believe that we can be more effective
            in
            servicing our customers than many of our non-local competitors because
            of our
            ability to quickly and effectively provide senior management responses
            to
            customer needs and inquiries. Our ability to provide these services is
            enhanced
            by the stability of our senior management team. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Federal Reserve has increased the Federal Funds Rate a total of 2.75%
            since
            December 31, 2004 with the rate set at 7.75% as of March 31, 2006. These
            increases had a positive impact on first quarter earnings and should
            continue to
            have a positive impact on the Bank&#8217;s net interest income in the future periods.
            The positive impact from the increase in the Federal Funds Rate has been
            partially offset by the decrease in earnings realized on interest rate
            contracts, including both interest rate swaps and interest rate floors,
            utilized
            by the Company. The swaps were put in place during the time that the
            Federal
            Funds Rate approached 1.00% and helped to offset the decline in income
            experienced in 2003 and 2004 because of the reductions in the Federal
            Funds Rate
            that the Federal Reserve implemented from January 2001 to June 2003.
            Additional
            information regarding the Company&#8217;s interest rate contacts is provided below in
            the section entitled &#8220;Asset Liability and Interest Rate Risk Management.&#8221;
</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
            of Significant Accounting Policies</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            consolidated financial statements include the financial statements of
            Peoples
            Bancorp of North Carolina, Inc. and its wholly owned subsidiary, Peoples
            Bank,
            along with the Bank&#8217;s wholly owned subsidiaries, Peoples Investment Services,
            Inc. and Real Estate Advisory Services, Inc. (collectively called the
            &#8220;Company&#8221;). All significant intercompany balances and transactions have been
            eliminated in consolidation.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company&#8217;s accounting policies are fundamental to understanding management&#8217;s
            discussion and analysis of results of operations and financial condition.
            Many
            of the Company&#8217;s accounting policies require significant judgment regarding
            valuation of assets and liabilities and/or significant interpretation
            of
            specific accounting guidance. The following is a summary of some of the
            more
            subjective and complex accounting policies of the Company. A more
            complete</font></div>
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              <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            <div>&#160;</div>
            <div style="LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">description
              of the Company&#8217;s significant accounting policies can be found in Note 1 of the
              Notes to Consolidated Financial Statements in the Company&#8217;s 2006 Annual Report
              to Shareholders which is Appendix A to the Proxy Statement for the
              May 4, 2006
              Annual Meeting of Shareholders. The following is a summary of the more
              subjective and complex accounting policies of the Company.</font></div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
            of
            the Company&#8217;s assets and liabilities are recorded using various techniques that
            require significant judgment as to recoverability. The collectability
            of loans
            is reflected through the Company&#8217;s estimate of the allowance for loan losses.
            The Company performs periodic and systematic detailed reviews of its
            lending
            portfolio to assess overall collectability. In addition, certain assets
            and
            liabilities are reflected at their estimated fair value in the consolidated
            financial statements. Such amounts are based on either quoted market
            prices or
            estimated values derived from dealer quotes used by the Company, market
            comparisons or internally generated modeling techniques. The Company&#8217;s internal
            models generally involve present value of cash flow techniques. The various
            techniques are discussed in greater detail elsewhere in management&#8217;s discussion
            and analysis and the notes to the consolidated financial
            statements.</font></div>
          <div>&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
            are
            other complex accounting standards that require the Company to employ
            significant judgment in interpreting and applying certain of the principles
            prescribed by those standards. These judgments include, but are not limited
            to,
            the determination of whether a financial instrument or other contract
            meets the
            definition of a derivative in accordance with Statement of Financial
            Accounting
            Standards No. 133, &#8220;Accounting for Derivative Instruments and Hedging
            Activities.&#8221; For a more complete discussion of policies, see the notes to the
            consolidated financial statements.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            December 2004, the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FASB
            revised SFAS No. 123 (&#8220;SFAS No. 123 (R)&#8221;). SFAS No. 123 (R), &#8220;Share-Based
            Payment&#8221;, requires all share-based payments to employees, including grants of
            employee stock options, to be recognized in the financial statements
            based on
            their fair values. Pro forma disclosure is no longer an alternative to
            financial
            statement recognition. SFAS No. 123 (R) is effective for periods beginning
            after
            December 31, 2005. The Company recognized compensation expense for employee
            stock options of $1,400 for the three months ended March 31, 2006. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company did not recognize any tax benefit on compensation expense from
            employee
            stock options in the first quarter of 2006. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
            of the Company has made a number of estimates and assumptions relating
            to
            reporting of assets and liabilities and the disclosure of contingent
            assets and
            liabilities to prepare these consolidated financial statements in conformity
            with generally accepted accounting principles. Actual results could differ
            from
            those estimates. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Results
            of Operations</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Summary.
            </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
            earnings for the first quarter of 2006 were $2.2 million, or $0.59 basic
            net
            earnings per share and $0.58 diluted net earnings per share as compared
            to $1.3
            million, or $0.34 basic net earnings per share and $0.33 diluted net
            earnings
            per share for the same period one year ago. Net earnings from recurring
            operations as of March 31, 2006 were $2.4 million, or $0.63 basic net
            income per
            share and $0.62 diluted net income per share, as compared to the first
            quarter
            of 2005 net income from recurring operations of $1.3 million, or $0.34
            basic net
            income per share and $0.33 diluted net income per share. The increase
            in net
            earnings is primarily attributable to growth in interest-earning assets,
            which
            contributed to increases in net interest income, and non-interest income,
            which
            were partially offset by increases in the provision for loan losses and
            non-interest expense. </font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            annualized return on average assets was 1.22% for the three months ended
            March
            31, 2006 compared to 0.75% for the same period in 2005, and annualized
            return on
            average shareholders' equity was 16.04% for the three months ended March
            31,
            2006 compared to 9.96% for the same period in 2005.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Net
            Interest Income. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
            interest income, the major component of the Company's net earnings, was
            $8.0
            million for the three months ended March 31, 2006, an increase of 28%
            over the
            $6.2 million earned in the same period in 2005. The increase in net interest
            income for the first quarter of 2006 was primarily attributable to increases
            in
            the prime rate resulting from Federal Reserve interest rate increases
            combined
            with increases in the average outstanding balances of loans and investment
            securities available-for-sale.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
            income increased $3.3 million or 34% for the three months ended March
            31, 2006
            compared with the same period in 2005. The increase was due to an increase
            in
            the average yield received on loans resulting from Federal Reserve interest
            rate
            increases combined with an increase in the average outstanding balance
            of loans
            and investment securities available-for-sale. During the quarter ended
            March 31,
            2006, average loans increased $41.6 million to $580.5 million from $538.9
            million for the three months ended March 31, 2005. During the quarter
            ended
            March 31, 2006, average investment securities available-for-sale increased
            $12.2
            million to $116.7 million from $104.5 million for the three months ended
            March
            31, 2005.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
            expense increased $1.5 million or 45% for the three months ended March
            31, 2006
            compared with the same period in 2005. The increase in interest expense
            was due
            to an increase in the cost of funds to 3.32% for the three</font></div>
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            <div>&#160;</div>
            <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">months
              ended March 31, 2006 from 2.46% for the same period in 2005, combined
              with an
              increase in volume of interest-bearing liabilities. The increase in
              the cost of
              funds is primarily attributable to increases in the average rate paid
              on
              interest-bearing checking and savings accounts and certificates of
              deposit. The
              average rate paid on interest-bearing checking and savings accounts
              was 1.58%
              for the three months ended March 31, 2006 as compared to 1.34% for
              the same
              period of 2005. The average rate paid on certificates of deposits was
              3.75% for
              the three months ended March 31, 2006 compared to 2.60% for the same
              period one
              year ago.</font></div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Provision
                for Loan Losses</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>.</em>
                For the three months ended March 31, 2006, a contribution of $759,000
                was made
                to the provision for loan losses compared to $690,000 for the same
                period one
                year ago.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Non-Interest
                Income</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>.</em>
                Total non-interest income was $1.9 million in the first quarter of
                2006, an 18%
                increase over the $1.6 million for the same period in 2005. This
                increase is
                primarily due to an increase in service charge and fee income, mortgage
                banking
                income and other miscellaneous income. Service charges were $925,000
                and
                $805,000 for the three months ended March 31, 2006 and 2005, respectively.
                This
                increase is primarily due to an increase of $74,000 in NSF fee income.
                Other
                service charges and fees increased 62% to $396,000 for the three-month
                period
                ended March 31, 2006 when compared to the same period one year ago.
                This
                increase is primarily attributable to an increase of $80,000 in check
                cashing
                fee income and an increase of $38,000 in miscellaneous fee income.
                Mortgage
                banking income increased $17,000 or 17% during the three months ended
                March 31,
                2006 as compared to the corresponding period in 2005. Miscellaneous
                income was
                $488,000 for the three months ended March 31, 2006, a 29% increase
                from $378,000
                for the same period in 2005. This increase in miscellaneous income
                was partially
                attributable to an increase of $45,000 in debit card fee income primarily
                associated with increased card usage due to an increased number of
                demand
                accounts and a $27,000 increase in income from the Bank&#8217;s Real Estate Advisory
                Services, Inc. subsidiary. These increases were partially offset
                by an $82,000
                loss on sale of securities. Recurring non-interest income amounted
                to $2.0
                million and $1.6 million for the three months ended March 31, 2006
                and 2005,
                respectively. The increase in recurring non-interest income is primarily
                due to
                an increase in service charges and fees, miscellaneous other income
                and an
                increase mortgage banking income. Net non-recurring losses on the
                disposition of
                assets totaled $63,000 and consisted primarily of losses on the sale
                of
                securities<em>.</em></font></div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Non-Interest
                Expense.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                Total
                non-interest expense increased 8% to $5.7 million for the first quarter
                of 2006
                as compared to $5.3 million for the corresponding period in 2005.
                Salary and
                employee benefits totaled $3.2 million for the three months ended
                March 31,
                2006, an increase of 6% from the same period in 2005. The increase
                in salary and
                employee benefits is due to normal salary increases and increased
                employee
                incentive expense. Occupancy expense increased 2% for the quarter
                ended March
                31, 2006. Other non-interest expense increased 20% to $1.5 million
                for the three
                months ended March 31, 2006 as compared to the same period in 2005.
                This
                increase in other non-interest expense is attributable to a $178,000
                prepayment
                fee associated with the early termination of a $5 million Federal
                Home Loan Bank
                advance in the first quarter of 2006. Recurring non-interest expense
                increased
                5% to $5.5 million for the three months ended March 31, 2006, as
                compared to
                $5.3 million for the same period last year.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Income
                Taxes.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Company reported income taxes of $1.2 million and $647,000 for the
                first
                quarters of 2006 and 2005, respectively. This represented effective
                tax rates of
                36% and 34% for the respective periods. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Analysis
                of Financial Condition</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Investment
                Securities.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Available-for-sale
                securities amounted to $113.8 million at March 31, 2006 compared
                to $115.2
                million at December 31, 2005. This decrease is primarily the result
                of paydowns
                on mortgage-backed securities, calls and maturities, which were partially
                offset
                by additional securities purchases. Average investment securities
                available for
                sale for the three months ended March 31, 2006 amounted to $116.6
                million
                compared to $108.7 million for the year ended December 31,
                2005<em>.</em></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Loans.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                March
                31, 2006, loans amounted to $590.6 million compared to $566.7 million
                at
                December 31, 2005, an increase of $23.9 million. Average loans represented
                82%
                of total earning assets for the three months ended March 31, 2006
                and the year
                ended December 31, 2005. Mortgage loans held for sale were $2.6 million
                and $2.2
                million at March 31, 2006 and December 31, 2005, respectively.</font></div><br>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Allowance
                for Loan Losses. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                allowance for loan losses reflects management's assessment and estimate
                of the
                risks associated with extending credit and its evaluation of the
                quality of the
                loan portfolio. The Bank periodically analyzes the loan portfolio
                in an effort
                to review asset quality and to establish an allowance for loan losses
                that
                management believes will be adequate in light of anticipated risks
                and loan
                losses. In assessing the adequacy of the allowance, size, quality
                and risk of
                loans in the portfolio are reviewed. Other factors considered
                are:&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              <div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                          Bank&#8217;s loan loss experience; </font></div>
                      </td>
                    </tr>

                </table>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                          amount of past due and non-performing loans;
</font></div>
                      </td>
                    </tr>

                </table>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                      </td>
                    </tr>

                </table>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                  <div id="FTR">
                    <div id="GLFTR" style="WIDTH: 100%" align="left">
                    </div>
                  </div>
                  <div id="PN" style="PAGE-BREAK-AFTER: always">
                    <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
                    <div style="WIDTH: 100%; TEXT-ALIGN: center">
                      <hr style="COLOR: black" noshade size="2">
                    </div>
                  </div>
                  <div id="HDR">
                    <div id="GLHDR" style="WIDTH: 100%" align="right">
                    </div>
                  </div>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div><br>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">specific
                          known risks; </font></div>
                      </td>
                    </tr>

                </table>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                          status and amount of other past due and non-performing
                          assets;</font></div>
                      </td>
                    </tr>

                </table>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">underlying
                          estimated values of collateral securing loans;
</font></div>
                      </td>
                    </tr>

                </table>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">current
                          and anticipated economic conditions; and </font></div>
                      </td>
                    </tr>

                </table>
                <table cellpadding="0" cellspacing="0" id="list" width="100%">

                    <tr valign="top" style="line-height: 1.25;">
                      <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                      <td>
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">other
                          factors which management believes affect the allowance
                          for potential
                          credit losses. </font></div>
                      </td>
                    </tr>

                </table>
                <div>&#160;</div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
                analysis of the credit quality of the loan portfolio and the adequacy
                of the
                allowance for loan losses is prepared by the Bank&#8217;s credit administration
                personnel and presented to the Bank&#8217;s Board of Directors on a regular basis. The
                allowance is the total of specific reserves allocated to significant
                individual
                loans plus a general reserve. After individual loans with specific
                allocations
                have been deducted, the general reserve is calculated by applying
                general
                reserve percentages to the nine risk grades within the portfolio.
                Loans are
                categorized as one of nine risk grades based on management&#8217;s assessment of the
                overall credit quality of the loan, including payment history, financial
                position of the borrower, underlying collateral and internal credit
                review. The
                general reserve percentages are determined by management based on
                its evaluation
                of losses inherent in the various risk grades of loans. The allowance
                for loan
                losses is established through charges to expense in the form of a
                provision for
                loan losses. Loan losses and recoveries are charged and credited
                directly to the
                allowance. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                following table presents the percentage of loans assigned to each
                risk grade
                along with the general reserve percentage applied to loans in each
                risk grade at
                March 31, 2006 and December 31, 2005.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
                <div>
                  <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LOAN
                            RISK GRADE ANALYSIS:</strong></font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td colspan="5" valign="bottom" width="26%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percentage
                            of Loans</strong></font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                          <div>&#160;</div>
                        </td>
                        <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: medium none;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>General
                            Reserve</strong></font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                          <div>&#160;</div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                          <div>&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td colspan="6" valign="bottom" width="28%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>By
                            Risk Grade*</strong></font></div>
                        </td>
                        <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percentage</strong></font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                          <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                        </td>
                        <td width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">03/31/2006</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>12/31/2005</strong></font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>03/31/2006</strong></font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                          <div>&#160;</div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>12/31/2005</strong></font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      </tr>
                      <tr>
                        <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr bgcolor="#e2eef6">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #e2eef6;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            1 (Excellent Quality)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13.69%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14.28%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.15%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.15%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            2 (High Quality)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17.62%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18.16%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.50%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.50%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="#e2eef6">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #e2eef6;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            3 (Good Quality)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58.26%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">56.40%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            4 (Management Attention)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7.50%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8.38%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.50%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.50%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="#e2eef6">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #e2eef6;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            5 (Watch)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.15%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.88%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            6 (Substandard)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.37%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.42%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="#e2eef6">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #e2eef6;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            7 (Low Substandard)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.59%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.86%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            8 (Doubtful)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="#e2eef6">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #e2eef6;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                            9 (Loss)</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100.00%</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                          <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                        </td>
                      </tr>
                      <tr bgcolor="white">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#e2eef6">
                        <td align="left" valign="bottom" width="43%" style="border-bottom: #e2eef6;">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*Excludes
                            non-accrual loans</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #e2eef6;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      </tr>

                  </table>
                </div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                March
                31, 2006 there was one relationship which totaled $1.8 million in
                the Watch risk
                grade, no relationships exceeding $1.0 million in the Substandard
                risk grade and
                one relationship which totaled $3.1 million in the Low Substandard
                risk grade.
                These customers continue to meet payment requirements and these relationships
                would not become non-performing assets unless they are unable to
                meet those
                requirements.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
                allowance for loan losses is also established, as necessary, for
                individual
                loans considered to be impaired in accordance with Statement of Financial
                Accounting Standards (&#8220;SFAS&#8221;) No. 114. A loan is considered impaired when, based
                on current information and events, it is probable that all amounts
                due according
                to the contractual terms of the loan will not be collected. Impaired
                loans are
                measured based on the present value of expected future cash flows,
                discounted at
                the loan&#8217;s effective interest rate, or at the loan&#8217;s observable market price, or
                the fair value of collateral if the loan is collateral dependent.
                At March 31,
                2006 and December 31, 2005, the recorded investment in loans that
                were
                considered to be impaired under SFAS No. 114 was approximately $4.9
                million and
                $3.5 million, respectively, with related allowance for loan losses
                of
                approximately $628,000 and $478,000, respectively. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                allowance for loan losses totaled $7.6 million at March 31, 2006
                and $7.4
                million at December 31, 2005, which represented 1.30% of total loans
                outstanding
                at March 31, 2006 and 1.31% of total loans outstanding as of December
                31, 2005.
</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Bank&#8217;s allowance for loan losses is also subject to regulatory examinations
                and
                determinations as to adequacy, which may take into account such factors
                as the
                methodology used to calculate the allowance for loan losses and the
                size of the
                allowance for loan losses compared to a group of peer banks identified
                by the
                regulators. During their routine examinations of banks, the FDIC
                and the North
                Carolina Commissioner of Banks may require the Company to recognize
                additions to
                the allowance based on their judgments about information available
                to them at
                the time of their examination. </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
                it
                is the Bank's policy to charge off in the current period loans for
                which a loss
                is considered probable, there</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
                    <hr style="COLOR: black" noshade size="2">
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                <div>
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                <div>&#160;</div>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">are
                  additional risks of future losses which cannot be quantified precisely
                  or
                  attributed to particular loans or classes of loans. Because these
                  risks include
                  the state of the economy, management&#8217;s judgment as to the adequacy of the
                  allowance is necessarily approximate and imprecise. After review
                  of all relevant
                  matters affecting loan collectability, management believes that
                  the allowance
                  for loan losses is appropriate.</font></div>
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Company grants loans and extensions of credit primarily within the
                Catawba
                Valley region of North Carolina, which encompasses Catawba, Alexander,
                Iredell
                and Lincoln counties and also in Mecklenburg County. Although the
                Bank has a
                diversified loan portfolio, a substantial portion of the loan portfolio
                is
                collateralized by real estate, which is dependent upon the real estate
                market.
                Non-real estate loans also can be affected by local economic conditions.
                At
                March 31, 2006, approximately 5% of the Company&#8217;s portfolio was not secured by
                any type of collateral. Unsecured loans generally involve higher
                credit risk
                than secured loans and, in the event of customer default, the Company
                has a
                higher exposure to potential loan losses.</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Non-performing
                Assets. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-performing
                assets totaled $5.2 million at March 31, 2006 or 0.68% of total assets,
                compared
                to $5.0 million at December 31, 2005, or 0.68% of total assets. Non-accrual
                loans were $4.9 million at March 31, 2006 and $3.5 million at December
                31, 2005.
                As a percentage of total loans outstanding, non-accrual loans were
                0.82% at
                March 31, 2006 compared to 0.62% at December 31, 2005. The Bank had
                no loans
                ninety days past due and still accruing at March 31, 2006 as compared
                to
                $946,000 at December 31, 2005. Other real estate owned totaled $345,000
                as of
                March 31, 2006 as compared to $531,000 at December 31, 2005. The
                Bank had no
                repossessed assets as of March 31, 2006 or December 31,
                2005.</font></div>
            </div>
          </div>
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            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
              non-performing loans, which include non-accrual loans and loans ninety
              days past
              due and still accruing, were $4.9 million and $4.4 million at March
              31, 2006 and
              December 31, 2005, respectively. The ratio of non-performing loans
              to total
              loans was 0.82% at March 31, 2006, as compared to 0.79% at December
              31, 2005.
</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Deposits.
              </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
              deposits at March 31, 2006 were $613.5 million, an increase of $30.6
              million
              over deposits of $582.9 million at December 31, 2005. Core deposits,
              which
              include non-interest bearing demand deposits, NOW, MMDA, savings and
              certificates of deposits of denominations less than $100,000, decreased
              $1.2
              million to $429.2 million at March 31, 2006 as compared to $430.4 million
              at
              December 31, 2005. Certificates of deposit in amounts greater than
              $100,000 or
              more totaled $184.3 million at March 31, 2006 as compared to $152.4
              million at
              December 31, 2005. At March 31, 2006, brokered deposits amounted to
              $65.5
              million as compared to $40.3 million at December 31, 2005. The increase
              in
              brokered deposits was necessary to fund increased loan demand. Brokered
              deposits
              outstanding as of March 31, 2006 had a weighted average rate of 4.30%
              with a
              weighted average original term of 12 months.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Borrowed
              Funds. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrowings
              from the</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federal
              Home Loan Bank of Atlanta (&#8220;FHLB&#8221;) totaled $69.5 million at March 31, 2006
              compared to $71.6 million at December 31, 2005. The average balance
              of FHLB
              borrowings for the three months ended March 31, 2006 was $79.7 million
              compared
              to $65.9 million for the year ended December 31, 2005. At March 31,
              2006, FHLB
              borrowings with maturities exceeding one year amounted to $67.0 million.
              The
              FHLB has the option to convert $52.0 million of the total advances
              to a floating
              rate and, if converted, the Bank may repay advances without payment
              of a
              prepayment fee. The Company also has an additional $15.0 million in
              variable
              rate convertible advances, which may be repaid without a prepayment
              fee if
              converted by the FHLB. The Company had no federal funds purchased as
              of March
              31, 2006 or December 31, 2005. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
              sold under agreements to repurchase amounted to $3.9 million and $981,000
              as of
              March 31, 2006 and December 31, 2005, respectively.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Junior
              Subordinated Debentures (related to Trust Preferred Securities).
</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
              December 2001 the Company formed a wholly owned Delaware statutory
              trust, PEBK
              Capital Trust I (&#8220;PEBK Trust&#8221;), which issued $14.0 million of guaranteed
              preferred beneficial interests in the Company&#8217;s junior subordinated deferrable
              interest debentures that qualify as Tier 1 capital under Federal Reserve
              Board
              guidelines. All of the common securities of PEBK Trust are owned by
              the Company.
              The proceeds from the issuance of the common securities and the trust
              preferred
              securities were used by PEBK Trust to purchase $14.4 million of junior
              subordinated debentures of the Company, which pay a floating rate equal
              to prime
              plus 50 basis points. The proceeds received by the Company from the
              sale of the
              junior subordinated debentures were used for general purposes, primarily
              to
              provide capital to the Bank. The debentures represent the sole asset
              of PEBK
              Trust. PEBK Trust is not included in the consolidated financial
              statements.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              trust
              preferred securities accrue and pay quarterly distributions based on
              the
              liquidation value of $50,000 per capital security at a floating rate
              of prime
              plus 50 basis points. The Company has guaranteed distributions and
              other
              payments due on the trust preferred securities to the extent PEBK Trust
              has
              funds with which to make the distributions and other payments. The
              net combined
              effect of all the documents entered into in connection with the trust
              preferred
              securities is that the Company is liable to make the distributions
              and other
              payments required on the trust preferred securities.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              trust
              preferred securities are mandatorily redeemable upon maturity of the
              debentures
              on December 31, 2031, or upon earlier redemption as provided in the
              indenture.
              The Company has the right to redeem the debentures purchased by PEBK
              Trust, in
              whole or in part, on or after December 31, 2006. As specified in the
              indenture,
              if the debentures are redeemed prior to maturity, the redemption price
              will be
              the principal amount and any accrued but unpaid interest.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Asset
              Liability and Interest Rate Risk Management. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              objective of the Company&#8217;s Asset Liability and Interest Rate Risk strategies is
              to identify and manage the sensitivity of net interest income to changing
              interest rates and to minimize the interest rate risk between interest-earning
              assets and interest-bearing liabilities at various maturities. This
              is to be
              done in conjunction with the need to maintain adequate liquidity and
              the overall
              goal of maximizing net interest income. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Company manages its exposure to fluctuations in interest rates through
              policies
              established by the Asset/Liability Committee (&#8220;ALCO&#8221;) of the Bank. The ALCO
              meets monthly and has the responsibility for approving asset/liability
              management policies, formulating and implementing strategies to improve
              balance
              sheet positioning and/or earnings and reviewing the interest rate sensitivity
              of
              the Company. ALCO tries to minimize interest rate risk between interest-earning
              assets and interest-bearing liabilities by attempting to minimize wide
              fluctuations in net interest income due to interest rate movements.
              The ability
              to control these fluctuations has a direct impact on the profitability
              of the
              Company. Management monitors this activity on a regular basis through
              analysis
              of its portfolios to determine the difference between rate sensitive
              assets and
              rate sensitive liabilities.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Company&#8217;s rate sensitive assets are those earning interest at variable rates
              and
              those with contractual maturities within one year. Rate sensitive assets
              therefore include both loans and available-for-sale securities. Rate
              sensitive
              liabilities include interest-bearing checking accounts, money market
              deposit
              accounts, savings accounts, time deposits and borrowed funds. The Company&#8217;s
              balance sheet is asset-sensitive, meaning that in a given period there
              will be
              more assets than liabilities subject to immediate repricing as interest
              rates
              change in the market. Because most of the Company&#8217;s loans are tied to the prime
              rate, they reprice more rapidly than rate sensitive interest-bearing
              deposits.
              During periods of rising rates, this results in increased net interest
              income.
              The opposite occurs during periods of declining rates. Average rate
              sensitive
              assets for the three months ended March 31, 2006 totaled $705.0 million,
              exceeding average rate sensitive liabilities of $594.8 million by $110.2
              million.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
              order
              to assist in achieving a desired level of interest rate sensitivity,
              the Company
              entered into off-balance sheet contracts that are considered a derivative
              financial instrument. As of March 31, 2006, the Company had cash flow
              hedges
              with a notional amount of $115.0 million. These derivative instruments
              consist
              of three interest rate floor contracts that are used to hedge future
              cash flows
              of the first $115.0 million of certain variable rate commercial and
              home equity
              loans against the downward effects of their repricing in the event
              of a
              decreasing rate environment for a period of three years ending in July
              2008,
              November 2008 and January 2009. If the prime rate falls below 6.25%
              during the
              term of the contract on the first floor, the Company will receive payments
              based
              on the $35.0 million notional amount times the difference between 6.25%
              and the
              weighted average prime rate for the quarter. No payments will be received
              by the
              Company if the weighted average prime rate is 6.25% or higher. The
              Company paid
              a premium of $161,000 on this contact. On the second floor if the prime
              rate
              falls below 7.00% during the term of the contract, the Company will
              receive
              payments based on the $35.0 million notional amount times the difference
              between
              7.00% and the weighted average prime rate for the quarter. No payments
              will be
              received by the Company if the weighted average prime rate is 7.00%
              or higher.
              The Company paid a premium of $203,000 on this contract. On the third
              floor if
              the prime rate falls below 7.50% during the term of the contract on
              the third
              floor, the Company will receive payments based on the $45.0 million
              notional
              amount times the difference between 7.50% and the weighted average
              prime rate
              for the quarter. No payments will be received by the Company if the
              weighted
              average prime rate is 7.50% or higher. The Company paid a premium of
              $562,500 on
              this contract. The amortization expense recognized on these three interest
              rate
              floor contracts totaled $57,000 for the three month period ended March
              31, 2006.
</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Company settled two previously outstanding interest rate swap agreements
              during
              2005. The first swap, with a notional amount of $25.0 million and scheduled
              to
              mature in April 2006 was sold for a loss of $318,000. The second swap
              with a
              notional amount of $30.0 million and scheduled to mature in September
              2006 was
              sold for a loss of $552,000. The losses realized upon settlement are
              being
              recognized over the original term of the agreements and during the
              three-month
              period, ended March 31, 2006, losses of approximately $196,000 were
              recognized.
</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Bank
              utilizes interest rate floors on certain variable rate loans to protect
              against
              further downward movements in the prime rate. At March 31, 2006, the
              Bank had
              $85.3 million in loans with interest rate floors; however, none of
              the floors
              were in effect pursuant to the terms of the promissory notes on these
              loans.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Bank
              also had $17.2 million in loans with interest rate caps. The weighted
              average
              rate on these loans is 0.86% lower than the indexed rate on the promissory
              notes
              without the interest rate caps.</font></div>
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            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Liquidity.
              </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              objectives of the Company&#8217;s liquidity policy are to provide for the availability
              of adequate funds to meet the needs of loan demand, deposit withdrawals,
              maturing liabilities and to satisfy regulatory requirements. Both deposit
              and
              loan customer cash needs can fluctuate significantly depending upon
              business
              cycles, economic conditions and yields and returns available from alternative
              investment opportunities. In addition, the Company&#8217;s liquidity is affected by
              off-balance sheet commitments to lend in the form of unfunded commitments
              to
              extend credit and standby letters of credit. As of March 31, 2006 such
              unfunded
              commitments to extend credit were $136.1 million, while commitments
              in the form
              of standby letters of credit totaled $2.7 million. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Company uses several sources to meet its liquidity requirements. The
              primary
              source is core deposits, which includes demand deposits, savings accounts
              and
              certificates of deposits of denominations less than $100,000. The Company
              considers these to be a stable portion of the Company&#8217;s liability mix and the
              result of on-going consumer and commercial banking relationships. As
              of March
              31, 2006, the Company&#8217;s core deposits totaled $429.2 million, or 70% of total
              deposits.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              other
              sources of funding for the Company are through large denomination certificates
              of deposit, including brokered deposits, federal funds purchased and
              FHLB
              advances. The Bank is also able to borrow from the Federal Reserve
              System on a
              short-term basis. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
              March
              31, 2006, the Bank had a significant amount of deposits in amounts
              greater than
              $100,000, including brokered deposits of $65.5 million, which mature
              over the
              next two years. The balance and cost of these deposits are more susceptible
              to
              changes in the interest rate environment than other deposits. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Bank
              had a line of credit with the FHLB equal to 20% of the Bank&#8217;s total assets, with
              an outstanding balance of $69.5 million at March 31, 2006. The remaining
              availability at FHLB was $58.3 million at March 31, 2006. The Bank
              also had the
              ability to borrow up to $25.0 million for the purchase of overnight
              federal
              funds from two correspondent financial institutions as of March 31,
              2006.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              liquidity ratio for the Bank, which is defined as net cash, interest
              bearing
              deposits with banks, federal funds sold, certain investment securities
              and
              certain FHLB advances available under the line of credit, as a percentage
              of net
              deposits (adjusted for deposit runoff projections) and short-term liabilities
              was 37.32% at March 31, 2006 and 36.81% at December 31, 2005. The minimum
              required liquidity ratio as defined in the Bank&#8217;s Asset/Liability and Interest
              Rate Risk Management Policy is 20%. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Contractual
              Obligations and Off-Balance Sheet Arrangements. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Company&#8217;s contractual obligations and other commitments as of March 31, 2006
              and
              December 31, 2005 are summarized in the table below. The Company&#8217;s contractual
              obligations include the repayment of principal and interest related
              to FHLB
              advances and junior subordinated debentures, as well as certain payments
              under
              current lease agreements. Other commitments include commitments to
              extend
              credit. Because not all of these commitments to extend credit will
              be drawn
              upon, the actual cash requirements are likely to be significantly less
              than the
              amounts reported for other commitments below.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
              <div align="left">
                <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

                    <tr>
                      <td align="left" valign="bottom" width="63%" style="border-bottom: medium none;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONTRACTUAL
                          OBLIGATIONS AND OTHER COMMITMENTS:</strong></font></div>
                      </td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    </tr>
                    <tr>
                      <td align="left" valign="bottom" width="63%" style="border-bottom: medium none;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Dollars
                          in Thousands)</strong></font></div>
                      </td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    </tr>
                    <tr>
                      <td align="left" valign="bottom" width="63%" style="border-bottom: medium none;">&#160;</td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    </tr>
                    <tr>
                      <td valign="bottom" width="63%" style="border-bottom: #ffffff solid;">&#160;</td>
                      <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                        <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>March
                          31, 2006 </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                      <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                        <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                          31, 2005 </strong></font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                    </tr>
                    <tr>
                      <td valign="bottom" width="63%" style="border-bottom: medium none;">&#160;</td>
                      <td width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                    </tr>
                    <tr bgcolor="#e2eef6">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: #e2eef6;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Contractual
                          Cash Obligations</strong></font></div>
                      </td>
                      <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: white;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                          borrowings</font></div>
                      </td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">67,000</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">67,000
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#e2eef6">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: #e2eef6;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Junior
                          subordinated debentures</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,433
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,433
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: white solid;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                          lease obligations</font></div>
                      </td>
                      <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,478
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,599
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#e2eef6">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: white solid;">
                        <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
                      </td>
                      <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">89,911</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">90,032
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#e2eef6">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: white;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
                          Commitments</strong></font></div>
                      </td>
                      <td width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    </tr>
                    <tr bgcolor="#e2eef6">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: #e2eef6;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                          to extend credit</font></div>
                      </td>
                      <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">136,121</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">133,409
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: white solid;">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Standby
                          letters of credit and financial guarantees written</font></div>
                      </td>
                      <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,694
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,692
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                    </tr>
                    <tr bgcolor="#e2eef6">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                    </tr>
                    <tr bgcolor="white">
                      <td align="left" valign="bottom" width="63%" style="border-bottom: white solid;">
                        <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
                      </td>
                      <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                      </td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138,815</font></div>
                      </td>
                      <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">136,101
                          </font></div>
                      </td>
                      <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                    </tr>

                </table>
              </div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Company enters into derivative contracts to manage various financial
              risks. A
              derivative is a financial instrument that derives its cash flows, and
              therefore
              its value, by reference to an underlying instrument, index or referenced
              interest rate. Derivative contracts are carried at fair value on the
              consolidated balance sheet with the fair value representing the net
              present
              value of expected future cash receipts or payments based on market
              interest
              rates as of the balance sheet date. Derivative contracts are written
              in amounts
              referred to as notional amounts, which only provide the basis for</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">17</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div>
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
              <div>&#160;</div>
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">calculating
                payments between counterparties and are not a measure of financial
                risk. Further
                discussions of derivative instruments are included above in the section
                entitled
&#8220;Asset Liability and Interest Rate Risk Management&#8221;.</font></div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Capital
              Resources. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders&#8217;
              equity at March 31, 2006 was $55.5 million compared to $54.4 million
              at December
              31, 2005. At March 31, 2006 and December 31, 2005, unrealized losses,
              net of
              taxes, amounted to $1.9 million and $1.4 million, respectively. The
              increase in
              unrealized losses at March 31, 2006 is primarily attributable to a
              decrease in
              the market value of available for sale securities and derivative instruments.
              Management expects that accumulated comprehensive income (loss) will
              continue to
              fluctuate due to changes in the market value of available for sale
              investments
              securities and derivative instruments caused by changes in market interest
              rates. Annualized return on average equity for the three months ended
              March 31,
              2006 was 16.04% compared to 9.96% for the year ended December 31, 2005.
              Total
              cash dividends paid during the three months ended March 31, 2006 amounted
              to
              $380,000 as compared to total cash dividends of $345,000 paid for the
              first
              three months of 2005. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
              implementation of a stock repurchase plan implemented in November 2005,
              which
              expires in November 2006, the Company has repurchased $425,000, or
              17,500 shares
              of its common stock.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
              the
              regulatory capital guidelines, financial institutions are currently
              required to
              maintain a total risk-based capital ratio of 8.0% or greater, with
              a Tier 1
              risk-based capital ratio of 4.0% or greater. Tier 1 capital is generally
              defined
              as shareholders' equity and Trust Preferred Securities less all intangible
              assets and goodwill. The Company&#8217;s Tier 1 capital ratio was 10.81% and 11.02% at
              March 31, 2006 and December 31, 2005, respectively. Total risk-based
              capital is
              defined as Tier 1 capital plus supplementary capital. Supplementary
              capital, or
              Tier 2 capital, consists of the Company's allowance for loan losses,
              not
              exceeding 1.25% of the Company's risk-weighted assets. Total risk-based
              capital
              ratio is therefore defined as the ratio of total capital (Tier 1 capital
              and
              Tier 2 capital) to risk-weighted assets. The Company&#8217;s total risk-based capital
              ratio was 11.97% and 12.19% at March 31, 2006 and December 31, 2005,
              respectively. In addition to the Tier 1 and total risk-based capital
              requirements, financial institutions are also required to maintain
              a leverage
              ratio of Tier 1 capital to total average assets of 4.0% or greater.
              The
              Company&#8217;s Tier 1 leverage capital ratio was 9.56% and 9.84% at March 31, 2006
              and December 31, 2005, respectively. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              Bank&#8217;s Tier 1 risk-based capital ratio was 10.30% and 10.46% at March 31,
              2006
              and December 31, 2005, respectively. The total risk-based capital ratio
              for the
              Bank was 11.47% and 11.64% at March 31, 2006 and December 31, 2005,
              respectively. The Bank&#8217;s Tier 1 leverage capital ratio was 9.10% and 9.33% at
              March 31, 2006 and December 31, 2005, respectively. </font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
              bank is
              considered to be "well capitalized" if it has a total risk-based capital
              ratio
              of 10.0 % or greater, a Tier 1 risk-based capital ratio of 6.0% or
              greater, and
              has a leverage ratio of 5.0% or greater. Based upon these guidelines,
              the Bank
              was considered to be "well capitalized" at March 31, 2006.</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div id="FTR">
                  <div id="GLFTR" style="WIDTH: 100%" align="left">
                  </div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always">
                  <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">18</font></div>
                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR">
                  <div id="GLHDR" style="WIDTH: 100%" align="right">
                  </div>
                </div>
              </div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
              <div align="left">
                <table cellpadding="0" cellspacing="0" width="100%">

                    <tr>
                      <td align="left" valign="top" width="8%">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                          3.</strong></font></div>
                      </td>
                      <td align="left" valign="top" width="52%">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Quantitative
                          and Qualitative Disclosures About Market
                          Risk</strong></font></div>
                      </td>
                    </tr>

                </table>
              </div><br>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
                have been no material changes in the quantitative and qualitative
                disclosures
                about market risks as of March 31, 2006 from that presented in the
                Company&#8217;s
                Annual Report on Form 10-K for the fiscal year ended December 31,
                2005.</font></div>
            </div>
          </div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div id="FTR">
                  <div id="GLFTR" style="WIDTH: 100%" align="left">
                  </div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always">
                  <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR">
                  <div id="GLHDR" style="WIDTH: 100%" align="right">
                  </div>
                </div>
              </div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
              <div align="left">
                <table cellpadding="0" cellspacing="0" width="100%">

                    <tr>
                      <td align="left" valign="top" width="8%">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                          4.</strong></font></div>
                      </td>
                      <td align="left" valign="top" width="52%">
                        <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Controls
                          and Procedures</strong></font></div>
                      </td>
                    </tr>

                </table>
              </div><br>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Company&#8217;s management, with the participation of the Company&#8217;s Chief Executive
                Officer and Chief Financial Officer, has evaluated the effectiveness
                of the
                Company&#8217;s disclosure controls and procedures (as such term is defined in
                Rules
                13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934,
                as amended
                (the &#8220;Exchange Act&#8221;)) as of the end of the period covered by this report. Based
                on such evaluation, the Company&#8217;s Chief Executive Officer and Chief Financial
                Officer have concluded that, as of the end of such period, the Company&#8217;s
                disclosure controls and procedures are effective in recording, processing,
                summarizing and reporting, on a timely basis, information required
                to be
                disclosed by the Company in the reports that it files or submits
                under the
                Exchange Act.</font></div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
              have not been any changes in the Company&#8217;s internal control over financial
              reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f)
              under the
              Exchange Act) during the fiscal quarter to which this report relates
              that have
              materially affected, or are reasonably likely to materially affect,
              the
              Company&#8217;s internal control over financial
              reporting.</font></div>
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div><br>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="8%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
                  II.</strong></font></div>
              </td>
              <td align="left" valign="top" width="52%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OTHER
                  INFORMATION</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="top" width="52%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                  1.</strong></font></div>
              </td>
              <td align="left" valign="top" width="52%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legal
                  Proceedings</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="8%">&#160;</td>
              <td width="52%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                the opinion of management, the Company is not involved in any pending
                legal proceedings other than routine, non-</font></td>
            </tr>
            <tr bgcolor="white">
              <td width="8%">&#160;</td>
              <td width="52%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">material
                proceedings occuring in the ordinary course of
                business.</font></td>
            </tr>

        </table><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    </div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                    1A.</strong></font></div>
                </td>
                <td align="left" valign="top" width="52%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risk
                    Factors</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="8%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="52%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
                are no material changes from the risk factors as previously disclosed
                in
                the Company's Form 10-K in response to Item</font></td>
            </tr>
            <tr bgcolor="white">
              <td width="8%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="52%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1A.
                to Part I to Form 10-K, filed with the Securities and Exchange Commission
                on March 24, 2006.</font></td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                    2.</strong></font></div>
                </td>
                <td align="left" valign="top" width="52%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unregistered
                    Sales of Equity Securities and Use of
                    Proceeds</strong></font></div>
                </td>
              </tr>

          </table>
        </div><br>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<br>
        <div align="right">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="87%">

              <tr>
                <td align="left" colspan="14" valign="bottom" width="76%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ISSUER
                    PURCHASES OF EQUITY SECURITIES </strong></font>&#160;&#160;</div>
                </td>
                <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="27%" style="border-bottom: medium none;">&#160;</td>
                <td width="3%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="27%" style="border-bottom: black thin solid;">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Period
                    </strong></font></div>
                </td>
                <td width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total
                    Number of Shares Purchased </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                  <div align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Average
                    Price Paid per Share </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total
                    Number</strong></font></div>
                  <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;of
                    Shares Purchased as Part of Publicly Announced Plans or Programs
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                  <div align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maximum
                    Number (or Approximate Dollar Value) of Shares that May Yet Be
                    Purchased
                    Under the Plans or Programs </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="27%" style="border-bottom: medium none;">&#160;</td>
                <td width="3%" style="border-bottom: medium none;">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="5%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;&#160;</td>
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                <td valign="bottom" width="27%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td colspan="2" valign="bottom" width="5%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="border-bottom: #e2eef6;">
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&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-&#160;&#160;
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                <td align="left" valign="bottom" width="4%" style="border-bottom: #e2eef6;">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td colspan="2" valign="bottom" width="5%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                <td colspan="2" valign="bottom" width="16%" style="border-bottom: #e2eef6;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
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              <tr bgcolor="white">
                <td valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                <td width="3%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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              <tr bgcolor="#e2eef6">
                <td valign="bottom" width="27%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">February
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                </td>
                <td width="3%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: #e2eef6;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23.83
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                <td align="left" valign="bottom" width="4%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                  <div>&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: #e2eef6;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,000,000
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                <td width="3%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td valign="bottom" width="27%" style="border-bottom: #e2eef6 solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
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                </td>
                <td width="3%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
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                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24.29
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                <td align="left" valign="bottom" width="4%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,500
                    </font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: #e2eef6 thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2)</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,575,000
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                <td width="3%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="27%" style="border-bottom: #e2eef6 solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total
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                </td>
                <td width="3%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>24.27
                    </strong></font></div>
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                <td align="left" valign="bottom" width="4%" style="border-bottom: #e2eef6 solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>17,500
                    </strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #e2eef6 thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>1,575,000
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6 solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                <td width="3%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" colspan="20" valign="bottom" width="100%" style="border-bottom: #e2eef6;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
                    The Company purchased 509 shares on the open market in February
                    2006 for
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                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                <td width="3%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="13%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                    The Company purchased 17,500 shares in March 2006, pursuant to
                    a $2.0
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                    22, 2005.
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                    2006.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2"><br></font>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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                </td>
                <td align="right" valign="top" width="52%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Defaults
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                <td align="left" valign="top" width="8%">&#160;</td>
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              <tr>
                <td align="left" valign="top" width="8%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
                    applicable</font></div>
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              <tr>
                <td align="left" valign="top" width="8%">&#160;</td>
                <td align="left" valign="top" width="52%">&#160;</td>
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              <tr>
                <td align="left" valign="top" width="8%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                    4. </strong></font></div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Submission
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                <td align="left" valign="top" width="8%">&#160;</td>
                <td align="left" valign="top" width="52%">&#160;</td>
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              <tr>
                <td align="left" valign="top" width="8%">&#160;</td>
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              <tr>
                <td align="left" valign="top" width="8%">&#160;</td>
                <td align="left" valign="top" width="52%">&#160;</td>
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              <tr>
                <td align="left" valign="top" width="8%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                    5. </strong></font></div>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
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              <tr>
                <td align="left" valign="top" width="8%">&#160;</td>
                <td align="left" valign="top" width="52%">&#160;</td>
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              <tr>
                <td align="left" valign="top" width="8%">&#160;</td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
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        <div id="HDR">
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          </div>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
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              </tr>
              <tr>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
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                    and
                    </font></div>
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exchange
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporated
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
                    and Exchange Commission on March 26, 2004</font></div>
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
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                    8-</font></div>
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              <tr>
                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
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                    2,
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
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              <tr>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
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                    Securities
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exchange
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                </td>
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
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              <tr>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporated
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
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                <td align="left" valign="top" width="10%">
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporated
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                <td align="left" valign="top" width="60%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">&#160;</td>
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                <td align="left" valign="top" width="10%">
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
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                <td align="left" valign="top" width="10%">&#160;</td>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
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                <td align="left" valign="top" width="10%">&#160;</td>
                <td align="left" valign="top" width="60%">
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                    </font></div>
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            thereunto
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                <td align="left" valign="top" width="41%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Peoples
                    Bancorp of North Carolina, Inc.</font></div>
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                <td align="left" valign="top" width="17%">&#160;</td>
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                <td align="left" valign="top" width="41%">&#160;</td>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.(A)
<SEQUENCE>2
<FILENAME>ex31_a.htm
<DESCRIPTION>EXHIBIT (31)(A)
<TEXT>
<html>
  <head>
    <title>
      Exhibit (31)(a)
</title>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
        (31)(a)</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
          Tony
          W. Wolfe, certify that:</font></div>
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            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
                  have reviewed this quarterly report on Form 10-Q of Peoples Bancorp
                  of
                  North Carolina Inc.;</font></div>
              </td>
            </tr>

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              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                  on my knowledge, this report does not contain any untrue statement
                  of a
                  material fact or omit to state a material fact necessary to make
                  the
                  statements made, in light of the circumstances under which such
                  statements
                  were made, not misleading with respect to the period covered by
                  this
                  report;</font></div>
              </td>
            </tr>

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              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                  on my knowledge, the financial statements, and other financial
                  information
                  included in this quarterly report, fairly present in all material
                  respects
                  the financial condition, results of operations and cash flows of
                  the
                  registrant as of, and for, the periods presented in this
                  report;</font></div>
              </td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  registrant&#8217;s other certifying officer and I are responsible for
                  establishing and maintaining disclosure controls and procedures
                  (as
                  defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
                  registrant
                  and have:</font></div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">designed
                  such disclosure controls and procedures, or caused such disclosure
                  controls and procedures to be designed under our supervision, to
                  ensure
                  that material information relating to the registrant, including
                  its
                  consolidated subsidiaries, is made known to us by others within
                  those
                  entities, particularly during the period in which this report is
                  being
                  prepared;</font></div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">evaluated
                  the effectiveness of the registrant&#8217;s disclosure controls and procedures
                  and presented in this report our conclusions about the effectiveness
                  of
                  the disclosure controls and procedures, as of the end of the period
                  covered by this report based on such evaluation;
                  and</font></div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">disclosed
                  in this report any change in the registrant&#8217;s internal control over
                  financial reporting that occurred during the registrant&#8217;s most recent
                  fiscal quarter (the registrant&#8217;s fourth fiscal quarter in the case of an
                  annual report) that has materially affected, or is reasonably likely
                  to
                  materially affect the registrant&#8217;s internal control over financial
                  reporting; and</font></div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  registrant&#8217;s other certifying officer and I have disclosed, based on our
                  most recent evaluation of internal control over financial reporting,
                  to
                  the registrant&#8217;s auditors and the audit committee of registrant&#8217;s board of
                  directors (or persons performing the equivalent
                  functions):</font></div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
                significant deficiencies and material weaknesses in the design or
                operation of internal control over financial reporting which are
                reasonably likely to adversely affect the registrant's ability to
                record,
                process, summarize and report&#160;financial information;
                and&#160;</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                fraud, whether or not material, that involves managment or other
                employees
                who have a significant role in the registrant's internal control
                over
                financial reporting.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                    11, 2006</font></div>
                </td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" valign="top" width="41%" style="border-bottom: black thin solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                    Tony W. Wolfe</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date</font></div>
                </td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" valign="top" width="41%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tony
                    W. Wolfe</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" valign="top" width="41%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                    and Chief Executive Officer</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="15%">&#160;</td>
                <td align="left" valign="top" width="41%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Principal
                    Executive Officer)</font></div>
                </td>
              </tr>

          </table>
        </div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.(B)
<SEQUENCE>3
<FILENAME>ex-31_b.htm
<DESCRIPTION>EXHIBIT (31)(B)
<TEXT>
<html>
  <head>
    <title>
      Exhibit (31)(b)
</title>
<!-- Licensed to: Peoples Bank-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      (31)(b)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
      A.
      Joseph Lampron, certify that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
                have reviewed this quarterly report on Form 10-Q of Peoples Bancorp
                of
                North Carolina Inc.;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, this report does not contain any untrue statement
                of a
                material fact or omit to state a material fact necessary to make
                the
                statements made, in light of the circumstances under which such statements
                were made, not misleading with respect to the period covered by this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on my knowledge, the financial statements, and other financial information
                included in this quarterly report, fairly present in all material
                respects
                the financial condition, results of operations and cash flows of
                the
                registrant as of, and for, the periods presented in this
                report;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                registrant&#8217;s other certifying officer and I are responsible for
                establishing and maintaining disclosure controls and procedures (as
                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
                and have:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">designed
                such disclosure controls and procedures, or caused such disclosure
                controls and procedures to be designed under our supervision, to
                ensure
                that material information relating to the registrant, including its
                consolidated subsidiaries, is made known to us by others within those
                entities, particularly during the period in which this report is
                being
                prepared;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">evaluated
                the effectiveness of the registrant&#8217;s disclosure controls and procedures
                and presented in this report our conclusions about the effectiveness
                of
                the disclosure controls and procedures, as of the end of the period
                covered by this report based on such evaluation ;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">disclosed
                in this report any change in the registrant&#8217;s internal control over
                financial reporting that occurred during the registrant&#8217;s most recent
                fiscal quarter (the registrant&#8217;s fourth fiscal quarter in the case of an
                annual report) that has materially affected, or is reasonably likely
                to
                materially affect the registrant&#8217;s internal control over financial
                reporting; and </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                registrant&#8217;s other certifying officer and I have disclosed, based on our
                most recent evaluation of internal control over financial reporting,
                to
                the registrant&#8217;s auditors and the audit committee of registrant&#8217;s board of
                directors (or persons performing the equivalent
                functions):</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
                significant deficiencies and material weaknesses in the design or
                operation of internal control over financial reporting which are
                reasonably likely to adversely affect the registrant&#8217;s ability to record,
                process, summarize and report financial information;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                fraud, whether or not material, that involves management or other
                employees who have a significant role in the registrant&#8217;s internal control
                over financial reporting.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>&#160;</div>
    <div><br>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="22%" style="border-bottom: black thin solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
                  11, 2006</font></div>
              </td>
              <td align="left" valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="41%" style="border-bottom: black thin solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  A. Joseph Lampron</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="22%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date</font></div>
              </td>
              <td align="left" valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="41%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A.
                  Joseph Lampron</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="22%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="41%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                  Vice President and Chief Financial Officer</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="22%">&#160;</td>
              <td align="left" valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="41%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Principal
                  Financial and Principal Accounting
                  Officer)</font></div>
              </td>
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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>ex32.htm
<DESCRIPTION>EXHIBIT (32)
<TEXT>
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    <title>
      Exhibit (32)
</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      (32)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PEOPLES
      BANCORP OF NORTH CAROLINA, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Certification
      of Periodic Financial Report</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to 18 U.S.C. Section 1350</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002, each of the undersigned officers of Peoples Bancorp
      of North Carolina, Inc. (the &#8220;Company&#8221;) certifies that the Quarterly Report on
      Form 10-Q of the Company for the quarter ended March 31, 2006 fully complies
      with the requirements of Section 13(a) or 15(d), as applicable, of the
      Securities Exchange Act of 1934 and information contained in that Form 10-Q
      fairly presents, in all material respects, the financial condition and results
      of operations of the Company.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                    May 11, 2006</font></div>
                </td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                    Tony W. Wolfe</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">&#160;</td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tony
                    W. Wolfe</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">&#160;</td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                    Executive Officer</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">&#160;</td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">&#160;</td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%">&#160;</td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                    May 11, 2006</font></div>
                </td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%" style="border-bottom: black thin solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                    A. Joseph Lampron</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">&#160;</td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A.
                    Joseph Lampron</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="25%">&#160;</td>
                <td align="left" valign="top" width="30%">&#160;</td>
                <td align="left" valign="top" width="22%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                    Financial Officer</font></div>
                </td>
                <td align="left" valign="top" width="8%">&#160;</td>
              </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*This
      certification is made solely for purpose of 18 U.S.C. Section 1350, subject
      to
      the knowledge standard contained therein, and not for any other
      purpose</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
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