Ohio State Bancshares SC 13E3/A Going private transaction (amended) | OHSB 6 Jun 07

Exhibit 99 (c)(i)

Valuation of

Ohio State Bancshares, Inc.

Marion, Ohio

As of September 30, 2006

Prepared for:

Board of Directors of

Ohio State Bancshares, Inc.

Prepared By:

Toledo, Ohio

December 2006

Valuation of
Ohio State Bancshares, Inc.
As of September 30, 2006

TABLE OF CONTENTS


			Page
I.	Executive Summary		1
II.	Valuation Approaches and Methodology		4
III.	Company Analysis		4
IV.	Discounted Cash Flow Value		8
V.	Net Asset Value		11
VI.	Guideline Transactions		14
VII.	Market Price		16
VIII.	Fair Market Value		17
IX.	Fairness Opinion		19
	Tables		Tab

	Historical Performance	1.1 - 1.12	1
	Discounted Cash Flow Value	2.1 - 2.4	2
	Net Asset Value	3.1 - 3.8	3
	Guideline Transactions -- Indications of Value
	Derived From Minority Share Transactions	4.1 - 4.4	4
	Guideline Transactions -- Indications of Value
	Derived From Sale of Control Transaction	s 5.1 - 5.5	5
	Historical Trading Activity	6.1	6
	Summary Presentation	7.1	7
	Share Repurchase	8.1 - 8.2	8
	Exhibits
	Economic and Demographic Data	A	9
	Deposit Growth Trends	B - D
	Summary of Restricted Stock Studies	E
	Summary of Marketability Discount Tax Cases	F
	Determination of Discount Rate	G

Valuation of
Ohio State Bancshares, Inc.
As of September 30, 2006

EXECUTIVE SUMMARY

Austin Associates, LLC (“Austin Associates”), a Toledo, Ohio-based financial institution consulting firm has been retained by the Board of Directors of Ohio State Bancshares, Inc. (“Company”), Marion, Ohio, to determine the fair market value (“FMV”) of the common stock of Company as of September 30, 2006. A summary of the valuation methods and results is provided below:


Subject Company		Ohio State Bancshares, Inc.
Company Headquarters		Marion, Ohio
Valuation Date		September 30, 2006
Valuation Purpose		To determine the Fair Market Value of Company’s stock for a going-private transaction.

Valuation Performed for		Board of Directors
		Minority Share
Valuation Conclusion		$ 87.00
As Percent of Book Value		144%
As Percent of Tangible Book Value		153%
As Multiple of Stated Earnings		28.3

Standard of Value		Fair Market Value
Level of Value		Non-Marketable Minority Interest
Lack of Marketability Discount		0%

A. Valuation Purpose: Company’s Board of Directors has requested that we value the outstanding minority interest shares of Company for purposes of pursuing a transaction to reduce the number of shareholders of record to fewer than 300 to deregister from the SEC.

B. Standard of Value: For purposes of this appraisal, FMV is defined as “the probable price at which shares would change hands between a willing buyer and a willing seller, neither being under compulsion to buy or sell, each having reasonable knowledge of all relevant facts.” This definition is intended to conform with IRS Revenue Ruling 59-60. The FMV of a minority share is attributed to transactions involving small blocks of Company’s common shares, such as arm’s length trades, redemptions, purchases by an ESOP, granting of stock options and other similar transactions.

C. Factors Considered: In connection with the preparation of this appraisal, Austin Associates has considered the following factors: (i) the nature of the business and history of the enterprise; (ii) the economic outlook in general and the condition and outlook of the specific industry in particular; (iii) the financial condition of the business; (iv) the earning capacity of the company; (v) the dividend-paying capacity of the company; (vi) the nature and value of the tangible and intangible assets of the business; (vii) sale of the stock and the size of the block to be valued; (viii) the market price of the stocks of corporations engaged in the same or similar lines of business having their stocks actively traded in a free and open market, either on an exchange or over-the-counter; (ix) the marketability or lack thereof, of the securities being valued; and (x) determination of any control premiums or minority share discounts.

D. Levels of Value: The three levels of value for a business or business ownership interest include:

1. Control Value — Value of enterprise or business as a whole.

2. Marketable Minority Interest — Value of minority interest as if freely traded. The shares may lack control but have liquidity. Examples of marketable minority interests are the published prices of publicly traded stocks on NASDAQ or the NYSE.

3. Non-Marketable Minority Interest — Value of minority interest in a private company which lacks control and market liquidity.

The following chart illustrates the relationship between these levels of value:

For purposes of this appraisal, FMV is determined on the basis of a non-marketable minority interest.

In performing the valuation, Austin Associates has relied upon the information supplied to us by Company. We do not express an opinion on the accuracy of information supplied to us which we used in the preparation of this report, and we are not responsible for errors or omissions that might be contained in such materials. In addition, our firm does not have a present or contemplated future interest with Company or any other interest that might tend to prevent us from making a fair and unbiased appraisal.

II.

VALUATION APPROACHES AND METHODOLOGY

The appraisal methodology utilized by Austin Associates includes the following:

A. Discounted Cash Flow Value Technique:Discounted cash flow analysis based on earnings capacity.

B. Net Asset Value Approach:Market value of assets less market value of liabilities.

C. Guideline Transactions:This analysis is based on two sets of guideline transactions, including: (1) price-to-earnings multiples and price-to-book value ratios for selected publicly traded companies; and (2) price-to-earnings multiples and price-to-book value ratios for selected bank sale transactions. We have applied a minority share discount to all sale transaction multiples to determine appropriate minority share indications of value.

D. Market Price:The actual price for minority shares of Company’s stock traded in arm’s length transactions.

The valuation must also consider the liquidity of the market for the stock being valued. The end of this report provides empirical information on the use of marketability discounts and specific factors considered in this appraisal.

III. COMPANY ANALYSIS

A.Company Profile

Company operates Ohio State Bank (“Bank”) as a wholly-owned subsidiary. Bank operates its main office in Marion, Ohio and has additional branch offices in Marion and Union Counties. In 2005, Company’s acquisition of two branch offices from First Citizens Banc Corporation expanded Company’s footprint into Green Camp and Richwood, Ohio. Company is planning further development into Delaware County with a branch office estimated to open in mid-year 2007 and the development of a second location in Delaware County in late 2007.

At September 30, 2006, Company reported total assets of $143.3 million, and consolidated equity of $11.2 million, or $60.46 per share. Company’s consolidated net income for the last twelve months ending September 30, 2006 equaled $577,000 or $3.07 per share. As

of September 30, 2006, Company reported one class of capital stock outstanding, consisting of 184,739 shares of common stock.

B.Markets

Bank is headquartered in Marion, Ohio with additional locations in Green Camp and Richwood. The following chart presents population data for Bank’s market area along with the State of Ohio:


	2000		2006		Change			2011		Change
*POPULATION*	Census		Current		2000-2006			Projected		2006-2011
Green Camp		342		349		2.0	%		351		0.6	%
Marion		35,318		37,319		5.7	%		37,258		-0.2	%
Richwood		2,156		2,235		3.7	%		2,460		10.1	%

Marion County		66,217		66,445		0.3	%		66,566		0.2	%
Union County		40,909		48,341		18.2	%		55,647		15.1	%
Delaware County (1)		109,989		157,579		43.3	%		210,181		33.4	%

State of Ohio		11,353,140		11,627,546		2.4	%		11,880,316		2.2	%


(1)		Proposed Locations

This data indicates that Marion County is projected to experience below average population growth over the next five years when compared to the State of Ohio. Delaware County, which Bank plans to enter with two locations in 2007, has a population of 157,579 and is projected to increase over 33 percent in the next five years reaching over 210,000 by 2011. Delaware County is one of the fastest growing counties in the State of Ohio. Presented in the following chart are median household income figures for Bank’s market area:


*MEDIAN HH*	2000		2006		Change			2011		Change
*INCOME*	Census		Current		2000-2006			Projected		2006-2011
Green Camp	$	41,604	$	50,000		20.2	%	$	55,117		10.2	%
Marion	$	33,135	$	40,441		22.0	%	$	47,050		16.3	%
Richwood	$	39,445	$	50,000		26.8	%	$	58,400		16.8	%

Marion County	$	38,592	$	46,238		19.8	%	$	53,284		15.2	%
Union County	$	51,971	$	62,395		20.1	%	$	73,792		18.3	%
Delaware County (1)	$	66,717	$	82,718		24.0	%	$	101,229		22.4	%

State of Ohio	$	40,998	$	49,467		20.7	%	$	57,061		15.4	%


(1)		Proposed Locations

This data indicates that Marion County is characterized by below-average income levels when compared to the State of Ohio. Delaware County compares very favorably with an approximate $83,000 median household income as compared to $49,467 for the State of Ohio. A more complete economic and demographic analysis is provided in Exhibit A in Section 9.

Exhibit B presents a map and deposit growth trends of Company’s locations. Exhibits C and D present deposit growth and market share for Company’s market area. Deposits held by financial institutions operating offices in Marion County increased by 1.9 percent annually from $707 million to $775 million from June 2001 to June 2006. During the same period, Company’s deposits increased from $83 million to $105 million, or by 4.8 percent annually. Company ranks fourth in county market share out of 11 reporting institutions.

Deposits held by financial institutions operating offices in Union County increased 3.9 percent annually from $358 million to $434 million from June 2001 to June 2006. During the same period, Company’s deposits decreased from $13 million to $9 million, or by 7.1 percent annually. Company ranks ninth in county market share out of 13 institutions.

C.Historical Performance (Tables 1.1 through 1.12)

Austin Associates has reviewed pertinent historical financial information of Company and Bank from 2001 through September 30, 2006.

	•		*Tables 1.1 — 1.5*: annual performance of Bank since 2001

	•		*Tables 1.6 — 1.10*: quarterly performance of Bank since Q4 2004

	•		*Table 1.11*: annual consolidated performance of Company since 2001

	•		*Table 1.12*: annual parent-only performance of Company since 2001

Presented below are summary financial highlights:

1. Growth:Bank’s total assets increased from $91.6 million as of December 31, 2001 to $143.0 million as of September 30, 2006. This represents growth of 9.8 percent compounded annually. Total deposits increased from $82.0 million to $115 million over the same time frame, or by 7.4 percent annually. Total loans of $97.9 million, equaling 68 percent of assets as of September 30, 2006, increased 11.6 percent annually since 2001. On January 18, 2005,

Company acquired two branch offices with approximately $6.1 million in loans and $18.9 million in deposits. Bank recorded $271,000 in goodwill and $533,000 in core deposit intangible related to the transaction.

2. Capital:As of September 30, 2006, Company’s equity capital equaled $11.2 million. Bank’s Tier 1 leverage ratio equaled 8.99 percent as of September 30, 2006, compared to 8.12 percent as of September 30, 2005. The loan loss reserve level of Bank equaled $955,000, or 0.98 percent of total loans. In the nine months ended September 30, 2006, Company paid dividends of $74,000. From 2003 through 2005, Company’s annual cash dividends equaled $152,000. In February 2004, Company issued $3.0 million in trust preferred securities. The interest payments are based on three-month LIBOR plus 285 basis points. The Company can call the issuance starting in April 2009 at par.

3. Asset Quality:Bank reported $2.1 million in non-performing loans and $435,000 in Other Real Estate Owned as of September 30, 2006. As a percent of total assets, nonperforming assets increased from 1.20 percent at September 30, 2005 to 1.80 percent at September 30, 2006. Bank recorded net charge-offs to average total loans equal to 0.26 percent in the last twelve months ending September 30, 2006 and averaged 0.46 percent from 2001 through 2005.

4. Earnings:The Company reported net income of $577,000 for the 12-month period ending September 30, 2006 and $541,000 for the same period in 2005. Earnings per share measured $3.07 and $2.85, respectively, for the trailing 12-month periods ending September 30, 2006 and September 30, 2005. Company’s net income for the last twelve months ending September 30, 2006 corresponds to a return on average assets (“ROAA”) of 0.41 percent and a return on average equity of (“ROAE”) 5.16 percent. Company’s ROAA and ROAE for the last twelve months ending September 30, 2005 equaled 0.40 percent and 4.81 percent, respectively.

Bank’s net interest income (TE) to average assets for the last twelve months ending September 30, 2006 equaled 3.41 percent, compared with 3.67 percent for the same period in 2005. Overhead expenses relative to average assets decreased from 3.25 percent for the 12-month period ending September 30, 2005 to 3.09 percent for the same period in 2006. For the

same periods, noninterest income increased from 0.61 percent of average assets to 0.66 percent of average assets, respectively.

5. Per Share Data:As of September 30, 2006, Company reported one class of capital stock outstanding, consisting of 184,739 shares of common stock. Book value and tangible book value per share measured $60.46 and 56.78, respectively. Company’s last twelve months ending September 30, 2006 earnings per share equaled $3.07 compared to earnings per share of $2.85 for the same period in 2005.

IV.

DISCOUNTED CASH FLOW VALUE (Tables 2.1 through 2.4)

The discounted cash flow (“DCF”) value technique developed by Austin Associates determines the value of a bank on an earnings basis through the use of a DCF model. The model projects net income over a period of five years. From these projections, excess capital or “cash flow” is determined based upon the bank’s required equity capital to asset ratio. The future cash flows are “discounted” to a present value equivalent. This involves the use of an appropriate discount rate that accounts for the degree of risk related to not obtaining the estimated cash flows. At the end of five years, a residual value is calculated. The residual value is converted to its present value equivalent by the discounting method. The present value of the projected cash flows added to the present value of the residual value determines the DCF value.

Table 2.1 projects Bank’s net income over the next five years. It is important to note that Bank’s projections incorporate the estimated performance of two additional offices which are expected to open in 2007. Total assets, net income and return on average asset projections for the next five years are presented in the following table:


				*(Dollar Amounts in Thousands)*
	Period 1			Period 2			Period 3			Period 4			Period 5
Total Assets	$	152,249		$	170,519		$	190,981		$	211,989		$	233,188
Net Income	$	313		$	454		$	882		$	1,385		$	1,905
ROAA		0.21	%		0.28	%		0.49	%		0.69	%		0.86	%

Net interest income (TE) is projected to equal 3.32 percent of average assets in period one, increasing to 3.52 percent of average assets by period five. Noninterest income is projected to equal 0.66 percent of average assets over the next five years. Total overhead expense as a percent of average assets is projected to equal 3.43 percent in period one decreasing to 2.87 percent through period five. The provision for loan loss is projected to be $295,000 in period one decreasing to $267,000 in period five. These performance assumptions reflect the anticipated impact of the Bank’s de novo branching plans.

The net income projections detailed in Table 2.1 are the basis of the DCF model. Other key assumptions are presented below:

The required equity capital to asset ratio is 7.00 percent. For purposes of the DCF value, equity capital excludes the market value adjustment on investment securities classified as available-for-sale.

Asset growth is projected to be 6.5 percent in period one, 12.0 percent in periods two and three, 11.0 percent in period four and 10.0 percent in period five. These growth rates reflect the growth opportunity in Delaware County.

To establish a reasonable discount rate, Austin Associates first utilized the build-up method, which calculates the discount rate (equity cost of capital) based on the following:

[Risk Free Rate + Equity Risk Premium + Industry Risk Premium + Specific Risk Premium]

This resulted in a calculated discount rate of 11.91 percent (rounded to 12.0 percent). See Exhibit G for more detail on the Build-Up Method. To confirm the reasonableness of this result, Austin Associates reviewed long-term compound annual stock market returns for various market indices. According to the Ibbotson Associates, Inc. widely recognized Stocks, Bonds, Bills and Inflation (SBBI) 2006 Yearbook, the compound annual return for the period 1926 — 2005 for large company stocks was 10.4 percent and for small company stocks was 12.6 percent. As a result, a specific discount rate of 12.0 percent will be utilized.

The above assumptions allow Bank’s asset and equity base to be projected for five years and, as a result, excess capital or cash flow can be determined. The calculation of the residual

value is a process of capitalizing the fifth year earnings projection. The appropriate capitalization rate was determined to be the 12.0 percent discount rate less an estimated annual growth rate after year five. We have projected a five percent growth in earnings for years six and beyond. As a result, the residual value at the end of the fifth year is estimated to be $25.5 million, or 181 percent of Bank’s projected book value at the end of the fifth year.

The next step of the DCF model present values the cash flows and residual value based on the 12.0 percent discount rate. This results in a present value of the residual value of $14.5 million and a present value of the cash flows of $3.4 million.

Finally, the DCF value of Bank is calculated by adding the present value of the projected cash flows to the present value of the residual value. The DCF value of Bank, as a result, equals $17.9 million.

After calculating the DCF value of Bank, it becomes rather straightforward to calculate the value of Company under this approach. On the parent company balance sheet, the value of Bank is restated to the amount using the DCF method. All other assets and liabilities of Company as of September 30, 2006 are restated to market value. Refer to Table 2.3.

In addition, it is necessary to adjust the value of Company to reflect the effect of outstanding stock options of Company, if any. This adjustment is provided in Table 2.4. Presented below is the summary result from this analysis:


Discounted Cash Flow Value Results
Indication of Value	$	87.25
% of Book Value		144	%
% of Tangible Book Value		154	%
Multiple of LTM EPS		28.4

This result does not reflect any discount for lack of marketability of the stock. This potential discount will be discussed in Section VIII.

V. NET ASSET VALUE (Tables 3.1 through 3.8)

The second method utilized in determining value is termed the net asset value approach. This process involves taking the book value of the bank and assessing premiums or discounts to the balance sheet accounts based upon the current market value of the assets and liabilities. A summary of the adjustments is provided in Table 3.1, while the detailed specifics of the calculations are provided in supporting Tables 3.2 through 3.7. The following adjustments were determined:

An adjustment to the securities portfolio is made based upon market value comparison. Available-for-sale securities are already adjusted in the equity portion of the balance sheet. The deferred tax asset effect of the available-for-sale portfolio of $125,000 is included in other assets and is adjusted accordingly.

The loan portfolio was adjusted based on the yield, repricing and maturity structures of the portfolio. Premiums and discounts are calculated for above and below market rate yielding loans, respectively. Bank’s loan yield was calculated based on September 30, 2006 reports, while the market rate was based on Bank’s loan portfolio composition and the national average loan rate for each loan category fromBanxquote.com. From this analysis, a premium of $67,000 to the loan portfolio was calculated. Refer to Table 3.2.

The loan portfolio is also valued on a credit quality basis. The allowance for loan losses is a valuation reserve which theoretically reflects management’s estimate of future potential loss due to credit quality in the loan portfolio. The calculation of the adequacy of the loan loss reserve, as prepared by management, has been utilized to set the credit quality adjustment for the loan portfolio. As of September 30, 2006, Bank has estimated a required reserve of $812,000. A premium of $143,000 results, reflecting the estimated excess loan loss reserve.

Austin Associates did not perform an independent investigation of the loan portfolio to determine the adequacy of the loan loss reserve. We have relied on

management’s assessment of potential loss as presented in the information supplied to us.

No current appraisals were available on Bank’s fixed assets. As a result, no adjustment has been made to the fixed asset account of Bank.

As of September 30, 2006, Bank had other real estate owned (“OREO”) totaling $435,000. A discount is typically applied to reflect the opportunity cost of nonearning assets, carrying costs, legal and administrative expenses, and the potential for future loss exposure. A 10 percent discount to this account was applied to reflect the nonperforming status of these assets. Refer to Table 3.3.

As of September 30, 2006, Bank maintained $679,000 in assets classified as goodwill and intangibles. For purposes of this valuation method, the market value of these assets is zero, resulting in a discount of $679,000.

The certificate of deposit (“CD”) accounts were adjusted to market value based on the cost and maturity structure of the portfolio. To do this, we compare the cost structure of the CD portfolio to current market rates. Utilizing the rates and maturity structure outlined in Table 3.4, a premium of $250,000 was determined.

Bank’s borrowings were adjusted to market value based on the cost and maturity structure of the outstanding borrowings. Based on a comparison of the cost structure of the outstanding borrowings and current market rates, a premium of $158,000 was determined. Refer to Table 3.5.

Table 3.6 reflects Bank’s core deposit value, representing the goodwill or going concern value of Bank. We have calculated a core deposit premium of $3.1 million or 5.7 percent of total core deposits.

Presented below is a summary of the adjustments made using the net asset value method:


		$	000

Securities (Held-to-Maturity)		$	0
Loan Portfolio — Yield Basis		$	67
Loan Portfolio — Credit Quality		$	143
Premises and Fixed Assets		$	0
Other Real Estate Owned	(	$	44	)
Intangible Assets (Excluding MSR)	(	$	679	)
Deferred Tax Asset (FASB 115)	(	$	125	)
Certificates of Deposit		$	250
Borrowings		$	158
Core Deposit Value		$	3,107


Total Adjustments		$	2,878

Based upon the above adjustments, we have determined the net asset value of Bank to be $15.8 million. This represents 122 percent of Bank’s September 30, 2006 equity capital.

After calculating the net asset value of Bank, the book value of Bank on Company’s parent-only balance sheet is restated to the amount determined using the net asset value method. This adjustment is reflected in Table 3.7. In addition, it is necessary to adjust the value of Company to reflect its outstanding stock options, if any. This adjustment is provided in Table 3.8. Presented below is the summary result from this analysis:


Net Asset Value Results
Indication of Value	$	76.04
% of Book Value		126	%
% of Tangible Book Value		134	%
Multiple of LTM EPS		24.8

This result does not reflect any discount for lack of marketability of the stock. This potential discount will be discussed in Section VIII.

VI.

GUIDELINE TRANSACTIONS

The third valuation method utilized is a guideline transactions approach. Given that most community bank stocks do not trade in an efficient market, we have used a guideline transactions approach based on both a minority stock trading level and a sale of control basis. In order to adjust the bank sale pricing multiples to an appropriate minority share level of value, we applied a minority share discount.

A. Indications of Value Derived from Minority Share Transactions (Tables 4.1 through 4.4):Table 4.1 presents summary financial and stock performance information for publicly traded banks in the nation by asset size, core ROAE, and region. Table 4.2 presents financial and stock performance information for publicly traded banks in the Midwest with total assets between $100 million and $250 million and core ROAE between 3.0 percent and 10.0 percent. Table 4.3 presents financial and stock performance information for publicly traded banks in the nation with total assets between $100 million and $200 million, core ROAE between 3.0 percent and 10.0 percent and tangible equity to asset ratio of 6.5 percent to 8.5 percent.

The following chart details the median financial and stock performance results for the two selective peer groups and for Company:


			Tg Equity/									Price/
Peer Group	Assets		Tg Assets			LTM Core ROAA			LTM Core ROAE			Tg. Book			Price/ LTM Core EPS
Midwest	$	199,707		8.99	%		0.65	%		8.37	%		129	%		16.1
Nation	$	171,500		7.49	%		0.66	%		8.41	%		169	%		22.2

Company	$	143,309		7.35	%		0.41	%		5.16	%		*150%*	⁽¹⁾		*28.0*	⁽¹⁾


(1)		Selected multiples.

In determining a comparable price-to-book multiple, we have considered various factors, including: (1) Company’s underlying financial condition and performance in relation to the selected organizations; and (2) the nature of the geographic market area served by Company in relation to the selected organizations. After considering these and other factors, we have selected a price-to-book ratio of 150 percent and price-to-earnings multiple of 28.0 to develop an

indication of value for Company. Refer to Table 4.4. Presented below are summary results from this analysis:


Guideline (Minority Share) Transaction Summary
Based on Price-to-Tangible Book Approach	$	85.17
Based on Price-to-LTM Earnings Approach	$	85.96

These results do not reflect any discount for lack of marketability of the stock. This potential discount will be discussed in Section VIII.

B. Indication of Value Derived from Sale of Control Transactions (Tables 5.1 through 5.5):Table 5.1 presents summary financial information and transaction multiples for bank transactions in the nation for the last twelve months ending September 30, 2006 by asset size, ROAE and region. Tables 5.2 and 5.3 provide transaction data, including price paid and financial performance for two selective peer groups. The first peer group includes all bank sale transactions in the Midwest announced from 2004 through September 30, 2006 with seller’s assets between $100 million and $300 million and ROAE from 3.0 percent to 10.0 percent. The second peer group includes bank sale transactions nationally announced from 2005 through September 30, 2006 with seller’s assets between $100 million and $200 million, ROAE from 3.0 percent to 10.0 percent, and tangible equity to assets between 6.0 percent and 10.0 percent. The following chart details the median financial and deal statistics for the two selective transaction groups and for Company:


															Price/
			Tg. Equity/			YTD			YTD			Price/			LTM
M&A Peer	Assets		Tg. Assets			ROAA			ROAE			Tg. Book			Earnings
Midwest	$	144,334		9.39	%		0.58	%		6.56	%		189	%		27.9
Nation	$	145,959		8.58	%		0.59	%		6.17	%		231	%		33.6

Company	$	143,309		7.35	%		0.41	%		5.16	%	*210%*⁽¹⁾				*38.0*	⁽¹⁾


(1)		Selected multiples.

Based on our analysis of these transactions, we have selected a price-to-book ratio of 210 percent and price-to-earnings multiple of 38.0 to establish indications of value for Company under this guideline transactions methodology.

The information in Table 5.4 reflects control premium information for bank sale transactions since 2001. The average and median prices paid in these transactions over the pre-announced stock trading levels of the target companies approximated between 27 — 65 percent. For the year-to-date ending September 30, 2006, the average 1-month control premium measured 35.0 percent. Based on this data, we have selected a 35.0 percent control premium, resulting in an implied minority share discount of 25.9 percent. (FORMULLA)

This minority

discount has been applied to the selected control level multiples to establish indications of value on a minority interest level.

Presented below are summary results from this analysis:


*Guideline (Sale of Control) Transaction Summary(1)***
Based on Price-to-Tangible Book Approach	$	88.32
Based on Price-to-LTM Earnings Approach	$	86.41


(1)		Includes Minority Share Discount of 25.9%

These results do not reflect any discount for lack of marketability of the stock. This potential discount will be discussed in Section VIII.

VII.

MARKET PRICE

The final valuation method considered is the market price of Company’s stock as reflected in actual trading prices of the common stock. Company’s stock is relatively thinly traded and is not traded on any established securities market. In the year-to-date period ending October 2006, approximately 30,400 shares were traded at prices ranging from $87.50 per share to $93.00 per share. In October 2006, Company repurchased 800 shares at $93.00 per share. Further transaction information is provided in Table 6.1.

VIII.

FAIR MARKET VALUE

Description of Transaction

This valuation is being used by the Board of Directors to establish the FMV of Company’s shares on a minority share basis. Company is interested in pursuing a transaction to reduce the number of shareholders of record to fewer than 300 to deregister from SEC. In this transaction, Company will be forcing certain shareholders to take cash for their holdings in the Company. Depending on the structure of the transaction, shareholders may be entitled to dissent from the transaction and request “fair cash value” under the State of Ohio’s dissenters’ statute. We have been advised by legal counsel to the transaction that past Ohio Court cases have allowed both a minority share and marketability discount in arriving at “fair cash value.” In that respect, “fair cash value” would be the same as “fair market value.” Therefore, we have considered a marketability discount in the following section.

Marketability of Stock Being Valued

The market for a minority share may be “efficient” if the shares of the underlying company trade actively in an open exchange or market. Company’s stock trades thinly and has traded more recently in the range of $91.00 to $93.00 a share. This trading range is above the valuation result before considering a marketability discount. Based on the pre-discounted result of the valuation and the trading prices of Company, as well as, the nature of the transaction for which the shares are being valued, Austin Associates does not believe a lack of marketability discount is appropriate.

Fair Market Value

Austin Associates has considered each valuation methodology in determining a per share fair market value. No specific formula or weighting was utilized in this appraisal to reach our fair market value conclusion. Presented below is a summary of the results:


	Indication of
	Value Per Share
Discounted Cash Flow Value Technique	$	87.25
Net Asset Value Approach	$	76.04
Guideline Transactions
Based on Minority Share Transactions
Price to Tangible Book Value	$	85.17
Price to Earnings Value	$	85.96
Based on Sale of Control Transactions w/Minority Share Discount
Price to Tangible Book Value	$	88.32
Price to Earnings Value	$	86.41
Market Price	$	93.00


Indication of Value (Marketable Minority Interest)	$	87.00
Marketability Discount		0	%

Fair Market Value	$	87.00

% of Book Value		144	%
% of Tangible Book Value		153	%
Multiple of LTM EPS		28.3

Based on the preceding discussion and analysis, the FMV of Company on a minority share basis is determined to be $87.00 per share. This equals 153 percent of September 30, 2006 tangible equity capital and 28.3 times last twelve months ending September 30, 2006 earnings.

As stated previously, we believe the $87.00 per share price also represents fair cash value for Company’s shares in connection with the proposed transaction.

IX.

FAIRNESS OPINION

Austin Associates has previously performed a shareholder analysis indicating the number of shareholders and corresponding ownership. Based on information provided by management, a reverse stock split of 125-for-1 would reduce the number of shareholders to approximately 235 and would require 17,580 shares receive cash. As part of that analysis, Austin Associates evaluated the transaction at prices of up to $95.00 per share. In some going-private transactions, companies pay slight premiums for shares repurchased. At $91.00 to $95.00 per share price, this would represent an approximate 4.6 to 9.2 percent premium, respectively, above the FMV result of $87.00. Moreover, Austin Associates determined that Company and remaining shareholders will realize reasonable financial benefits from going-private even at $95.00 per share. An analysis is included in Tables 8.1 and 8.2.

Based on these terms, we are prepared to issue our fairness opinion at cash prices of $87.00 to $95.00 per share.

This opinion and range of values is subject to further discussion and information discovery from September 30, 2006.

Table 1.1
Ohio State Bank
Historical Performance ($000)
By Year

BALANCE SHEET


	2001Y		2002Y		2003Y		2004Y		2005Y			YTD 09/06
ASSETS
Cash and Due from Banks — Noninterest Bearing	$	3,698	$	3,637	$	3,091	$	4,017	$	4,020		$	4,364
Cash and Due from Banks — Interest Bearing	$	3,062	$	3,001	$	1,191	$	48	$	201		$	830
Investment Securities	$	21,636	$	31,971	$	26,506	$	25,444	$	34,052		$	29,314
Federal Funds Sold & Repurchase Agreements	$	1,891	$	1,661	$	0	$	435	$	2,471		$	2,467
Real Estate Loans (Including Commercial Real Estate)	$	24,898	$	27,879	$	41,017	$	52,572	$	64,347		$	73,269
Commercial Real Estate Loans	$	5,542	$	6,554	$	12,681	$	15,944	$	22,536		$	30,892
Commercial & Industrial Loans	$	6,893	$	6,810	$	8,420	$	13,865	$	11,277		$	7,704
Installment Loans	$	25,115	$	24,494	$	24,648	$	22,025	$	18,929		$	15,929
Agricultural Loans	$	1,316	$	2,164	$	2,165	$	1,503	$	1,312		$	1,109
All Other Loans	$	0	$	0	$	0	$	0	$	0		$	0
Less: Unearned Income	$	15	$	9	$	48	$	89	$	87		$	112

Total Loans (Net of Unearned Income)	$	58,207	$	61,338	$	76,202	$	89,876	$	95,778		$	97,899
Less: Loan Loss Reserve	$	714	$	793	$	844	$	961	$	986		$	955

Net Loans	$	57,493	$	60,545	$	75,358	$	88,915	$	94,792		$	96,944
Bank Premises	$	1,470	$	1,359	$	1,721	$	2,577	$	3,122		$	3,909
Other Real Estate Owned	$	0	$	0	$	188	$	484	$	435		$	435
Total Intangible Assets (Including MSRs)	$	0	$	0	$	0	$	0	$	731		$	679
Mortgage Servicing Rights	$	0	$	0	$	0	$	0	$	0		$	0
Investments in Unconsolidated Subsidiaries	$	0	$	0	$	0	$	0	$	0		$	0
Other Assets	$	2,313	$	2,715	$	2,796	$	3,007	$	3,437		$	4,015


TOTAL ASSETS	$	91,563	$	104,889	$	110,851	$	124,927	$	143,261		$	142,957


LIABILITIES
Demand Deposits	$	9,243	$	9,181	$	10,539	$	12,378	$	15,774		$	11,926
NOW Accounts	$	10,355	$	10,183	$	9,602	$	11,393	$	11,406		$	13,041
Savings Deposits	$	13,115	$	14,003	$	15,223	$	15,100	$	18,301		$	16,597
Money Market Deposits	$	12,127	$	14,708	$	13,854	$	13,545	$	10,378		$	12,847
Time Deposits < $100,000	$	24,330	$	26,446	$	27,821	$	27,005	$	32,309		$	31,325
Time Deposits > $100,000	$	12,780	$	12,690	$	12,074	$	19,801	$	27,200		$	29,211

Total Deposits	$	81,950	$	87,211	$	89,113	$	99,222	$	115,368		$	114,947
Memo: Brokered Deposits	$	0	$	1,981	$	3,053	$	6,828	$	6,318		$	7,349
Memo: IRAs & Keogh Plans	$	3,501	$	3,482	$	3,313	$	2,682	$	3,134		$	3,307

Fed. Funds Purchased & Repurchase Agreements	$	0	$	0	$	1,248	$	0	$	0		$	0
Other Borrowings	$	2,337	$	8,928	$	11,020	$	13,487	$	14,409		$	13,790
Subordinated Notes and Debentures	$	0	$	0	$	0	$	0	$	0		$	0
Other Liabilities	$	754	$	907	$	727	$	1,272	$	1,132		$	1,274


TOTAL LIABILITIES	$	85,041	$	97,046	$	102,108	$	113,981	$	130,909		$	130,011

Minority Interest in Consolidated Subsidiaries	$	0	$	0	$	0	$	0	$	0		$	0

STOCKHOLDERS’ EQUITY
Preferred Stock	$	0	$	0	$	0	$	0	$	0		$	0
Common Stock — Par Value	$	1,212	$	1,212	$	1,212	$	1,212	$	1,212		$	1,212
Common Stock — Surplus	$	2,537	$	2,537	$	2,537	$	4,137	$	5,137		$	5,137
Undivided Profits and Reserves	$	2,729	$	3,817	$	4,781	$	5,504	$	6,286		$	6,841
Other Comprehensive Income	$	44	$	277	$	213	$	93	($	283	)	($	244	)
Other Equity Capital Components	$	0	$	0	$	0	$	0	$	0		$	0


TOTAL EQUITY	$	6,522	$	7,843	$	8,743	$	10,946	$	12,352		$	12,946


TOTAL LIAB. AND STOCKHOLDERS’ EQUITY	$	91,563	$	104,889	$	110,851	$	124,927	$	143,261		$	142,957

Table 1.2
Ohio State Bank
Historical Performance ($000)
By Year


	2001Y		2002Y		2003Y		2004Y		2005Y			YTD 09/06
INCOME STATEMENT
Interest and Fee Income on Loans & Leases	$	5,010	$	4,971	$	4,991	$	5,628	$	6,600		$	5,281
Balance due from Depository Institutions	$	5	$	21	$	21	$	14	$	34		$	17
Interest/Dividend Income on Securities	$	1,019	$	1,327	$	1,140	$	979	$	1,285		$	997
Trading Accounts	$	0	$	0	$	0	$	0	$	0		$	0
Interest Income on Federal Funds Sold	$	114	$	51	$	49	$	39	$	92		$	40
Interest Income on Other Investments	$	0	$	0	$	0	$	0	$	0		$	0


TOTAL INTEREST INCOME	$	6,148	$	6,370	$	6,201	$	6,660	$	8,011		$	6,335

Interest on Deposits	$	2,856	$	2,083	$	1,784	$	1,707	$	2,468		$	2,454
Interest Expense on Federal Funds Purchased	$	1	$	1	$	1	$	1	$	0		$	5
Interest Expense on Demand Notes & Other	$	72	$	232	$	352	$	384	$	552		$	374
Other Interest Expense	$	0	$	0	$	0	$	0	$	0		$	0


TOTAL INTEREST EXPENSE	$	2,929	$	2,316	$	2,137	$	2,092	$	3,020		$	2,833


NET INTEREST INCOME	$	3,219	$	4,054	$	4,064	$	4,568	$	4,991		$	3,502

Loan Loss Provision	$	337	$	435	$	412	$	403	$	386		$	127


NET INTEREST INCOME AFTER PROVISION	$	2,882	$	3,619	$	3,652	$	4,165	$	4,605		$	3,375

Income from Fiduciary Activities	$	0	$	0	$	0	$	0	$	0		$	0
Service Charges on Deposit Accounts	$	467	$	576	$	583	$	628	$	672		$	476
Net Gains/(Losses) on Loan Sales	$	68	$	0	$	0	$	0	$	70		$	0
Net Gains/(Losses) on Other Asset Sales	$	0	$	0	$	0	$	0	($	16	)	$	0
Other Operating Income	$	55	$	126	$	133	$	139	$	209		$	184


TOTAL NONINTEREST INCOME	$	590	$	702	$	716	$	767	$	935		$	660

Salaries and Employee Benefits	$	1,211	$	1,390	$	1,613	$	2,260	$	2,268		$	1,666
Occupancy Expenses	$	495	$	517	$	579	$	657	$	836		$	691
Total Amortization & Other Operating Expenses	$	855	$	963	$	1,006	$	1,036	$	1,418		$	925


TOTAL NONINTEREST EXPENSE	$	2,561	$	2,870	$	3,198	$	3,953	$	4,522		$	3,282


SUBTOTAL	$	911	$	1,451	$	1,170	$	979	$	1,018		$	753

Securities Gains/(Losses)	$	16	$	76	$	116	$	32	$	1		($	6	)


Income Before Taxes	$	927	$	1,527	$	1,286	$	1,011	$	1,019		$	747

Applicable Taxes	$	258	$	439	$	322	$	222	$	237		$	174


Net Income Before Extraordinary Items	$	669	$	1,088	$	964	$	789	$	782		$	573

Extraordinary Items	$	0	$	0	$	0	$	0	$	0		$	0


NET INCOME	$	669	$	1,088	$	964	$	789	$	782		$	573


Memo Items:
Interest Income on Tax-Exempt Securities	$	199	$	256	$	322	$	292	$	287		$	199
Estimated Interest Income on Tax-Exempt Loans/Leases	$	0	$	0	$	0	$	0	$	0		$	0
Net Interest Income — FTE basis	$	3,289	$	4,144	$	4,177	$	4,670	$	5,091		$	3,572


Note:		Net Interest Income — FTE basis based on 35% tax rate.

Table 1.3
Ohio State Bank
Historical Performance ($000)
By Year


	2001Y			2002Y			2003Y			2004Y			2005Y			YTD 09/06
OTHER FINANCIAL INFORMATION
Dividends (Bank)	$	0		$	0		$	0		$	0		$	0		$	0
Effective Tax Rate		27.83	%		28.75	%		25.04	%		21.96	%		23.26	%		23.29	%
Full-time Equivalent Employees		28			31			27			39			48			48
S-Corporation (Yes/No?)	No			No			No			No			No			No

Loan Loss Reserve Reconciliation
Beginning of Period Reserve	$	610		$	714		$	793		$	844		$	961		$	986

Add: Provision for Loan Losses	$	337		$	435		$	412		$	403		$	386		$	127
Less: Losses Charged to Reserve	$	327		$	438		$	471		$	366		$	451		$	194
Add: Recoveries	$	94		$	82		$	110		$	80		$	90		$	36
Adjustments	$	0		$	0		$	0		$	0		$	0		$	0


Net Loan Losses	$	233		$	356		$	361		$	286		$	361		$	158

End of Period Reserve	$	714		$	793		$	844		$	961		$	986		$	955

Market Value of Securities Portfolio	$	21,655		$	32,195		$	26,506		$	25,444		$	34,052		$	29,314

Nonperforming Loans
90+ Days Past Due and Accruing Interest	$	167		$	707		$	241		$	344		$	0		$	739
Nonaccrual Loans	$	225		$	227		$	484		$	339		$	1,152		$	1,401

Total Nonperforming Loans	$	392		$	934		$	725		$	683		$	1,152		$	2,140
Other Real Estate Owned	$	0		$	0		$	188		$	484		$	435		$	435

Total Nonperforming Assets	$	392		$	934		$	913		$	1,167		$	1,587		$	2,575

EARNINGS AND PROFITABILITY

PERCENT OF AVERAGE ASSETS
Net Interest Income (TE)		4.07	%		4.31	%		3.87	%		3.94	%		3.55	%		3.38	%
Tax Equivalent Adjustment		0.09	%		0.09	%		0.10	%		0.09	%		0.07	%		0.07	%
Net Interest Income		3.98	%		4.21	%		3.77	%		3.85	%		3.48	%		3.32	%
Provision: Loan/Lease Losses		0.42	%		0.45	%		0.38	%		0.34	%		0.27	%		0.12	%

Net Interest Income After Provision		3.57	%		3.76	%		3.39	%		3.51	%		3.21	%		3.20	%
Noninterest Income		0.73	%		0.73	%		0.66	%		0.65	%		0.65	%		0.63	%
Overhead Expense		3.17	%		2.98	%		2.97	%		3.33	%		3.15	%		3.11	%
Subtotal		1.13	%		1.51	%		1.09	%		0.83	%		0.71	%		0.71	%
Securities Gains/(Losses)		0.02	%		0.08	%		0.11	%		0.03	%		0.00	%		-0.01	%

Income Before Taxes		1.15	%		1.59	%		1.19	%		0.85	%		0.71	%		0.71	%
Applicable Income Taxes		0.32	%		0.46	%		0.30	%		0.19	%		0.17	%		0.16	%

Subtotal		0.83	%		1.13	%		0.89	%		0.67	%		0.55	%		0.54	%
Extraordinary Items		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%

Net Income — ROAA		0.83	%		1.13	%		0.89	%		0.67	%		0.55	%		0.54	%
Return on Average Equity		11.55	%		15.23	%		11.71	%		7.60	%		6.50	%		6.09	%

MARGIN ANALYSIS
Average Earning Assets to Average Assets		93.21	%		93.46	%		94.53	%		93.87	%		92.56	%		91.64	%
Average Interest-Bearing Deposits to Average Assets		80.42	%		77.55	%		73.28	%		69.97	%		69.94	%		72.37	%

Interest Income to Average Earning Assets		8.16	%		7.08	%		6.08	%		5.98	%		6.03	%		6.55	%
Interest Expense to Average Earning Assets		3.89	%		2.58	%		2.10	%		1.88	%		2.27	%		2.93	%
Net Interest Income to Average Earning Assets		4.27	%		4.51	%		3.99	%		4.10	%		3.76	%		3.62	%
Net Interest Income to Average Earning Assets (FTE)		4.37	%		4.61	%		4.10	%		4.19	%		3.83	%		3.69	%
Average Assets	$	80,801		$	96,201		$	107,814		$	118,644		$	143,469		$	140,741

Average Earning Assets	$	75,318		$	89,913		$	101,917		$	111,375		$	132,790		$	128,979
Average Equity	$	5,791		$	7,142		$	8,235		$	10,381		$	12,025		$	12,538

Table 1.4
Ohio State Bank
Historical Performance ($000)
By Year


		2001Y			2002Y			2003Y			2004Y			2005Y		YTD 09/06

PERCENT OF AVERAGE ASSETS
INCOME COMPOSITION
Income from Fiduciary Activities		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Service Charges on Deposit Accounts		0.58	%		0.60	%		0.54	%		0.53	%		0.47	%		0.45	%
Other Operating Income		0.07	%		0.13	%		0.12	%		0.12	%		0.15	%		0.17	%

EXPENSE COMPOSITION
Personnel Expense		1.50	%		1.44	%		1.50	%		1.90	%		1.58	%		1.58	%
Occupancy Expense		0.61	%		0.54	%		0.54	%		0.55	%		0.58	%		0.65	%
Total Amortization & Other Operating Expense		1.06	%		1.00	%		0.93	%		0.87	%		0.99	%		0.88	%
Total Overhead Expense		3.17	%		2.98	%		2.97	%		3.33	%		3.15	%		3.11	%

Net Overhead		2.52	%		2.25	%		2.30	%		2.69	%		2.54	%		2.48	%
Efficiency Ratio		67.24	%		60.34	%		66.90	%		74.10	%		76.31	%		78.86	%
Total Revenue/Average Assets		4.71	%		4.94	%		4.43	%		4.50	%		4.13	%		3.94	%

PERSONNEL EXPENSE
Total Assets per Employee	$	3,270		$	3,384		$	4,106		$	3,203		$	2,985		$	2,978
Personnel Expense per Employee (Annualized)	$	43.3		$	44.8		$	59.7		$	57.9		$	47.3		$	46.3

INCOME STATEMENT GROWTH RATES (ANNUALIZED)
Net Interest Income		6.66	%		25.94	%		0.25	%		12.40	%		9.26	%		-6.44	%
Net Interest Income — FTE basis		6.52	%		26.00	%		0.80	%		11.82	%		9.02	%		-6.47	%
Loan Loss Provision Expense		-7.67	%		29.08	%		-5.29	%		-2.18	%		-4.22	%		-56.13	%
Noninterest Income		131.37	%		18.98	%		1.99	%		7.12	%		21.90	%		-5.88	%
Revenue Growth		16.38	%		24.86	%		0.50	%		11.61	%		11.08	%		-6.36	%
Overhead Expense		2.81	%		12.07	%		11.43	%		23.61	%		14.39	%		-3.23	%
Pre-Tax Income		121.24	%		64.72	%		-15.78	%		-21.38	%		0.79	%		-2.26	%
Net Income		101.51	%		62.63	%		-11.40	%		-18.15	%		-0.89	%		-2.30	%

ASSETS, PERCENT OF ASSETS
Real Estate Loans		27.19	%		26.58	%		37.00	%		42.08	%		44.92	%		51.25	%
Commercial & Industrial Loans		7.53	%		6.49	%		7.60	%		11.10	%		7.87	%		5.39	%
Installment Loans		27.43	%		23.35	%		22.24	%		17.63	%		13.21	%		11.14	%
Agricultural Loans		1.44	%		2.06	%		1.95	%		1.20	%		0.92	%		0.78	%
All Other Loans		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Total Loans (Net of Unearned Income)		63.57	%		58.48	%		68.74	%		71.94	%		66.86	%		68.48	%
Less: Loss Reserve		0.78	%		0.76	%		0.76	%		0.77	%		0.69	%		0.67	%
Net Loans and Leases		62.79	%		57.72	%		67.98	%		71.17	%		66.17	%		67.81	%
Interest Bearing Bank Balances		3.34	%		2.86	%		1.07	%		0.04	%		0.14	%		0.58	%
Federal Funds Sold & Resales		2.07	%		1.58	%		0.00	%		0.35	%		1.72	%		1.73	%
Investment Securities		23.63	%		30.48	%		23.91	%		20.37	%		23.77	%		20.51	%
Total Earning Assets		92.61	%		93.40	%		93.73	%		92.70	%		92.49	%		91.29	%

Noninterest Cash & Due from Banks		4.04	%		3.47	%		2.79	%		3.22	%		2.81	%		3.05	%
Premises, Fixed Assets, Capital Leases		1.61	%		1.30	%		1.55	%		2.06	%		2.18	%		2.73	%
Other Real Estate Owned		0.00	%		0.00	%		0.17	%		0.39	%		0.30	%		0.30	%
Other Assets		2.53	%		2.59	%		2.52	%		2.41	%		2.91	%		3.28	%

Table 1.5
Ohio State Bank
Historical Performance ($000)
By Year


		2001Y			2002Y			2003Y			2004Y			2005Y		YTD 09/06

LIABILITIES, PERCENT OF ASSETS
Demand Deposits		10.09	%		8.75	%		9.51	%		9.91	%		11.01	%		8.34	%
NOW Accounts		11.31	%		9.71	%		8.66	%		9.12	%		7.96	%		9.12	%
Savings Deposits		14.32	%		13.35	%		13.73	%		12.09	%		12.77	%		11.61	%
Money Market Deposits		13.24	%		14.02	%		12.50	%		10.84	%		7.24	%		8.99	%
Time Deposits < $100,000		26.57	%		25.21	%		25.10	%		21.62	%		22.55	%		21.91	%
Time Deposits > $100,000		13.96	%		12.10	%		10.89	%		15.85	%		18.99	%		20.43	%

Total Deposits		89.50	%		83.15	%		80.39	%		79.42	%		80.53	%		80.41	%
Brokered Deposits		0.00	%		1.89	%		2.75	%		5.47	%		4.41	%		5.14	%
IRAs & Keogh Plans		3.82	%		3.32	%		2.99	%		2.15	%		2.19	%		2.31	%
Federal Funds Purchased & Repurchase Agreement		0.00	%		0.00	%		1.13	%		0.00	%		0.00	%		0.00	%
Other Borrowings		2.55	%		8.51	%		9.94	%		10.80	%		10.06	%		9.65	%
Subordinated Notes and Debentures		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Other Liabilities		0.82	%		0.86	%		0.66	%		1.02	%		0.79	%		0.89	%

Total Liabilities		92.88	%		92.52	%		92.11	%		91.24	%		91.38	%		90.94	%

All Common & Preferred Capital		7.12	%		7.48	%		7.89	%		8.76	%		8.62	%		9.06	%
Total Liabilities and Capital		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%
BALANCE SHEET GROWTH RATES (ANNUALIZED)
Total Loans & Leases		10.34	%		5.38	%		24.23	%		17.94	%		6.57	%		2.95	%
Total Assets		25.07	%		14.55	%		5.68	%		12.70	%		14.68	%		-0.28	%
Total Deposits		21.37	%		6.42	%		2.18	%		11.34	%		16.27	%		-0.49	%
ASSET QUALITY
Average Total Loans	$	54,679		$	59,746		$	67,119		$	81,098		$	95,757		$	95,734
Net Loan Loss to Average Loans		0.43	%		0.60	%		0.54	%		0.35	%		0.38	%		0.22	%
Provision for Loan Loss to Average Loans		0.62	%		0.73	%		0.61	%		0.50	%		0.40	%		0.18	%
Loss Reserve to Total Loans		1.23	%		1.29	%		1.11	%		1.07	%		1.03	%		0.98	%
Nonperforming Loans to Total Loans:
90+ Days Past Due		0.29	%		1.15	%		0.32	%		0.38	%		0.00	%		0.75	%
Nonaccrual		0.39	%		0.37	%		0.64	%		0.38	%		1.20	%		1.43	%
Total Nonperforming Loans		0.67	%		1.52	%		0.95	%		0.76	%		1.20	%		2.19	%
LLR/Nonperforming Loans		182.14	%		84.90	%		116.41	%		140.70	%		85.59	%		44.63	%
OREO as a % of Total Assets		0.00	%		0.00	%		0.17	%		0.39	%		0.30	%		0.30	%
Nonperforming Assets as a % of Total Assets		0.43	%		0.89	%		0.82	%		0.93	%		1.11	%		1.80	%

CAPITAL ADEQUACY
Core Leverage Ratio (Tangible)		7.18	%		7.32	%		7.67	%		8.84	%		8.32	%		8.99	%
Risk Based Capital Ratios:
Tier 1		10.69	%		11.47	%		10.85	%		12.03	%		12.10	%		12.72	%
Total		11.87	%		12.67	%		11.93	%		13.09	%		13.11	%		13.70	%
Dividend Payout Ratio (Bank)		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Average Assets for Capital Purposes	$	90,201		$	103,346		$	111,263		$	122,738		$	143,015		$	139,102
Risk Based Assets	$	60,577		$	65,980		$	78,594		$	90,241		$	98,358		$	98,328
Tier 1 Capital	$	6,478		$	7,566		$	8,530		$	10,853		$	11,905		$	12,512
Tier 2 Capital	$	714		$	793		$	844		$	961		$	986		$	955
LIQUIDITY AND RATE SENSITIVITY
Market Value less Book Value of Investment Securities	$	19		$	224		$	0		$	0		$	0		$	0
Market Value/Book Value of Investment Securities		100.09	%		100.70	%		100.00	%		100.00	%		100.00	%		100.00	%
Total Loans & Leases to Assets		63.57	%		58.48	%		68.74	%		71.94	%		66.86	%		68.48	%
Total Loans and Leases to Deposits		71.03	%		70.33	%		85.51	%		90.58	%		83.02	%		85.17	%
Volatile Liabilities	$	15,117		$	21,618		$	24,342		$	33,288		$	41,609		$	43,001
Cash, Federal Funds & Investment Securities	$	30,287		$	40,270		$	30,788		$	29,944		$	40,744		$	36,975

Table 1.6
Ohio State Bank
Historical Performance ($000)
By Quarter


			2005Q2		2005Q3			2005Q4			2006Q1			2006Q2			2006Q3

BALANCE SHEET
ASSETS	��
Cash and Due from Banks — Noninterest Bearing		$	3,302	$	3,679		$	4,020		$	3,068		$	3,019		$	4,364
Cash and Due from Banks — Interest Bearing		$	0	$	2,264		$	201		$	843		$	35		$	830
Investment Securities		$	33,906	$	33,897		$	34,052		$	32,669		$	30,270		$	29,314
Federal Funds Sold & Repurchase Agreements		$	0	$	1,780		$	2,471		$	859		$	966		$	2,467
Real Estate Loans (Including Commercial Real Estate)		$	61,364	$	62,580		$	64,347		$	67,377		$	66,691		$	73,269
Commercial Real Estate Loans		$	20,496	$	21,929		$	22,536		$	23,733		$	23,221		$	30,892
Commercial & Industrial Loans		$	13,649	$	12,432		$	11,277		$	11,687		$	12,274		$	7,704
Installment Loans		$	21,501	$	20,804		$	18,929		$	17,771		$	16,825		$	15,929
Agricultural Loans		$	1,454	$	1,430		$	1,312		$	1,135		$	1,047		$	1,109
All Other Loans		$	0	$	0		$	0		$	0		$	0		$	0
Less: Unearned Income		$	91	$	84		$	87		$	92		$	98		$	112

Total Loans (Net of Unearned Income)		$	97,877	$	97,162		$	95,778		$	97,878		$	96,739		$	97,899
Less: Loan Loss Reserve		$	968	$	987		$	986		$	996		$	939		$	955

Net Loans		$	96,909	$	96,175		$	94,792		$	96,882		$	95,800		$	96,944
Bank Premises		$	3,032	$	3,133		$	3,122		$	3,082		$	3,872		$	3,909
Other Real Estate Owned		$	491	$	494		$	435		$	435		$	435		$	435
Total Intangible Assets (Including MSRs)		$	771	$	751		$	731		$	713		$	695		$	679
Mortgage Servicing Rights		$	0	$	0		$	0		$	0		$	0		$	0
Investments in Unconsolidated Subsidiaries		$	0	$	0		$	0		$	0		$	0		$	0
Other Assets		$	3,199	$	3,438		$	3,437		$	3,623		$	3,883		$	4,015


TOTAL ASSETS		$	141,610	$	145,611		$	143,261		$	142,174		$	138,975		$	142,957


LIABILITIES
Demand Deposits		$	11,096	$	13,660		$	15,774		$	13,442		$	12,208		$	11,926
NOW Accounts		$	11,862	$	10,515		$	11,406		$	12,450		$	11,740		$	13,041
Savings Deposits		$	19,222	$	18,552		$	18,301		$	17,860		$	17,199		$	16,597
Money Market Deposits		$	11,664	$	11,932		$	10,378		$	13,638		$	12,766		$	12,847
Time Deposits < $100,000		$	33,752	$	32,668		$	32,309		$	32,701		$	32,202		$	31,325
Time Deposits > $100,000		$	25,927	$	28,172		$	27,200		$	26,308		$	27,398		$	29,211

Total Deposits		$	113,523	$	115,499		$	115,368		$	116,399		$	113,513		$	114,947
Memo: Brokered Deposits		$	6,125	$	6,412		$	6,318		$	6,560		$	5,844		$	7,349
Memo: IRAs & Keogh Plans		$	3,308	$	3,301		$	3,134		$	3,110		$	3,272		$	3,307
Fed. Funds Purchased & Repurchase Agreements		$	168	$	0		$	0		$	0		$	0		$	0
Other Borrowings		$	14,457	$	16,578		$	14,409		$	12,138		$	11,764		$	13,790
Subordinated Notes and Debentures		$	0	$	0		$	0		$	0		$	0		$	0
Other Liabilities		$	1,144	$	1,202		$	1,132		$	1,190		$	1,179		$	1,274


TOTAL LIABILITIES		$	129,292	$	133,279		$	130,909		$	129,727		$	126,456		$	130,011

Minority Interest in Consolidated Subsidiaries		$	0	$	0		$	0		$	0		$	0		$	0

STOCKHOLDERS’ EQUITY
Preferred Stock		$	0	$	0		$	0		$	0		$	0		$	0
Common Stock — Par Value		$	1,212	$	1,212		$	1,212		$	1,212		$	1,212		$	1,212
Common Stock — Surplus		$	5,137	$	5,137		$	5,137		$	5,138		$	5,137		$	5,137
Undivided Profits and Reserves		$	5,915	$	6,050		$	6,286		$	6,422		$	6,664		$	6,841
Other Comprehensive Income		$	54	($	68	)	($	283	)	($	325	)	($	494	)	($	244	)
Other Equity Capital Components		$	0	$	0		$	0		$	0		$	0		$	0


TOTAL EQUITY		$	12,318	$	12,331		$	12,352		$	12,447		$	12,519		$	12,946


TOTAL LIAB. AND STOCKHOLDERS’ EQUITY		$	141,610	$	145,610		$	143,261		$	142,174		$	138,975		$	142,957

Table 1.7
Ohio State Bank
Historical Performance ($000)
By Quarter


		2005Q2		2005Q3		2005Q4			2006Q1		2006Q2			2006Q3

INCOME STATEMENT
Interest and Fee Income on Loans & Leases	$	1,654	$	1,678	$	1,676		$	1,706	$	1,760		$	1,815
Balance due from Depository Institutions	$	3	$	9	$	6		$	5	$	4		$	8
Interest/Dividend Income on Securities	$	329	$	332	$	340		$	347	$	331		$	319
Trading Accounts	$	0	$	0	$	0		$	0	$	0		$	0
Interest Income on Federal Funds Sold	$	20	$	17	$	30		$	13	$	9		$	18
Interest Income on Other Investments	$	0	$	0	$	0		$	0	$	0		$	0


TOTAL INTEREST INCOME	$	2,006	$	2,036	$	2,052		$	2,071	$	2,104		$	2,160

Interest on Deposits	$	597	$	657	$	681		$	734	$	820		$	900
Interest Expense on Federal Funds Purchased	$	0	$	0	$	0		$	1	$	3		$	1
Interest Expense on Demand Notes & Other	$	135	$	144	$	148		$	130	$	106		$	138
Other Interest Expense	$	0	$	0	$	0		$	0	$	0		$	0


TOTAL INTEREST EXPENSE	$	732	$	801	$	829		$	865	$	929		$	1,039


NET INTEREST INCOME	$	1,274	$	1,235	$	1,223		$	1,206	$	1,175		$	1,121

Loan Loss Provision	$	104	$	127	$	91		$	86	($	11	)	$	52


NET INTEREST INCOME AFTER PROVISION	$	1,170	$	1,108	$	1,132		$	1,120	$	1,186		$	1,069

Income from Fiduciary Activities	$	0	$	0	$	0		$	0	$	0		$	0
Service Charges on Deposit Accounts	$	178	$	188	$	164		$	144	$	161		$	171
Net Gains/(Losses) on Loan Sales	$	0	$	0	$	70		$	0	$	0		$	0
Net Gains/(Losses) on Other Asset Sales	$	0	$	0	($	16	)	$	0	$	0		$	0
Other Operating Income	$	57	$	52	$	51		$	60	$	57		$	67


TOTAL NONINTEREST INCOME	$	235	$	240	$	269		$	204	$	218		$	238

Salaries and Employee Benefits	$	568	$	582	$	554		$	579	$	551		$	536
Occupancy Expenses	$	201	$	211	$	216		$	233	$	225		$	233
Total Amortization & Other Operating Expenses	$	309	$	378	$	326		$	310	$	316		$	299


TOTAL NONINTEREST EXPENSE	$	1,078	$	1,171	$	1,096		$	1,122	$	1,092		$	1,068


SUBTOTAL	$	327	$	177	$	305		$	202	$	312		$	239

Securities Gains/(Losses)	$	1	$	0	$	0		$	1	($	7	)	$	0


Income Before Taxes	$	328	$	177	$	305		$	203	$	305		$	239

Applicable Taxes	$	76	$	42	$	69		$	49	$	63		$	62


Net Income Before Extraordinary Items	$	252	$	135	$	236		$	154	$	242		$	177

Extraordinary Items	$	0	$	0	$	0		$	0	$	0		$	0


NET INCOME	$	252	$	135	$	236		$	154	$	242		$	177


*Memo Items:*

Interest Income on Tax-Exempt Securities	$	72	$	72	$	74		$	72	$	66		$	61
Est. Interest Income on Tax-Exempt Loans/Leases	$	0	$	0	$	0		$	0	$	0		$	0
Net Interest Income — FTE basis	$	1,299	$	1,260	$	1,249		$	1,231	$	1,198		$	1,142

Note: Net Interest Income — FTE basis based on 35% tax rate.

Table 1.8
Ohio State Bank
Historical Performance ($000)
By Quarter


		2005Q2			2005Q3			2005Q4			2006Q1			2006Q2			2006Q3

OTHER FINANCIAL INFORMATION
Dividends (Bank)	$	0		$	0		$	0		$	0		$	0		$	0
Effective Tax Rate		23.17	%		23.73	%		22.62	%		24.14	%		20.66	%		25.94	%
Full-time Equivalent Employees		48			47			48			49			49			48
S-Corporation (Yes/No?)	No			No			No			No			No			No

Loan Loss Reserve Reconciliation
Beginning of Period Reserve	$	968		$	968		$	987		$	986		$	996		$	939

Add: Provision for Loan Losses	$	104		$	127		$	91		$	86			($11	)	$	52
Less: Losses Charged to Reserve	$	124		$	123		$	125		$	89		$	56		$	49
Add: Recoveries	$	20		$	15		$	33		$	13		$	10		$	13
Adjustments	$	0		$	0		$	0		$	0		$	0		$	0


Net Loan Losses	$	104		$	108		$	92		$	76		$	46		$	36

End of Period Reserve	$	968		$	987		$	986		$	996		$	939		$	955

Market Value of Securities Portfolio	$	33,906		$	33,897		$	34,052		$	32,669		$	30,270		$	29,314

Nonperforming Loans
90+ Days Past Due and Accruing Interest	$	234		$	133		$	0		$	26		$	0		$	739
Nonaccrual Loans	$	834		$	1,118		$	1,152		$	1,047		$	1,618		$	1,401

Total Nonperforming Loans	$	1,068		$	1,251		$	1,152		$	1,073		$	1,618		$	2,140
Other Real Estate Owned	$	491		$	494		$	435		$	435		$	435		$	435

Total Nonperforming Assets	$	1,559		$	1,745		$	1,587		$	1,508		$	2,053		$	2,575

EARNINGS AND PROFITABILITY

PERCENT OF AVERAGE ASSETS
Net Interest Income (TE)		3.59	%		3.49	%		3.48	%		3.46	%		3.42	%		3.27	%
Tax Equivalent Adjustment		0.07	%		0.07	%		0.07	%		0.07	%		0.07	%		0.06	%
Net Interest Income		3.52	%		3.42	%		3.40	%		3.39	%		3.35	%		3.21	%
Provision: Loan/Lease Losses		0.29	%		0.35	%		0.25	%		0.24	%		-0.03	%		0.15	%

Net Interest Income After Provision		3.23	%		3.07	%		3.15	%		3.15	%		3.38	%		3.06	%
Noninterest Income		0.65	%		0.67	%		0.75	%		0.57	%		0.62	%		0.68	%
Overhead Expense		2.98	%		3.25	%		3.05	%		3.15	%		3.12	%		3.06	%
Subtotal		0.90	%		0.49	%		0.85	%		0.57	%		0.89	%		0.68	%
Securities Gains/(Losses)		0.00	%		0.00	%		0.00	%		0.00	%		-0.02	%		0.00	%

Income Before Taxes		0.91	%		0.49	%		0.85	%		0.57	%		0.87	%		0.68	%
Applicable Income Taxes		0.21	%		0.12	%		0.19	%		0.14	%		0.18	%		0.18	%

Subtotal		0.70	%		0.37	%		0.66	%		0.43	%		0.69	%		0.51	%
Extraordinary Items		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%

Net Income — ROAA		0.70	%		0.37	%		0.66	%		0.43	%		0.69	%		0.51	%
Return on Average Equity		8.36	%		4.38	%		7.65	%		4.97	%		7.75	%		5.56	%

MARGIN ANALYSIS
Average Earning Assets to Average Assets		92.52	%		92.34	%		92.32	%		91.97	%		91.49	%		91.46	%
Average Int-Bearing Deposits to Average Assets		71.18	%		70.79	%		70.06	%		71.18	%		72.87	%		73.09	%

Interest Income to Average Earning Assets		5.98	%		6.11	%		6.19	%		6.33	%		6.56	%		6.76	%
Interest Expense to Average Earning Assets		2.18	%		2.41	%		2.50	%		2.64	%		2.90	%		3.25	%
Net Interest Income to Average Earning Assets		3.80	%		3.71	%		3.69	%		3.69	%		3.67	%		3.51	%
Net Interest Income to Average Earning Assets (FTE)		3.88	%		3.78	%		3.76	%		3.76	%		3.74	%		3.57	%

Average Assets	$	144,934		$	144,248		$	143,745		$	142,280		$	140,164		$	139,780
Average Earning Assets	$	134,095		$	133,195		$	132,701		$	130,857		$	128,238		$	127,844
Average Equity	$	12,061		$	12,324		$	12,341		$	12,399		$	12,483		$	12,732

Table 1.9
Ohio State Bank
Historical Performance ($000)
By Quarter


		2005Q2			2005Q3			2005Q4			2006Q1			2006Q2			2006Q3

PERCENT OF AVERAGE ASSETS
INCOME COMPOSITION

Income from Fiduciary Activities		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Service Charges on Deposit Accounts		0.49	%		0.52	%		0.46	%		0.40	%		0.46	%		0.49	%
Other Operating Income		0.16	%		0.14	%		0.14	%		0.17	%		0.16	%		0.19	%

EXPENSE COMPOSITION
Personnel Expense		1.57	%		1.61	%		1.54	%		1.63	%		1.57	%		1.53	%
Occupancy Expense		0.55	%		0.59	%		0.60	%		0.66	%		0.64	%		0.67	%
Total Amortization & Other Operating Expense		0.85	%		1.05	%		0.91	%		0.87	%		0.90	%		0.86	%
Total Overhead Expense		2.98	%		3.25	%		3.05	%		3.15	%		3.12	%		3.06	%

Net Overhead		2.33	%		2.58	%		2.45	%		2.58	%		2.49	%		2.38	%
Efficiency Ratio		71.44	%		79.39	%		73.46	%		79.57	%		78.39	%		78.59	%
Total Revenue/Average Assets		4.16	%		4.09	%		4.15	%		3.96	%		3.98	%		3.89	%

PERSONNEL EXPENSE
Total Assets per Employee	$	2,950		$	3,098		$	2,985		$	2,902		$	2,836		$	2,978
Personnel Expense per Employee (Annualized)	$	47.3		$	49.5		$	46.2		$	47.3		$	45.0		$	44.7

INCOME STATEMENT GROWTH RATES
Net Interest Income		1.19	%		-3.06	%		-0.97	%		-1.39	%		-2.57	%		-4.60	%
Net Interest Income — FTE basis		1.25	%		-3.00	%		-0.90	%		-1.42	%		-2.69	%		-4.65	%
Loan Loss Provision Expense		62.50	%		22.12	%		-28.35	%		-5.49	%	NA			NA
Noninterest Income		23.04	%		2.13	%		12.08	%		-24.16	%		6.86	%		9.17	%
Revenue Growth		4.07	%		-2.25	%		1.15	%		-5.50	%		-1.21	%		-2.44	%
Overhead Expense		-8.41	%		8.63	%		-6.40	%		2.37	%		-2.67	%		-2.20	%
Pre-Tax Income		56.94	%		-46.04	%		72.32	%		-33.44	%		50.25	%		-21.64	%
Net Income		58.49	%		-46.43	%		74.81	%		-34.75	%		57.14	%		-26.86	%

ASSETS, PERCENT OF ASSETS
Real Estate Loans		43.33	%		42.98	%		44.92	%		47.39	%		47.99	%		51.25	%
Commercial & Industrial Loans		9.64	%		8.54	%		7.87	%		8.22	%		8.83	%		5.39	%
Installment Loans		15.18	%		14.29	%		13.21	%		12.50	%		12.11	%		11.14	%
Agricultural Loans		1.03	%		0.98	%		0.92	%		0.80	%		0.75	%		0.78	%
All Other Loans		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Total Loans (Net of Unearned Income)		69.12	%		66.73	%		66.86	%		68.84	%		69.61	%		68.48	%
Less: Loss Reserve		0.68	%		0.68	%		0.69	%		0.70	%		0.68	%		0.67	%
Net Loans and Leases		68.43	%		66.05	%		66.17	%		68.14	%		68.93	%		67.81	%
Interest Bearing Bank Balances		0.00	%		1.55	%		0.14	%		0.59	%		0.03	%		0.58	%
Federal Funds Sold & Resales		0.00	%		1.22	%		1.72	%		0.60	%		0.70	%		1.73	%
Investment Securities		23.94	%		23.28	%		23.77	%		22.98	%		21.78	%		20.51	%
Total Earning Assets		93.06	%		92.78	%		92.49	%		93.02	%		92.11	%		91.29	%

Noninterest Cash & Due from Banks		2.33	%		2.53	%		2.81	%		2.16	%		2.17	%		3.05	%
Premises, Fixed Assets, Capital Leases		2.14	%		2.15	%		2.18	%		2.17	%		2.79	%		2.73	%
Other Real Estate Owned		0.35	%		0.34	%		0.30	%		0.31	%		0.31	%		0.30	%
Other Assets		2.80	%		2.88	%		2.91	%		3.05	%		3.29	%		3.28	%

Table 1.10
Ohio State Bank
Historical Performance ($000)
By Quarter


	2005Q2			2005Q3			2005Q4			2006Q1			2006Q2			2006Q3
LIABILITIES, PERCENT OF ASSETS
Demand Deposits		7.84	%		9.38	%		11.01	%		9.45	%		8.78	%		8.34	%
NOW Accounts		8.38	%		7.22	%		7.96	%		8.76	%		8.45	%		9.12	%
Savings Deposits		13.57	%		12.74	%		12.77	%		12.56	%		12.38	%		11.61	%
Money Market Deposits		8.24	%		8.19	%		7.24	%		9.59	%		9.19	%		8.99	%
Time Deposits < $100,000		23.83	%		22.44	%		22.55	%		23.00	%		23.17	%		21.91	%
Time Deposits > $100,000		18.31	%		19.35	%		18.99	%		18.50	%		19.71	%		20.43	%
Total Deposits		80.17	%		79.32	%		80.53	%		81.87	%		81.68	%		80.41	%
Brokered Deposits		4.33	%		4.40	%		4.41	%		4.61	%		4.21	%		5.14	%
IRAs & Keogh Plans		2.34	%		2.27	%		2.19	%		2.19	%		2.35	%		2.31	%
Federal Funds Purchased & Repurchase Agreement		0.12	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Other Borrowings		10.21	%		11.39	%		10.06	%		8.54	%		8.46	%		9.65	%
Subordinated Notes and Debentures		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Other Liabilities		0.81	%		0.83	%		0.79	%		0.84	%		0.85	%		0.89	%

Total Liabilities		91.30	%		91.53	%		91.38	%		91.25	%		90.99	%		90.94	%

All Common & Preferred Capital		8.70	%		8.47	%		8.62	%		8.75	%		9.01	%		9.06	%
Total Liabilities and Capital		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%
BALANCE SHEET GROWTH RATES
Total Loans & Leases		0.03	%		-0.73	%		-1.42	%		2.19	%		-1.16	%		1.20	%
Total Assets		-2.44	%		2.83	%		-1.61	%		-0.76	%		-2.25	%		2.87	%
Total Deposits		-2.87	%		1.74	%		-0.11	%		0.89	%		-2.48	%		1.26	%
ASSET QUALITY
Average Total Loans	$	97,054		$	96,440		$	95,242		$	95,958		$	95,516		$	95,730
Net Loan Loss to Average Loans		0.43	%		0.45	%		0.39	%		0.32	%		0.19	%		0.15	%
Provision for Loan Loss to Average Loans		0.43	%		0.53	%		0.38	%		0.36	%	NA				0.22	%
Loss Reserve to Total Loans		0.99	%		1.02	%		1.03	%		1.02	%		0.97	%		0.98	%
Nonperforming Loans to Total Loans:
90+ Days Past Due		0.24	%		0.14	%		0.00	%		0.03	%		0.00	%		0.75	%
Nonaccrual		0.85	%		1.15	%		1.20	%		1.07	%		1.67	%		1.43	%
Total Nonperforming Loans		1.09	%		1.29	%		1.20	%		1.10	%		1.67	%		2.19	%
LLR/Nonperforming Loans		90.64	%		78.90	%		85.59	%		92.82	%		58.03	%		44.63	%
OREO as a % of Total Assets		0.35	%		0.34	%		0.30	%		0.31	%		0.31	%		0.30	%
Nonperforming Assets as a % of Total Assets		1.10	%		1.20	%		1.11	%		1.06	%		1.48	%		1.80	%
CAPITAL ADEQUACY
Core Leverage Ratio (Tangible)		7.97	%		8.12	%		8.32	%		8.52	%		8.83	%		8.99	%
Risk Based Capital Ratios:
Tier 1		11.56	%		11.62	%		12.10	%		12.18	%		12.53	%		12.72	%
Total		12.53	%		12.61	%		13.11	%		13.19	%		13.48	%		13.70	%
Dividend Payout Ratio (Bank)		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Average Assets for Capital Purposes	$	144,163		$	143,498		$	143,015		$	141,567		$	139,468		$	139,102
Risk Based Assets	$	99,428		$	100,224		$	98,358		$	98,975		$	98,310		$	98,328
Tier 1 Capital	$	11,494		$	11,649		$	11,905		$	12,059		$	12,317		$	12,512
Tier 2 Capital	$	968		$	987		$	986		$	996		$	939		$	955
LIQUIDITY AND RATE SENSITIVITY
Market Value less Book Value of Investment Securities	$	0		$	0		$	0		$	0		$	0		$	0
Market Value/Book Value of Investment Securities		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%
Total Loans & Leases to Assets		69.12	%		66.73	%		66.86	%		68.84	%		69.61	%		68.48	%
Total Loans and Leases to Deposits		86.22	%		84.12	%		83.02	%		84.09	%		85.22	%		85.17	%
Volatile Liabilities	$	40,552		$	44,750		$	41,609		$	38,446		$	39,162		$	43,001
Cash, Federal Funds & Investment Securities	$	37,208		$	41,620		$	40,744		$	37,439		$	34,290		$	36,975

Table 1.11
Ohio State Bancshares, Inc.
Summary Historical Analysis ($000)


Financial Highlights:		Ending Sept. 30, 3006


	2001Y			2002Y			2003Y			2004Y			2005Y			YTD			LTM
Total Assets	$	91,407		$	104,733		$	110,862		$	125,012		$	143,541		$	143,309
Asset Growth (Annualized)		25.1	%		14.6	%		5.9	%		12.8	%		14.8	%		-0.2	%		-1.6	%
Total Loans HFI	$	58,207		$	61,338		$	76,202		$	89,876		$	95,778		$	97,899
Total Deposits	$	81,787		$	84,889		$	87,007		$	96,124		$	113,673		$	114,025
Loan to Deposit Ratio		71.2	%		72.3	%		87.6	%		93.5	%		84.3	%		85.9	%
Loan Loss Reserve	$	714		$	793		$	844		$	961		$	986		$	955
Loan Loss Reserve to Total Loans		1.23	%		1.29	%		1.11	%		1.07	%		1.03	%		0.98	%
Intangible Assets (Excluding MSRs)	$	0		$	0		$	0		$	0		$	731		$	679
Trust Preferred Securities	$	0		$	0		$	0		$	3,000		$	3,000		$	3,000
Total Shareholders’ Equity	$	6,215		$	10,219		$	10,860		$	11,223		$	11,272		$	11,169

Net Income	$	653		$	1,040		$	857		$	635		$	577		$	411		$	577

Nonperforming Assets	$	393		$	935		$	920		$	1,171		$	1,594		$	2,584
Nonperforming Assets to Total Assets		0.43	%		0.89	%		0.83	%		0.94	%		1.11	%		1.80	%

Performance Ratios:
Return on Average Assets		0.81	%		1.08	%		0.79	%		0.53	%		0.40	%		0.39	%		0.41	%
Return on Average Equity		10.99	%		13.49	%		8.15	%		5.77	%		5.11	%		4.92	%		5.16	%
Total Equity to Assets		6.80	%		9.76	%		9.80	%		8.98	%		7.85	%		7.79	%
Tangible Equity to Tangible Assets		6.80	%		9.76	%		9.80	%		8.98	%		7.38	%		7.35	%
Efficiency Ratio		66.82	%		60.37	%		68.59	%		76.04	%		76.02	%		82.58	%		82.43	%
Dividend Payout Ratio		13.5	%		9.7	%		17.7	%		23.9	%		26.3	%		18.0	%		26.0	%

Per Share Summary:
Earnings Per Share	$	4.47		$	6.53		$	4.51		$	3.34		$	3.04		$	2.20		$	3.07
Dividends Per Share	$	0.60		$	0.63		$	0.80		$	0.80		$	0.80		$	0.40		$	0.80
Book Value Per Share	$	42.57		$	53.78		$	57.16		$	59.07		$	59.33		$	60.46
Tangible Book Value Per Share	$	42.57		$	53.78		$	57.16		$	59.07		$	55.48		$	56.78

Other Data:
Common Shares Outstanding		146,000			190,000			190,000			190,000			190,000			184,739
Average Shares Outstanding		146,000			159,273			190,000			190,000			190,000			187,176			187,896
Common Dividends Paid	$	88		$	101		$	152		$	152		$	152		$	74		$	150

Table 1.12
Ohio State Bancshares, Inc.
Parent-Only Historical Performance Summary ($000)


	2001Y		2002Y		2003Y		2004Y		2005Y		YTD 09/06
BALANCE SHEET
Total Cash & Balances Due	$	163	$	2,322	$	2,107	$	3,098	$	1,695	$	918
Total Securities	$	0	$	0	$	0	$	0	$	0	$	0
Total Loans	$	0	$	0	$	0	$	0	$	0	$	0
Loan Loss Reserve	$	0	$	0	$	0	$	0	$	0	$	0

Net Loans	$	0	$	0	$	0	$	0	$	0	$	0
Investments in Bank Subs Equity	$	6,522	$	7,843	$	8,743	$	10,946	$	12,352	$	12,946
Goodwill	$	0	$	0	$	0	$	0	$	0	$	0
Loans	$	0	$	0	$	0	$	0	$	0	$	0
Investments in Non-Bank Subs Equity	$	0	$	0	$	0	$	74	$	56	$	46
Other Assets	$	29	$	54	$	76	$	133	$	226	$	306


Total Assets	$	6,714	$	10,219	$	10,926	$	14,251	$	14,329	$	14,216

Commercial Paper	$	500	$	0	$	0	$	0	$	0	$	0
Other Short-Term Borrowings	$	0	$	0	$	0	$	0	$	0	$	0
Long-Term Borrowings	$	0	$	0	$	0	$	0	$	0	$	0
Accrued Interest Payable	$	0	$	0	$	0	$	0	$	0	$	0
Balances Due to Non-Bank Subs	$	0	$	0	$	0	$	3,000	$	3,000	$	3,000
Other Liabilities	$	0	$	0	$	0	$	28	$	40	$	47

Total Liabilities	$	500	$	0	$	0	$	3,028	$	3,040	$	3,047

Common Stock	$	4,113	$	6,945	$	6,945	$	6,945	$	6,945	$	6,945
Retained Earnings	$	2,058	$	2,998	$	3,768	$	4,185	$	4,627	$	4,947
Other Comprehensive Income	$	43	$	276	$	213	$	93	-$	283	-$	244
Other Equity Components	��$	0	$	0	$	0	$	0	$	0	-$	479

Total Equity	$	6,214	$	10,219	$	10,926	$	11,223	$	11,289	$	11,169

Total Liabilities & Equity	$	6,714	$	10,219	$	10,926	$	14,251	$	14,329	$	14,216


	2001Y		2002Y		2003Y		2004Y		2005Y		YTD 09/06
INCOME STATEMENT
Income from Bank Subs
Dividend	$	0	$	0	$	0	$	0	$	0	$	0
Other	$	0	$	0	$	0	$	0	$	0	$	0
All Other Operating Income	$	0	$	0	$	0	$	0	$	0	$	0

Total Operating Income	$	0	$	0	$	0	$	0	$	0	$	0

Interest Expense	$	3	$	14	$	0	$	0	$	0	$	0
Other Expenses	$	20	$	59	$	63	$	211	$	281	$	244

Total Operating Expense	$	23	$	73	$	63	$	211	$	281	$	244

Income before Tax & Undistributed Income	-$	23	-$	73	-$	63	-$	211	-$	281	-$	244
Income Taxes	-$	8	-$	25	-$	22	-$	57	-$	93	-$	83

Income before Undistributed Income	-$	15	-$	48	-$	41	-$	154	-$	188	-$	161

Equity in Undistributed Income Banks	$	669	$	1,088	$	964	$	789	$	782	$	572
Net Income	$	654	$	1,040	$	923	$	635	$	594	$	411


Cash Dividends Declared	$	88	$	101	$	152	$	152	$	152	$	74

Table 2.1
Ohio State Bank
Discounted Cash Flow Value — Projected Performance ($000)
Performance Adjusted for Two Branch Openings in 2007


	ACTUAL LTM						PROJECTED 12-MONTH PERIOD ENDING:
	30-Sep-06			30-Sep-07			30-Sep-08			30-Sep-09			30-Sep-10			30-Sep-11
BALANCE SHEET GROWTH:
Total Assets	$	142,957		$	152,249		$	170,519		$	190,981		$	211,989		$	233,188
Asset Growth		-1.8	%		6.5	%		12.0	%		12.0	%		11.0	%		10.0	%
Average Assets	$	141,492		$	147,603		$	161,384		$	180,750		$	201,485		$	222,589

INCOME STATEMENT PROJECTIONS:
Net Interest Income	$	4,725		$	4,797		$	5,326		$	6,055		$	6,851		$	7,679
Noninterest Income	$	929		$	969		$	1,060		$	1,187		$	1,323		$	1,461
Noninterest Expense	$	4,378		$	5,063		$	5,503		$	5,820		$	6,105		$	6,388
Salaries	$	2,220		$	2,509		$	2,727		$	2,910		$	3,083		$	3,250
Occupancy	$	907		$	1,004		$	1,097		$	1,139		$	1,169		$	1,202
Other Expenses	$	1,251		$	1,550		$	1,678		$	1,771		$	1,854		$	1,937
Provision	$	218		$	295		$	290		$	271		$	262		$	267
Securities Gains		($6	)	$	0		$	0		$	0		$	0		$	0
Pre-Tax Income	$	1,052		$	408		$	592		$	1,151		$	1,806		$	2,485
Applicable Taxes (1)	$	243		$	95		$	138		$	269		$	422		$	580
Extraordinary Items	$	0		$	0		$	0		$	0		$	0		$	0
Net Income	$	809		$	313		$	454		$	882		$	1,385		$	1,905
% Change					-61.3	%		44.9	%		94.5	%		57.0	%		37.6	%
Total Revenue % Change					2.0	%		10.7	%		13.4	%		12.9	%		11.8	%
Overhead % Change					15.6	%		8.7	%		5.8	%		4.9	%		4.6	%

INCOME STATEMENT RATIOS:
Net Interest Income		3.34	%		3.25	%		3.30	%		3.35	%		3.40	%		3.45	%
Net Interest Income (TE)		3.41	%		3.32	%		3.37	%		3.42	%		3.47	%		3.52	%
Noninterest Income		0.66	%		0.66	%		0.66	%		0.66	%		0.66	%		0.66	%
Noninterest Expense		3.09	%		3.43	%		3.41	%		3.22	%		3.03	%		2.87	%
Salaries		1.57	%		1.70	%		1.69	%		1.61	%		1.53	%		1.46	%
Occupancy		0.64	%		0.68	%		0.68	%		0.63	%		0.58	%		0.54	%
Other Expenses		0.88	%		1.05	%		1.04	%		0.98	%		0.92	%		0.87	%
Provision		0.15	%		0.20	%		0.18	%		0.15	%		0.13	%		0.12	%
Securities Gains		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Pre-Tax Income		0.74	%		0.28	%		0.37	%		0.64	%		0.90	%		1.12	%
Applicable Taxes (1)		0.17	%		0.06	%		0.09	%		0.15	%		0.21	%		0.26	%
Extraordinary Items		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Net Income		0.57	%		0.21	%		0.28	%		0.49	%		0.69	%		0.86	%


FOOTNOTE:
(1) Based on Effective Tax Rate of:		23.34	%
and tax exempt income of:	$	273		$	285		$	311		$	349		$	389		$	429

Note: Net Interest Income (TE) based on 35% marginal tax rate.

Table 2.2
Ohio State Bank
Discounted Cash Flow Value — Input and Results ($000)


INPUT VARIABLES
Date of Valuation			30-Sep-06
Shares Outstanding			NA
Total Assets			$	142,957
Total Equity Capital excluding Other Comprehensive Income			$	13,190
Required equity to assets ratio				7.00	%
Current Ratio:	9.23	%
After-tax return on excess capital				3.50	%
Discount Rate				12.00	%


RESULTS OF INPUT VARIABLES
Required Equity Capital	$	9,767
Excess Capital	$	3,423
Earnings on Excess Capital	$	120
Projected Period 1 Net Income	$	313
Adjusted Period 1 Net Income	$	193
Adjusted Total Assets	$	139,534


	ADJUSTMENTS TO NET INCOME BASED ON EXCESS CAPITAL

	Excess Capital		Projected		Adjustments to		Adjusted
Period	(Cash Flow)		Net Income		Net Income		Net Income
Actual	$	3,423
1	$	0	$	313	$	120	$	193
2	$	0	$	454	$	120	$	334
3	$	0	$	882	$	120	$	762
4	$	0	$	1,385	$	120	$	1,265
5	$	0	$	1,905	$	120	$	1,786


DISCOUNTED CASH FLOW VALUE RESULTS
Period Five Adjusted Net Income	$	1,786
Capitalization Rate		7.00	%
Residual Value	$	25,507
Residual Value as a % of Book Value		180.81	%

Present Value of Residual Value	$	14,473
Present Value of Cash Flow	$	3,423

Aggregate Present Value	$	*17,896*


As a % of Equity		138	%
As a Multiple of LTM Earnings		22.1
As a Multiple of Period 1 Earnings		57.2

Table 2.3
Ohio State Bancshares, Inc.
Discounted Cash Flow Value Approach — Parent-Only Adjustments

Total Common Equity (Parent Only) ($000)

30-Sep-06

$11,169

Premium/

ADJUSTMENTS

(Discount)

Investment in Subs

DCF Value

17,896

Minus: Bank(s) Stated Equity

12,946

Premium/(Discount)

4,950

Other Assets

Total Balance Sheet Adjustments

4,950

Other Adjustments (Intangible Assets)

Total Adjustments

4,950

Adjusted Total Capital

16,119

Shares of Common Stock Outstanding

184,739

Book Value Per Share

60.46

Valuation Adjustments Per Share

26.79

Adjusted Value Per Share

87.25

Adjusted Value as a % of Book Value

144

Table 2.4
Ohio State Bancshares, Inc.
Discounted Cash Flow Value — Other Adjustments


Pre-Adjustment Value	30-Sep-06
Indication of Value	$	87.25

Adjustments
Effect of Stock Options on a Per Share Basis	$	0.00

DCF Value Results After Adjustments
Indication of Value	$	87.25
% of Book Value		144	%
% of Tangible Book Value		154	%
Multiple of LTM EPS		28.4

Table 3.1
Ohio State Bank
Net Asset Value — Summary


				30-Sep-06
Stated Book Value ($000)				$12,946
	Premium						Adjustment
Adjustments	(Discount)						Source

Securities (Held-to-Maturity)	$	0					Call Report
Loans and Leases (Yield Basis Adjustment)	$	67					Table 3.2
Credit Quality Adjustment	$	143					Internal Report
Premises and Fixed Assets	$	0
Other Real Estate Owned		($44	)				Table 3.3
Intangible Assets (Excluding MSRs)		($679	)				Call Report
Other Assets (Deferred Tax Asset: FASB 115)		($125	)				Call Report
Time Deposits	$	250					Table 3.4
Borrowings	$	158					Table 3.5
Other Liabilities	$	0

Total Balance Sheet Adjustments		($229	)

Additional Adjustments
Core Deposit Value	$	3,107					Table 3.6
Other Adjustments	$	0

Total Additional Adjustments	$	3,107

Total Adjustments				$	2,878


Net Asset Value				$	15,824
Net Asset Value/Stated Book Value					122	%

Table 3.2
Ohio State Bank
Net Asset Value — Loan Portfolio Valuation Summary ($000)


					Premium
	Stated Book Value		Market Value		(Discount)
TOTALS	$	97,899	$	97,966	$	67


	TOTAL LOANS
Stated Book Value	$	97,899
Estimated Average Repricing Period (Years)		2.16
Estimated Average Maturity Period (Years)		4.32
Bank Yield on Total Loans (1)		7.58	%
Market Yield on Total Loans (2)		7.52	%
Discount Rate		12.00	%
Projected Monthly Cash Flow @ Bank Yield (3)	$	2,222
Projected Montly Cash Flow @ Market Yield (3)	$	2,219
Actual vs. Market Cash Flow Per Month	$	3
Present Value of Positive (Negative) Cash Flow	$	67
Market Value of Term Loan Category	$	97,966


	Actual vs. Market		Present Value of Actual
	Cash Flow Per Year		vs. Market Cash Flow
Year	During Repricing Period		During Repricing Period
1	$	35	$	33
2	$	35	$	30
3	$	6	$	4
4	$	0	$	0
5	$	0	$	0
6	$	0	$	0
7	$	0	$	0


(1)		Based on 09/30/06 Call Report data and Internal Reports.

(2)		Based on National Averages from BanxQuote.com.

(3)		Ordinary annuity calculation utilizing the average maturity period.

Table 3.3
Ohio State Bank
Net Asset Value — Discount to Other Real Estate ($000)

Bank Management’s Estimate of Loss


	Aggregate		Management's			Discount
Type of Asset	Dollar Amount		Estimate of Loss			(Dollars)
Other Real Estate Owned	$	435		0.00	%	$	0

Totals	$	435		0.00	%	$	0

Austin Associates’ Additional Discounts


	Aggregate		Discount			Discount
Type of Asset	Dollar Amount		(Percent)			(Dollars)
Other Real Estate Owned	$	435		10.00	%	$	44

Totals	$	435				$	44


			Total Discount			$	44

Table 3.4
Ohio State Bank
Net Asset Value — Certificates of Deposit Valuation Summary ($000)


					Premium
Deposit Type	Stated Book Value		Market Value		(Discount)
Jumbo CDs	$	29,211	$	29,030	$	181
All Other CDs	$	31,325	$	31,256	$	69

Totals	$	60,536	$	60,286	$	250

Note: The Market Value for Deposit Liabilities will be less than Book Value when the Market Interest Rate Exceeds the Bank Interest Rate.


	Jumbo CDs			All Other CDs
Stated Book Value	$	29,211		$	31,325
Estimated Average Maturity (Years)		0.92			1.17
Bank Rate (1)		4.28	%		4.55	%
Market Rate (1)		5.00	%		4.75	%
Discount Rate		12.00	%		12.00	%
Projected Annual Interest — Bank Rates (2)	$	1,251		$	1,424
Projected Annual Interest — Market Rates (2)	$	1,461		$	1,488
Actual vs. Market Interest Paid	$	210		$	64
Present Value of Positive (Negative) Cash Flow	$	181		$	69
Market Value of CD Category	$	29,030		$	31,256


	Actual vs. Market Annual Interest Paid				Present Value of Actual vs. Market Interest Paid
YEAR	Jumbo CDs		All Other CDs		Jumbo CDs		All Other CDs
1	$	192	$	64	$	181	$	60
2	$	0	$	11	$	0	$	9
3	$	0	$	0	$	0	$	0
4	$	0	$	0	$	0	$	0
5	$	0	$	0	$	0	$	0


(1)		Bank Rates calculated from Internal Reports and 09/30/06 Call Report; Market Rates are estimated based on National Averages from BanxQuote.com.

(2)		Assumes Simple Interest paid annually.

Table 3.5
Ohio State Bank
Net Asset Value — Detail on Borrowings ($000)


Borrowing Type	Stated Book Value		Market Value		Premium (Discount)
Overnight	$	0	$	0	$	0
FHLB — Term	$	13,790	$	13,632	$	158

Totals	$	13,790	$	13,632	$	158

Note: The Market Value for Borrowings will be less than Book Value when the Market Interest Rate Exceeds the Bank Interest Rate.


	Overnight			FHLB - Term
Stated Book Value	$	0		$	13,790
Estimated Average Maturity (Years)		0.00			1.72
Bank Rate (1)		0.00	%		4.57	%
Market Rate (1)		0.00	%		5.31	%
Discount Rate		12.00	%		12.00	%
Projected Annual Interest — Bank Rates (2)	$	0		$	630
Projected Annual Interest — Market Rates (2)	$	0		$	732
Actual vs. Market Interest Paid	$	0		$	102
Present Value of Positive (Negative) Cash Flow	$	0		$	158
Market Value of CD Category	$	0		$	13,632


	Actual vs. Market Annual Interest Paid				Present Value of Actual vs. Market Interest Paid
YEAR	Overnight		FHLB - Term		Overnight		FHLB - Term
1	$	0	$	102	$	0	$	96
2	$	0	$	74	$	0	$	62
3	$	0	$	0	$	0	$	0
4	$	0	$	0	$	0	$	0
5	$	0	$	0	$	0	$	0


(1)		Bank Rates calculated from 09/30/06 Asset/Liability Report; Market Rates are based on FHLB rates as of September 30, 2006 for equivalent term of borrowings.

(2)		Assumes Simple Interest paid annually.

Table 3.6
Ohio State Bank
Net Asset Value — Core Deposit Value ($000)


							Money
	Demand			N.O.W.			Market			Savings
	Deposits			Deposits			Deposits			Deposits
Total Balance	$	11,926		$	13,041		$	12,847		$	16,597
Investable Balance (1)		87.52	%		89.55	%		99.47	%		99.38	%

Invested	$	10,438		$	11,678		$	12,779		$	16,494
Assumed Yield (2)		6.76	%		6.76	%		6.76	%		6.76	%

Income	$	705		$	789		$	864		$	1,115
Service Charge Income (2)	$	640		$	0		$	0		$	0

Total Income	$	1,345		$	789		$	864		$	1,115

Operating Expense (1)		3.950	%		1.880	%		0.690	%		2.330	%
Interest Expense (2)		0.000	%		0.918	%		3.152	%		2.617	%
Total Expense		3.950	%		2.798	%		3.842	%		4.947	%

Expenses	$	471		$	365		$	494		$	821

Before Tax Income	$	874		$	424		$	370		$	294
Tax Rate		40	%		40	%		40	%		40	%

After Tax Income	$	525		$	255		$	222		$	176


Aggregate Income				$	1,177

Depletion Schedule


	Balance		Average		Estimated		P.V.I.F.		Present
Period	Beg. of Period		Balance		Income		12.00%		Value
1	$	54,411	$	49,465	$	1,070		0.9434	$	1,010
2	$	44,518	$	40,066	$	867		0.8396	$	728
3	$	35,614	$	31,657	$	685		0.7473	$	512
4	$	27,700	$	24,238	$	524		0.6651	$	349
5	$	20,775	$	17,807	$	385		0.5919	$	228
6	$	14,839	$	12,366	$	268		0.5268	$	141
7	$	9,893	$	7,914	$	171		0.4688	$	80
8	$	5,936	$	4,452	$	96		0.4173	$	40
9	$	2,968	$	1,979	$	43		0.3714	$	16
10	$	989	$	495	$	11		0.3305	$	4
11	$	0	$	0	$	0		0.2942	$	0

			Estimated Value of Core Deposit Accounts						$	3,107
			Estimated Value as Percent of Core Deposits							5.71	%


(1)		*Calculation based onThe Federal Reserve’s Functional Cost and Profit Analysis.***

(2)		Based on 09/30/06 Call Report data and Internal Reports.

Table 3.7
Ohio State Bancshares, Inc.
Net Asset Value — Parent-Only Adjustments

30-Sep-06

Total Common Equity (Parent Only) ($000)

$11,169

Premium/

ADJUSTMENTS

(Discount)

Investment in Subs

Net Asset Value

15,824

Minus: Bank(s) Stated Equity

12,946

Premium/(Discount)

2,878

Other Assets

Total Balance Sheet Adjustments

2,878

Other Adjustments (Intangible Assets)

Total Adjustments

2,878

Adjusted Total Capital

14,047

Shares of Common Stock Outstanding

184,739

Book Value Per Share

60.46

Valuation Adjustments Per Share

15.58

Adjusted Value Per Share

76.04

Adjusted Value as a % of Book Value

126

Table 3.8
Ohio State Bancshares, Inc.
Net Asset Value — Other Adjustments


Pre-Adjustment Value	30-Sep-06
Indication of Value		76.04

Adjustments
Effect of Stock Options on a Per Share Basis	$	0.00

Net Asset Value Results After Adjustments
Indication of Value	$	76.04
% of Book Value		126	%
% of Tangible Book Value		134	%
Multiple of LTM EPS		24.8

Table 4.1
National Bank Summary Statistics
Minority Share Pricing as of 09/30/06*


			Total		Tangible			LTM			LTM			Average			Average
	#		Assets		Equity/			Core			Core			Price/			Price/			Price/LTM
By Assets	Included		($000)		Assets			ROAA			ROAE			Book			Tg Book			Core EPS
> $5.0 Billion		96	$	13,482,736		6.42	%		1.27	%		13.62	%		212	%		311	%		15.6
$1.0 - $5.0 Billion		185	$	1,863,962		7.00	%		1.13	%		12.69	%		212	%		267	%		16.5
$500 Million — $1.0 Billion		190	$	687,406		7.89	%		1.07	%		12.22	%		194	%		211	%		16.0
$300 - $500 Million		169	$	388,920		8.20	%		0.98	%		11.74	%		183	%		193	%		16.2
$100 - $300 Million		332	$	186,434		9.39	%		0.93	%		9.79	%		171	%		174	%		17.1
< $100 Million		113	$	73,614		13.35	%		0.46	%		3.08	%		158	%		161	%		19.1

By LTM Core ROAE
> 15%		222	$	733,577		7.52	%		1.43	%		17.16	%		252	%		281	%		15.6
10 - 15%		413	$	564,515		7.71	%		1.09	%		12.26	%		189	%		223	%		15.5
5 - 10%		283	$	288,245		8.98	%		0.78	%		8.16	%		153	%		169	%		19.1
< 5%		131	$	110,947		12.52	%		0.13	%		1.37	%		156	%		164	%		40.6

By Region
Mid Atlantic		239	$	343,028		8.52	%		0.96	%		10.53	%		178	%		200	%		16.3
Midwest		216	$	629,914		7.82	%		0.96	%		10.53	%		168	%		195	%		15.3
New England		57	$	381,402		7.50	%		0.96	%		10.67	%		180	%		214	%		15.2
Southeast		315	$	387,304		8.17	%		1.01	%		11.20	%		189	%		210	%		17.3
Southwest		38	$	1,052,277		6.91	%		1.07	%		12.95	%		199	%		262	%		18.5
West		231	$	266,382		9.16	%		1.27	%		13.19	%		218	%		241	%		17.1


*		Excludes M&A targets and based on median statistics unless noted.

Table 4.2
Selective Publicly Traded Banks in the Midwest
with Assets Between $100 Million — $250 Million

Additional Criteria:
LTM Core ROAE from 3.0% — 10.0%

FINANCIAL PERFORMANCE


			MRQ		MRQ			LTM			LTM			LTM			LTM			MRQ
			Total		Tg Equity/			Core EPS			Core			Core			Efficiency			NPAs/
			Assets		Tg Assets			Growth			ROAA			ROAE			Ratio			Assets
Company Name	City	ST	($000)		(%)			(%)			(%)			(%)			(%)			(%)
1 Community Shores Bank Corp.	Muskegon	MI	$	236,677		6.38	%		-13.8	%		0.54	%		8.29	%		72.08	%		0.63	%
2 HCB Financial Corp.	Hastings	MI	$	236,670		10.61	%		-54.4	%		0.43	%		3.88	%		69.50	%		0.10	%
3 ICNB Financial Corp	Ionia	MI	$	234,998		9.67	%		-6.7	%		0.76	%		7.53	%		71.15	%		1.78	%
4 American Community Bancorp	Evansville	IN	$	227,914		7.67	%		-4.1	%		0.78	%		9.85	%		61.46	%		0.00	%
5 Farmers & Merchants Bcshs	Burlington	IA	$	214,837		8.49	%		23.0	%		0.54	%		6.92	%		77.13	%		1.55	%
6 Consumers Bancorp Inc.	Minerva	OH	$	203,550		8.98	%		-28.1	%		0.59	%		6.08	%		76.01	%		1.94	%
7 Heartland Bancshares	Franklin	IN	$	200,900		7.11	%		0.8	%		0.66	%		9.15	%		78.97	%		1.31	%
8 Comunibanc Corporation	Napoleon	OH	$	199,723		8.77	%		-25.9	%		0.64	%		7.34	%		71.29	%		0.44	%
9 CSB Bancorp Inc	Chelsea	MI	$	199,690		15.33	%	NA				1.46	%		9.44	%		55.23	%		0.33	%
10 Michigan Heritage Bancorp	Farmington Hills	MI	$	171,756		9.93	%		86.1	%		0.63	%		6.64	%		76.15	%	NA
11 FNB Inc.	Dennison	OH	$	159,552		9.58	%		24.2	%		0.93	%		9.63	%		69.96	%		0.76	%
12 Community National Corp.	Franklin	OH	$	143,928		9.07	%		1.5	%		0.92	%		9.90	%		64.82	%		1.35	%
13 United Commerce Bancorp	Bloomington	IN	$	143,630		7.40	%		24.5	%		0.63	%		8.45	%		69.39	%		0.16	%
14 Western Reserve Bancorp	Medina	OH	$	135,789		8.97	%		423.2	%		0.83	%		9.20	%		71.88	%		0.81	%
15 First Robinson Financial Corp.	Robinson	IL	$	111,989		9.95	%		15.4	%		0.96	%		9.07	%		66.74	%		0.21	%
16 Washington Bancorp	Washington	IA	$	107,766		8.99	%	NA				0.37	%		3.62	%		83.69	%		2.31	%

	Average		$	183,086		9.18	%		33.3	%		0.73	%		7.81	%		70.97	%		0.91	%

	25th Percentile		$	143,854		8.29	%		-12.1	%		0.58	%		6.85	%		76.05	%		1.45	%
	Median		$	199,707		8.99	%		1.2	%		0.65	%		8.37	%		71.22	%		0.76	%
	75th Percentile		$	218,106		9.74	%		23.9	%		0.85	%		9.26	%		68.73	%		0.27	%
				—		—			—			—			—			—			—

*Ohio State Bancshares, Inc (1)*			$	*143,309*		*7.35*	%		*-17.3*	%		*0.41*	%		*5.16*	%		*82.43*	%		*1.80*	%


(1)		Financial performance based on LTM stated net income except for Core EPS Growth.

STOCK PERFORMANCE


					1-Year									Price/		1-Year
			09/30/06		Price			Price/			Price/			LTM		Average		Monthly
			Closing		Change			Book			Tg Book			Core EPS		Monthly		Volume
Company Name	Exchange	Ticker	Price		(%)			(%)			(%)			(x)		Volume		to Shares
1 Community Shores Bank Corp.	NASDAQ	CSHB	$	12.46		-20.6	%		118	%		118	%		15.2		34,364		2.39	%
2 HCB Financial Corp.	OTC BB	HCBN	$	27.75		-9.8	%		110	%		110	%	NA			7,040		0.70	%
3 ICNB Financial Corp	OTC BB	ICNB	$	22.25		-2.9	%		112	%		116	%		15.0		18,854		1.59	%
4 American Community Bancorp	OTC BB	ACBP	$	18.50		24.1	%		178	%		178	%		20.3		16,478		0.98	%
5 Farmers & Merchants Bcshs	OTC BB	FMBN	$	73.50	NA				104	%		116	%	NA			—		0.00	%
6 Consumers Bancorp Inc.	OTC BB	CBKM	$	12.50		-25.4	%		140	%		147	%		22.7		14,014		0.65	%
7 Heartland Bancshares	OTC BB	HRTB	$	13.00		-0.4	%		129	%		129	%		14.6		11,682		0.83	%
8 Comunibanc Corporation	Pink Sheet	CBCZ	$	30.25		-0.2	%		143	%		143	%	NA			308		0.04	%
9 CSB Bancorp Inc	Pink Sheet	CBMI	$	524.50		23.4	%		217	%		217	%	NA			—		0.00	%
10 Michigan Heritage	OTC BB	MHBC	$	11.99		-3.7	%		109	%		109	%		17.1		15,202		0.98	%
Bancorp
11 FNB Inc.	OTC BB	FIDS	$	29.50		0.0	%		134	%		134	%		13.7		1,804		0.26	%
12 Community National	OTC BB	CMNC	$	34.90		10.8	%		163	%		170	%		16.9		8,888		1.40	%
Corp.
13 United Commerce	OTC BB	UCBN	$	14.35		8.7	%		130	%		130	%		16.1		51,612		5.35	%
Bancorp
14 Western Reserve	Pink Sheet	WRBO	$	30.00		25.0	%		141	%		141	%		16.6		198		0.03	%
Bancorp
15 First Robinson	OTC BB	FRFC	$	25.00		-0.4	%		113	%		113	%		12.3		3,300		0.66	%
Financial Corp.
16 Washington Bancorp	Pink Sheet	WBIO	$	20.10		3.1	%		90	%		100	%	NA			—		0.00	%

		Average				2.1	%		133			136	%		16.4		11,484		0.99	%

		25th Percentile				-3.3	%		112	%		115	%		14.8		281		0.04	%
		Median				-0.2	%		129	%		129	%		16.1		7,964		0.68	%
		75th Percentile				9.8	%		141	%		144	%		17.0		15,521		1.09	%

Table 4.3
Selective Publicly Traded Banks in the Nation
with Assets Between $100 Million — $200 Million

Additional Criteria:
LTM Core ROAE from 3.0% — 10.0%, Tg. Equity/ Assets from 6.5% — 8.5%

FINANCIAL PERFORMANCE


			MRQ		MRQ			LTM			LTM			LTM			LTM			MRQ
			Total		Tg Equity/			Core EPS			Core			Core			Efficiency			NPAs/
			Assets		Tg Assets			Growth			ROAA			ROAE			Ratio			Assets
Company Name	City	ST	($000)		(%)			(%)			(%)			(%)			(%)			(%)
1 United Financial Banking Co.	Vienna	VA	$	193,516		8.17	%		14.0	%		0.76	%		9.88	%		72.39	%		0.02	%
2 TSB Financial Corp.	Charlotte	NC	$	193,089		6.92	%		4.9	%		0.66	%		8.41	%		72.44	%		0.40	%
3 Service 1st Bancorp	Tracy	CA	$	191,696		8.23	%		-20.5	%		0.80	%		8.89	%		77.34	%		0.02	%
4 New Windsor Bancorp Inc.	New Windsor	MD	$	187,857		6.93	%		-41.0	%		0.38	%		5.17	%		81.67	%	NA
5 Peoples Ltd.	Wyalusing	PA	$	180,924		6.81	%		13.6	%		0.69	%		7.50	%		71.02	%		0.98	%
6 Syringa Bancorp	Boise	ID	$	178,638		8.00	%	NA				0.69	%		7.13	%		69.48	%		0.05	%
7 Rising Sun Bancorp	Rising Sun	MD	$	171,500		8.03	%	NA				0.74	%		9.55	%		74.88	%		1.45	%
8 Kinderhook Bank Corp.	Kinderhook	NY	$	162,471		7.14	%	NA				0.59	%		6.68	%		75.62	%		0.55	%
9 Mission Community Bancorp	San Luis Obispo	CA	$	149,528		7.59	%		-26.6	%		0.65	%		8.74	%		76.53	%		0.07	%
10 United Commerce Bancorp	Bloomington	IN	$	143,630		7.40	%		24.5	%		0.63	%		8.45	%		69.39	%		0.16	%
11 Enterprise Bank	Allison Park	PA	$	128,689		7.49	%	NA				0.42	%		6.43	%		74.76	%		5.16	%
12 First Southern Bancorp	Statesboro	GA	$	124,589		7.52	%		69.4	%		0.76	%		9.44	%		67.31	%		0.61	%
13 Shenandoah National Bank	Staunton	VA	$	113,283		7.16	%		25.8	%		0.35	%		5.26	%		82.74	%		2.40	%

	Average		$	163,032		7.49	%		7.1	%		0.62	%		7.81	%		74.27	%		0.99	%

	25th Percentile		$	143,630		7.14	%		-20.5	%		0.59	%		6.68	%		76.53	%		1.10	%
	Median		$	171,500		7.49	%		13.6	%		0.66	%		8.41	%		74.76	%		0.48	%
	75th Percentile		$	187,857		8.00	%		24.5	%		0.74	%		8.89	%		71.02	%		0.07	%

*Ohio State Bancshares, Inc (1)*			$	*143,309*		*7.35*	%		*-17.3*	%		*0.41*	%		*5.16*	%		*82.43*	%		*1.80*	%


(1)		Financial performance based on LTM stated net income except for Core EPS Growth.

STOCK PERFORMANCE


					1-Year									Price/		1-Year
			09/30/06		Price			Price/			Price/			LTM		Average		Monthly
			Closing		Change			Book			Tg Book			Core EPS		Monthly		Volume
Company Name	Exchange	Ticker	Price		(%)			(%)			(%)			(x)		Volume		to Shares
1 United Financial Banking Co.	OTC BB	UFBC	$	22.40		6.4	%		154	%		154	%		16.9		—		0.00	%
2 TSB Financial Corp.	OTC BB	TSBC	$	20.30		-2.3	%		148	%		148	%		20.6		352		0.04	%
3 Service 1st Bancorp	OTC BB	SVCF	$	21.00		8.6	%		318	%		318	%		38.2		3,036		0.13	%
4 New Windsor Bancorp Inc.	Pink Sheet	NWID	$	41.00		28.1	%		172	%		172	%		33.7		—		0.00	%
5 Peoples Ltd.	Pink Sheet	PPLL	$	58.00		46.8	%		192	%		194	%	NA			—		0.00	%
6 Syringa Bancorp	OTC BB	SGBP	$	23.30		15.1	%		166	%		166	%	NA			6,886		0.67	%
7 Rising Sun Bancorp	OTC BB	RSAM	$	15.35		-4.1	%		146	%		171	%	NA			1,386		0.09	%
8 Kinderhook Bank Corp.	Pink Sheet	NUBK	$	30.00		36.4	%		181	%		181	%	NA			2,156		0.31	%
9 Mission Community Bancorp	OTC BB	MISS	$	26.00		0.0	%		169	%		169	%	NA			6,930		1.04	%
10 United Commerce Bancorp	OTC BB	UCBN	$	14.35		8.7	%		130	%		130	%		16.1		51,612		5.35	%
11 Enterprise Bank	Pink Sheet	ETPB	$	10.10		-15.8	%		92	%		92	%		15.1		286		0.03	%
12 First Southern Bancorp	Pink Sheet	FSOF	$	25.75		7.3	%		253	%		253	%		28.3		—		0.00	%
13 Shenandoah National Bank	Pink Sheet	SDOH	$	35.00		14.8	%		120	%		120	%		23.8		—		0.00	%

		Average				11.5	%		172	%		174	%		24.1		5,588		0.59	%

		25th Percentile				0.0	%		146	%		148	%		16.7		—		0.00	%
		Median				8.6	%		166	%		169	%		22.2		352		0.04	%
		75th Percentile				15.1	%		181	%		181	%		29.6		3,036		0.31	%

Table 4.4
Guideline Transactions
Based on Minority Share Level


	Selected
Price-to-Tangible Book Valuation	Multiple			Results
Ohio State Bancshares Tangible Book Value (09/30/06)				$	56.78
Guideline Price-to-Tangible Book		*150*	%

Indication of Value				$	*85.17*


	Selected
Price-to-Earnings Valuation	Multiple		Results
Ohio State Bancshares LTM Stated EPS (09/30/06)			$	3.07
Guideline Price-to-Earnings		*28.0*

Indication of Value			$	*85.96*

Table 5.1
National Bank Summary Statistics
Sale of Control Pricing as of 10/01/05 — 09/30/06*


			Total		Tangible									Average			Average
			Assets		Equity/			YTD			YTD			Price/			Price/			Price/		Prem/
Deals by Seller’s Assets	#		($000)		Assets			ROAA			ROAE			Book			Tg Book			LTM EPS		Core Dep
> $5.0 Billion		4	$	29,746,078		6.39	%		1.39	%		15.36	%		252	%		381	%		15.3		30.0	%
$1.0 - $5.0 Billion		19	$	1,328,763		7.12	%		1.20	%		12.38	%		271	%		350	%		21.2		31.1	%
$500 Million - - $1.0 Billion		22	$	624,869		6.94	%		1.16	%		13.78	%		292	%		331	%		21.7		26.7	%
$300 - $500 Million		21	$	382,139		7.90	%		1.00	%		13.09	%		282	%		287	%		22.1		24.2	%
$100 - $300 Million		69	$	153,079		8.78	%		0.88	%		8.91	%		236	%		240	%		24.6		19.5	%
< $100 Million		104	$	56,232		10.29	%		0.70	%		6.63	%		185	%		193	%		24.5		12.4	%

Deals by Seller’s ROAE
> 15%		42	$	410,429		7.54	%		1.42	%		17.82	%		310	%		318	%		18.5		25.6	%
10% - 15%		62	$	203,074		8.66	%		1.15	%		11.83	%		242	%		276	%		21.4		21.0	%
5% - 10%		76	$	86,827		9.55	%		0.76	%		7.64	%		199	%		209	%		27.4		13.7	%
< 5%		56	$	84,327		9.61	%		0.14	%		1.41	%		184	%		200	%		40.9		14.3	%

Deals by Region
Mid Atlantic		19	$	222,853		9.90	%		0.50	%		5.93	%		187	%		229	%		22.0		17.2	%
Midwest		82	$	89,146		9.19	%		0.86	%		9.10	%		198	%		210	%		23.1		13.3	%
New England		4	$	478,364		7.45	%		0.51	%		6.92	%		183	%		203	%		25.7		7.5	%
Southeast		60	$	147,394		8.63	%		0.87	%		8.70	%		237	%		250	%		24.6		22.7	%
Southwest		45	$	110,077		8.48	%		0.87	%		8.73	%		256	%		291	%		23.4		19.4	%
West		31	$	280,554		8.79	%		1.15	%		13.09	%		272	%		285	%		21.3		25.3	%


*	Based on median statistics unless noted and excludes terminated deals and S-Corporation selling companies have been adjusted to C-Corporation status (including pricing multiples) using 35% tax rate.

Table 5.2
Select Bank Sale Transactions in the Midwest
Announced from 01/01/2004 — 09/30/2006

Criteria:
Assets from $100 Million — $300 Million
YTD ROAE from 3.0% — 10.0%
Complete Pricing Information Available
Excludes Terminated Deals


			Seller Financial Statistics														Deal Statistics					Deal Valuation
					Tangible
			Total		Equity/														Deal		Stock	Price/			Price/		Prem/
			Assets		Tangible			YTD			YTD			NPAs/			Announce		Value		or	Tangible			LTM		Core
Buyer	Seller	ST	($000)		Assets			ROAA			ROAE			Assets			Date		($Mil)		Cash	Book			Earnings		Deposits
1 Cathay General Bancorp	New Asia Bancorp	IL	$	139,470		9.59	%		0.31	%		3.30	%		0.34	%		07/06/06	$	23.5	Mixed		207	%		39.7		12.4	%
2 Enterprise Financial Services	NorthStar Bancshares	MO	$	211,114		9.61	%		0.36	%		3.60	%		0.88	%		03/22/06	$	36.0	Mixed		195	%		56.5		25.9	%
3 Investor Group	Ridgestone Financial Services	WI	$	110,181		7.89	%		0.46	%		5.56	%		0.17	%		03/20/06	$	14.0	Cash		140	%		26.9		13.2	%
4 First Mid-Illinois Bancshares	Mansfield Bancorp Inc.	IL	$	122,147		12.18	%		1.06	%		8.91	%		0.31	%		02/14/06	$	24.0	Cash		164	%		18.3		10.3	%
5 First Fed Finl Srvcs (MHC)	Clover Leaf Financial Corp.	IL	$	127,853		9.42	%		0.68	%		6.90	%		0.22	%		02/03/06	$	21.9	Mixed		210	%		35.5		12.0	%
6 BancKentucky Inc.	Murray Banc Holding Co LLC	KY	$	153,079		8.53	%		0.75	%		8.83	%		0.24	%		01/30/06	$	8.5	Cash		130	%		14.1		5.0	%
7 American Founders Bank	First Security Bancorp Inc.	KY	$	203,515		10.57	%		0.76	%		7.64	%		0.91	%		12/12/05	$	38.4	Cash		174	%		25.5		13.4	%
8 Truman Bancorp Inc.	FFC Financial Corp.	MO	$	116,250		9.36	%		0.51	%		5.56	%		0.81	%		11/01/05	$	18.5	Cash		173	%		27.7		8.4	%
9 North Shore Bank FSB	IL St Bk of Lake in the Hills	IL	$	136,712		8.35	%		0.42	%		4.88	%		0.00	%		06/30/05	$	27.0	Cash		236	%		50.2		19.1	%
10 Western Illinois Bancshares	Midwest Bank of Western IL	IL	$	274,115		7.45	%		0.49	%		6.05	%		0.32	%		05/31/05	$	30.0	Cash		181	%		20.4		10.1	%
11 Firstbank Corp.	Keystone Financial Corp	MI	$	142,383		8.76	%		0.61	%		7.09	%		0.11	%		05/11/05	$	26.6	Mixed		232	%		33.6		17.7	%
12 Horizon Bancorp	Alliance Financial Corp	MI	$	146,284		7.70	%		0.40	%		4.98	%		0.44	%		02/24/05	$	13.1	Cash		184	%		37.9		4.7	%
13 Sky Financial Group Inc.	Belmont Bancorp.	OH	$	296,728		10.68	%		0.89	%		8.13	%		0.63	%		12/21/04	$	68.9	Mixed		215	%		27.9		17.4	%
14 First Defiance Financial	Combanc Inc.	OH	$	208,813		10.87	%		0.68	%		6.21	%	NA				08/04/04	$	38.0	Mixed		168	%	NA			9.8	%
15 Sun Financial Corporation	Citizens Home Bank	MO	$	116,647		11.58	%		0.54	%		4.72	%		0.64	%		06/18/04	$	9.2	Cash		115	%		20.0		1.4	%
16 Wintrust Financial Corp.	Town Bankshares Ltd	WI	$	216,616		7.81	%		0.75	%		8.83	%		2.01	%		06/14/04	$	41.4	Mixed		245	%		29.2		20.0	%
17 Lincoln Bancorp	First Shares Bancorp Inc.	IN	$	175,788		5.12	%		0.44	%		8.50	%		0.66	%		03/10/04	$	37.3	Mixed		255	%		47.7		23.5	%
18 Harrodsburg First Fin Bancorp	Independence Bancorp	IN	$	102,749		10.52	%		1.05	%		9.72	%		0.48	%		01/22/04	$	17.1	Stock		295	%		27.1		22.2	%

	Average		$	166,691		9.22	%		0.62	%		6.63	%		0.54	%							196	%		31.7		13.7	%

	25th Percentile		$	123,574		8.01	%		0.45	%		5.13	%		0.66	%							169	%		25.5		9.9	%

	Median		$	144,334		9.39	%		0.58	%		6.56	%		0.44	%							189	%		27.9		12.8	%

	75th Percentile		$	207,489		10.56	%		0.75	%		8.41	%		0.24	%							228	%		37.9		18.7	%


Ohio State Bancshares, Inc (1)			$	143,309		7.35	%		0.41	%		5.16	%		1.80	%


(1)		Financial performance based on LTM stated net income.

Note: S-Corporation selling companies have been adjusted to C-Corporation status (including pricing multiples). Assumes 35% tax rate.

Source: All data from SNL Financial, LLC.

Table 5.3
Select Bank Sale Transactions in the Nation
Announced from 01/01/2005 — 09/30/2006

Criteria:

Assets from $100 Million — $200 Million
YTD ROAE from 3.0% — 10.0%
Tg. Equity/ Tg. Assets from 6.0% — 10.0%
Complete Pricing Information Available
Excludes Terminated Deals


				Seller Financial Statistics														Deal Statistics					Deal Valuation
						Tangible
				Total		Equity/														Deal		Stock	Price/			Price/		Prem/
				Assets		Tangible			YTD			YTD			NPAs/			Announce		Value		or	Tangible			LTM		Core
	Buyer	Seller	ST	($000)		Assets			ROAA			ROAE			Assets			Date		($Mil)		Cash	Book			Earnings		Deposits
1	Gardiner Svgs Inst FSB	First Citizens Bank	ME	$	134,892		9.29	%		0.57	%		6.07	%		0.23	%		07/26/06	$	20.8	Cash		166	%		27.2		7.5	%
2	Cathay General Bancorp	New Asia Bancorp	IL	$	139,470		9.59	%		0.31	%		3.30	%		0.34	%		07/06/06	$	23.5	Mixed		207	%		39.7		12.4	%
3	Investor Group	Ridgestone Financial Services	WI	$	110,181		7.89	%		0.46	%		5.56	%		0.17	%		03/20/06	$	14.0	Cash		140	%		26.9		13.2	%
4	BNC Bancorp	SterlingSouth B&TC	NC	$	148,281		8.53	%		0.89	%		9.80	%		0.05	%		02/06/06	$	34.9	Mixed		231	%		26.0		25.1	%
5	First Fed Finl Srvcs (MHC)	Clover Leaf Financial Corp.	IL	$	127,853		9.42	%		0.68	%		6.90	%		0.22	%		02/03/06	$	21.9	Mixed		210	%		35.5		12.0	%
6	BancKentucky Inc.	Murray Banc Holding Co	KY	$	153,079		8.53	%		0.75	%		8.83	%		0.24	%		01/30/06	$	8.5	Cash		130	%		14.1		5.0	%
7	AmericanWest Bancorp.	Columbia Trust Bancorp	WA	$	194,833		7.50	%		0.62	%		8.27	%		0.83	%		11/29/05	$	37.7	Mixed		258	%		30.3		17.3	%
8	Security Bank Corp.	Neighbors Bancshares	GA	$	105,490		9.00	%		0.64	%		5.61	%		0.00	%		11/22/05	$	32.5	Mixed		296	%	NA			29.8	%
9	Truman Bancorp Inc.	FFC Financial Corp.	MO	$	116,250		9.36	%		0.51	%		5.56	%		0.81	%		11/01/05	$	18.5	Cash		173	%		27.7		8.4	%
10	American Nat'l Bankshares	Community First Fncl Corp	VA	$	164,930		8.63	%		0.52	%		5.91	%		0.34	%		10/18/05	$	33.1	Mixed		211	%		34.1		16.0	%
11	Tower Bancorp Inc.	FNB Financial Corp.	PA	$	180,686		7.43	%		0.82	%		9.38	%	NA				09/21/05	$	31.2	Mixed		235	%		20.7		14.1	%
12	Sun Bancorp Inc.	Advantage Bank	NJ	$	165,981		8.38	%		0.48	%		5.45	%		0.69	%		08/25/05	$	37.0	Mixed		244	%		42.9		18.0	%
13	North Shore Bank FSB	IL St Bk of Lake in the Hills	IL	$	136,712		8.35	%		0.42	%		4.88	%		0.00	%		06/30/05	$	27.0	Cash		236	%		50.2		19.1	%
14	Citizens South Banking Corp Trinity Bank		NC	$	150,745		8.73	%		0.61	%		6.98	%		1.05	%		05/25/05	$	35.4	Mixed		254	%		46.7		23.1	%
15	Community Bancorp	Bank of Commerce	NV	$	155,678		9.40	%		0.89	%		9.54	%		0.83	%		05/19/05	$	39.3	Mixed		268	%		29.4		21.6	%
16	Firstbank Corp.	Keystone Financial Corp	MI	$	142,383		8.76	%		0.61	%		7.09	%		0.11	%		05/11/05	$	26.6	Mixed		232	%		33.6		17.7	%
17	Horizon Bancorp	Alliance Financial Corp	MI	$	146,284		7.70	%		0.40	%		4.98	%		0.44	%		02/24/05	$	13.1	Cash		184	%		37.9		4.7	%
18	First Busey Corp.	Tarpon Coast Bancorp	FL	$	145,633		7.20	%		0.49	%		6.27	%		0.10	%		02/24/05	$	38.8	Mixed		304	%		50.9		23.6	%

		Average		$	145,520		8.54	%		0.59	%		6.69	%		0.38	%							221	%		33.8		16.0	%
		25th Percentile		$	135,347		8.01	%		0.48	%		5.56	%		0.69	%							190	%		27.2		12.1	%
		Median		$	145,959		8.58	%		0.59	%		6.17	%		0.24	%							231	%		33.6		16.7	%
		75th Percentile		$	155,028		9.22	%		0.67	%		7.98	%		0.11	%							252	%		39.7		21.0	%

Ohio State Bancshares, Inc (1)				$	143,309		7.35	%		0.41	%		5.16	%		1.80	%


(1)		Financial performance based on LTM stated net income.

Note: S-Corporation selling companies have been adjusted to C-Corporation status (including pricing multiples). Assumes 35% tax rate.
Source: All data from SNL Financial, LLC.

Table 5.4
Control Premiums
All Bank Deals (Publicly Traded Banks)


	*Before Announcement*
	*1 Month*			*3 Months*
*2006 YTD (45 deals)*
Average		*35.0*	%		*38.2*	%
Median		*26.7*	%		*30.2*	%


*2005 (50 deals)*

Average		*36.2*	%		*36.9*	%
Median		*32.8*	%		*30.8*	%


*2004 (52 deals)*

Average		*36.7*	%		*38.6*	%
Median		*27.3*	%		*25.9*	%


*2003 (46 deals)*

Average		*49.1*	%		*56.9*	%
Median		*41.9*	%		*48.8*	%


*2002 (30 deals)*

Average		*58.8*	%		*57.5*	%
Median		*39.1*	%		*45.9*	%


*2001 (48 deals)*

Average		*62.1*	%		*64.6*	%
Median		*46.1*	%		*53.0*	%


Selected Control Premium					35.0	%
Implied Minority Share Discount (1)					25.9	%


(1)		Minority share discount equals (1-(1/1.35)) = 25.9%

Note: YTD 2006 through 09/30/06
Source: SNL Financial.

Table 5.5
Guideline Transactions
Based on Sale of Control with Minority Share Discount


	Selected
	Multiple			Results
Price-to-Tangible Book Valuation
Ohio State Bancshares Tangible Book Value (09/30/06)				$	56.78
Guideline Price-to-Tangible Book		*210*	%
Price-to-Tangible Book Sale Value				$	119.24
Minority Share Discount					25.9	%

Indication of Value				$	*88.32*


Price-to-Earnings Valuation
Ohio State Bancshares LTM Stated EPS (09/30/06)				$	3.07
Guideline Price-to-Earnings		*38.0*
Price-to-Earnings Sale Value				$	116.66
Minority Share Discount					25.9	%

Indication of Value				$	*86.41*

Table 6.1
Ohio State Bancshares, Inc.
Historical Trading Activity

Stock Price


Yr	Month	Price		Volume		Yr		Month	Price		Volume
	December		—		—			December	$	88.00		6,455
	November		—		—			November	$	87.50		3,904
	October (1)	$	93.00		800			October	$	87.50		15
	September	$	91.25		1,534			September	$	87.50		100
	August	$	91.00		4,140			August	$	87.50		30
2006	July	$	91.00		2,765		2005	July	$	90.00		30
	June	$	91.00		6,231			June	$	89.00		25
	May	$	87.50		6,963			May	$	87.25		600
	April	$	87.50		615			April	$	87.00		584
	March	$	87.50		1,565			March	$	87.00		2,142
	February	$	88.00		250			February	$	82.00		0
	January	$	88.00		5,536			January	$	82.00		0


	Average	$	89.58		3,040			Average	$	86.85		1,157
	Median	$	89.50		2,165			Median	$	87.50		65


(1)		Stock repurchase by Ohio State Bancshares

Source: SNL Financial and Internal Reports

Table 7.1
Valuation of
Ohio State Bancshares, Inc.
Summary Presentation


	*INDICATION OF*
*VALUATION TECHNIQUE :*	*VALUE PER SHARE*
*DISCOUNTED CASH FLOW VALUE TECHNIQUE*	$	*87.25*

*NET ASSET VALUE APPROACH*	$	*76.04*

*GUIDELINE TRANSACTIONS - MINORITY SHARE TRADING*

PRICE TO TANGIBLE BOOK VALUE	$	*85.17*

PRICE TO EARNINGS MULTIPLE	$	*85.96*

*GUIDELINE TRANSACTIONS - CONTROL LEVEL VALUE WITH MINORITY DISCOUNT*

PRICE TO TANGIBLE BOOK VALUE	$	*88.32*	⁽¹⁾

PRICE TO EARNINGS MULTIPLE	$	*86.41*	⁽¹⁾

*MARKET PRICE*	$	*93.00*	⁽²⁾


Indication of Value (Marketable Minority Interest)	$	87.00
Marketability Discount		0	%
FAIR MARKET VALUE	$	87.00

Price to Book Value		144	%
Price to Tangible Book Value		153	%
Price to LTM Stated EPS		28.3


(1)		Includes a 25.9% minority share discount.

(2)		Company repurchased 800 shares in October 2006 at $93.00 per share


*Shares Outstanding*		184,739	*Book Value Per Share*	$	60.46
*LTM Average Shares Outstanding*		187,896	*Tangible BVPS*	$	56.78
*LTM Stated Net Income*	$	577	*LTM Stated EPS*	$	3.07


Table 8.1
Ohio State Bancshares, Inc.		*LTM 09/30/06 PROFORMA ANALYSIS*
Going-Private Scenarios ($000)

Eliminate Shareholders with Less Than:

125 Shares

Repurchase Price Per Share (Range)

87.00

89.00

91.00

93.00

95.00

% Repurchased

9.52

# of Shares Repurchased

17,580

Total Repurchase

1,529

1,565

1,600

1,635

1,670

Estimated Remaining Shareholders

235

Multiple of LTM EPS

28.3

29.0

29.6

30.3

30.9

% of 09/30/06 Book Value

144

147

151

154

157


	*LTM*
Estimated Pro Forma	*Actual*			LTM Adjusted Performance from Going-Private
Total Assets	$	143,309		$	141,780		$	141,744		$	141,709		$	141,674		$	141,639
Average Assets	$	141,492		$	139,963		$	139,927		$	139,892		$	139,857		$	139,822
Total Tangible Assets for Capital Purposes	$	142,630		$	141,101		$	141,065		$	141,030		$	140,995		$	140,960
Equity Capital	$	11,169		$	9,640		$	9,604		$	9,569		$	9,534		$	9,499
Average Equity	$	11,182		$	9,646		$	9,611		$	9,576		$	9,541		$	9,505
Estimated Annual Common Dividends	$	148		$	136		$	136		$	136		$	136		$	136
Dividend Payout Ratio		25.6	%		21.9	%		21.9	%		22.0	%		22.0	%		22.1	%
FASB 115		($244	)		($244	)		($244	)		($244	)		($244	)		($244	)
Intangible Assets	$	679		$	679		$	679		$	679		$	679		$	679
Trust Preferred Securities	$	3,000		$	3,000		$	3,000		$	3,000		$	3,000		$	3,000
Allowable TPS in Tier 1 Capital	$	3,000		$	3,000		$	3,000		$	3,000		$	3,000		$	3,000
Tier 1 Capital	$	13,734		$	12,205		$	12,169		$	12,134		$	12,099		$	12,064
LLR	$	955		$	955		$	955		$	955		$	955		$	955
Tier 2 Capital	$	955		$	955		$	955		$	955		$	955		$	955
Risk-Based Assets	$	98,328		$	98,022		$	98,015		$	98,008		$	98,001		$	97,994

*Tier 1 Leverage Ratio*		*9.63*	%		*8.65*	%		*8.63*	%		*8.60*	%		*8.58*	%		*8.56*	%
*Tier 1 Risk-Based Ratio*		*13.97*	%		*12.45*	%		*12.42*	%		*12.38*	%		*12.35*	%		*12.31*	%
*Total Risk-Based Ratio*		*14.94*	%		*13.43*	%		*13.39*	%		*13.36*	%		*13.32*	%		*13.29*	%


Return on Average Assets		0.41	%		0.45	%		0.44	%		0.44	%		0.44	%		0.44	%
LTM Net Income (1,2)	$	577		$	623		$	622		$	621		$	619		$	618
% Change from Baseline					7.97	%		7.76	%		7.55	%		7.34	%		7.13	%

*Return on Average Equity*		*5.16*	%		*6.46*	%		*6.47*	%		*6.48*	%		*6.49*	%		*6.50*	%

Basis Point Change in ROAE					130			131			132			133			134

Annual Earnings Per Share	$	3.07		$	3.66		$	3.65		$	3.64		$	3.64		$	3.63

*% Change from Baseline*					*19.12*	%		*18.89*	%		*18.65*	%		*18.42*	%		*18.19*	%


Book Value Per Share	$	60.46		$	57.67		$	57.46		$	57.25		$	57.04		$	56.83
% Change from Baseline					-4.62	%		-4.96	%		-5.31	%		-5.66	%		-6.01	%

*Years to Recover Book Dilution*					*4.8*			*5.2*			*5.6*			*6.1*			*6.5*


Annual Dividends Per Share	$	0.80		$	0.80		$	0.80		$	0.80		$	0.80		$	0.80

Estimated Shares Outstanding (End)		184,739			167,159			167,159			167,159			167,159			167,159
Estimated Average Shares (Diluted)		187,896			170,316			170,316			170,316			170,316			170,316


*Estimated Internal Rate of Return*					*11.5*	%		*11.3*	%		*11.1*	%		*10.9*	%		*10.7*	%


(1)		SEC/SOX cost savings of $150,000

(2)		Opportunity Cost on Repurchase estimated at 5.25% pre-tax.

Table 8.2
Ohio State Bancshares, Inc.
Internal Rate of Return Analysis


	*Varying Per Share Pricing Levels and # Shares Repurchased*
Shares Repurchased		*17,580*			*17,580*			*17,580*			*17,580*			*17,580*
Repurchase to Total Shares		*9.5*	%		*9.5*	%		*9.5*	%		*9.5*	%		*9.5*	%
Price Per Share		*87.00*			*89.00*			*91.00*			*93.00*			*95.00*
Total Repurchase	$	*1,529*		$	*1,565*		$	*1,600*		$	*1,635*		$	*1,670*


*Internal Rate of Return (1)*		*11.54*	%		*11.31*	%		*11.10*	%		*10.89*	%		*10.70*	%


(1) Internal Rate of Return based on the following:
EPS Enhancement	$	0.59		$	0.58		$	0.57		$	0.57		$	0.56
EPS Enhancement times Pro Forma Shares ($000)	$	100		$	99		$	98		$	96		$	95
Long-Term EPS Growth Rate		5.00	%		5.00	%		5.00	%		5.00	%		5.00	%
Implied Discount Rate		11.54	%		11.31	%		11.10	%		10.89	%		10.70	%

Exhibit A
Ohio State Bancshares, Inc.
Economic and Demographic Data


	*2000*			*2006*			*% CHANGE*			*2011*			*% CHANGE*
*POPULATION*	*CENSUS*			*CURRENT*			*2000-2006*			*PROJECTED*			*2006-2011*
Green Camp		342			349			2.0	%		351			0.6	%
Marion		35,318			37,319			5.7	%		37,258			-0.2	%
Richwood		2,156			2,235			3.7	%		2,460			10.1	%
Marion County		66,217			66,445			0.3	%		66,566			0.2	%
Union County		40,909			48,341			18.2	%		55,647			15.1	%
Delaware County (Proposed Locations)		109,989			157,579			43.3	%		210,181			33.4	%
State of Ohio		11,353,140			11,627,546			2.4	%		11,880,316			2.2	%

*2006 AGE STRATIFICATION*	*14 & Under*			*15 - 34*			*35 - 54*			*55 +*			*Total*
Green Camp		18	%		23	%		35	%		24	%		349
Marion		19	%		30	%		29	%		22	%		37,319
Richwood		25	%		26	%		28	%		20	%		2,235
Marion County		18	%		27	%		30	%		25	%		66,445
Union County		23	%		26	%		32	%		19	%		48,341
Delaware County (Proposed Locations)		24	%		23	%		34	%		19	%		157,579
State of Ohio		20	%		27	%		29	%		24	%		11,627,546

	*2000*			*2006*			*% CHANGE*			*2011*			*% CHANGE*
*HOUSEHOLDS*	*CENSUS*			*CURRENT*			*2000-2006*			*PROJECTED*			*2006-2011*
Green Camp		133			138			3.8	%		141			2.2	%
Marion		13,551			13,612			0.5	%		13,709			0.7	%
Richwood		849			887			4.5	%		978			10.3	%
Marion County		24,578			25,028			1.8	%		25,303			1.1	%
Union County		14,346			17,266			20.4	%		20,066			16.2	%
Delaware County (Proposed Locations)		39,674			58,195			46.7	%		78,405			34.7	%
State of Ohio		4,445,773			4,609,588			3.7	%		4,738,776			2.8	%

*2006 HH INCOME STRATIFICATION*				*$24k & Under*			*$25 - $50k*			*$50k +*			*Total*
Green Camp					14	%		36	%		50	%		138
Marion					29	%		31	%		39	%		13,612
Richwood					26	%		24	%		50	%		887
Marion County					24	%		30	%		46	%		25,028
Union County					15	%		21	%		63	%		17,266
Delaware County (Proposed Locations)					10	%		16	%		74	%		58,195
State of Ohio					23	%		27	%		50	%		4,609,588

Exhibit A (Con’t)
Ohio State Bancshares, Inc.
Economic and Demographic Data


	*2000*		*2006*		*% CHANGE*			*2011*		*% CHANGE*
*AVERAGE HH INCOME*	*CENSUS*		*CURRENT*		*2000-2006*			*PROJECTED*		*2006-2011*
Green Camp	$	43,570	$	59,301		36.1	%	$	70,363		18.7	%
Marion	$	40,962	$	48,730		19.0	%	$	57,600		18.2	%
Richwood	$	42,019	$	55,565		32.2	%	$	66,380		19.5	%
Marion County	$	47,071	$	55,636		18.2	%	$	65,662		18.0	%
Union County	$	57,439	$	71,533		24.5	%	$	85,524		19.6	%
Delaware County (Proposed Locations)	$	87,137	$	113,679		30.5	%	$	141,369		24.4	%
State of Ohio	$	52,836	$	64,547		22.2	%	$	77,318		19.8	%

	*2000*		*2006*		*% CHANGE*			*2011*		*% CHANGE*
*MEDIAN HH INCOME*	*CENSUS*		*CURRENT*		*2000-2006*			*PROJECTED*		*2006-2011*
Green Camp	$	41,604	$	50,000		20.2	%	$	55,117		10.2	%
Marion	$	33,135	$	40,441		22.0	%	$	47,050		16.3	%
Richwood	$	39,445	$	50,000		26.8	%	$	58,400		16.8	%
Marion County	$	38,592	$	46,238		19.8	%	$	53,284		15.2	%
Union County	$	51,971	$	62,395		20.1	%	$	73,792		18.3	%
Delaware County (Proposed Locations)	$	66,717	$	82,718		24.0	%	$	101,229		22.4	%
State of Ohio	$	40,998	$	49,467		20.7	%	$	57,061		15.4	%

	*2000*		*2006*		*% CHANGE*			*2011*		*% CHANGE*
*PER CAPITA INCOME*	*CENSUS*		*CURRENT*		*2000-2006*			*PROJECTED*		*2006-2011*
Green Camp	$	18,244	$	22,667		24.2	%	$	26,742		18.0	%
Marion	$	16,247	$	19,467		19.8	%	$	23,071		18.5	%
Richwood	$	16,799	$	21,566		28.4	%	$	25,895		20.1	%
Marion County	$	18,255	$	21,960		20.3	%	$	26,065		18.7	%
Union County	$	20,577	$	26,153		27.1	%	$	31,418		20.1	%
Delaware County (Proposed Locations)	$	31,600	$	42,197		33.5	%	$	52,913		25.4	%
State of Ohio	$	21,003	$	25,941		23.5	%	$	31,220		20.4	%

Exhibit B
Ohio State Bancshares, Inc.
Deposit Trend Analysis By Branch

(MAP)


										Jun-01/			Jun-06 Market Share
				Date		Deposits ($000)				Jun-06			City			County
Branch Address	City	County	ST	Established		Jun-01		Jun-06		CAGR			(%)			(%)
1111 S Main St	Marion	Marion	OH		08/23/1988	$	46,800	$	65,960		7.1	%		9.2	%		8.5	%
2220 Richland Rd	Marion	Marion	OH		12/06/1996	$	23,282	$	30,596		5.6	%		4.3	%		4.0	%
324 W Ottawa St	Richwood	Union	OH		11/07/1983	$	12,769	$	8,859		-7.1	%		11.1	%		2.0	%
4201 Marion St	Green Camp	Marion	OH		01/31/1800	$	12,827	$	8,098		-8.8	%		100.0	%		1.0	%

				Total		$	95,678	$	113,513		3.5	%

Exhibit C
Ohio State Bancshares, Inc.
Deposit Trend Analysis By City

Green Camp, Ohio

Jun-01

Jun-06

Jun-05/

Jun-01/

Jun-01

Jun-06

Total

Deposits

Jun-06

Market

Type Company Name

City

Branches

($000)

% Change

C.A.G.R.

Share

1 Bank Ohio State Bancshares Inc.

Marion

12,827

8,098

-6.3

-8.8

94.2

100.0

2Credit Parker Elgin FCU

Green Camp

786

5.8

Total

13,613

8,098

-6.3

-9.9

100

Marion, Ohio


				Jun-01		Jun-06		Jun-05/			Jun-01/			Jun-01			Jun-06
			Total	Deposits		Deposits		Jun-06			Jun-06			Market			Market
Type Company Name	City	ST	Branches	($000)		($000)		% Change			C.A.G.R.			Share			Share
1 Bank Fahey Banking Company	Marion	OH	4	$	133,929	$	171,770		-0.9	%		5.1	%		20.6	%		24.1	%
2Bank National City Corp.	Cleveland	OH	4	$	103,871	$	111,202		0.6	%		1.4	%		16.0	%		15.6	%
3Bank Sky Financial Group Inc.	Bowling Green	OH	3	$	116,029	$	109,113		4.1	%		-1.2	%		17.9	%		15.3	%
*4 Bank Ohio State Bancshares Inc.*	*Marion*	OH	2	$	*70,082*	$	*96,556*		*0.9*	%		*6.6*	%		*10.8*	%		*13.5*	%
5Bank JPMorgan Chase & Co.	New York	NY	4	$	106,421	$	82,598		0.9	%		-4.9	%		16.4	%		11.6	%
6Bank Commercial Bancshares Inc.	Upper Sandusky	OH	5	$	45,776	$	53,377		13.6	%		3.1	%		7.1	%		7.5	%
7Bank Fifth Third Bancorp	Cincinnati	OH	3	$	52,530	$	53,240		13.5	%		0.3	%		8.1	%		7.5	%
8Credit Marion Community CU	Marion	OH	1	$	17,689	$	23,576		6.6	%		5.9	%		2.7	%		3.3	%
9Bank First Citizens National Bank	Upper Sandusky	OH	1	$	0	$	9,621		27.3	%	NA			NA				1.3	%
10Bank Park National Corp.	Newark	OH	2	$	0	$	2,519		24.0	%	NA			NA				0.4	%
11Credit Soya FCU	Marion	OH	1	$	0	$	0	NA			NA			NA			NA
12Credit First Resource FCU	Saint Joseph	MI	1	$	2,758	$	0	NA			NA				0.4	%	NA
13Bank First Citizens Banc Corp.	Sandusky	OH	1	$	0	$	0	NA			NA			NA			NA

	Total		32	$	649,085	$	713,572		3.1	%		1.9	%		100	%		100	%

Richwood, Ohio


					Jun-01		Jun-06		Jun-05/			Jun-01/			Jun-01			Jun-06
			Total		Deposits		Deposits		Jun-06			Jun-06			Market			Market
Type Company Name	City	ST	Branches		($000)		($000)		% Change			C.A.G.R.			Share			Share
1 Bank Richwood Bancshares Inc.	Richwood	OH		1	$	54,197	$	70,704		5.9	%		5.5	%		80.2	%		88.9	%
2BankOhio State Bancshares Inc.	*Marion*	OH		1	$	*12,769*	$	*8,859*		*-3.3*	%		*-7.1*	%		*18.9*	%		*11.1*	%
3 Bank Huntington Bancshares Inc.	Columbus	OH		1	$	0	$	0	NA			NA			NA			NA
4 Bank Commercial Bancshares Inc.	Upper Sandusky	OH		1	$	611	$	0	NA			NA				0.9	%	NA


	Total			4	$	67,577	$	79,563		4.8	%		3.3	%		100	%		100	%

Exhibit D
Ohio State Bancshares, Inc.
Deposit Trend Analysis By County

Marion County, Ohio


					Jun-01		Jun-06		Jun-05/			Jun-01/			Jun-01			Jun-06
			Total		Deposits		Deposits		Jun-06			Jun-06			Market			Market
Type Company Name	City	ST	Branches		($000)		($000)		% Change			C.A.G.R.			Share			Share
1Bank Fahey Banking Company	Marion	OH		4	$	133,929	$	171,770		-0.9	%		5.1	%		18.9	%		22.2	%
2Bank National City Corp.	Cleveland	OH		4	$	103,871	$	111,202		0.6	%		1.4	%		14.7	%		14.3	%
3Bank Sky Financial Group Inc.	Bowling Green	OH		3	$	116,029	$	109,113		4.1	%		-1.2	%		16.4	%		14.1	%
*4 Bank Ohio State Bancshares Inc.*	*Marion*	OH		3	$	*82,909*	$	*104,654*		*0.3*	%		*4.8*	%		*11.7*	%		*13.5*	%
5Bank JPMorgan Chase & Co.	New York	NY		4	$	106,421	$	82,598		0.9	%		-4.9	%		15.0	%		10.7	%
6Bank Commercial Bancshares Inc.	Upper Sandusky	OH		5	$	45,776	$	53,377		13.6	%		3.1	%		6.5	%		6.9	%
7Bank Fifth Third Bancorp	Cincinnati	OH		3	$	52,530	$	53,240		13.5	%		0.3	%		7.4	%		6.9	%
8Bank Park National Corp.	Newark	OH		5	$	31,859	$	38,860		4.0	%		4.1	%		4.5	%		5.0	%
9Credit Marion Community Credit Union	Marion	OH		1	$	17,689	$	23,576		6.6	%		5.9	%		2.5	%		3.0	%
10Bank Richwood Bancshares Inc.	Richwood	OH		1	$	12,625	$	17,367		-2.5	%		6.6	%		1.8	%		2.2	%
11Bank First Citizens National Bank	Upper Sandusky	OH		1	$	0	$	9,621		27.3	%	NA			NA				1.2	%
12Credit Soya FCU	Marion	OH		1	$	0	$	0	NA			NA			NA			NA
13Credit Parker Elgin FCU	Green Camp	OH		1	$	786	$	0	NA			NA				0.1	%	NA
14Credit First Resource FCU	Saint Joseph	MI		1	$	2,758	$	0	NA			NA				0.4	%	NA
15Bank First Citizens Banc Corp.	Sandusky	OH		1	$	0	$	0	NA			NA			NA			NA

	Total			38	$	707,182	$	775,378		2.8	%		1.9	%		100	%		100	%

Union County, Ohio


					Jun-01		Jun-06		Jun-05/			Jun-01/			Jun-01			Jun-06
			Total		Deposits		Deposits		Jun-06			Jun-06			Market			Market
Type Company Name	City	ST	Branches		($000)		($000)		% Change			C.A.G.R.			Share			Share
1Bank Richwood Bancshares Inc.	Richwood	OH		3	$	100,491	$	134,022		3.6	%		5.9	%		28.1	%		30.9	%
2Bank Huntington Bancshares Inc.	Columbus	OH		3	$	61,874	$	69,263		0.0	%		2.3	%		17.3	%		16.0	%
3Bank Fifth Third Bancorp	Cincinnati	OH		1	$	33,088	$	48,950		6.7	%		8.1	%		9.2	%		11.3	%
4Bank National City Corp.	Cleveland	OH		1	$	29,609	$	44,019		27.4	%		8.3	%		8.3	%		10.1	%
5Bank JPMorgan Chase & Co.	New York	NY		1	$	37,159	$	43,639		11.3	%		3.3	%		10.4	%		10.1	%
6Bank Sky Financial Group Inc.	Bowling Green	OH		1	$	21,384	$	28,921		49.7	%		6.2	%		6.0	%		6.7	%
7Bank DCB Financial Corp	Lewis Center	OH		2	$	30,328	$	26,811		3.0	%		-2.4	%		8.5	%		6.2	%
8Credit WECU Credit Union	Marysville	OH		1	$	16,343	$	19,699		-3.4	%		3.8	%		4.6	%		4.5	%
*9 Bank Ohio State Bancshares Inc.*	*Marion*	OH		1	$	*12,769*	$	*8,859*		*-3.3*	%		*-7.1*	%		*3.6*	%		*2.0*	%
10Credit Scott Assoc. Credit Union	Marysville	OH		1	$	7,100	$	7,951		-9.4	%		2.3	%		2.0	%		1.8	%
11Credit MG Employees FCU	Marysville	OH		1	$	2,148	$	1,618		-11.0	%		-5.5	%		0.6	%		0.4	%
12Credit Western CU Inc.	Columbus	OH		1	$	5,105	$	0	NA			NA			NA			NA
13Bank Commercial Bancshares Inc.	Upper Sandusky	OH		1	$	611	$	0	NA			NA			NA			NA

	Total			18	$	358,009	$	433,752		7.4	%		3.9	%		100	%		100	%

Exhibit E

Summary of Restricted Stock Studies


	Years Covered		Average
Study	in Study		Discount
SEC Institutional Investor²		1966 - 1969		25.8	%
SEC Nonreporting OTC Companies²		1966 - 1969		32.6	%
Gelman³		1968 - 1970		33.0	%
Trout^1,4		1968 - 1972		33.5	%
Moroney⁵		1969 - 1972		35.6	%
Maher⁶		1969 - 1973		35.4	%
Stryker/Pittock (Standard Research Consultants)^1,7		1978 - 1982		45.0	%
Williamette Management Associates^1,8		1981 - 1984		31.2	%
Silber⁹		1981 - 1989		34.0	%
Hall/Polacek¹⁰	1979 - April 1992			23.0	%
Johnson¹¹		1991 - 1995		20.0	%
Management Planning¹²		1980 - 1996		26.7	%
FMV Restricted Stock^13,14		1980 - 2000		22.0	%
Columbia Financial Advisors¹⁵	1997 - April 1997			21.0	%
Columbia Financial Advisors¹⁵		1997 - 1998		13.0	%


¹	Median discount
²	“Discounts Involved in Purchases of Common Stock (1966-1969)”,Institutional Investor Study Report of the Securities and Exchange Commission.H.R. Doc. No. 64, Part 5, 92d Cong., 1st Sess. 1971, pp. 2444-2456.
³	Gelman, Milton, “An Economist-Financial Analyst’s Approach to Valuing Stock of a Closely Held Company,”Journal of Taxation, June 1972, pp. 353-354.
⁴	Trout, Robert R., “Estimation of the Discount Associated with the Transfer of Restricted Securities,”Taxes, June 1977,pp. 381-385.
⁵	Moroney, Robert E., “Most Courts Overvalue Closely Held Stocks,”Taxes, March 1973, pp. 144-154.
	(Although the years covered in this study are likely to be 1969-1972, no specific years were given in the published account.)
⁶	Maher, J. Michael, “Discounts for Lack of Marketability for Closely-Held Business Interests,”Taxes, September 1976, pp. 562-571.
⁷	Pittock, William F. and Stryker, Charles H., “Revenue Ruling 77-287 Revisited,”SRC Quarterly Reports, Spring 1983, pp. 1-3.
⁸	Pratt, Shannon P.,Valuing a Business, Third Edition, p. 341.
⁹	Silber, William L., “Discounts on Restricted Stock: The Impact of Illiquidity on Stock Prices,”Financial Analysts Journal, July-August 1991, pp. 60-64.
¹⁰	Hall, Lance S. and Polacek, Timothy C., “Strategies for Obtaining the Largest Discount,”Estate Planning, January-February 1994, pp. 38-44.
¹¹	Johnson, Bruce, “Restricted Stock Discounts, 1991-95”,Shannon Pratt’s Business Valuation Update, Volume 5, No. 3, March 1999, pp. 1-3.
¹²	Mercer, Z. Christopher,Quantifying Marketability Discounts, (Peabody Publishing, LP, 1997), pp. 347-370
¹³	Robak, Espen, “Marketability Discounts: Using Four Measures of Risk and Adjusting for Relative Liquidity,”Shannon Pratt’s Business Valuation Update, August 2002.
¹⁴	Robak, Espen, “Liquidity and Levels of Value: A New Theoretical Framework,”Shannon Pratt’s Business Valuation Update, October 2004.
¹⁵	Aschwald, Kathryn F., “Restricted Stock Discounts Decline as Result of 1-Year Holding Period — Studies After 1990 ‘No Longer Relevant’ for Lack of Marketability Discounts”,Shannon Pratt’s Business Valuation Update, Volume 5, No. 5, May 2000, pp. 1-5.

Exhibit F
Summary of Tax Cases Since 1990
Applying a Marketability Discount


	LACK OF						LACK OF
CASE #	MARKETABILITY			CASE #			MARKETABILITY
90-5		25.0	%		99-10			25.0	%
90-10		20.0	%		99-11			30.0	%
91-1		10.0	%		99-12			30.0	%
93-1		15.0	%		99-13			35.0	%
94-2		30.0	%		00-02			20.0	%
94-3		20.0	%		00-03			30.0	%
94-3		15.0	%		00-05			30.0	%
94-3		10.0	%		00-06			20.0	%
95-3		30.0	%		00-07			33.0	%
95-4		30.0	%		00-10			25.0	%
95-5⁽¹⁾		21.0	%		00-10			15.0	%
95-6		25.0	%		01-02			8.0	%
96-1		0.0	%		01-03			40.0	%
96-4		15.0	%		01-04			35.0	%
96-10		10.0	%		01-07			40.0	%
97-3		15.0	%		02-01			35.0	%
98-7		40.0	%		02-06	⁽⁴⁾		40.0	%
98-8		40.0	%		02-06	⁽⁵⁾		45.0	%
98-8		45.0	%		03-05			25.0	%
99-2		3.0	%		03-06			24.0	%
99-3		20.0	%		03-07			35.0	%
99-5⁽²⁾		35.0	%		04-03			35.0	%
99-5⁽³⁾		40.0	%		04-04			30.0	%
99-6		15.0	%		05-02			15.0	%

	Median				25.0	%
	Average				25.6	%

(1)		Midpoint of 20 — 22 percent discount range.

(2)		Class A shares discount.

(3)		Class B shares discount.

(4)		12/31/92 valuation date.

(5)		12/31/94 valuation date.

Source: Federal Tax Valuation Digest, 2006/2007 Cumulative Edition.

Exhibit G
Determination of Discount Rate

To establish a reasonable discount rate, Austin Associates first utilized the build-up method. Under this method, the equity cost of capital or discount rate is calculated as follows:

Risk Free Rate

+ Equity Risk Premium

+ Industry Risk Premium

+ Specific Risk Premium

= Equity Cost of Capital (Discount Rate)

The components are discussed below:

Risk Free Rate — The Risk Free Rate of Return is sometimes referred to as a “safe rate”, the “cost of money”, or the “base rate”, and is usually defined as a treasury security. For this calculation, we have used a long-term government bond rate as a proxy of the “risk free” rate. The long-term government bond rate (30-year) as of September 30, 2006 was 4.77 percent.

Equity Risk Premium- The equity premium is the additional return earned by an average equity investor in excess return of government bonds. We have used the common stock risk premium of 7.08 percent based on average annual data from 1926-2005 from Ibbotson’sStocks, Bonds, Bills, and Inflation: Valuation Edition 2006 Yearbook.

Industry Risk Premium — The industry risk premium considers the characteristics of the industry in which the subject company operates. We have used the “Commercial Banks” industry premium of -2.19 percent as found in Ibbotson’sStocks, Bonds, Bills, and Inflation: Valuation Edition 2006 Yearbook.

Specific Risk Premium — A specific risk premium can be added to reflect specific risk factors of the specific subject that are not accommodated by the general risk premium. These factors include various quantitative and qualitative factors as follows:

Exhibit G (Con’t)
Determination of Discount Rate

External Factors

Existing conditions and expectations of the local economy

Existing conditions and expectations of the industry

Competitive environment of the industry

Internal Factors

Financial position/condition of the company

Competitive position of the company

Comparative size of the company

Quality and depth of organization and management of the company

Reliability and stability of earnings of the company

Diversification of the company’s operation

Austin Associates believes a small additional risk premium should be included to reflect the specific factors related to the Company. As a result, we have added a 2.25 percent additional risk premium to the discount rate.

The discount rate can now be calculated as follows:


Risk Free Rate	4.77	%
+ Equity Risk Premium	7.08	%
+ Industry Risk Premium	-2.19	%
+ Specific Risk Premium	2.25	%
= Equity Cost of Capital (Discount Rate)	11.91	%	Rounded = 12.00%

To confirm the reasonableness of this result, Austin Associates reviewed long-term compound annual stock market returns for various market indices. According to Ibbotson (SBBI 2006 Yearbook), the compound annual return for the period 1926-2005 for large company stocks was 10.4 percent, and was 12.6 percent for small company stocks.

After reviewing the above results, a specific discount rate of 12.00 percent will be used.

Ohio State Bancshares (OHSB) Inactive SC 13E3/AGoing private transaction (amended)