Financial Highlights

Mid Year Financial Summary:

As outlined in the accompanying financial statements County First Bank's financial results reflect the challenges posed to our borrowers and customers by the local and national economic environment. County First Bank reported net income for the six months ending June 30, 2009 of $409,523 down from net income of $748,952 for the same period in 2008.

The decrease in net income was primarily the result of three significant events. First, our net interest income was down $205,720 due to a shrinking interest rate margin. Secondly, the FDIC imposed a sweeping industry wide special insurance assessment, coupled with an increase to our normal insurance premium assessment which increased the bank expense an additional $123,726 or 396% over the same period last year. Finally, we have continued to aggressively fund our allowance for loan loss reserves, increasing our provision expense by $111,000 over the amount expend in 2008. While all banks are facing these challenges, we are actively employing strategies to identify, assess, and manage potential deterioration in credit quality within our loan portfolio and employing a series of realistic actions to enhance revenue and further manage costs.

For the six months ending June 30, 2009, County First Bank assets grew by approximately $16.3 million year-over-year. Net loans increased by $ 14.1 million or 10.55%. The loan growth was primarily funded by 9.01% increase in deposits which grew by $12.3 million. The shifting of assets from our security portfolio to loans helped to maintain the bank's strong net interest margin at 4.1%. Earlier this year we introduced our new remote deposit capture product which has proven to be very successful in maintaining and growing new commercial accounts at a reasonable cost.

The overall economy is in the biggest recession since World War II. The conditions facing County First Bank as well as the banking sector in general and the ongoing negative publicity surrounding the banking industry will continue to pose challenges throughout our industry. Once we come out of the recession, the recovery is expected to take many years. We do anticipate that the FDIC will impose yet another special assessment this year and possibly two. We also believe the Federal Reserve will continue to maintain interest rates at a position which will continue to place increasing pressure on our margins and we also expect additional regulatory burdens going forward. With the constant improvement in our financial strength over the past several years, we will continue to remain focused on the things we can better control, and take measures that will see us through the current recession and make us stronger in the future. The strength of our capitol and liquidity position has provided us with the mechanisms to face our challenges and to support and further strengthen the bank, which has helped us to exceed our peer group in many significant areas.

The Directors and Employees want us to assure you that they are committed to and excited about the future of County First Bank. We are extremely grateful for your continued support as a County First Bank shareholder and customer. Finally, we encourage you to review the Bank’s performance in the accompanying financial statements and financial summary.

Stock Information:

The common stock of County First Bank is listed on the Over-the-Counter Bulletin Board. The symbol is CUMD. Additional information can be obtained by contacting Charles Luck with RBC Wealth Management at (800) 247-7223.