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&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;NOTE 2 &amp;#x2014; Basis of
Presentation&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Financial Statements of
the Company have been consolidated with those of the Bank and its
subsidiaries, eliminating all intercompany items and
transactions.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Statements are
presented on the accrual basis of accounting.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The unaudited consolidated
financial statements have been prepared in accordance with
applicable rules and regulations of the Securities and Exchange
Commission (SEC), the instructions to SEC Form 10-Q and GAAP for
interim financial information. In the opinion of management, all
adjustments that are of a normal recurring nature and are
considered necessary for a fair presentation have been included.
The unaudited consolidated financial statements, as so adjusted,
are not however necessarily indicative of the results of
consolidated operations for a full year or any other
period.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;All information is
presented in thousands of dollars, except as indicated and per
share amounts are based on weighted average shares outstanding in
each period. Net interest margin is stated on a tax equivalency
yield.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;For further information,
refer to the audited consolidated financial statements and
accompanying notes included in the Company&amp;#x2019;s Annual Report on
Form 10-K for the year ended December&amp;#xA0;31, 2012.&lt;/font&gt;&lt;/p&gt;


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