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<SEC-DOCUMENT>0001181431-07-029175.txt : 20070503
<SEC-HEADER>0001181431-07-029175.hdr.sgml : 20070503
<ACCEPTANCE-DATETIME>20070503093926
ACCESSION NUMBER:		0001181431-07-029175
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070420
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070503
DATE AS OF CHANGE:		20070503

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:		07813145

	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>rrd156807.htm
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
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<b>UNITED STATES </b></font></div>

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<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

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<b>Washington, D.C. 20549 </b></font></div>

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<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

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<b>Current Report </b></font></div>

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<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

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<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;04/20/2007 </b></font></div>




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<b>BANK OF THE JAMES FINANCIAL GROUP INC </b></font></div>

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<b>(Exact name of registrant as specified in its charter)</b></font></div>

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<b>Commission File Number:&nbsp;&nbsp;000-50548</b></font></div>

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<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>VA</b></font>
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<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>20-0500300</b></font>
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<b>(State or other jurisdiction of</b></font>
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<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
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<b>incorporation)</b></font>
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</td>
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<b>Identification No.)</b></font>
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<div><font Size="1">&nbsp;</font></div>

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<b>828 Main St., P.O. Box 1200, Lynchburg, VA 24504</b></font></div>


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<b>(Address of principal executive offices, including zip code)</b></font>
</div>

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<b>434-846-2000 </b></font>
</div>

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<b>(Registrant&#146;s telephone number, including area code)</b></font>
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<b> </b></font>
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<b>(Former name or former address, if changed since last report) </b></font>
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</div>




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<b>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:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</b>

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Information to be included in the report</b>
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<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
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</div>

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On Friday, April 20, 2007, Bank of the James Financial Group, Inc. (the "Company") issued a press release announcing its earnings for the fiscal quarter ended March 31, 2007, the Company's first fiscal quarter. A copy of the press release is attached hereto as Exhibit 99.1 (the "Press Release").</font>
</div>

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<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

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</div>

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(a) Financial statements of businesses acquired - not applicable<p>(b) Pro forma financial information - not applicable<p>(c) Exhibits<p>&nbsp;&nbsp;&nbsp; Exhibit 99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank of the James Financial Group, Inc. Press Release dated April 20, 2007</font>
</div>

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<b>Signature(s) </b></font>
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </font>
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	</font>
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	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	BANK OF THE JAMES FINANCIAL GROUP INC</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: May 02, 2007</font>
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	<td> <font Size="1">&nbsp;</font>
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	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
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	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;J. Todd Scruggs</font>
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	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	J. Todd Scruggs</font>
	</div>
	</td>
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	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Secretary-Treasurer</font>
	</div>
</td>
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<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





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<b>Exhibit Index </b></font>
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	<b>Exhibit&nbsp;No.</b></font>
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	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
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	<b>Description</b></font>
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	</td>
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	EX-99.1</font>
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	<div><font Face="times New Roman" Size="2" Color="#000000">
	Bank of the James Financial Group, Inc. Press Release dated April 20, 2007</font>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd156807_19897.htm
<DESCRIPTION>BANK OF THE JAMES FINANCIAL GROUP, INC. PRESS RELEASE DATED APRIL 20, 2007
<TEXT>
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<BODY>
<FONT SIZE=3><P ALIGN="RIGHT">Exhibit 99.1</P>
<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 1<SUP>st</SUP> Quarter 2007 </P>
</B></FONT>
<P>Lynchburg, Va., April 20, 2007.........Bank of the James Financial Group, Inc. (OTCBB:BOJF) (the &quot;Company&quot;) (quarterly consolidated results unaudited) reported today total net income after tax of $398,000 or $0.17 per basic share ($0.16 diluted) for the quarter ended March 31, 2007 compared to net income of $356,000 or $0.18 per basic share ($0.17 diluted) for the respective period a year ago.  </P>
<P>We are pleased that same quarter net income increased by 11.8%.  The slight decrease in  earnings per basic and diluted share primarily resulted from the increase in additional shares outstanding as a result of the common stock offering which concluded at the end of December, 2006.</P>
<P>Robert R. Chapman III, the Company's President commented, &quot;To see a double digit increase in our earnings from same quarter last year affirms our belief that Region 2000 continues to be an attractive banking market.  We believe that we have an opportunity to increase our presence as long as we continue to provide exceptional customer service at Bank of the James, Bank of the James Mortgage, and BOTJ Investment Group.  We believe this strategy will keep us on the path of achieving our long range strategic plan of becoming the pre-eminent financial institution in Region 2000.&quot;  </P>
<P>Our net interest income increased as compared to the same period a year ago as a direct result of the growth of our balance sheet, specifically our interest-earning assets.  Loans, net of unearned income and loan loss provision, increased from $187,469,000 as of December 31, 2006 to $196,549,000 as of March 31, 2007, an increase of $9,080,000 or 4.8%.  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>The growth in loans was partially funded by a modest increase in deposits which grew from $201,789,000 as of December 31, 2006 to $203,729,000 as of $1,940,000 or 1.0%.  The remaining loan growth was funded with federal funds purchased, overnight repurchase agreements or &quot;sweep&quot; accounts, as well as the additional equity capital mentioned above.</P>
<P>The result of the increase in loans and deposits was an increase in net interest income to $2,308,000 for the three month period ended March 31, 2007 from $2,134,000 as of the same period a year ago, which is an increase of $174,000 or 8.2%.  This increase was partially offset by a decrease in the net interest margin to 4.23% for the period ended March 31, 2007 from 4.64% for the same period a year ago.  The decrease in net interest margin is primarily attributable to maturing certificates of deposit repricing at higher rates.</P>
<P>Return on average assets and return on average equity in the first quarter 2007 was 0.69% and 7.33% respectively, as compared to 0.74% and 9.66% in the same period a year ago.  The decrease in these ratios was expected due to the increase in equity capital as a result of the recent stock offering.  </P>
<P>A significant portion of the increase in net income was the direct result of the increase in non interest income.  Non interest income increased to $633,000 for the period ended March 31, 2007 from $449,000 for the same period a year ago, an increase of $184,000 or 41.0%.  Non interest income is mainly comprised of fees generated through the origination of mortgage loans at Bank of the James Mortgage, a division of Bank of the James, and commissions on the sale of investment products through the Company's wholly-owned subsidiary, BOTJ Investment Group, Inc.</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 &quot;BOJF.OB&quot; 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 ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</P>
<B><FONT FACE="Arial" SIZE=2><P>Bank of the James Financial Group, Inc. and Subsidiaries</P>
<P>(000's) except ratios and percent data</P>
<P>unaudited</P>
</B></FONT>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Selected Data:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date       Mar 31, 2007</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date    Mar 31, 2006</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Interest income</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$4,093</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,342</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22.47%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$4,093</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,342</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22.47%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Interest expense</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,785</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,208</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47.76%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,785</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,208</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47.76%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Net Interest income</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,308</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,134</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8.15%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,308</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,134</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8.15%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Provision for loan losses</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">151</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">218</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-30.73%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">151</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">218</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-30.73%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Noninterest income</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">633</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">449</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">40.98%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">633</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">449</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">40.98%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Noninterest expense</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,186</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,813</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">20.57%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,186</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,813</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">20.57%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Income taxes</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">206</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">196</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.10%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">206</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">196</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.10%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Net income</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">398</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">356</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11.80%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">398</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">356</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11.80%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Weighted Average Shares</P>
<P>Outstanding</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,310,884</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,002,993</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.37%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,310,884</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,002,993</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.37%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Basic net income</P>
<P>per share</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.17</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.18</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$(0.01)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.17</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.18</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$(0.01)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Fully diluted net income</P>
<P>per share</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.16</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.17</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$(0.01)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.16</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.17</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$(0.01)</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Balance Sheet at period end:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Dec 31, 2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Mar 31, 2006</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Dec 31, 2005</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Loans, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$196,549</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$187,469</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.84%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$161,901</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$155,480</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.13%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total securities</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">24,685</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">26,192</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-5.75%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">23,604</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">23,919</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-1.32%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total deposits</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">203,729</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">201,789</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.96%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">180,091</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">173,956</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3.53%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Stockholders' equity</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22,604</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">21,931</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3.07%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14,965</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14,675</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.98%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">236,588</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">232,709</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.67%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">202,616</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">195,852</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3.45%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Shares Outstanding</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,318,601</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,296,424</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22,177</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,003,764</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,001,309</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,455</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Book value per share</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.75</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.55</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.20</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.47</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.33</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.14</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Daily averages:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date       Mar 31, 2007</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date    Mar 31, 2006</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Loans, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$192,939</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$158,948</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">21.38%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$192,939</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$158,948</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">21.38%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total securities</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">26,043</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">24,602</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.86%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">26,043</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">24,602</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.86%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total deposits</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">200,074</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">173,000</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.65%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">200,074</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">173,000</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.65%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Stockholders' equity</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22,031</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14,949</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47.37%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22,031</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14,949</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47.37%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Interest earning assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">221,517</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">186,321</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">18.89%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">221,517</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">186,321</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">18.89%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Interest bearing liabilities</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">180,246</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">155,677</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.78%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">180,246</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">155,677</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.78%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total Assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">233,794</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">195,994</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">19.29%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">233,794</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">195,994</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">19.29%</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Financial Ratios:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31,  2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date       Mar 31, 2007</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date    Mar 31, 2006</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Return on average assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.69%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.74%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(0.05)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.69%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.74%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(0.05)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Return on average equity</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.33%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.66%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(2.33)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.33%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.66%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(2.33)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Net Interest Margin</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.23%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.64%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(0.42)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.23%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.64%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(0.42)</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Efficiency ratio</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">74.33%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">70.19%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.14</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">74.33%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">70.19%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.14</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Average Equity to</P>
<P>average assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.42%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.63%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.80</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.42%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.63%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.80</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Allowance for loan losses:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three months ending Mar 31, 2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to  date       Mar 31, 2007</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year to date    Mar 31, 2006</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Beginning balance</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,091</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$1,777</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">17.67%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,091</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$1,777</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">17.67%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Provision for losses</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">151</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">218</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-30.73%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">151</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">218</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-30.73%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Charge-offs</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(68)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(61)</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11.48%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(68)</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(61)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11.48%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Recoveries</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">31</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-83.87%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">31</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-83.87%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Ending balance</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,179</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,965</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10.89%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,179</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,965</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10.89%</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Nonperforming assets:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Dec 31, 2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Mar 31, 2006</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Dec 31, 2005</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total nonperforming loans</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,026</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">646</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">58.82%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">487</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">261</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">86.59%</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Other real estate owned</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">536</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">535</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.19%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">375</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Total nonperforming assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,562</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,181</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">32.26%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">862</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">261</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">230.27%</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P>Asset quality ratios:</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Mar 31, 2007</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Dec 31, 2006</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Mar 31, 2006</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Dec 31, 2005</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</B></FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Nonperforming loans to</P>
<P>total loans</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.52%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.34%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.18</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.30%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.17%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.13</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Allowance for loan losses</P>
<P>to total loans</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.10%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.10%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(0.01)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.20%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.13%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.07</FONT></TD>
</TR>
<TR><TD WIDTH="26%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P>Allowance for loan losses</P>
<P>to nonperforming loans</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">212.38%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">323.68%</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(111.31)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">403.49%</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">680.84%</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(277.35)</FONT></TD>
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