Item 8.01 Other Events

The Registrant's Board of Directors has determined to revise the Registrant's cash dividend payment policy. The decision was made based upon the current economic environment to retain capital so that the holding company can remain a source of strength to the subsidiary bank. Previously, the Registrant has paid a cash quarterly dividend at a rate set by the Board based upon a number of factors. The Board has now established a targeted dividend payout ratio of 20% of the Registrant's earnings, subject to adjustment based upon factors existing at the time of the dividend and the Registrant's projected capital needs. The Board now intends to pay a cash dividend once annually, in the next succeeding year. During 2008, the Registrant has already paid cash dividends of $0.15 per share. While the Registrant can not project its full year 2008 earnings at this time, to the extent the cash dividends paid to date exceed the targeted percentage of the Registrant's annual 2008 earnings, the Registrant may not pay any additional cash dividends out of 2008 income.

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