14.	Restatement

Subsequent to the filing of the Company's June 30, 2011 Quarterly Report on Form 10-Q, management determined that there was an error in the financial statements relating to accounting for the provision and allowance for loan losses. This error, resulting from the misapplication of facts that came to light in the quarter ended June 30, 2011, was discovered following an examination by the Company's regulatory agencies. Certain loans or portions there-of were determined to be uncollectible and were charged-off against the allowance for loan loss and the assigned risk rating for a significant loan was determined to be in error. The charge-offs and risk rating change resulted in an addition to the provision for credit losses. The impact of the restatement is summarized below:

Effect of Restatement

	Three months Ended June 30, 2011									Six months Ended June 30, 2011
	($ in 000's)									($ in 000's)

	As Previously Reported			Change			As Restated			As Previously Reported			Change			As Restated
Income Statement
Provision for credit losses		3,530			5,631			9,161			4,420			5,631			10,051
Provision for income taxes		(1,282	)		(2,317	)		(3,599	)		(1,232	)		(2,317	)		(3,549	)
Net income (loss)		(3,035	)		(3,314	)		(6,349	)		(2,679	)		(3,314	)		(5,993	)
Earnings (loss) per share:
Basic		(0.23	)		(0.25	)		(0.48	)		(0.20	)		(0.25	)		(0.45	)
Diluted		(0.23	)		(0.25	)		(0.48	)		(0.20	)		(0.25	)		(0.45	)

	As of June 30, 2011
	($ in 000's)

	As Previously Reported			Change			As Restated
Balance Sheet
Loans and Leases		429,913			(6,055	)		423,858
Allowance for loan losses		(14,303	)		424			(13,879	)
Deferred income taxes - net		7,996			2,317			10,313
Total assets		658,963			(3,314	)		655,649
Retained earnings		30,300			(3,314	)		26,986
Total shareholders' equity		70,143			(3,314	)		66,829