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<SEC-DOCUMENT>0001181431-07-007020.txt : 20070131
<SEC-HEADER>0001181431-07-007020.hdr.sgml : 20070131
<ACCEPTANCE-DATETIME>20070131100338
ACCESSION NUMBER:		0001181431-07-007020
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070126
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070131
DATE AS OF CHANGE:		20070131

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BANK OF THE JAMES FINANCIAL GROUP INC
		CENTRAL INDEX KEY:			0001275101
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				200500300
		STATE OF INCORPORATION:			VA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-50548
		FILM NUMBER:		07566560

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 1200
		CITY:			LYNCHBURG
		STATE:			VA
		ZIP:			24505
		BUSINESS PHONE:		4348462000
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd144843.htm
<TEXT>
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<B><P ALIGN="CENTER"><A NAME="OLE_LINK16"><A NAME="OLE_LINK17">SECURITIES AND EXCHANGE COMMISSION</B><BR>
<B><FONT SIZE=3>Washington, D.C. 20549</P>
<P ALIGN="CENTER">--------------</P>
</FONT><FONT SIZE=4><P ALIGN="CENTER">FORM 8-K</P>
</B></FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">Current Report</P>
<FONT SIZE=3><P ALIGN="CENTER">Pursuant to Section 13 or 15(d)</P>
<P ALIGN="CENTER">of The Securities Exchange Act of 1934</B> </P>
<B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">Date of Report (Date of Earliest Event Reported): January 26, 2007</P>
<P ALIGN="CENTER">---------------</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<U><P ALIGN="CENTER">BANK OF THE JAMES FINANCIAL GROUP, INC.</P>
</B></U><P ALIGN="CENTER">(Exact Name of Registrant as Specified in Its Charter)</P>
<P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">&nbsp;</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=646>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">Virginia</P>
</B></U><FONT SIZE=3><P ALIGN="CENTER">(State or other jurisdiction of</P>
<P ALIGN="CENTER">incorporation or organization)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="CENTER">000-50548</P>
</B></U><P ALIGN="CENTER">(Commission File Number)</FONT></TD>
<TD WIDTH="41%" VALIGN="TOP">
<B><U><P ALIGN="CENTER">20-0500300</P>
</B></U><FONT SIZE=3><P ALIGN="CENTER">(I.R.S. Employer</P>
<P ALIGN="CENTER">Identification No.)</P>
<B><P ALIGN="CENTER"></B></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="CENTER"></A></A>828 Main Street, Lynchburg, VA</P>
</B></U><P ALIGN="CENTER">(Address of principal executive offices)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="41%" VALIGN="TOP">
<B><U><FONT SIZE=3><P ALIGN="CENTER">24504</P>
</B></U><P ALIGN="CENTER">(Zip Code)</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="41%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=3>
<B><U><FONT SIZE=3><P ALIGN="CENTER">(434) 846-2000</P>
</B></U><P ALIGN="CENTER">(Registrant's telephone number, including area code)</P>
<B><U><P ALIGN="CENTER"></B></U></FONT></TD>
</TR>
</TABLE>
<B><FONT SIZE=3><P ALIGN="CENTER">&nbsp;</P>
</B><P ALIGN="CENTER">&nbsp;</P>
<P>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<DIR>
<DIR>
<DIR>
<DIR>
<P>[  ]&#9;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P>[  ]&#9;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P>[  ]&#9;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P>[  ]&#9;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
</FONT>
<P>&nbsp;</P></DIR>
</DIR>
</DIR>
</DIR>
<B><P>Item 2.02  -  Results of Operations and Financial Condition</P>
</B>
<P>On Friday, <A NAME="Text1">January 26, 2007</A>, Bank of the James Financial Group, Inc. (the &quot;Company&quot;) issued a press release announcing its earnings for the fiscal quarter ended <A NAME="Text2">December 31, 2006</A>, the Company's fourth fiscal quarter.  A copy of the press release is attached hereto as <U>Exhibit 99.1</U> (the &quot;Press Release&quot;).</P>
<B><P>Item 9.01  -  Financial Statements and Exhibits.</P>
</B>
<P>(a)  Financial statements of businesses acquired - not applicable</P>
<P>(b)  Pro forma financial information - not applicable</P>
<P>(c)  Exhibits</P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=511>
<TR><TD WIDTH="21%" VALIGN="TOP">
<U><P>Exhibit No.</U></TD>
<TD WIDTH="79%" VALIGN="TOP">
<U><P>Exhibit Description</U></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP">
<P>99.1</TD>
<TD WIDTH="79%" VALIGN="TOP">
<P>Bank of the James Financial Group, Inc. Press Release dated January 26, 2007</TD>
</TR>
</TABLE>
</CENTER></P>
<B><P ALIGN="CENTER">SIGNATURE</P>
</B>
<P>&#9;In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
<FONT SIZE=3></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=544>
<TR><TD WIDTH="49%" VALIGN="TOP">
<P>Date:  January 31, 2007</TD>
<TD WIDTH="51%" VALIGN="TOP">
<P>BANK OF THE JAMES FINANCIAL GROUP, INC.</P>
</TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="51%" VALIGN="TOP">
<P>By <U>/s/ J. Todd Scruggs&#9;</P><DIR>
</U><P>J. Todd Scruggs</P>
<P>Secretary-Treasurer</DIR>
</TD>
</TR>
</TABLE>
</CENTER></P>
<B><P ALIGN="CENTER">EXHIBIT INDEX</P>
</B>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="17%" VALIGN="TOP">
<U><P ALIGN="CENTER">Exhibit No.</U></TD>
<TD WIDTH="83%" VALIGN="TOP">
<U><P>Exhibit Description</U></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP" HEIGHT=3>
<P ALIGN="CENTER">99.1</TD>
<TD WIDTH="83%" VALIGN="TOP" HEIGHT=3>
<P>Bank of the James Financial Group, Inc. Press Release dated January 26, 2007</TD>
</TR>
</TABLE>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd144843_18127.htm
<TEXT>
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<META NAME="_AdHocReviewCycleID" CONTENT="-1845009380">
<META NAME="_EmailSubject" CONTENT="press release">
<META NAME="_AuthorEmail" CONTENT="todd.scruggs@bankofthejames.com">
<META NAME="_AuthorEmailDisplayName" CONTENT="Todd Scruggs">
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<U><FONT SIZE=3><P ALIGN="RIGHT">Exhibit 99.1</P>
</U><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">Contact:  J. Todd Scruggs, Executive Vice President and CFO</P>
<P ALIGN="RIGHT">(434) 846-2000 tscruggs@bankofthejames.com</P>
<B>
</FONT><P ALIGN="RIGHT">For Immediate Release</P>
</B>
<B><FONT SIZE=4><P ALIGN="CENTER">Bank of the James Financial Group, Inc. Announces Results </P>
<P ALIGN="CENTER">For 4th Quarter 2006 - Quarterly Net Income is Highest in Company's History </P>
</B></FONT>
<P>Lynchburg, Va., January 26, 2007.........Bank of the James Financial Group, Inc. (OTCBB:BOJF) (the &quot;Company&quot;) (quarterly and 2006 year-to-date consolidated results unaudited) reported today total net income after tax of $565,000 or $0.28 per basic share ($0.26 diluted) for the quarter ended December 31, 2006 and $1,765,000 or $0.88 per basic share ($0.82 diluted) year-to-date compared to net income of $535,000 or $0.27 per basic share ($0.26 diluted) and $1,791,000 or $0.90 per basic share ($0.86 diluted) for the respective periods a year ago.  </P>
<P>The Company's net interest margin decreased 14 basis points from 4.73% for the 12 month period ended December 31, 2005 to 4.59% for the period ended December 31, 2006.  This decrease contributed to the 1.5% decline in year-to-date net income from 2005 to 2006.  The Bank's President and CEO, Robert R. Chapman III, commented &quot;Despite the slight decline in net earnings from 2006 to 2005, we were satisfied with our performance this past year, particularly the increase in net income in the fourth quarter.  We recognized that 2006 would be challenging given our expansion plans and the rising interest rate environment.  However, with the additional equity raised in the recent capital offering, we believe the company remains strategically positioned to accommodate our future growth plans.&quot;</P>
<P>The fourth quarter 2006 net income figure represents the highest quarterly net income achieved in the Company's history.  Return on average assets and return on average equity in the fourth quarter 2006 was 1.01% and 13.52% respectively, as compared to 1.10% and 14.62% in the same period a year ago.</P>
<P>Strong balance sheet growth in the fourth quarter 2006, specifically loan growth, contributed to the increased quarterly earnings.  Loans, net of unearned income and loan loss provision, increased from $155,480,000 as of December 31, 2005 to $187,469,000 as of the end of December 31, 2006, an increase of 20.6%.  Approximately $13,449,000 of this increase occurred in the fourth quarter 2006.  In addition, management expects that the additional equity raised in the recent capital offering, approximately $5,147,000, will allow the Bank, among other things, to continue to grow its loan portfolio.</P>
<P>Deposits, which funded the increase in loans, increased from $173,956,000 as of December 31, 2005 to $201,789,000 as of December 31, 2006, an increase of 16.0%.  As a result of the capital offering, the Company's book value per share increased from $7.33 as of December 31, 2005 to $9.55 as of December 31, 2006, an increase of $2.22 per share.</P>
<P>The growth in loans, deposits and equity capital contributed to the overall growth of the balance sheet.  Total assets as of December 31, 2006 were $232,709,000 compared to $195,852,000 at the end of 2005, an increase of $36,857,000 or 18.8%. </P>
<P>Non interest income also increased from $2,091,000 in the period ended December 31, 2005 to $2,314,000 in the period ended December 31, 2006, an increase of 10.7%.  The increase is attributable to fees derived from increased mortgage origination volume as well as revenue from the Bank's investment in a title insurance company.</P>
<P>Bank of the James, a wholly owned subsidiary of Bank of the James Financial Group, Inc., currently operates seven full service locations as well as mortgage origination offices in Forest and Moneta, Virginia.  Bank of the James Financial Group, Inc. common stock is quoted on the Over The Counter Bulletin Board under the symbol &quot;BOJF&quot; (some web sites require BOJF.OB to quote).</P>
<P>Selected financial highlights are shown below.</P>
<P ALIGN="CENTER"># # #</P>
<I><FONT SIZE=3><P>Cautionary Statement Regarding Forward-Looking Statements</P>
</I></FONT>
<FONT SIZE=3><P>This press release contains statements that constitute &quot;forward-looking statements&quot; within the meaning of the Private Securities Litigation Reform Act of 1995.  The words &quot;believe,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;anticipate,&quot; &quot;plan&quot; and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were made.  Bank of the James Financial Group (the &quot;Company&quot;) undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.  Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.  Such factors include, but are not limited to competit
ion, general economic conditions, potential changes in interest rates, and changes in the value of real estate securing loans made by Bank of the James (the &quot;Bank&quot;), a subsidiary of Bank of the James Financial Group, Inc.  Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission and previously filed by the Bank (as predecessor of the Company) with the Federal Reserve Board.</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER"># # #</P>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="61%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=21>
<B><P>Bank of the James Financial Group, Inc. and Subsidiaries</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=21>
<B><P>(000's) except ratios and percent data</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=21>
<B><P>unaudited</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=105>
<B><P>Selected Data:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Interest income</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$4,005</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$3,300</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">21.36%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$14,680</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$12,028</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">22.05%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Interest expense</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,635</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,124</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">45.46%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">5,684</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">3,779</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">50.41%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Net Interest income</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,370</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,176</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">8.92%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">8,996</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">8,249</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">9.06%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Provision for loan losses</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">141</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">174</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-18.97%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">630</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">803</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-21.54%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Noninterest income</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">677</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">481</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">40.75%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,314</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,091</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">10.66%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Noninterest expense</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,015</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,672</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">20.51%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">7,933</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">6,826</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">16.22%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Income taxes</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">326</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">276</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">18.12%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">982</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">920</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">6.74%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Net income</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">565</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">535</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">5.61%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,765</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,791</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-1.45%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<P>Weighted Average Shares Outstanding</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">2,028,993</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">2,001,309</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1.38%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">2,014,768</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1,988,118</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1.34%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Basic net income per share</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.28</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.27</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.01</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.88</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.90</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$(0.02)</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Fully diluted net income per share</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.26</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.26</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$-</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.82</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.86</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$(0.04)</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<B><P>Balance Sheet at</P>
<P>period end:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2004</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Loans, net</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$187,469</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$155,480</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">20.57%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$155,480</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$140,272</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">10.84%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total securities</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">26,191</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">23,919</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">9.50%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">23,919</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">19,911</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">20.13%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total deposits</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">201,789</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">173,956</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">16.00%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">173,956</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">153,834</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">13.08%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Stockholders' equity</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">21,931</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14,676</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">49.44%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14,675</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12,786</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.77%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total assets</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">232,709</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">195,852</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">18.82%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">195,852</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">171,025</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.52%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Shares Outstanding</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,296,424</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,001,309</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">295,115</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,001,309</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,935,824</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">65,485</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Book value per share</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">9.55</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">7.33</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2.22</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">7.33</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">6.60</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$0.73</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=105>
<P>&nbsp;</P>
<B><P>Daily averages:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=105>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Loans, net</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$178,634</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$155,574</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.82%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$155,852</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$147,813</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">5.44%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total securities</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">27,285</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">25,010</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">9.10%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">26,083</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">23,282</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12.03%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total deposits</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">194,288</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">169,489</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.63%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">182,997</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">164,169</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">11.47%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Stockholders' equity</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">16,585</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14,520</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.22%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">15,594</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">13,830</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12.76%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Interest earning assets</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">209,743</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">183,645</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.21%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">196,180</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">174,547</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12.39%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Interest bearing liabilities</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">172,529</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">152,025</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">13.49%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">164,117</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">145,838</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12.53%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total Assets</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">221,118</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">192,498</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.87%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">207,381</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">183,770</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12.85%</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=102>
<B><P>Financial Ratios:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=102>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=102>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=102>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=102>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=102>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=102>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Return on average assets</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1.01%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1.10%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(0.09)</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">0.85%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">0.97%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(0.12)</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Return on average equity</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">13.52%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">14.62%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(1.10)</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">11.32%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12.95%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(1.63)</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Net Interest Margin</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">4.48%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">4.70%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(0.22)</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">4.59%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">4.73%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(0.14)</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Efficiency ratio</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">66.13%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">62.93%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">3.20</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">70.14%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">66.02%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">4.13</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<P>Average Equity to average assets</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">7.50%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">7.54%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">(0.04)</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">7.52%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">7.53%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">(0.01)</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=118>
<B><P>Allowance for loan losses:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=118>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=118>
<B><P ALIGN="CENTER">Three</P>
<P ALIGN="CENTER">months</P>
<P ALIGN="CENTER">ending</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=118>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=118>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=118>
<B><P ALIGN="CENTER">Year</P>
<P ALIGN="CENTER">to</P>
<P ALIGN="CENTER">date</P>
<P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=118>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Beginning balance</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$2,013</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$1,684</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">19.54%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$1,777</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">$1,419</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">25.23%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Provision for losses</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">141</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">174</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-18.97%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">630</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">803</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-21.54%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Charge-offs</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(108)</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(93)</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">16.13%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(403)</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">(485)</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-16.91%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Recoveries</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">45</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">12</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">275.00%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">87</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">40</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">117.50%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Ending balance</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,091</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,777</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">17.67%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">2,091</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,777</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">17.67%</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<B><P>Nonperforming assets:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2004</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Nonaccrual loans</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">646</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">261</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">147.51%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">261</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">380</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-31.32%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Restructured loans</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">none</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">none</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">none</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">none</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total nonperforming loans</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">646</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">261</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">147.51%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">261</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">380</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-31.32%</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Other real estate owned</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">535</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">none</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">none</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">85</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=21>
<P>Total nonperforming assets</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">1,181</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">261</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">352.49%</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">261</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">465</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=21>
<P ALIGN="RIGHT">-43.87%</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=681>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<B><P>Asset quality ratios:</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2006</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Change</B></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2005</B></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Dec 31,</P>
<P ALIGN="CENTER">2004</B></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<B><P ALIGN="CENTER">Change</B></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<P> Nonperforming loans to total loans</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">0.34%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">0.17%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">0.17</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">0.17%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">0.27%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">(0.10)</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<P>Allowance for loan losses to total loans</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1.10%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1.13%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">(0.03)</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1.13%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">1.00%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">0.13</TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=42>
<P>Allowance for loan losses to nonperforming loans</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">323.68%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">680.84%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">(357.16)</TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">680.84%</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">373.42%</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=42>
<P ALIGN="RIGHT">307.42</TD>
</TR>
</TABLE>
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