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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Principles of Consolidation&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The consolidated financial statements
include the accounts of Southwest Georgia Financial Corporation and its wholly-owned direct and indirect Subsidiaries, Southwest
Georgia Bank (the &amp;#147;Bank&amp;#148;) and Empire Financial Services, Inc. (&amp;#147;Empire&amp;#148;). All significant intercompany
accounts and transactions have been eliminated in the consolidation.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting.  The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Emerging Issues Task Force (EITF)

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 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02

 -Paragraph k

 -Article 1



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 -Publisher AICPA

 -Name Accounting Principles Board Opinion (APB)

 -Number 18

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 140

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02, 03

 -Article 3A



Reference 8: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Emerging Issues Task Force (EITF)

 -Number 96-16

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 9: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Accounting Principles Board Opinion (APB)

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 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 10: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name FASB Interpretation (FIN)

 -Number 46R

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 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 11: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

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Reference 14: http://www.xbrl.org/2003/role/presentationRef

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Reference 15: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Accounting Research Bulletin (ARB)

 -Number 51

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Reference 16: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

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 -Publisher FASB

 -Name Accounting Standards Codification

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Nature of Operations&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation offers comprehensive
financial services to consumer, business, and governmental customers through its banking offices in southwest Georgia. Its primary
deposit products are money market, NOW, savings and certificates of deposit, and its primary lending products are consumer and
commercial mortgage loans. The Corporation provides, in addition to conventional banking services, investment planning and management,
trust management, mortgage banking, and commercial and individual insurance products. Insurance products and advice are provided
by the Bank&amp;#146;s Southwest Georgia Insurance Services Division. Mortgage banking for primarily commercial properties is provided
by Empire, a mortgage banking services subsidiary.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation&amp;#146;s primary business
is providing banking services through the Bank to individuals and businesses principally in Colquitt County, Baker County, Thomas
County, Worth County, Lowndes County and the surrounding counties of southwest Georgia. The Bank also operates Empire in Milledgeville,
Georgia. Our first full-service banking center in Valdosta, Georgia opened in June 2010 and a mortgage origination office was
opened in January 2011 in Valdosta, Georgia. Our second banking center in Valdosta opened in March 2012.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings).</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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 -Publisher AICPA

 -Name Statement of Position (SOP)

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Use of Estimates&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Material estimates that are particularly
susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate
acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains
independent appraisals for significant properties.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;A substantial portion of the Corporation&amp;#146;s
loans are secured by real estate located primarily in Georgia. Accordingly, the ultimate collection of these loans is susceptible
to changes in the real estate market conditions of this market area.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Statement of Position (SOP)

 -Number 94-6

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Cash and Cash Equivalents and Statement
of Cash Flows&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;For purposes of reporting cash flows,
the Corporation considers cash and cash equivalents to include all cash on hand, deposit amounts due from banks, interest-bearing
deposits in other banks, and federal funds sold. The Corporation maintains its cash balances in several financial institutions.
Accounts at the financial institutions are secured by the Federal Deposit Insurance Corporation up to $250,000. Uninsured deposits
aggregate to $36,426 at June 30, 2013.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Glossary Cash

 -URI http://asc.fasb.org/extlink&amp;oid=6506951



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

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 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Financial Reporting Release (FRR)

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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 -Name Technical Practice Aid (TPA)

 -Number 2110

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 95

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Investment Securities&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Debt securities that management has
the positive intent and ability to hold to maturity are classified as &amp;#147;held to maturity&amp;#148; and recorded at amortized
cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values,
are classified as &amp;#147;available for sale&amp;#148; and recorded at fair value with unrealized gains and losses reported in other
comprehensive income.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Purchase premiums and discounts are
recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held-to-maturity
and available-for-sale securities below their cost that are deemed to be other-than-temporarily impaired are reflected in earnings
as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the
extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and
(3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow
for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are
determined using the specific identification method.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for investments in financial assets, including marketable securities (debt and equity securities with readily determinable fair values), investments accounted for under the equity method and cost method, securities borrowed and loaned, and repurchase and resale agreements. For marketable securities, the disclosure may include the entity's accounting treatment for transfers between investment categories and how the fair values for such securities are determined. Also, for all investments, an entity may describe its policy for assessing, recognizing and measuring impairment of the investment.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 115

 -Paragraph 7-16

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 107

 -Paragraph 10, 11

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Staff Accounting Bulletin (SAB)

 -Number Topic 5

 -Section M



Reference 9: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 210

 -SubTopic 10

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 -Publisher FASB

 -Name FASB Staff Position (FSP)

 -Number FAS115-1/124-1

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 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 11: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02

 -Paragraph 2, 12

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</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Investment Securities</Label></Row><Row FlagID="0"><Id>7</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>us-gaap_PropertyPlantAndEquipmentPolicyTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Premises and Equipment&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Premises and equipment are stated at
cost, less accumulated depreciation and amortization. Depreciation has been calculated primarily using the straight-line method
for buildings and building improvements over the assets estimated useful lives. Equipment and furniture are depreciated using the
modified accelerated recovery system method over the assets estimated useful lives for financial reporting and income tax purposes
for assets purchased on or before December 31, 2003. For assets acquired since 2003, the Corporation used the straight-line method
of depreciation. The following estimated useful lives are used for financial statement purposes:&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;Land improvements&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;5 &amp;#150; 31 years&lt;/font&gt;&lt;/td&gt;
    &lt;td style="width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;Building and improvements&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;10 &amp;#150; 40 years&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;Machinery and equipment&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;5 &amp;#150; 10 years&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;Computer equipment&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;3 &amp;#150; 5 years&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;Office furniture and fixtures&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;5 &amp;#150; 10 years&lt;/font&gt;&lt;/td&gt;
    &lt;td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 115%"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;All of the Corporation&amp;#146;s leases
are operating leases and are not capitalized as assets for financial reporting purposes. Maintenance and repairs are charged to
expense and betterments are capitalized.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Long-lived assets are evaluated regularly
for other-than-temporary impairment. If circumstances suggest that their value may be impaired and the write-down would be material,
an assessment of recoverability is performed prior to any write-down of the asset. Impairment on intangibles is evaluated at each
balance sheet date or whenever events or changes in circumstances indicate that the carrying amount should be assessed. Impairment,
if any, is recognized through a valuation allowance with a corresponding charge recorded in the income statement.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for property, plant and equipment which may include the basis of such assets, depreciation methods used and estimated useful lives, the entity's capitalization policy, including its accounting treatment for costs incurred for repairs and maintenance activities, whether such asset balances include capitalized interest and the method by which such is calculated, how disposals of such assets are accounted for and how impairment of such assets is assessed and recognized.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 235

 -SubTopic 10

 -Section 50

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 360

 -SubTopic 10

 -URI http://asc.fasb.org/subtopic&amp;trid=2155824



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Accounting Principles Board Opinion (APB)

 -Number 22

 -Paragraph 12, 13

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 4: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Accounting Research Bulletin (ARB)

 -Number 43

 -Section C

 -Paragraph 5

 -Chapter 9

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 5: http://www.xbrl.org/2003/role/presentationRef

 -Publisher AICPA

 -Name Accounting Principles Board Opinion (APB)

 -Number 12

 -Paragraph 5

 -Subparagraph d

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 144

 -Paragraph 7

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 7: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 210

 -SubTopic 10

 -Section S99

 -Paragraph 1

 -Subparagraph (SX 210.5-02.13(a))

 -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682



Reference 8: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02

 -Paragraph 13

 -Subparagraph a

 -Article 5



Reference 9: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 34

 -Paragraph 8, 9

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Premises and Equipment</Label></Row><Row FlagID="0"><Id>8</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>us-gaap_LoansAndLeasesReceivableAllowanceForLoanLossesPolicy</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Loans and Allowances for Loan Losses&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Loans are stated at principal amounts
outstanding less unearned income and the allowance for loan losses. Interest income is credited to income based on the principal
amount outstanding at the respective rate of interest except for interest on certain installment loans made on a discount basis
which is recognized in a manner that results in a level-yield on the principal outstanding.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Accrual of interest income is discontinued
on loans when, in the opinion of management, collection of such interest income becomes doubtful. Accrual of interest on such loans
is resumed when, in management&amp;#146;s judgment, the collection of interest and principal becomes probable.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Fees on loans and costs incurred in
origination of most loans are recognized at the time the loan is placed on the books. Because loan fees are not significant, the
results on operations are not materially different from the results which would be obtained by accounting for loan fees and costs
as amortized over the term of the loan as an adjustment of the yield.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;A loan is considered impaired when,
based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of
principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining
impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments
when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management
determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of
the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower&amp;#146;s
prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on
a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted
at the loan&amp;#146;s effective interest rate, the loan&amp;#146;s obtainable market price, or the fair value of the collateral if the
loan is collateral dependent.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Large groups of smaller balance homogeneous
loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer
and residential loans for impairment disclosures.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The allowance for loan losses is established
through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management
believes the collection of the principal is unlikely. The allowance is an amount which management believes will be adequate to
absorb estimated losses on existing loans that may become uncollectible based on evaluation of the collectability of loans and
prior loss experience. This evaluation takes into consideration such factors as changes in the nature and volume of the loan portfolios,
current economic conditions that may affect the borrowers&amp;#146; ability to pay, overall portfolio quality, and review of specific
problem loans.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Management believes that the allowance
for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the
allowance may be necessary based upon changes in economic conditions. Also, various regulatory agencies, as an integral part of
their examination process, periodically review the Corporation&amp;#146;s allowance for loan losses. Such agencies may require the
Corporation to recognize additions to the allowance based on their judgments of information available to them at the time of their
examination.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for estimating the allowance for losses on loans and lease receivables. The disclosure may include (a) how the entity determines each element of the allowance, (b) which loans are evaluated individually and which loans are evaluated as a group, (c) how the entity determines both the allocated and unallocated portions of the allowance, (d) how the entity determines the loss factors applied to graded loans in order to develop a general allowance, and (e) what self-correcting mechanism the entity uses to reduce differences between estimated and actual losses.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 235

 -SubTopic 10

 -Section 50

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 -URI http://asc.fasb.org/extlink&amp;oid=6367646&amp;loc=d3e18780-107790



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 310

 -SubTopic 10

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 5

 -Paragraph 9

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Foreclosed Assets&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In accordance with policy guidelines
and regulations, properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at
the lower of cost or fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations
are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to
sell. A valuation allowance is established to record market value changes in foreclosed assets. Revenue and expenses from operations
and changes in the valuation allowance are included in net expenses from foreclosed assets. No additional provisions were added
in the first six months of 2013. As of June 30, 2013, the valuation allowance for foreclosed asset losses remains at $895,000.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Foreclosed Assets [Policy Text Block]</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Foreclosed Assets</Label></Row><Row FlagID="0"><Id>10</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>us-gaap_IntangibleAssetsFiniteLivedPolicy</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;Intangible Assets&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Intangible assets are amortized over
a determined useful life using the straight-line basis. These assets are evaluated annually as to the recoverability of the carrying
value. The remaining intangibles have a remaining life of two to eight years.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for finite-lived intangible assets. This accounting policy also might address: (1) the amortization method used; (2) the useful lives of such assets; and (3) how the entity assesses and measures impairment of such assets.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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 -Topic 350

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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 -Number 142

 -Paragraph 11-15

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</LabelSeparator><Level>2</Level><ElementName>us-gaap_FairValueOfFinancialInstrumentsPolicy</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Credit Related Financial Instruments&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In the ordinary course of business,
the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial
letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for determining the fair value of financial instruments.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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 -Name Accounting Standards Codification

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 107

 -Paragraph 8, 10, 12, 13, 14

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</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Credit Related Financial Instruments</Label></Row><Row FlagID="0"><Id>12</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>us-gaap_PensionAndOtherPostretirementPlansPolicy</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Retirement Plans&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation and its subsidiaries
have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts
not exceeding the regulatory requirements.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for pension and other postretirement benefit plans. This accounting policy may address (1) the types of plans sponsored by the entity, and the benefits provided by each plan (2) groups that participate in (or are covered by) each plan (3) how plan assets, liabilities and expenses are measured, including the use of any actuaries and (4) significant assumptions used by the entity to value plan assets and liabilities and how such assumptions are derived.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

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Reference 12: http://www.xbrl.org/2003/role/presentationRef

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</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Retirement Plans</Label></Row><Row FlagID="0"><Id>13</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>SGB_BankOwnedLifeInsurancePolicyTextBlock</ElementName><ElementPrefix>SGB_</ElementPrefix><IsBaseElement>false</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Bank Owned Life Insurance&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation&amp;#146;s subsidiary
bank has bank owned life insurance policies on a group of employees. Banking laws and regulations allow the Bank to purchase life
insurance policies on certain employees in order to help offset the Bank&amp;#146;s overall employee compensation costs. At June
30, 2013, and December 31, 2012, the policies had a value of $4,890,000 and $4,766,513, respectively, and were 16.2% and 16.0%,
respectively, of stockholders&amp;#146; equity. These values are within regulatory guidelines.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Bank Owned Life Insurance [Policy Text Block]</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Bank Owned Life Insurance</Label></Row><Row FlagID="0"><Id>14</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

</LabelSeparator><Level>2</Level><ElementName>us-gaap_IncomeTaxPolicyTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="From2013-01-01to2013-06-30" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Income Taxes&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation and its subsidiaries
file a consolidated income tax return. Each subsidiary computes its income tax expense as if it filed an individual return except
that it does not receive any portion of the surtax allocation. Any benefits or disadvantages of the consolidation are absorbed
by the parent company.&amp;#160; Each subsidiary pays its allocation of federal income taxes to the parent company or receives payment
from the parent company to the extent that tax benefits are realized.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation reports income under
Accounting Standards Codification Topic 740, Income Taxes, which requires recognition of deferred tax liabilities and assets for
the expected future tax consequences of events that have been included in the financial statements or tax returns.&amp;#160; Under
this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax
bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
Recognition of deferred tax assets is based on management&amp;#146;s belief that it is more likely than not that the tax benefit associated
with certain temporary differences and tax credits will be realized.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation will recognize a tax
position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with an
examination being presumed to occur. The amount recognized is the largest amount of a tax benefit that is greater than fifty percent
likely of being realized on examination. No benefit is recorded for tax positions that do not meet the more than likely than not
test.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation recognizes penalties
related to income tax matters in income tax expense.&amp;#160; The Corporation is subject to U.S. federal and Georgia state income
tax audit for returns for the tax period ending December 31, 2010 and subsequent years.&amp;#160;&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 740

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Statement of Financial Accounting Standard (FAS)

 -Number 109

 -Paragraph 6-34, 43, 47, 49

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Trust Department&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Trust income is included in the accompanying
consolidated financial statements on the cash basis in accordance with established industry practices. Reporting of such fees
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&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Servicing and Origination Fees on Loans&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Corporation from the Bank&amp;#146;s
subsidiary, Empire, recognizes as income in the current period all loan origination and brokerage fees collected on loans originated
and closed for investing participants. Loan servicing fees are based on a percentage of loan interest paid by the borrower and
recognized over the term of the loan as loan payments are received. Empire does not directly fund any mortgages and acts as a
service-oriented broker for participating mortgage lenders. Fees charged for continuing servicing fees are comparable with market
rates charged in the industry. Based on these facts and after a thorough analysis and evaluation of deferred mortgage servicing
costs as defined under Accounting Standards Codification (&amp;#147;ASC&amp;#148;) 860, unrecognized mortgage servicing assets are considered
insignificant and immaterial to be recognized. Late charges assessed on past due payments are recognized as income by the Corporation
when collected.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Servicing and origination fees on loans [Policy Text Block]</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Servicing and Origination Fees on Loans</Label></Row><Row FlagID="0"><Id>17</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

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&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Advertising Costs&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;It is the policy of the Corporation
to expense advertising costs as they are incurred. The Corporation does not engage in any direct-response advertising and accordingly
has no advertising costs reported as assets on its balance sheet. Costs expensed were $37,875 and $75,317 for the three and six-month
periods ended June 30, 2013.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy for advertising costs. For those costs that cannot be capitalized, discloses whether such costs are expensed as incurred or the first period in which the advertising takes place. For direct response advertising costs that are capitalized, describes those assets and the accounting policy used, including a description of the qualifying activity, the types of costs capitalized and the related amortization period. An entity also may disclose its accounting policy for cooperative advertising arrangements.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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 -Publisher AICPA

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 -Publisher FASB

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Emerging Issues Task Force (EITF)

 -Number 02-16

 -Paragraph 6

 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



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&lt;p style="margin: 0pt"&gt;&lt;/p&gt;

&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Recent Market and Regulatory Developments&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The financial services industry is continuing
to face unprecedented challenges in the face of the current national and global economic environment. The global and U.S. economies
continue to experience significantly reduced business activity. While recently showing signs of improvement, dramatic declines
in the housing market during the past several years, with falling home prices and increasing foreclosures and unemployment, have
resulted in significant write-downs of asset values by financial institutions, including government-sponsored entities and major
commercial and investment banks. These write-downs, initially of mortgage-backed securities but spreading to credit default swaps
and other derivative securities, have caused many financial institutions to seek additional capital; to merge with larger and stronger
institutions; and, in some cases, to fail. The Corporation is fortunate that the markets it serves have been impacted to a lesser
extent than many areas around the country.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In September 2009, the FDIC adopted
a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments
for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC Board voted to adopt a uniform three-basis point increase
in assessment rates effective January 1, 2011, and extend the restoration period from seven to eight years. This rule was finalized
in November 2009. As a result, the Corporation carried a prepaid asset that the Corporation&amp;#146;s quarterly risk-based deposit
insurance assessments were paid from until the remaining $393 thousand was returned to the Corporation on June 28, 2013.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On July 21, 2010, the Dodd-Frank Wall
Street Reform and Consumer Protection Act (the &amp;#147;Dodd-Frank Act&amp;#148;) was enacted. The Dodd-Frank Act was intended to address
many issues arising in the recent financial crisis and is exceedingly broad in scope affecting many aspects of bank and financial
market regulation. The Dodd-Frank Act requires, or permits by implementing regulation, enhanced prudential standards for banks
and bank holding companies inclusive of capital, leverage, liquidity, concentration and exposure measures. In addition, traditional
bank regulatory principles such as restrictions on transactions with affiliates and insiders were enhanced. The Dodd-Frank Act
also contains reforms of consumer mortgage lending practices and creates a Bureau of Consumer Financial Protection which is granted
broad authority over consumer financial practices of banks and others. It is expected as the specific new or incremental requirements
applicable to the Corporation become effective that the costs and difficulties of remaining compliant with all such requirements
will increase. The Dodd-Frank Act also permanently raises the current standard maximum FDIC deposit insurance amount to $250,000.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On November 9, 2010, the FDIC adopted
the final rule that provides temporary unlimited coverage for noninterest-bearing transaction accounts at all FDIC-insured depository
institutions (IDIs) in anticipation of the expiration of the Transaction Account Guarantee Program on December 31, 2010. The separate
coverage for noninterest-bearing transaction accounts became effective on December 31, 2010, and terminated on December 31, 2012.
Unlike the Transaction Account Guarantee Program, the Dodd-Frank Act definition of noninterest-bearing transaction accounts does
not include either low-interest Negotiable Order of Withdrawal (NOW) accounts or Interest on Lawyer Trust Accounts (IOLTAs). Since
the unlimited coverage on non-interest bearing expired as noted above, all account types (including non-interest bearing) were
subject to the FDIC&amp;#146;s general deposit insurance coverage of $250,000 as of January 1, 2013.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On July 2, 2013, the Federal Reserve
Board approved final rules that implement changes to the regulatory capital framework for financial institutions. The new rules
include, among other things, the following elements:&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="width: 1%; line-height: 115%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="width: 99%; padding-left: 24.05pt; text-indent: -0.25in; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;1)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; a new regulatory capital component referred to as &amp;#147;Common Equity Tier 1 capital&amp;#148;, and threshold ratios for this new component;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="line-height: 115%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-right: 4.5pt; padding-left: 24.05pt; text-indent: -0.25in; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;2)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; a &amp;#147;capital conservation buffer&amp;#148; above the minimum required level of Common Equity Tier 1 capital, and restrictions on dividend payments, share buybacks, and certain discretionary bonus payments to executive officers if a capital conservation buffer of at least 2.5% of risk-weighted assets is not achieved;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="line-height: 115%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-left: 24.05pt; text-indent: -0.25in; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;3)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; the inclusion of accumulated other comprehensive income (AOCI) in Tier 1 capital, although banks with less than $250 billion in total assets will be allowed a one-time opt-out from this requirement;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="line-height: 115%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-left: 24.05pt; text-indent: -0.25in; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;4)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; additional constraints on the inclusion of minority interests, mortgage servicing assets, and deferred tax assets in regulatory capital;&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="line-height: 115%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-left: 24.05pt; text-indent: -0.25in; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;5)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; increased risk-weightings for certain assets, including equity exposures, certain acquisition/development and construction loans, and certain loans that are more than 90-days past due or are on non-accrual status; and&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;tr style="vertical-align: top"&gt;
    &lt;td style="line-height: 115%"&gt;&amp;#160;&lt;/td&gt;
    &lt;td style="padding-left: 24.05pt; text-indent: -0.25in; line-height: 115%"&gt;&lt;font style="font: 10pt/115% Times New Roman, Times, Serif"&gt;6)&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; an increase in minimum required risk-based capital ratios over a phase-in period, and an increase in the threshold for a &amp;#147;well-capitalized&amp;#148; classification for the Tier 1 Risk-Based Capital Ratio.&lt;/font&gt;&lt;/td&gt;&lt;/tr&gt;
&lt;/table&gt;
&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;These changes will be phased in beginning
January 2015, and while management continues to evaluate this final rule and its potential impact, preliminary assessments indicate
that the Corporation will continue to exceed all regulatory capital requirements under Basel III.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Recent Market And Regulatory Developments [Policy Text Block]</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Recent Market and Regulatory Developments</Label></Row><Row FlagID="0"><Id>19</Id><IsAbstractGroupTitle>false</IsAbstractGroupTitle><LabelSeparator>

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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&lt;b&gt;Recent Accounting Pronouncements&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In February 2013, the Financial Accounting
Standards Board (&amp;#147;FASB&amp;#148;) issued Accounting Standards Update (&amp;#147;ASU&amp;#148;) 2013-02, &amp;#34;Reporting of Amounts
Reclassified out of Accumulated Other Comprehensive Income&amp;#34;. ASU 2013-02 requires that companies present either in a single
note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component
of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification.
The new guidance is effective for interim and annual periods beginning after December 15, 2012. The adoption of this guidance did
not have a material effect on the Corporation&amp;#146;s financial position or results of operations.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In October&amp;#160;2012, the FASB issued
ASU 2012-06, &amp;#147;Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition
Date as a Result of a Government-Assisted Acquisition of a Financial Institution.&amp;#148; ASU 2012-06 clarifies the applicable guidance
for subsequently measuring an indemnification asset recognized as a result of a government-assisted acquisition of a financial
institution. The standard instructs that when a reporting entity recognizes an indemnification asset, it should subsequently account
for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification.
Any amortization of changes in value should be limited to the contractual term of the indemnification agreement. The amended guidance
is effective for interim and annual periods beginning on or after December&amp;#160;15, 2012. The adoption of this guidance did not
have a material effect on the Corporation&amp;#146;s financial position or results of operations.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In October 2012, the FASB issued ASU&amp;#160;2012-04,
&amp;#147;Technical Corrections and Improvement.&amp;#148;&lt;i&gt; &lt;/i&gt;It makes conforming amendments related to fair value measurements within
the ASC as well as other technical corrections covering a broad range of topics. The amendments in the update that did not have
transition guidance were effective upon issuance and the amendments subject to transition guidance are effective for fiscal periods
beginning after December&amp;#160;15, 2012, for public entities. The adoption of this guidance did not have a material effect on the
Corporation&amp;#146;s financial position or results of operations.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In July 2012, the FASB issued ASU 2012-02,
&amp;#147;Intangibles &amp;#150; Goodwill and Other&amp;#148;; amending ASC Topic 350 to simplify how an entity tests indefinite-lived
intangible assets other than goodwill for impairment and to improve consistency in impairment testing guidance among long-lived
asset categories. The amendment permits an entity to first assess qualitative factors to determine whether it is more likely than
not that an indefinite-lived intangible asset other than goodwill is impaired as a basis for determining whether it is necessary
to perform the quantitative impairment test. The amendment is effective for annual and interim impairment tests performed for
fiscal years beginning after September 15, 2012. The adoption of this guidance did not have a material effect on the Corporation&amp;#146;s
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