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<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>UNITED STATES</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>SECURITIES AND EXCHANGE COMMISSION</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>WASHINGTON, D.C. 20549</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>FORM 10-Q</FONT></FONT></CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>[X] QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>EXCHANGE ACT OF 1934</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>For the quarterly period ended
March 31, 2000</FONT></FONT>
<BR>
<P><BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>or</FONT></FONT></CENTER>
<BR>
<P><BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>[ ] TRANSITION REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>EXCHANGE ACT OF 1934</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>For the transition period from_____________________
to ___________________</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Commission file number 0-13222</FONT></FONT>
<BR>
<P><BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>CITIZENS FINANCIAL SERVICES,
INC.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>(Exact name of registrant as
specified in its charter)</FONT></FONT></CENTER>
<BR>
<P><BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>
PENNSYLVANIA
23-2265045</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>(State or other jurisdiction
of
(I.R.S. Employer</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>incorporation or organization)
Identification No.)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>15 South Main Street, Mansfield,
Pennsylvania
16933</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>(Address of principal executive
offices)
(Zip Code)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Registrant's telephone number,
including area code:
(570) 662-2121</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Indicate by checkmark whether
the registrant (1) has filed all reports</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>to be filed by Section 13 or
15 (d) of the Securities Exchange Act of 1934</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>during the preceding 12 months
(or for such shorter period that the</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>registrant was required to file
such reports), and (2) has been subject to</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>such filing requirements for
the past 90 days. Yes__X___ No_____</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The number of shares outstanding
of the Registrant's Common Stock, as of</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>May 2, 2000 2,745,401 shares
of Common Stock, par value $1.00.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<BR>
<P><BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Citizens Financial Services,
Inc.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Form 10-Q</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>INDEX</FONT></FONT></CENTER>
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>Page</FONT></FONT></DIV>
<FONT FACE="Courier New"><FONT SIZE=-1>Part I FINANCIAL INFORMATION (UNAUDITED)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 1-Financial Statements</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> Consolidated
Balance Sheet as of March 31, 2000,</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
December 31, 1999
1</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> Consolidated
Statement of Income for the</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Three Months Ended March 31, 2000 and 1999
2</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> Consolidated
Statement of Comprehensive Income for the</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Three Months Ended March 31, 2000 and 1999
3</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> Consolidated
Statement of Cash Flows for the Three Months Ended</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
March 31, 2000 and 1999
4</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> Notes
to Consolidated Financial Statements
5</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 2 -Management's Discussion
and Analysis of Financial Condition</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> and
Results of Operations
5-16</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 3-Quantitative and Qualitative
Disclosure About Market Risk
17</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Part II OTHER INFORMATION AND
SIGNATURES</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 1-Legal Proceedings
18</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 2-Changes in Securities
18</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 3-Defaults upon Senior Securities
18</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 4-Submission of Matters
to a Vote of Security Holders
18</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 5-Other Information
18</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 6-Exhibits and Reports on
Form 8-K
18-19</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Signatures
&nbs
20</FONT></FONT>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="626" >
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>CITIZENS
FINANCIAL SERVICES, INC.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>CONSOLIDATED
BALANCE SHEET</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>(UNAUDITED)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>December 31</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>ASSETS:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Cash
and due from banks:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Noninterest-bearing</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 6,306,171</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 8,363,742</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Interest-bearing</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>311,674</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>158,051</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Total
cash and cash equivalents</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6,617,845</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8,521,793</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Available-for-sale
securities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>89,617,692</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>91,695,667</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP ROWSPAN="2" WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Loans
(net of allowance for loan losses 2000, $2,374,000; December 31, 1999,
$2,270,000)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>231,962,470</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>229,159,271</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Foreclosed
assets held for sale</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>441,054</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>573,054</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Premises
and equipment</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6,004,077</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5,942,078</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Accrued
interest receivable</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,251,814</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,120,148</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other
assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,924,980</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,767,268</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
ASSETS</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$339,819,932</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$340,779,279</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>LIABILITIES:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Deposits:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Noninterest-bearing</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 24,443,767</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 23,434,754</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Interest-bearing</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>260,271,920</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>260,882,983</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Total
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>284,715,687</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>284,317,737</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Borrowed
funds</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>24,629,018</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>25,852,980</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Accrued
interest payable</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,988,885</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,557,303</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other
liabilities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,476,950</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>968,646</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
LIABILITIES</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>312,810,540</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>313,696,666</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>STOCKHOLDERS'
EQUITY:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Common
Stock</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>$1.00
par value; authorized 10,000,000 shares;</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Issued
2,800,563 shares in 2000 and</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>at December 31, 1999, respectively</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,800,563</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,800,563</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Additional
paid-in capital</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8,374,160</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8,374,160</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Retained
earnings</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>18,969,208</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>18,432,375</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>30,143,931</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>29,607,098</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Accumulated
other comprehensive (loss)</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="19%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(2,185,372)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(2,064,150)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Less:
Treasury Stock at cost</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>55,162
shares at March 31, 2000</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="19%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(949,167)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>26,585
shares at December 31, 1999</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(460,335)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
STOCKHOLDERS' EQUITY</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>27,009,392</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>27,082,613</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
LIABILITIES AND</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="64%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>STOCKHOLDERS'
EQUITY</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$339,819,932</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$340,779,279</FONT></FONT></DIV>
</TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New">The accompanying notes are an integral part
of these financial statements.</FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>1</FONT></FONT></CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="758" >
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>CITIZENS
FINANCIAL SERVICES, INC.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>CONSOLIDATED
STATEMENT OF INCOME</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>(UNAUDITED)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="47%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Three Months Ended</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="47%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>INTEREST
INCOME:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Interest
and fees on loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$4,879,236 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$4,449,017 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Interest-bearing
deposits with banks</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>10,422 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5,485 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Investment
securities:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Taxable</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,012,032 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>997,813 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Nontaxable</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>232,900 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>224,954 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Dividends</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>109,943 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>35,619 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
INTEREST INCOME</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6,244,533 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5,712,888 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>INTEREST
EXPENSE:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,933,560 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,792,098 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Borrowed
funds</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>408,845 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>94,920 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
INTEREST EXPENSE</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>3,342,405 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,887,018 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>NET
INTEREST INCOME</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,902,128 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,825,870 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Provision
for loan losses</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>99,999 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>60,000 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>NET
INTEREST INCOME AFTER</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>PROVISION
FOR LOAN LOSSES</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,802,129 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,765,870 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>OTHER
OPERATING INCOME:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Service
charges</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>405,691 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>289,242 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Trust</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>116,991 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>99,686 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>99,769 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>133,371 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12" BGCOLOR="#FFFFFF"><FONT FACE="Courier New"><FONT SIZE=-1>Arbitration
settlement</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>28,595 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Realized
securities gains, net</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>19,622 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>95,482 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
OTHER OPERATING INCOME</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>642,073 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>646,376 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>OTHER
OPERATING EXPENSES:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Salaries
and employee benefits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,081,089 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,011,575 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Occupancy </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>141,456 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>136,190 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Furniture
and equipment</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>178,031 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>165,945 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Professional
fees</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>131,189 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>182,644 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>730,080 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>732,049 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>TOTAL
OTHER OPERATING EXPENSES</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,261,845 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,228,403 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Income
before provision for income taxes</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,182,357 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,183,843 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Provision
for income taxes</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>244,845 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>295,491 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Net
Income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 937,512 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 888,352 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Earnings
Per Share</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>$ 0.34 </FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 0.32 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Cash
Dividend Declared</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ .145 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ .135 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="53%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Weighted
average number of shares outstanding</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,756,675 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="24%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,800,563 </FONT></FONT></DIV>
</TD>
</TR>
</TABLE>
<BR>
<P><FONT FACE="Courier New">The accompanying notes are an integral part
of these financial statements.</FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New">2</FONT></CENTER>
<P><FONT FACE="Courier New"><PAGE></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="764" >
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>CITIZENS
FINANCIAL SERVICES, INC.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>(UNAUDITED)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="5" ROWSPAN="2" WIDTH="58%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Three Months Ended</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>March 31</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Net
income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 937,512 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>$
888,352 </FONT></FONT></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Other
comprehensive income:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Unrealized
gains(losses) on available for sale securities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(164,048)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(824,204)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Less:
Reclassification adjustment for gain included in net income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(19,622)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(183,670)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(95,482)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(919,686)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Other
comprehensive income before tax</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(183,670)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(919,686)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Income
tax expense related to other comprehensive income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(62,448)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(312,693)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Other
comprehensive income, net of tax</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(121,222)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(606,993)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Comprehensive
income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 816,290 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 281,359 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="42%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
</TR>
</TABLE>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The accompanying notes are an
integral part of these financial statements.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>3</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="770" >
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>CITIZENS
FINANCIAL SERVICES, INC.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>CONSOLIDATED
STATEMENT OF CASH FLOWS</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>(UNAUDITED)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="41%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Three Months Ended</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="41%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31,</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><B><FONT FACE="Courier New"><FONT SIZE=-1>CASH
FLOWS FROM OPERATING ACTIVITIES:</FONT></FONT></B></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Net
income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 937,512 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 888,352 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Adjustments
to reconcile net income to net</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Cash
provided by operating activities:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Provision
for loan losses</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>99,999 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>60,000 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Provision
for depreciation and amortization</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>205,812 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>190,721 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Amortization
and accretion of investment securities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>56,380 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>114,800 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Deferred
income taxes</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(50,748)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>16,251 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Realized
gains on securities</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(19,622)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(95,482)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Realized
gains on loans sold</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,800)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(9,180)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Losses
(Gains) on sales or disposals of </FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Premises and equipment</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,699 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(377)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Originations
of loans held for sale</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(270,975)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(998,500)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11" BGCOLOR="#FFFFFF"><FONT FACE="Courier New"><FONT SIZE=-1>Proceeds
from sales of loans held for sale</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>272,775 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,007,680 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Gains
on sale of foreclosed assets held for sale</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(8,400)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(11,607)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>(Increase)
decrease in interest receivable and</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>other assets</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(203,375)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5,207 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Decrease
in interest payable and other liabilities</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(60,114)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(320,902)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="16"><FONT FACE="Courier New"><FONT SIZE=-1>Net
cash provided by operating activities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>960,143 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>846,963 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><B><FONT FACE="Courier New"><FONT SIZE=-1>CASH
FLOWS FROM INVESTING ACTIVITIES:</FONT></FONT></B></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Available-for-sale
securities:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Proceeds
from sales of available-for-sale securities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5,805,150 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8,843,777 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Proceeds
from maturity and principal repayments</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>of securities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>876,295 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>4,536,541 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Purchase
of securities</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(4,823,897)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(9,133,405)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Net
increase in loans</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(2,868,248)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,900,017)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Capital
expenditures</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(243,318)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(484,034)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Proceeds
from sales of premises and equipment</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>4,480 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Proceeds
from sale of foreclosed assets held for sale</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>105,450 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>50,000 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="16"><FONT FACE="Courier New"><FONT SIZE=-1>Net
cash (used) provided in investing activities</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,148,568)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,917,342 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><B><FONT FACE="Courier New"><FONT SIZE=-1>CASH
FLOWS FROM FINANCING ACTIVITIES:</FONT></FONT></B></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Net
increase in deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>397,950 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>569,966 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Proceeds
from long-term borrowings</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>698,950 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>249,033 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Repayments
of long-term borrowings</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(149,841)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(203,172)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Net
decrease in short-term borrowed funds</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,773,070)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(3,152,144)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Acquisition
of Treasury Stock</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(488,832)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Dividends
paid</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(400,680)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(374,414)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="16"><FONT FACE="Courier New"><FONT SIZE=-1>Net
cash used by financing activities</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,715,523)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(2,910,731)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-1>Net
decrease in cash and cash equivalents</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="21%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,903,948)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(146,426)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="16"><FONT FACE="Courier New"><FONT SIZE=-1>CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8,521,793 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>7,304,803 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="16"><FONT FACE="Courier New"><FONT SIZE=-1>CASH
AND CASH EQUIVALENTS AT END OF PERIOD</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 6,617,845 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="16">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 7,158,377 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11" BGCOLOR="#FFFFFF"><FONT FACE="Courier New"><FONT SIZE=-1>Supplemental
Disclosures of Cash Flow Information:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11" BGCOLOR="#FFFFFF"><FONT FACE="Courier New"><FONT SIZE=-1>Interest
paid</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 3,910,823 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ 3,488,337 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11" BGCOLOR="#FFFFFF"></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="59%" HEIGHT="11" BGCOLOR="#FFFFFF"><FONT FACE="Courier New"><FONT SIZE=-1>Income
taxes paids</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ - </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="11" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$ - </FONT></FONT></DIV>
</TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The accompanying notes are an
integral part of these financial statements.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>4</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>CITIZENS FINANCIAL SERVICES,
INC.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
(Unaudited)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Note 1 - Basis of Presentation</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The consolidated financial statements
include the accounts of Citizens Financial Services, Inc. and its wholly-owned
subsidiary, First Citizens National Bank (the "bank"), (collectively, the
"company"). All material inter-company balances and transactions have been
eliminated in consolidation.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The accompanying interim financial
statements have been prepared by the company without audit and, in the
opinion of management, reflect all adjustments (which include only normal
recurring adjustments) necessary to present fairly the company's financial
position as of March 31, 2000, and the results of operations for the interim
periods presented. In preparing the consolidated financial statements,
management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities as of the date of the balance
sheet and revenues and expenses for the period. Actual results could differ
significantly from those estimates. For further information refer to the
consolidated financial statements and footnotes thereto incorporated by
reference in the company's Annual Report on Form 10-K for the year ended
December 31, 1999.</FONT></FONT>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Note 2 - Earnings per Share</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Earnings per share calculations
give retroactive effect to stock dividends declared by the company. The
number of shares used in the earnings per share and dividends per share
calculation was 2,756,675 for 2000 and 2,800,563 for 1999.</FONT></FONT>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 2 - MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>CONDITION AND RESULTS OF OPERATIONS</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The following is management's
discussion and analysis of the significant changes in the results of operations,
capital resources and liquidity presented in its accompanying consolidated
financial statements for Citizens Financial Service, Inc., a bank holding
company and its subsidiary. Our company's consolidated financial condition
and results of operations consist almost entirely of our wholly owned subsidiary
First Citizens National Bank. The financial conditions and results of operations.
You should read our discussion should be read in conjunction with the preceding
March 31, 2000 Financial Report. The results of operations for the three
months ended March 31, 2000 and 1999 are not necessarily indicative of
the results you may expect for the full year.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Forward-looking statements may
prove inaccurate. We have made forward-looking statements in this document,
and in documents that we incorporate by reference, that are subject to
risks and uncertainties. Forward-looking statements include the information
concerning possible or assumed future results of operations of Citizens
Financial Services, Inc., First Citizens National Bank, or the combined
company. When we use such words as "believes", "expects", "anticipates",
or similar expressions, we are making forward-looking statements.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>You should note that many factors,
some of which are discussed elsewhere in this document and in the documents
we incorporate by reference, could affect the future financial results.
These factors include, but are not limited to, the following:</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> *operating,
legal and regulatory risks;</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *economic,
political and competitive forces affecting our banking,</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
securities, asset management and credit services;</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *risk
that our analysis of these risks and forces could be incorrect</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
and/or the strategies developed to address them could be unsuccessful.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Readers should carefully review
the risk factors described in other documents our company files from time
to time with the Securities and Exchange Commission, including the annual
report on Form 10-K to be filed by our company and any current reports
on Form 8-K filed by our company.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>5</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company currently engages
in the general business of banking throughout our service area of Potter,
Tioga and Bradford counties in North Central Pennsylvania and Allegany,
Steuben, Chemung and Tioga counties in Southern New York. We maintain our
central office in Mansfield, Pennsylvania. Presently we operate banking
facilities in Mansfield, Blossburg, Ulysses, Genesee, Wellsboro, Troy,
Sayre, Canton, Gillett and the Wellsboro Weis Market store. Additionally,
we have automatic teller machines (ATMs) located in Soldiers and Sailors
Memorial Hospital in Wellsboro, Mansfield Wal-Mart and at Mansfield University.
Our company's lending and deposit products and investment services are
offered primarily within the vicinity of the service area.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>On April 18, 2000, our company
executed an agreement whereby we will be acquiring all Bradford County
Pennsylvania offices of Sovereign Bank. These six offices located in Sayre,
Troy, State Line, Leraysville and Towanda, have total deposits of nearly
$80 million. We will also receive Sovereign's Bradford County loan portfolio
totaling approximately $30 million. We expect the consummation date for
this acquisition to be around September 30, 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company faces strong competition
in the communities it serves from other commercial banks, savings banks,
and savings and loan associations, some of which are substantially larger
institutions than our subsidiary. In addition, personal and corporate trust
services are offered by insurance companies, investment counseling firms,
and other business firms and individuals.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We also compete with credit unions,
issuers of money market funds, securities brokerage firms, consumer finance
companies, mortgage brokers and insurance companies. These entities are
strong competitors for virtually all types of financial services.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>In recent years, the financial
services industry has experienced tremendous change to competitive barriers
between bank and non-bank institutions. We not only must compete with traditional
financial institutions, but also with other business corporations that
have begun to deliver competing financial services. Competition for banking
services is based on price, nature of product, quality of service, and
in the case of certain activities, convenience of location.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company offers the following
trust and investment services:</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1> *Investment
management accounts that assume managerial duties for</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
investment accounts.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *Custody
services for safekeeping and preservation of assets.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *Mutual
funds that provide an asset allocation program.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *Personal
trust services that include stand-by, living and testamentary</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
trusts.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *Estate
planning and administration to provide financial planning.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> *Retirement
plan services for individuals and businesses.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>FINANCIAL CONDITION</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>INVESTMENTS</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The investment portfolio, including
available-for-sale and held-to-maturity securities, decreased by $2.1 million
or 2.27% from December 31, 1999 to March 31, 2000. Primarily the result
of principal payments received on mortgage-backed securities.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>LOANS</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Historically, loans have been
originated by our company to customers in North Central Pennsylvania and
the Southern Tier of New York. Loans have been originated primarily through
direct loans to our existing customer base, with new customers generated
by referrals from real estate brokers, building contractors, attorneys,
accountants and existing customers. We also do a limited amount of indirect
loans through new and used car dealers in the primary lending area.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>6</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>As shown in the following tables,
the change in loans grew by $2.9 million or 1.3% for the period compared
to the December 31, 1999, reflecting a normal seasonal slow down. Residential
mortgage lending is a principal business activity and one our company expects
to continue by providing a full complement of competitively priced conforming,
nonconforming and home equity mortgages (dollars in thousands).</FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="692" >
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="26%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31,</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="29%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>December 31,</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="26%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="29%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Amount</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Percent</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Amount</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Percent</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Real
estate:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Residential</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$142,710 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>60.9</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$143,877 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>62.2</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Commercial</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>32,453 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>13.8</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>32,159 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>13.9</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Agricultural</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>11,891 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5.1</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>9,392 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>4.1</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Loans
to individuals</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>for
household,</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>family
and other purchases</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>15,621 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6.7</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>15,569 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6.7</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Commercial
and other loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>13,103 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5.6</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>12,313 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5.3</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>State
and political subdivision loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>18,582 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>7.9</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>18,148 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>7.8</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total
loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>234,360 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>100.0</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>231,458 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>100.0</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Unearned
income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>24 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>29 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Net
loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$234,336 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$231,429 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="26%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31, 2000/</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="26%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>December 31, 1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Change</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>%</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Real
estate:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Residential</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(1,167)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(0.8)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="19%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Commercial</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>294 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>0.9 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Agricultural</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,499 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>26.6 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Loans
to individuals</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>for
household,</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>family
and other purchases</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>52 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>0.3 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Commercial
and other loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>790 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6.4 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>State
and political subdivision loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>434 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2.4 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total
loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2,902 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1.3 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="17%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="20%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
</TABLE>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We focus our commercial lending
activity primarily on small businesses and our company's commercial lending
officers have been successful in attracting new business loans.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We expect loans to state and
political subdivisions will continue to increase for the remainder of 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>There was virtually no change
in total deposits during the March 31, 2000 period. However, money market
funds decreased as customers moved funds to certificates of deposit to
"lock-in" higher long term rates.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>7</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(dollars in thousands)</FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="698" >
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31, 2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="26%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>December 31,</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="26%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Amount</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Percent</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Amount</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Percent</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Noninterest-bearing
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$24,445 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8.6</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$23,435 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>8.3</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>NOW
accounts</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>36,873 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>12.9</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>36,081 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>12.7</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Savings
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>27,504 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>9.7</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>26,276 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>9.2</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Money
market deposit accounts</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>34,082 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>12.0</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>39,831 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>14.0</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Certificates
of deposit</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>161,812 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>56.8</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>158,695 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>55.8</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$284,716 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>100.0</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$284,318 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>100.0</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31, 2000/</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>December 31, 1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Change</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>%</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Noninterest-bearing
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,010 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>4.3 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>NOW
accounts</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>792 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2.2 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Savings
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1,228 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>4.7 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Money
market deposit accounts</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="19%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(5,749)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>(14.4)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Certificates
of deposit</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>3,117 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>2.0 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>398 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>0.1 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="48%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="18%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="9%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="17%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="13"></TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Borrowed funds decreased $1.2
million during the first three months of 2000. The company's daily cash
requirements or short-term investments are met by using the financial instruments
available through the Federal Home Loan Bank.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>CAPITAL</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The company has computed its
risk-based capital ratios as follows (dollars</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>in thousands):</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>
March 31,
December 31,</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
2000
1999</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>
Amount Ratio
Amount Ratio</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Total capital (to risk-weighted
assets)</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>company
$30,673 13.76% $30,610
14.09%</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>For capital adequacy purposes
17,836 8.00%
17,382 8.00%</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>To be well capitalized
22,294 10.00% 21,728
10.00%</FONT></FONT>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Tier I capital (to risk-weighted
assets)</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>company
$28,300 12.69% $28,341
13.04%</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>For capital adequacy purposes
8,918 4.00%
8,691 4.00%</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>To be well capitalized
13,377 6.00%
13,037 6.00%</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Tier I capital (to average assets)</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>company
$28,300 8.27% $28,341
8.32%</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>For capital adequacy purposes
13,690 4.00%
13,620 4.00%</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>To be well capitalized
17,112 5.00%
17,025 5.00%</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>8</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>See the discussion of liquidity
below for details regarding future expansion</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>plans and the impact on capital.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Due to the significant rise in
market interest rate levels during 1999 and 2000, our available-for-sale
investment portfolio continued to decline in value by $100,000 net of federal
taxes. Dividend payments, stock repurchase and the rise in market rates
resulted the decline in our total shareholders' equity of $73,000 from
December 31, 1999.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>July 30, 1999 our company began
a plan to purchase, in open market or privately negotiated transactions,
up to 135,000 shares of its outstanding common stock. A total of 55,162
shares have been repurchase at a cost of $1 million as of March 31, 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>RESULTS OF OPERATIONS</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Net income for the three month
period ending March 31, 2000 was $938,000, an increase of $49,000 or 5.5%
over the $888,000 for the 1999 related period. Earnings per share was $.34
during the first three months of 2000 compared with $.32 during the comparable
1999 period. Details of the reasons for this increase are discussed on
the following pages (dollars in thousands).</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Net interest income, the most
significant component of earnings, is the amount by which interest generated
from earning assets exceeds interest expense on liabilities.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Net interest income for the three
month period ending March 31, 2000, after provision for loan losses, was
$2,802,000 an increase of $36,000 compared to an increase of $75,000 at
March 31, 1999.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>9</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-2>Analysis of Average Balances
and Interest Rates (1)</FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="776" >
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="25%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>March 31, 2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="23%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>March 31, 1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="22%" HEIGHT="11">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>March 31, 1998</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Average</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Average</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Average</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Average</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Average</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Average</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Balance</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Interest</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Rate</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Balance</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Interest</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Rate</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Balance</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Interest</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Rate</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>ASSETS</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>%</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>%</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>%</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Short-term
investments:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Interest-bearing
deposits at banks</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>796</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>10</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.05</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>408</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.97</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,635</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>36</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.54</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Investment
securities:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Taxable</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>72,990</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,144</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.27</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>70,457</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,035</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.88</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>76,236</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,252</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.57</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Tax-exempt
(3)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>20,634</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>353</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.84</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>19,724</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>341</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.92</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6,061</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>102</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.73</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
investment securities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>93,624</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,497</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.40</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>90,181</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,376</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.10</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>82,297</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,354</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.58</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Loans:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Residential
mortgage loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>143,415</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,997</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.40</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>132,546</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,827</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.65</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>123,627</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,732</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.96</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Commercial
and farm loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>57,294</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,292</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>9.07</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>49,341</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,157</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>9.51</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>45,794</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,112</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>9.85</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Loans
to state and political subdivisions</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>18,492</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>380</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.26</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>10,051</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>211</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.51</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>10,256</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>221</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.74</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Other
loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>15,355</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>340</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.91</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>14,616</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>326</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>9.05</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>12,900</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>313</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>9.84</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Loans,
net of</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Discount
(2)(3)(4)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>234,556</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5,009</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.59</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>206,554</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4,521</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.88</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>192,577</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4,378</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>9.22</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
interest-earning assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>328,976</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6,516</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>7.97</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>297,143</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5,902</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.06</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>277,509</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5,768</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8.43</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Cash
and due from banks</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6,844</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>7,016</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6,142</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Bank
premises and equipment</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5,927</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5,757</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5,760</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Other
assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,092</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,752</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4,967</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
non-interest bearing assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>13,863</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>14,469</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>16,374</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-2>Total
assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>342,839</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>311,668</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>294,378</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="2" WIDTH="39%" HEIGHT="14"><FONT FACE="Courier New"><FONT SIZE=-2>LIABILITIES
AND STOCKHOLDERS' EQUITY</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="14"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="14"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Interest-bearing
liabilities:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>NOW
accounts</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>35,668</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>163</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.84</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>34,984</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>155</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.80</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>32,146</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>180</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2.27</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Savings
accounts</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>26,607</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>108</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.63</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>26,782</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>124</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.88</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>26,452</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>144</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2.21</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Money
market accounts</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>36,147</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>433</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.82</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>39,246</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>418</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.32</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>35,601</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>425</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.84</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Certificates
of deposit</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>160,983</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,229</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.57</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>151,348</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,095</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.61</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>144,677</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,055</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.76</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
interest-bearing deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>259,405</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,933</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.55</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>252,360</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,792</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.49</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>238,876</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,804</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.76</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Other
borrowed funds</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>27,695</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>409</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.94</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>7,335</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>95</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5.25</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>7,191</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>111</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>6.26</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
interest-bearing liabilities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>287,100</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3,342</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.68</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>259,695</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,887</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.51</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>246,067</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,915</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.80</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Demand
deposits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>22,993</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>20,333</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>19,060</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Other
liabilities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3,721</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3,142</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3,105</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
non-interest-bearing liabilities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>26,714</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>23,475</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>22,165</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Stockholders'
equity</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>29,025</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>28,498</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>26,146</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
liabilities and stockholders'</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-2>Equity</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>342,839</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>311,668</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>294,378</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-2>Net
interest income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3,174</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3,015</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2,853</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Net
interest spread (5)</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3.28%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3.55%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3.63%</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Net
interest income as a percentage</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Of
average interest-earning assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3.88%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.12%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>4.17%</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Ratio
of interest-earning assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>To
interest-bearing liabilities</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.15</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.14</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.13</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="30%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="2" WIDTH="39%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>(1)
Averages are based on daily averages.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="3" WIDTH="47%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>(2)
Includes loan origination and commitment fees.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="8" WIDTH="85%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>(3)
Tax exempt interest revenue is shown on a tax equivalent basis for proper
comparison using</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="10" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>a
statutory federal income tax rate of 34%.</FONT></FONT></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="10" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>(4)
Income on non-accrual loans is accounted for on a cash basis, and the loan
balances are included</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-2>in interest-earning assets.</FONT></FONT></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="10" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>(5)
Interest rate spread represents the difference between the average rate
earned on interest-earning assets</FONT></FONT></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="4" WIDTH="54%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>and
the average rate paid on interest-bearing liabilities.</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="8%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="7%" HEIGHT="10"></TD>
</TR>
</TABLE>
<BR>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>We have experienced
a narrowing interest margin percentage during 1999 and the first quarter
of 2000, continuing the trend in recent years. The 1998 flat yield curve
limited our opportunity to increase margin with new business as the existing
investments and loans mature or repay. When the yield curve became steeper
in 1999, interest rates began to rise resulting in our short-term liabilities
repricing faster than our short term assets. Currently the yield curve
is slightly inverted (not a normal up slope) beyond 10 years. However,
most of the</FONT></FONT></BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>10</FONT></FONT></CENTER>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT></BLOCKQUOTE>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>company's investments,
loans, deposits and borrowings are priced or repriced along the three month
to five year portion of the yield curve. We continue to review various
pricing and investment strategies to enhance deposit growth while maintaining
or expanding the current interest margin.</FONT></FONT></BLOCKQUOTE>
<FONT FACE="Courier New"><FONT SIZE=-1> We continue
to review various pricing and investment strategies to enhance deposit
growth</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1> while
maintaining or expanding the current interest margin.</FONT></FONT>
<BR>
<BR>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>Analysis of Changes in Net
Interest Income on a Tax Equivalent Basis (in thousands) for the Three
Month Period Ended March 31,</FONT></FONT></DIR>
</DIR>
<TABLE BORDER CELLPADDING=2 WIDTH="782" >
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"> </TD>
<TD VALIGN=TOP COLSPAN="5" WIDTH="31%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>2000 vs. 1999 (1)</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="5" WIDTH="34%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1999 vs. 1998 (1)</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Change in</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Change</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Total</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Change in</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Change</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Total</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Volume</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>In Rate</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="4" WIDTH="14%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Change</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Volume</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>In Rate</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>Change</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Interest
Income: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Short-term
investments: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Interest-bearing
deposits</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-2>at banks </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(28)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(3)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(31)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Investment
securities: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Taxable </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>38 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>71 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>109 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(91)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(126)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(217)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Tax-exempt </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>16 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(4)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>12 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>236 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>239 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
investment securities </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>54 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>67 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>121 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>145 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(123)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>22 </FONT></FONT></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Loans: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Residential
mortgage loans </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>226 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(56)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>170 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>185 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(91)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>94 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Commercial
and farm loans </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>177 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(42)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>135 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>82 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(37)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>45 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Loans
to state and political subdivisions </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>174 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(5)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>169 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(4)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(5)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(9)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Other
loans </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>16 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(2)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>14 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>33 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(20)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>13 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Loans,
net of </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Discount </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>593 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(105)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>488 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>296 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(153)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>143 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
Interest Income </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>652 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(38)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>614 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>413 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(279)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>134 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Interest
Expense: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Interest-bearing
deposits: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>NOW
accounts </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>3 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>8 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>19 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(44)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(25)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Savings
accounts </FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(1)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(15)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(16)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>2 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(22)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(20)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Money
Market accounts </FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(26)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>41 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>15 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>136 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(143)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(7)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Certificates
of deposit </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>134 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>134 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>90 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(50)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>40 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
interest-bearing deposits </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>110 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>31 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>141 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>247 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(259)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(12)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Other
borrowed funds </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>79 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>235 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>314 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>5 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(21)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(16)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>Total
interest expense </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>189 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>266 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>455 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>252 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(280)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="10">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(28)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="10"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="10"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="10"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="11"><FONT FACE="Courier New"><FONT SIZE=-2>Net
interest income </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>463</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="12%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(304)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>159 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>161 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="11">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>162 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="32%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="9%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="2%" HEIGHT="11"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="11"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="11"></TD>
</TR>
<TR>
<TD VALIGN=TOP COLSPAN="13" ROWSPAN="2" HEIGHT="10"><FONT FACE="Courier New"><FONT SIZE=-2>(1)
The portion of the total change attributable to both volume and rate changes
during the year has been allocated to volume and rate components based
upon the absolute dollar amount of the change in each component prior to
allocation.</FONT></FONT></TD>
</TR>
</TABLE>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>As can be seen from
the preceding tables, tax equivalent net interest income rose from $2,853,000
in 1998 to $3,015,000 in 1999 and increased to $3,174,000 in 2000. In the
period ending March 31, 2000, net interest income increased $159,000 while
overall spread decreased from 3.55% to 3.28%. The increased volume of interest-earning
assets generated an increase in interest income of $652,000 while increased
volume of interest-bearing liabilities produced $189,000 of interest expense.
The change in volume resulted in an increase of $463,000 in net interest
income. The net change in rate was a negative $304,000 resulting in a total
positive net change of $159,000 when combined with change in volume. The
yield on interest-earning assets decreased 9 basis points from 8.06% to
7.97% and the average interest rate on interest-bearing liabilities increased
17 basis points from 4.51% to 4.68%. We are currently evaluating ways to
improve the interest spread.</FONT></FONT></BLOCKQUOTE>
<FONT FACE="Courier New"><FONT SIZE=-1>The provision for loan losses was
$100,000 for the three-month period ended March 31, 2000 compared to $60,000
for the same period in 1999.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>This provision was appropriate
given management's quarterly review of the allowance for loan losses that
is based on the following information: migration analysis of delinquent
and non accrual loans, estimated future losses on loans, recent review
of large problem credits, local and national economic conditions, historical
loss experience, OCC qualitative adjustments, purchase of loans through
acquisitions and peer comparisons.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>11</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>OTHER OPERATING INCOME (dollars
in thousands)</FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="560" >
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Three months ended</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="27%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31,</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="28%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Change</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>%</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Service
charges</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$405 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$289 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>116 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>40.1 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Trust</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>117 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>100 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>17 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>17.0 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>100 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>133 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(33)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(24.8)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Arbitration
settlement</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>29 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(29)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Realized
securities gains, net</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>20 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>95 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(75)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(78.9)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$642 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$646 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(4)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(0.6)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="45%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="13"></TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New"><FONT SIZE=-1>As indicated in the table above,
other income was $642,000 for the three-month period ended March 31, 2000
compared to $646,000 for the same period in 1999.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The increase in service charges
is directly attributable to increased checking account, ATM and MasterMoney
Card charges.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The trust income increase is
the result of a change in our fee structure and additional business.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The decrease in other income
was primarily a result of an adjustment to insurance income.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We continue to evaluate means
of increasing other operating income to off-set the loss of net interest
income described above. Our approach is to apply service charges on transaction
accounts by charging fees on transaction activity (reduced by earnings
credit based on customers' balances) to more equitably recover costs. We
expect to continue this analysis for our other products.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>OTHER OPERATING EXPENSES (dollars
in thousands)</FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="584" >
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="31%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Three months ended</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="31%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31,</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="3" WIDTH="32%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Change</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>%</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Salaries
and employee benefits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$1,081 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$1,011 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>70 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6.9 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Occupancy </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>142 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>136 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>6 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>4.4 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Furniture
and equipment </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>178 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>166 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>12 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>7.2 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Professional
fees</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>131 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>183 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(52)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(28.4)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>730 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>732 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(2)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(0.3)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$2,262 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>$2,228 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>34 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>1.5 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="37%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="16%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="15%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="16%" HEIGHT="13"></TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Other operating expenses detailed
above were $2.3 million for the three-month period ended March 31, 2000
compared to $2.2 million for the same period in 1999.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The increase in salaries and
employee benefits was a result of normal merit increases.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Occupancy and furniture and equipment
expense had very little change in either period.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The other operating expense increase
reflects the cost of loan promotions and other normal operating expenses.</FONT></FONT>
<BR>
<BR>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="584" >
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>PROFESSIONAL
FEES (dollars in thousands)</FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="24%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Three months ended</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="24%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>March 31,</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>Change</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>$</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>%</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Other
professional fees</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>113</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>165</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(52)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(31.5)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Legal
fees</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>5</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>-</FONT></FONT></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-1>Examinations
and audits</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>13</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>13</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>- </FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-1>Total</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="13" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>131</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="13" BGCOLOR="#FFFFFF">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>183</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(52)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-1>(28.4)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="50%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="11%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="12%" HEIGHT="13"></TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Professional fees increase reflects
management's efforts to implement strategic growth initiatives and process
improvements most of which were completed in 1999.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>12</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Provision for Income Taxes</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The provision for income taxes
was $245,000 for the three-month period ended March 31, 2000 compared to
$296,000 for the same period in 1999. The decrease was primarily a result
of increased levels of tax exempt income.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>In November 1999, we entered
into a limited partnership agreement to establish a low income housing
project in Bradford County, Pa. As a result of this agreement we expect
to receive approximately $900,000 of tax credits over a ten year period
once the project has been completed.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>BRANCH ACQUISITION</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>On April 18, 2000, our company
executed an agreement whereby we will be acquiring all Bradford County
Pennsylvania offices of Sovereign Bank. These six offices located in Sayre,
Troy, State Line, Leraysville and Towanda, have total deposits of nearly
$80 million. We will also receive Sovereign's Bradford County loan portfolio
totaling approximately $30 million. The consummation date for this acquisition
is expected to be around September 30, 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our acquisition of Sovereign
Bank's loans consist primarily of small business and consumer loans. Future
growth in residential mortgage lending in anticipated.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>$80 million from the Bradford
County offices to be acquired will provide a significant addition to our
core deposit base and will have a positive impact upon our liquidity.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The consummation of the acquisition
of Bradford County branches will enable us to eliminate all of our short-term
and long-term borrowings from the Federal Home Loan Bank.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We believe this transaction will
increase earnings in 2001 and beyond.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>LIQUIDITY</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>As detailed in the Consolidated
Statement of Cash Flows, our company incurred a negative net cash flow
from operating, investing and financing activities during the 1999 period.
The major components have been discussed previously in the financial condition
section relating to investments, loans and deposits.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Liquidity is a measure of our
company's ability to efficiently meet normal cash flow requirements of
both borrowers and depositors. To maintain proper liquidity, we use funds
management policies along with our investment policies to assure we can
meet our financial obligations to depositors, credit customers and stockholders.
Liquidity is needed to meet depositors' withdrawal demands, extend credit
to meet borrowers' needs, provide funds for normal operating expenses and
cash dividends, and fund other capital expenditures.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company's historical activity
in this area can be seen in the Consolidated Statement of Cash Flows from
investing and financing activities.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Cash generated by operating activities,
investing activities and financing activities influences liquidity management.
The most important source of funds is the deposits that are primarily core
deposits (deposits from customers with other relationships). Short-term
debt from the Federal Home Loan Bank supplements our company's availability
of funds.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company's use of funds is
shown in the investing activity section of the Consolidated Statement of
Cash Flows, where the net increase in loans is detailed. Other significant
uses of funds include capital expenditures. Surplus funds are then invested
in investment securities.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>13</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Capital expenditures during the
first quarter of 2000 were $243,000, $241,000 less than the same period
in 1999.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>On February 8, 1999, we acquired
a property near the Mansfield Wal-Mart consisting of a large office building
on 2 acres, to be used as an operations facility. The cost of acquisition
and the expected remodeling will be approximately $1.8 million</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>In addition, our company has
contracted with Wal-Mart to include a First Citizens branch in their new
Supercenter scheduled to be opened August 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company continues to plan
for an approximate $2.4 million renovation or replacement of the Mansfield
community office. This effort has been in various stages of planning for
more than nine years. We expect construction to take place in 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We believe our company has sufficient
resources to complete these projects from our normal operations and that
they will have a long-term positive effect on revenues, efficiency and
the capacity for future growth.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company achieves liquidity
primarily from temporary or short-term investments in the Federal Home
Loan Bank of Pittsburgh, PA, and investments that mature in less than one
year. The company also has a maximum borrowing capacity at the Federal
Home Loan Bank of approximately $89 million as an additional source of
liquidity.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Apart from those matters described
above, management does not currently believe that there are any current
trends, events or uncertainties that would have a material impact on capital.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>14</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>CREDIT QUALITY RISK</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The following table identifies
amounts of loan losses and non-performing loans. Past due loans are those
that were contractually past due 90 days or more as to interest or principal
payments (dollars in thousands).</FONT></FONT>
<BR>
<TABLE BORDER CELLPADDING=2 WIDTH="764" >
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>March 31,</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="4" WIDTH="47%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>December 31, </FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>2000</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1999</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1998</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1997</FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1996</FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Non-performing
loans:</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Non-accruing
loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 303 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 421 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,495 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,169 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 844 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Impaired
loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>847 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,334 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>382 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>382 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>414 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Accrual
loans - 90 days or</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>More
past due</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>228 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>78 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>15 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>170 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>723 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Total
non-performing loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,378 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,833 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,892 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,721 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1,981 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Foreclosed
assets held for sale</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>441 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>573 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>529 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>238 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>164 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-2>Total
non-performing assets</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,819 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,406 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,421 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,959 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,145 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="39%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="13%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="13"></TD>
</TR>
</TABLE>
<TABLE BORDER CELLPADDING=2 WIDTH="770" >
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Non-performing
loans as a percent</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-2>of
loans net of unearned income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>0.59%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>0.79%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>0.92%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>0.90%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.09%</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-2>Non-performing
assets as a percent</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-2>of
loans net of unearned income</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>0.78%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.04%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.18%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.02%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.18%</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Allowance
for possible loan loasses: </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>March 31, </FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="8" WIDTH="48%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>December 31, </FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>2000 </FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1999 </FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1998 </FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1997 </FONT></FONT></CENTER>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12">
<CENTER><FONT FACE="Courier New"><FONT SIZE=-2>1996 </FONT></FONT></CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Balance
at beginning of period </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,270 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,292 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,138 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,995 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,833 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Charge-offs </FONT></FONT></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="15%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(22)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(551)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(112)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(83)</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>(64)</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Recoveries </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>26 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>54 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>48 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>16 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>21 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Provision
for loan losses </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>100 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>475 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>218 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>210 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>205 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-2>Balance
at end of period </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,374 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,270 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,292 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 2,138 </FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>$ 1,995 </FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="12"><FONT FACE="Courier New"><FONT SIZE=-2>Allowance
for losses as a percent </FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="12"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="12"></TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"><FONT FACE="Courier New"><FONT SIZE=-2>of
total loans</FONT></FONT></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.01%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>0.98%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.13%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.11%</FONT></FONT></DIV>
</TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13">
<DIV ALIGN=right><FONT FACE="Courier New"><FONT SIZE=-2>1.09%</FONT></FONT></DIV>
</TD>
</TR>
<TR>
<TD VALIGN=TOP WIDTH="38%" HEIGHT="13"></TD>
<TD VALIGN=TOP WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="14%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="12%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="10%" HEIGHT="13"></TD>
<TD VALIGN=TOP COLSPAN="2" WIDTH="11%" HEIGHT="13"></TD>
</TR>
</TABLE>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Interest does not accrue on impaired
loans. Subsequent cash payments received are applied to the outstanding
principal balance or recorded as interest income, depending upon management's
assessment of its ultimate ability to collect principal and interest.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>INTEREST RATE AND MARKET RISK
MANAGEMENT</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The objective of interest rate
sensitivity management is to maintain an appropriate balance between the
stable growth of income and the risks associated with maximizing income
through interest sensitivity imbalances and the market value risk of assets
and liabilities.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Because of the nature of our
operations, we are not subject to foreign currency exchange or commodity
price risk and, since our company has no trading portfolio, it is not subject
to trading risk.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Currently our company has equity
securities that represent only 4% of our investment portfolio and, therefore,
equity risk is not significant.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>15</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>The primary components of interest-sensitive
assets include adjustable-rate loans and investments, loan repayments,
investment maturities and money market investments. The primary components
of interest-sensitive liabilities include maturing certificates of deposit,
IRA certificates of deposit and short-term borrowings. Savings deposits,
NOW accounts and money market investor accounts are considered core deposits
and are not short-term interest sensitive (except for the top-tier money
market investor accounts which are paid current market interest rates).</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Gap analysis, one of the methods
used by us to analyze interest rate risk, does not necessarily show the
precise impact of specific interest rate movements on our company's net
interest income because the repricing of certain assets and liabilities
is discretionary and is subject to competitive and other pressures. In
addition, assets and liabilities within the same period may, in fact, be
repaid at different times and at different rate levels. We have not experienced
the kind of earnings volatility that might be indicated from gap analysis.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Our company currently uses a
computer simulation model to better measure the impact of interest rate
changes on net interest income. We use the model as part of our risk management
process that will effectively identify, measure, and monitor our company's
risk exposure.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>We us numerous interest rate
simulations employing a variety of assumptions are used by us to evaluate
our interest rate risk exposure. A shock analysis at March 31, 2000, indicated
that a 200 basis point movement in interest rates in either direction would
have a minor impact on our company's anticipated net interest income over
the next twenty-four months.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>GENERAL</FONT></FONT>
<BLOCKQUOTE>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>The majority of assets and liabilities
of a financial institution are monetary in nature and, therefore, differ
greatly from most commercial and industrial companies that have significant
investments in fixed assets or inventories. However, inflation does have
an important impact on the growth of total assets and on noninterest expenses,
which tend to rise during periods of general inflation. The recent action
by the Federal Reserve of increasing short-term interest rates will help
ensure that the level of inflation remains at a relatively low level.</FONT></FONT></BLOCKQUOTE>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>Various congressional
bills have been passed and other proposals have been made for significant
changes to the banking system, including provisions for: limitation on
deposit insurance coverage; changing the timing and method financial institutions
use to pay for deposit insurance; and tightening the regulation of bank
derivatives' activities.</FONT></FONT></BLOCKQUOTE>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>On November 12, 1999,
President Clinton signed into law the Gramm-Leach-Bliley Act of 1999, which
is also known as the Financial Services Modernization Act. The act repeals
some depression-era banking laws and will permit banks, insurance companies
and securities firms to engage in each others' business after complying
with certain conditions and regulations which are yet to be finalized.
The act grants to community banks the power to enter new financial markets
as a matter of right that larger institutions have managed to do on an
ad hoc basis. At this time, our company has no plans to pursue these additional
possibilities.</FONT></FONT></BLOCKQUOTE>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>Our company does not
believe that the Financial Services Modernization Act will have an immediate
positive or negative material impact on our operations. However, the act
may have the result of increasing the amount of competition that our company
faces from larger financial service companies, many of whom have substantially
more financial resources than our company, which may now offer banking
services in addition to insurance and brokerage products.</FONT></FONT></BLOCKQUOTE>
<BLOCKQUOTE><FONT FACE="Courier New"><FONT SIZE=-1>Aside from those matters
described above, we do not believe that there are any trends, events or
uncertainties which would have a material adverse impact on future operating
results, liquidity or capital resources. We are not aware of any current
recommendations by the regulatory authorities (except as described herein)
which, if they were to be implemented, would have such an effect, although
the general cost of compliance with numerous and multiple federal and state
laws and regulations does have, and in the future may have, a negative
impact on our company's results of operations.</FONT></FONT></BLOCKQUOTE>
<FONT FACE="Courier New"><FONT SIZE=-1>Item 3- Quantitative and Qualitative
Disclosure About Market Risk</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>In the normal course of conducting
business activities, the company is exposed to market</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>16</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>risk, principally interest rate
risk, through the operations of its banking subsidiary. Interest rate risk
arises from market driven fluctuations in interest rates that affect cash
flows, income, expense and values of financial instruments and was disussed
previously in this Form 10-Q. Interest rate risk is managed by management
and a committee of the board of directors.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>No material changes in market
risk strategy occurred during the current period. A detailed discussion
of market risk is provided in the SEC Form 10-K for the period ended December
31, 1999.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>17</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>PART II - OTHER INFORMATION AND
SIGNATURES</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 1 - Legal Proceedings</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Management is not aware of any
litigation that would have a material</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>adverse effect on the consolidated
financial position of the company. Any</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>pending proceedings are ordinary,
routine litigation incidental to the</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>business of the company and
its subsidiary. In addition, no material</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>proceedings are pending or are
known to be threatened or contemplated against</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>the company and its subsidiary
by government authorities.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 2 - Changes in Securities
- - Nothing to report.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 3 - Defaults Upon Senior
Securities - Nothing to report.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 4 - Submission of Matters
to a Vote of Security Holders.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Results of the voting at the
Annual Meeting of Shareholders held on April 18, 1999 at 12:00 p.m. at
the Tioga County Fairgrounds Youth Building, Whitneyville, Pennsylvania,
16901</FONT></FONT>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>1. Election of Class 1 Directors
whose term will expire in 2003</FONT></FONT>
<BR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>For
Withhold Authority</FONT></FONT></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
<FONT FACE="Courier New"><FONT SIZE=-1>Bruce L. Adams
2,129,147 53,852</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>William D. Van Etten
2,129,147 53,852</FONT></FONT></DIR>
</DIR>
<FONT FACE="Courier New"><FONT SIZE=-1>
Continuing Directors:</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>
Mark L. Dalton
Class 2 Term Expires
2001</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
John E. Novak
Class 2 Term Expires
2001</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Rudolph J. van der Heil Class 2
Term Expires 2001</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Carol J. Tama
Class 1 Term Expires
2002</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
R. Lowell Coolidge Class 1
Term Expires 2002</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Richard E. Wilber Class
1 Term Expires 2002</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
John M. Thomas, M.D. Class 1
Term Expires 2002</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Larry J. Croft
Class 1 Term Expires
2002</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>2. Proposal to Amend Article
Twelfth of the Articles of Incorporation of Citizens Financial Services,
Inc., as amended, to read in full an its entirety as follows: "TWELFTH:
Commencing with the 2000 Annual Meeting of Shareholders, no Director of
the Corporation shall be eligible to stand for election or continue to
serve as a Director at the next Annual Meeting if, as of the date of the
Annual Meeting change, such Director has attainde the age of 70 years.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>
For 1,956,236
Against 172,870
Abstain 53,897</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 5 - Other Information -
Nothing to report.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>18</FONT></FONT></CENTER>
<BR>
<P><BR>
<BR>
<BR>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1><PAGE></FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Item 6 -Exhibits and reports
on Form 8-K.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(a) Exhibits.</FONT></FONT>
<DIR>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>(3)(i) - Articles of Incorporation
of the Corporation, as amended.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(3)(ii)- By-laws of the Corporation,
as amended. (Incorporated by Reference to Exhibit (3)(ii) to the Annual
Report of Form 10-K for the fiscal year ended December 31, 1995, as filed
with the Commission on March 26, 1996.)</FONT></FONT></DIR>
</DIR>
</DIR>
<DIR>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>(4) - Instruments Defining
the Rights of Stockholders. (Incorporated by reference to the Registrant's
Registration Statement No.2-89103 on Form S-14, as filed with the Commission
on February 17, 1984.)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(10) - Material Contracts. Employment
Agreement between our company and Richard E. Wilber. (Incorporated by Reference
to Exhibit (10)to the Annual Report of Form 10-K for the fiscal year ended
December 31, 1998, as filed with the Commission on March 17, 1998.)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(11) - Computation of Earnings
Per Share included on page 5 of this Form 10-Q.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(27) - Financial Data Schedules,
which are submitted electronically to the Securities and Exchange Commission
for information only and not filed.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(99) - Independent accountant's
review of financial statements for the period ended March 31, 2000.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(b)Reports on Form 8-K. Press
release dated April 19, 2000 and filed May 9, 2000.</FONT></FONT></DIR>
</DIR>
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<CENTER><FONT FACE="Courier New"><FONT SIZE=-1>19</FONT></FONT></CENTER>
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<BR>
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<FONT FACE="Courier New"><FONT SIZE=-1>Signatures</FONT></FONT>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>Pursuant to the requirements
of the Securities Exchange Act of 1934, the</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>undersigned Registrant has duly
caused this report to be signed on its behalf</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>by the undersigned hereunto
duly authorized.</FONT></FONT>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>
Citizens Financial Services, Inc.</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
(Registrant)</FONT></FONT>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>May 10, 2000
<U>/s/ Richard E. Wilber</U></FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
By: Richard E. Wilber</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
President</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
(Principal Executive Officer)</FONT></FONT>
<BR>
<BR>
<P><FONT FACE="Courier New"><FONT SIZE=-1>May 10, 2000
<U>/s/ Thomas C. Lyman</U></FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
By: Thomas C. Lyman</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Treasurer</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
(Principal Financial Officer &</FONT></FONT>
<BR><FONT FACE="Courier New"><FONT SIZE=-1>
Principal Accounting Officer)</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
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<P><FONT FACE="Courier New"><FONT SIZE=-1>EXHIBITS INDEX</FONT></FONT>
<DIR>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>(3)(i) - Articles of Incorporation
of the Corporation, as amended.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(3)(ii)- By-laws of the Corporation,
as amended. (Incorporated by Reference to Exhibit (3)(ii) to the Annual
Report of Form 10-K for the fiscal year ended December 31, 1995, as filed
with the Commission on March 26, 1996.)</FONT></FONT></DIR>
</DIR>
</DIR>
<DIR>
<DIR>
<DIR><FONT FACE="Courier New"><FONT SIZE=-1>(4) - Instruments Defining
the Rights of Stockholders. (Incorporated by reference to the Registrant's
Registration Statement No.2-89103 on Form S-14, as filed with the Commission
on February 17, 1984.)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(10) - Material Contracts. Employment
Agreement between our company and Richard E. Wilber. (Incorporated by Reference
to Exhibit (10)to the Annual Report of Form 10-K for the fiscal year ended
December 31, 1998, as filed with the Commission on March 17, 1998.)</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(11) - Computation of Earnings
Per Share included on page 5 of this Form 10-Q.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(27) - Financial Data Schedule,
which are submitted electronically to the Securities and Exchange Commission
for information only and not filed.</FONT></FONT>
<P><FONT FACE="Courier New"><FONT SIZE=-1>(99) - Independent accountant's
review of financial statements for the period ended March 31, 2000.</FONT></FONT>
<BR>
<BR>
<BR>
<BR>
<BR>
<CENTER>
<P><FONT FACE="Courier New"><FONT SIZE=-1>21</FONT></FONT></CENTER>
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<CENTER><B>RESTATED</B>
<P><B>ARTICLES OF INCORPORATION</B>
<P><B>CITIZENS FINANCIAL SERVICES, INC.</B></CENTER>
<P><B>FIRST.</B> The name of Corporation is Citizens Financial Services,
Inc.
<BR>
<P><B>SECOND.</B> The address of the Corporation's registered office in
the Commonwealth of Pennsylvania is:
<P>15 South Main Street
<P>Mansfield, Pennsylvania 16933
<BR>
<P><B>THIRD.</B> The corporation was incorporated on April 30, 1984, under
the provisions of the Business Corporation Law of the Commonwealth of Pennsylvania
(Act of May 5, 1933, P.L. 364, as amended). The purpose of the Corporation
is and it shall have unlimited power to engage in and do any lawful act
concerning any or all lawful business for which corporations may be incorporated
under the provisions of the Business Corporation Law of the Commonwealth
of Pennsylvania.
<BR>
<P><B>FOURTH.</B> The aggregate number of shares, classes of shares and
par value of shares that the Corporation has authority to issue is 10,000,000
shares of common stock, par value $1.00 per share.
<BR>
<P><B>FIFTH.</B> The term of the Corporation's existence is perpetual.
<BR>
<P><B>SIXTH.</B> [Intentionally omitted.]
<BR>
<P><B>SEVENTH.</B> Cumulative voting rights shall not exist with respect
to the election of directors.
<BR>
<P><B>EIGHTH.</B> A. The Board of Directors may, if it deems it advisable,
oppose a tender, or other offer for the Corporation's securities, whether
the offer is in cash or in securities of a corporation or otherwise. When
considering whether to oppose an offer, the Board of Directors may, but
it is not legally obligated to, consider any pertinent issues; by way of
illustration, but not of limitation, the Board of Directors may, but shall
not be legally obligated to, consider any and all of the following:
<BR>
<P>(1) Whether the offer price is acceptable based on the historical and
present operating results or financial condition of the Corporation.
<BR>
<P>(2) Whether a more favorable price could be obtained for the Corporation's
securities in the future.
<P>(3) The impact which an acquisition of the Corporation would have on
its employees, depositors and customers of the Corporation and its subsidiaries
in the community which they serve.
<BR>
<P>(4) The reputation and business practices of the offeror and its management
and affiliates as they would affect the employees, depositors and customers
of the Corporation and its subsidiaries and the future value of the Corporation's
stock.
<BR>
<P>(5) The value of the securities, if any, which the offeror is offering
in exchange for the Corporation's securities, based on an analysis of the
worth of the Corporation as compared to the corporation or other entity
whose securities are being offered.
<BR>
<P>(6) Any antitrust or other legal and regulatory issues that are raised
by the offer.
<BR>
<P>B. If the Board of Directors determines that an offer should be rejected,
it may take any lawful action to accomplish its purpose including, but
not limited to, any and all of the following: advising shareholders not
to accept the offer; litigation against the offeror; filing complaints
with all governmental and regulatory authorities; acquiring the authorized
but unissued securities or treasury stock or granting options with respect
thereto; acquiring a company to create an antitrust or other regulatory
problem for the offeror; and obtaining a more favorable offer from another
individual or entity.
<BR>
<P><B>NINTH.</B> The Directors shall be divided into three (3) classes,
as nearly equal in number as possible, known as Class 1, consisting of
not more than eight (8) Directors; Class 2, consisting of not more than
eight (8) Directors; and Class 3, consisting of not more than nine (9)
Directors. The initial Directors of Class 1 shall serve until the third
(3rd) annual meeting of shareholders. At the third (3rd) annual meeting
of the shareholders, the Directors of Class 1 shall be elected for a term
of three (3) years and, after expiration of such term, shall thereafter
be elected every three (3) years for three (3) year terms. The initial
Directors of Class 2 shall serve until the second (2nd) annual meeting
of shareholders. At the second annual meeting of the shareholders, the
Directors of Class 2 shall be elected for a term of three (3) years and,
after the expiration of such term, shall thereafter be elected every three
(3) years for three (3) terms. The initial Directors of Class 3 shall serve
until the first (1st) annual meeting of shareholders. At the first (1st)
annual meeting of the shareholders the Directors of Class 3 shall be elected
for a term of three (3) years and, after the expiration of such term, shall
thereafter be elected every three (3) years for three (3) year terms. Each
director shall serve until his/her successor shall have been elected and
shall qualify, even though his/her term of office as herein provided has
otherwise expired, except in the event of his/her earlier resignation,
removal or disqualification.
<BR>
<P><B>TENTH. </B>The Board shall consist of not less than five nor more
than twenty-five shareholders, the exact number within such minimum and
maximum limits to be fixed and determined from time to time by resolution
of a majority of the full Board or by resolution of the shareholders at
any meeting thereof; provided, however, that a majority of the full Board
of Directors may not increase the number of directors to a number which;
(i) exceeds by more than two, the number of directors last elected by shareholder,
(ii) in no event shall the number of directors exceed twenty-five.
<BR>
<P><B>ELEVENTH.</B> Any directorship to be filled by reason of an increase
in the number of directors may be filled by the Board of Directors. The
Board of Directors shall specify the class in which a director so elected
shall serve. Any director elected by the Board of Directors shall hold
office only until the next annual meeting of the shareholders and until
his successor shall have been elected and qualified, notwithstanding that
the term of office of the other directors in the class of which he is a
member does not expire at the time of such meeting. His successor shall
be elected by the shareholders to a term of office which shall expire at
the same time as the term of office of the other directors in the class
to which he is elected.
<BR>
<P><B>TWELFTH.</B>Commencing with the 2000 Annual Meeting of Shareholders,
no Director of the Corporation shall be eligible to stand for election
or continue to serve as a Director at the next Annual Meeting if, as of
the date of the Annual Meeting, such Director has attained the age of 70
years.
<BR>
<P><B>THIRTEENTH.</B> No shareholder of this Corporation shall be entitled
to preemptive rights and preemptive rights shall not exist with respect
to shares or securities of this Corporation.
<BR>
<P><B>FOURTEENTH.</B> The Corporation shall have authority to borrow money
and the Board of Directors, without the approval of the shareholders and
acting within their sole discretion, shall have the authority to issue
debt instruments of the Corporation upon such terms and conditions and
with such limitation as the Board of Directors deems advisable. The authority
of the Board of Directors shall include, but not be limited to, the power
to issue convertible debentures.
<BR>
<P><B>FIFTEENTH.</B> A. To the extent permitted by Section 410 of the Pennsylvania
Business Corporation Law, and any amendments thereto, and sections relating
thereto, including the Directors' Liability Act, subject to Federal regulatory
restrictions, the Board of Directors of the Corporation shall cause the
Corporation to indemnify any person who was or is threatened to be made
a party to any threatened, pending, or completed actions, suit, or proceeding,
whether civil, criminal, administrative, or investigative by reason of
the fact that he or she is or was a director, officer, employee or agent
of the Corporation against expenses (including attorneys' fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by
him or her in connection with such action, suit, or proceeding, including
any amount paid to the institution itself as a result of an action or suit
by or in the right of the Corporation.
<BR>
<P>To the extent permitted by law, the Board of Directors of the Corporation
shall cause the Corporation to purchase and maintain insurance on behalf
of any person who is or was against any liability asserted against him
or her and incurred by him or her in any such capacity, and arising out
of his or her status as such.
<BR>
<P>B. A director of the Corporation shall not be personally liable for
monetary damages as such for any action taken, or any failure to take any
action, unless:
<BR>
<P>(1) the director has breached or failed to perform the duties of his
or her office under Section 8363 of the Directors' Liability Act (relating
to standard of care and justifiable reliance); and
<BR>
<P>(2) the breach or failure to perform constitutes self-dealing, willful
misconduct or recklessness.
<BR>
<P>Exception
<P>The provisions of this section shall not apply to:
<BR>
<P>(1) the responsibility or liability of a director pursuant to any criminal
statute; or
<BR>
<P>(2) the liability of a director for the payment of taxes pursuant to
local, State or Federal law.
<BR>
<P><B>SIXTEENTH.</B> No merger, consolidation, liquidation or dissolution
of the Corporation nor any action that would result in the sale of other
disposition of all or substantially all of the assets of the Corporation
shall be valid unless first approved by the affirmative vote of the holders
of at least sixty-six and two-thirds percent (66 2/3%) of the outstanding
shares of Common Stock. This Article may not be amended unless first approved
by the affirmative vote of the holders of at least sixty-six and two-thirds
percent (66 2/3%) of the outstanding shares of
Common Stock.
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<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 6,306
<INT-BEARING-DEPOSITS> 312
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 89,618
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 231,963
<ALLOWANCE> 2,374
<TOTAL-ASSETS> 339,820
<DEPOSITS> 284,716
<SHORT-TERM> 18,759
<LIABILITIES-OTHER> 3,466
<LONG-TERM> 5,870
0
0
<COMMON> 2,801
<OTHER-SE> 24,208
<TOTAL-LIABILITIES-AND-EQUITY> 339,820
<INTEREST-LOAN> 4,879
<INTEREST-INVEST> 1,355
<INTEREST-OTHER> 11
<INTEREST-TOTAL> 6,245
<INTEREST-DEPOSIT> 2,934
<INTEREST-EXPENSE> 3,342
<INTEREST-INCOME-NET> 2,902
<LOAN-LOSSES> 100
<SECURITIES-GAINS> 20
<EXPENSE-OTHER> 2,262
<INCOME-PRETAX> 1,182
<INCOME-PRE-EXTRAORDINARY> 938
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 938
<EPS-BASIC> .34
<EPS-DILUTED> .34
<YIELD-ACTUAL> 3.88
<LOANS-NON> 303
<LOANS-PAST> 288
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 847
<ALLOWANCE-OPEN> 2,270
<CHARGE-OFFS> 22
<RECOVERIES> 26
<ALLOWANCE-CLOSE> 2,374
<ALLOWANCE-DOMESTIC> 2,374
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 226
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<TITLE>INDEPENDENT ACCOUNTANT'S REPORT</TITLE>
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<B><FONT FACE="Courier New,Courier">INDEPENDENT
ACCOUNTANT'S REPORT</FONT></B>
<BR><FONT FACE="Courier New,Courier"></FONT>
<BR><FONT FACE="Courier New,Courier"></FONT> <FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier">To the Stockholders and the Board of
Directors of</FONT><FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier">Citizens Financial Services, Inc.</FONT><FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier">We have reviewed the accompanying consolidated
balance sheet of Citizens Financial Services, Inc. and subsidiary as of
March 31, 2000, and the related consolidated statements of income, comprehensive
income, and cash flows for the three-month periods ended March 31, 2000
and 1999. These financial statements are the responsibility of the Company's
management.</FONT><FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier"><FONT SIZE=+0>We conducted our review
in accordance with standards established by the American Institute of Certified
Public Accountants. A review of interim financial information consists
principally of applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting matters.
It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.</FONT></FONT><FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier"><FONT SIZE=+0>Based on our review,
we are not aware of any material modifications that should be made to the
accompanying financial statements for them to be in conformity with generally
accepted accounting principles.</FONT></FONT><FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier">We have previously audited, in accordance
with generally accepted auditing standards, the consolidated balance sheet
as of December 31, 1999, and the related consolidated statements of income,
changes in stockholders' equity and cash flows for the year then ended
(not presented herein); and in our report dated February 11, 2000 we expressed
an unqualified opinion on those consolidated financial statements.</FONT>
<BR><FONT FACE="Courier New,Courier"></FONT>
<BR><FONT FACE="Courier New,Courier"></FONT> <FONT FACE="Courier New,Courier"></FONT>
<P><FONT FACE="Courier New,Courier"><FONT SIZE=+0>Wexford, PA</FONT></FONT>
<BR><FONT FACE="Courier New,Courier"><FONT SIZE=+0>May 5, 2000</FONT></FONT>
<BR>
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