At the open of business on October 1, 2009, the Company completed its acquisition of Abigail Adams National Bancorp, Inc. (“Abigail Adams”), a two bank holding company with $363 million of total assets with locations in and around Washington, DC and Richmond, Virginia. Under terms of the definitive agreement of merger dated December 31, 2008, each share of Abigail Adams common stock was entitled to merger consideration of 0.4461 shares of Premier common stock. Premier issued approximately 1,545,000 shares of its common stock to the shareholders of Abigail Adams. The value of the transaction totaled $10,290 based upon the closing price of Premier common stock on the day before closing the acquisition. The estimated fair value of the net assets acquired totaled $13,842. Under new accounting guidance for business combinations adopted by the Premier on January 1, 2009, the difference between the value of the stock issued and the fair value of the net assets acquired resulted in a bargain purchase gain of $3,552. The acquisition of Abigail Adams afforded Premier the opportunity to utilize its management's experience in rehabilitating troubled financial institutions and expand the franchise into new markets in and around Washington, DC and Richmond, Virginia. Furthermore, the increase in the size of the total franchise will allow Premier to market its community style banking to attract larger commercial customers within its existing markets via expanded internal loan participations. The purchase price resulted in approximately $1,172 in core deposit intangible, none of which is deductible for tax purposes. The core deposit intangible will be amortized using an accelerated method. Purchase accounting adjustments to the fair value of the net assets acquired are subject to refinement as management finalizes the calculations.

Net assets acquired via the transaction is shown in the table below:

	Abigail Adams
Cash and due from banks	$	12,584
Federal funds sold		1,938
Securities available for sale		65,706
Loans, net		254,664
Goodwill and other intangible assets		1,712
Other assets		26,453
Total assets acquired		363,057

Deposits		(298,849	)
Repurchase agreements		(16,433	)
FHLB borrowings		(14,054	)
Other borrowings		(17,650	)
Other liabilities		(2,229	)
Total liabilities assumed		(349,215	)
Net assets acquired	$	13,842

The results of operations of Abigail Adams are included in Premier's consolidated statements of income beginning as of the October 1, 2009 acquisition date. The following table presents pro forma condensed income statements as if the mergers had occurred at the beginning of 2009. Since participation in the TARP Capital Purchase Program (see Note 25 below) was a condition precedent to the completion of the Abigail Adams merger, pro forma Series A Preferred Stock dividends are included for the full year 2009.

	(Unaudited)
	2009
Interest income	$	57,507
Interest expense		13,600
Net interest income		43,907
Provision for loan losses		2,347
Net interest income after provision		41,560
Non-interest income		10,419
Non-interest expense		41,007
Income before income taxes		10,972
Income tax expense (benefit)		2,404
Net income		8,568
Dividends on preferred stock		1,211
Net income available to common stockholders	$	7,357

Basic earnings per share	$	0.99
Diluted earnings per share		0.99