Dear Shareholder

2007 was truly a milestone year for your company. We reached over $3 billion in assets, $2.5 million in deposits and over $2 billion in loans and expanded our branch locations through strategic acquisitions and de novo expansion. The foundation for these results was our continuing concentration on our core strategies and our focus on diversification; which has long been an important discipline for our company. We believe diversification in our loan and deposit portfolios, diversification geographically and in our banking team all contribute to our long term success. 2007 was a year in which we were able to consistently demonstrate this quality in all aspects of our business.

We had strong growth in loans, which over-year. We maintain a healthy, well help us to minimize both interest rate as well in 2007, increasing 23% from expected pressure on our net interest we were pleased with our continuing the year at a healthy 67% of our deposit outstanding team of bankers allows us deposits as we strengthen relationships best service possible. As the economy forward, we believe our emphasis on				were up 34%, or $574 million, year- diversified loan portfolio, which will and economic risk. Total deposits grew year-end 2006. To help manage the margin as short-term rates fell rapidly, ability to attract core deposits, ending base. Our broad branch network and to maintain this strong level of core with our customers by providing the presents increasing challenges going diversification will serve us well.