Common use of Securities Portfolio and Investments Clause in Contracts

Securities Portfolio and Investments. AB&T has Previously Disclosed to 1st Financial a listing of all securities owned, of record or beneficially, by AB&T or Alliance as of December 31, 2008. All securities owned are held free and clear of all mortgages, liens, pledges, encumbrances, or any other restriction or rights of any other person or entity, whether contractual or statutory (other than customary pledges in the ordinary course of its business to secure public funds deposits or Federal Home Loan Bank borrowings or repurchase agreements entered into in the ordinary course of business), which would materially impair the ability of AB&T or Alliance to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which AB&T or Alliance is a party with respect to the voting of any such securities. With respect to all “repurchase agreements” under which AB&T or Alliance has “sold” or “purchased” securities under agreement to repurchase, AB&T or Alliance, as applicable, has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed by AB&T or Alliance, as the case may be, which is secured by such collateral. Since September 30, 2008, there has been no material deterioration or adverse change in the quality, or any material decrease in the value, of AB&T’s or Alliance’s securities portfolio as a whole.

Securities Portfolio and Investments. AB&T 1st Financial has Previously Disclosed to 1st Financial FCB a listing of all securities owned, of record or beneficially, by AB&T or Alliance any of the 1st Financial Companies as of December July 31, 20082013. All securities owned owned, of record or beneficially, by any of the 1st Financial Companies as of the date hereof are held free and clear of all mortgages, liens, pledges, encumbrances, encumbrances or any other restriction or rights of any other person or entity, whether contractual or statutory (other than pledges to the Federal Home Loan Bank of Atlanta to secure advances to Mountain 1st in the ordinary course of its business, and customary pledges to secure public funds deposits, and sales of securities under agreements to repurchase, entered into by Mountain 1st in the ordinary course of its business to secure public funds deposits or Federal Home Loan Bank borrowings or repurchase agreements entered into in with its customers, and restrictions imposed by and the ordinary course rights of businessthe issuers of such securities), which would materially impair the ability of AB&T or Alliance any of the 1st Financial Companies to dispose freely of any such security or and/or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which AB&T or Alliance any of the 1st Financial Companies is a party with respect to the voting of any such securities. With respect to all “repurchase agreements” agreements under which AB&T 1st Financial or Alliance Mountain 1st has “sold” or “"purchased” " securities under agreement to repurchaseresell, AB&T or Alliance, as applicable, it has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed by AB&T or Alliance, as the case may be, to it which is secured by such collateral. Since September 30July 31, 20082013, there has been no material deterioration or adverse change in the quality, or any material decrease in the value, of AB&T’s or Alliance’s the 1st Financial Companies securities portfolio portfolios as a whole.

Securities Portfolio and Investments. AB&T FCB has Previously Disclosed previously disclosed to 1st Financial EVBS a listing of all securities owned, of record or beneficially, by AB&T FCB or Alliance First Capital Bank as of December 31, 2008. All securities owned are held free and clear of all mortgages, liens, pledges, encumbrances, or any other restriction or rights of any other person or entity, whether contractual or statutory (other than customary pledges in the ordinary course of its business to secure public funds deposits or Federal Home Loan Bank borrowings or repurchase agreements entered into in the ordinary course of business), which would materially impair the ability of AB&T FCB or Alliance First Capital Bank to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which AB&T FCB or Alliance First Capital Bank is a party with respect to the voting of any such securities. With respect to all “repurchase agreements” under which AB&T FCB or Alliance First Capital Bank has “sold” or “purchased” securities under agreement to repurchase, AB&T FCB or AllianceFirst Capital Bank, as applicable, has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed by AB&T FCB or AllianceFirst Capital Bank, as the case may be, which is secured by such collateral. Since September 30December 31, 2008, there has been no material deterioration or adverse change in the quality, or any material decrease in the value, of AB&TFCB’s or AllianceFirst Capital Bank’s securities portfolio as a whole.

Securities Portfolio and Investments. AB&T has Bancorp and M&F Bank have Previously Disclosed to 1st Financial Mutual a listing of all securities owned, of record or beneficially, by AB&T or Alliance Bancorp and M&F Bank as of December March 31, 20082007. All securities owned owned, of record or beneficially, by Bancorp and M&F Bank are held free and clear of all mortgages, liens, pledges, encumbrances, encumbrances or any other restriction or rights of any other person or entity, whether contractual or statutory (other than customary pledges in the ordinary course of its their business to secure public funds deposits or Federal Home Loan Bank borrowings or repurchase agreements entered into in the ordinary course of businessdeposits), which would materially impair the ability of AB&T Bancorp or Alliance M&F Bank to dispose freely of any such security or otherwise to realize the benefits of ownership thereof at any time. There are no voting trusts or other agreements or undertakings to which AB&T Bancorp or Alliance M&F Bank is a party with respect to the voting of any such securities. With respect to all “repurchase agreements” under which AB&T Bancorp or Alliance M&F Bank has “sold” or “purchased” securities under agreement to repurchaseresell, AB&T Bancorp or Alliance, as applicable, M&F Bank has a valid, perfected first lien or security interest in the government securities or other collateral securing the repurchase agreement, and the value of the collateral securing each such repurchase agreement equals or exceeds the amount of the debt owed by AB&T to Bancorp or AllianceM&F Bank, as the case may be, which is secured by such collateral. Since September 30March 31, 20082007, there has been no material deterioration or adverse change in the quality, or any material decrease in the value, of AB&T’s or Alliance’s the securities portfolio of Bancorp and M&F Bank as a whole, except as resulting from changes in the prevailing level of interest rates or other market fluctuations, outside the control of Bancorp and M&F Bank.