| x | QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|---------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT |
|--------|--------------------------------------------------------------------------------------|

| UNITED BANCORP, INC.                                   |
|--------------------------------------------------------|
|                                                   |
| (Exact name of registrant as specified in its charter) |

| Ohio                            |   | 34-1405357                        |
|---------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of |   | (IRS Employer Identification No.) |
| incorporation or organization)  |   |                              |

| 201 South Fourth Street, Martins Ferry, Ohio  43935-0010 |
|--------------------------------------------------------------------|
| (Address of principal executive offices)                           |

| (740) 633-0445                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

| N/A                                                                                |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

| Large accelerated filer   ̈ |    | Accelerated filer   ̈ |    | Non-accelerated filer   ̈ |    | Smaller Reporting Company x |
|-----------------------------------------------------|--------------|------------------------------------------|--------------|----------------------------------------------|--------------|--------------------------------------------|

----

| PART I - FINANCIAL INFORMATION |                                                                                        |
|--------------------------------|---------------------------------------------------------------------------------------------|
|                           |                                                                                        |   |
| Item 1                         | Condensed Consolidated Balance Sheets                                                       | 3 |
|                           | Condensed Consolidated Statements of Income                                                 | 4 |
|                           | Condensed Consolidated Statements of Comprehensive Income                                   | 5 |
|                           | Condensed Consolidated Statements of Cash Flows                                             | 6 |
|                           | Notes to Condensed Consolidated Financial Statements                                        | 8 |
|                           |                                                                                        |   |
| Item 2                         | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28 |
|                           |                                                                                        |   |
| Item 3                         | Quantitative and Qualitative Disclosures About Market Risk                                  | 35 |
|                           |                                                                                        |   |
| Item 4                         | Controls and Procedures                                                                     | 35 |
|                           |                                                                                        |   |
| PART II - OTHER INFORMATION    |                                                                                        |
|                           |                                                                                        |   |
| Item 1                         | Legal Proceedings                                                                           | 36 |
|                           |                                                                                        |   |
| Item 1A                        | Risk Factors                                                                                | 36 |
|                           |                                                                                        |   |
| Item 2                         | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 36 |
|                           |                                                                                        |   |
| Item 3                         | Defaults Upon Senior Securities                                                             | 37 |
|                           |                                                                                        |   |
| Item 4                         | Other Information                                                                           | 37 |
|                           |                                                                                        |   |
| Item 5                         | Exhibits                                                                                    | 37 |
|                           |                                                                                        |   |
| SIGNATURES                     | 38                                                                                          |

----

|                                                                                                               |   | March 31, |           |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------|----------------|--------|-------------------|--------|
|                                                                                                               |   | 2011           |           |   | 2010              |   |
|                                                                                                               |   | (Unaudited)    |           |   |              |   |
|                                                                                                               |   |           |           |   |              |   |
| Assets                                                                                                             |   |           |           |   |              |   |
| Cash and due from banks                                                                                            |   | $              | 5,162          |   |              | $      | 5,006 |   |
| Interest-bearing demand deposits                                                                                   |   |           | 13,042         |   |              |   | 5,929 |   |
| Cash and cash equivalents                                                                                          |   |           | 18,204         |   |              |   | 10,935 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Certificates of deposit in other financial institutions                                                            |   |           | 1,682          |   |              |   | 2,564 |   |
| Available-for-sale securities                                                                                      |   |           | 100,683        |   |              |   | 96,155 |   |
| Held-to-maturity securities                                                                                        |   |           | 4,545          |   |              |   | 6,331 |   |
| Loans, net of allowance for loan losses of $2,521 and $2,740 at March 31, 2011 and December 31, 2010, respectively |   |           | 274,553        |   |              |   | 276,037 |   |
| Premises and equipment                                                                                             |   |           | 9,707          |   |              |   | 9,278 |   |
| Federal Home Loan Bank stock                                                                                       |   |           | 4,810          |   |              |   | 4,810 |   |
| Foreclosed assets held for sale, net                                                                               |   |           | 2,035          |   |              |   | 1,912 |   |
| Intangible assets                                                                                                  |   |           | 513            |   |              |   | 543 |   |
| Accrued interest receivable                                                                                        |   |           | 1,519          |   |              |   | 1,441 |   |
| Deferred income taxes                                                                                              |   |           | 828            |   |              |   | 801 |   |
| Bank-owned life insurance                                                                                          |   |           | 10,491         |   |              |   | 10,401 |   |
| Other assets                                                                                                       |   |           | 2,506          |   |              |   | 2,227 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Total assets                                                                                                       |   | $              | 432,076        |   |              | $      | 423,435 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Liabilities and Stockholders’ Equity                                                                         |   |           |           |   |              |   |   |   |
| Liabilities                                                                                                        |   |           |           |   |              |   |   |   |
| Deposits                                                                                                           |   |           |           |   |              |   |   |   |
| Demand                                                                                                             |   | $              | 135,623        |   |              | $      | 131,600 |   |
| Savings                                                                                                            |   |           | 55,142         |   |              |   | 52,463 |   |
| Time                                                                                                               |   |           | 140,085        |   |              |   | 141,383 |   |
| Total deposits                                                                                                     |   |           | 330,850        |   |              |   | 325,446 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Short-term borrowings                                                                                              |   |           | 15,687         |   |              |   | 11,843 |   |
| Federal Home Loan Bank advances                                                                                    |   |           | 43,329         |   |              |   | 43,450 |   |
| Subordinated debentures                                                                                            |   |           | 4,000          |   |              |   | 4,000 |   |
| Interest payable and other liabilities                                                                             |   |           | 2,459          |   |              |   | 3,115 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Total liabilities                                                                                                  |   |           | 396,325        |   |              |   | 387,854 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Stockholders’ Equity                                                                                         |   |           |           |   |              |   |   |   |
| Preferred stock, no par value, authorized 2,000,000 shares; no shares issued                                       |   |           | –– |   |              |   | –– |   |
| Common stock, $1 par value; authorized 10,000,000 shares; issued 5,370,304 shares                                  |   |           | 5,370          |   |              |   | 5,370 |   |
| Additional paid-in capital                                                                                         |   |           | 19,382         |   |              |   | 20,133 |   |
| Retained earnings                                                                                                  |   |           | 16,046         |   |              |   | 15,308 |   |
| Stock held by deferred compensation plan; 2011 – 182,907 shares, 2010 – 176,392 shares                 |   |           | (1,710         | )      |              |   | (1,657 | ) |
| Unearned ESOP compensation                                                                                         |   |           | (2,234         | )      |              |   | (2,311 | ) |
| Accumulated other comprehensive loss                                                                               |   |           | (764           | )      |              |   | (707 | ) |
| Treasury stock, at cost 2011 –  27,934 shares, 2010 – 45,717 shares                          |   |           | (339           | )      |              |   | (555 | ) |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Total stockholders’ equity                                                                                   |   |           | 35,751         |   |              |   | 35,581 |   |
|                                                                                                               |   |           |           |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                   |   | $              | 432,076        |   |              | $      | 423,435 |   |

----

|                                                                 |   | 2011   |    |   | 2010   |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Interest and Dividend Income                                         |   |   |    |   |   |   |
| Loans, including fees                                                |   | $      | 4,318   |   |   | $      | 4,175 |   |
| Securities                                                           |   |   |    |   |   |   |   |   |
| Taxable                                                              |   |   | 349     |   |   |   | 809 |   |
| Non-taxable                                                          |   |   | 302     |   |   |   | 409 |   |
| Federal funds sold                                                   |   |   | 6       |   |   |   | 11 |   |
| Dividends on Federal Home Loan Bank and other stock                  |   |   | 63      |   |   |   | 126 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Total interest and dividend income                                   |   |   | 5,038   |   |   |   | 5,530 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Interest Expense                                                     |   |   |    |   |   |   |   |   |
| Deposits                                                             |   |   | 777     |   |   |   | 1,272 |   |
| Borrowings                                                           |   |   | 479     |   |   |   | 532 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Total interest expense                                               |   |   | 1,256   |   |   |   | 1,804 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Net Interest Income                                                  |   |   | 3,782   |   |   |   | 3,726 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Provision for Loan Losses                                            |   |   | 648     |   |   |   | 360 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Net Interest Income After Provision for Loan Losses                  |   |   | 3,134   |   |   |   | 3,366 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Noninterest Income                                                   |   |   |    |   |   |   |   |   |
| Service charges on deposit accounts                                  |   |   | 444     |   |   |   | 533 |   |
| Realized gains on sales of securities                                |   |   | 370     |   |   |   | –– |   |
| Realized gains on sales of loans                                     |   |   | 30      |   |   |   | 13 |   |
| Realized losses on sales of other real estate and repossessed assets |   |   | — |   |   |   | (3 | ) |
| Other income                                                         |   |   | 220     |   |   |   | 233 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Total noninterest income                                             |   |   | 1,064   |   |   |   | 776 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Noninterest Expense                                                  |   |   |    |   |   |   |   |   |
| Salaries and employee benefits                                       |   |   | 1,753   |   |   |   | 1,755 |   |
| Occupancy and equipment                                              |   |   | 450     |   |   |   | 425 |   |
| Professional services                                                |   |   | 186     |   |   |   | 188 |   |
| FDIC insurance                                                       |   |   | 87      |   |   |   | 102 |   |
| Insurance                                                            |   |   | 62      |   |   |   | 95 |   |
| Franchise and other taxes                                            |   |   | 118     |   |   |   | 131 |   |
| Advertising                                                          |   |   | 62      |   |   |   | 93 |   |
| Stationary and office supplies                                       |   |   | 45      |   |   |   | 59 |   |
| Amortization of intangibles                                          |   |   | 30      |   |   |   | 25 |   |
| Core processing conversion expenses                                  |   |   | 7       |   |   |   | –– |   |
| Other expenses                                                       |   |   | 494     |   |   |   | 498 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Total noninterest expense                                            |   |   | 3,294   |   |   |   | 3,371 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Income Before Federal Income Taxes                                   |   |   | 904     |   |   |   | 771 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Provision for Federal Income Taxes                                   |   |   | 166     |   |   |   | 88 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Net Income                                                           |   | $      | 738     |   |   | $      | 683 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Basic Earnings Per Share                                             |   | $      | 0.15    |   |   | $      | 0.14 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Diluted Earnings Per Share                                           |   | $      | 0.15    |   |   | $      | 0.14 |   |
|                                                                 |   |   |    |   |   |   |   |   |
| Dividends per share                                                  |   | $      | 0.14    |   |   | $      | 0.14 |   |

----

|                                                                                                                  |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                  |   |   |   |   |   |   |
| Net Income                                                                                                            |   | $      | 738    |   |   | $      | 683 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of related tax effects:                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities during the period, net of taxes of $94 and $347 in 2011 and 2010, respectively |   |   | 183    |   |   |   | 674 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
| Reclassification adjustment for realized gains included in income, net of taxes of $123                               |   |   | (240   | )      |   |   | –– |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
| Comprehensive Income                                                                                                  |   | $      | 681    |   |   | $      | 1,357 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |
| Accumulated Other Comprehensive (Loss) Income                                                                         |   | $      | (764   | )      |   | $      | 167 |   |

----

|                                                                   |   | 2011   |           |   | 2010   |   |
|------------------------------------------------------------------------|--------|--------|----------------|--------|--------|--------|
| Operating Activities                                                   |   |   |           |   |   |   |
| Net income                                                             |   | $      | 738            |   |   | $      | 683 |   |
| Items not requiring (providing) cash                                   |   |   |           |   |   |   |   |   |
| Depreciation and amortization                                          |   |   | 240            |   |   |   | 195 |   |
| Amortization of intangible asset                                       |   |   | 30             |   |   |   | 25 |   |
| Provision for loan losses                                              |   |   | 648            |   |   |   | 360 |   |
| Amortization of premiums and discounts on securities, net              |   |   | (22            | )      |   |   | 34 |   |
| Gain on sale of loans                                                  |   |   | (30            | )      |   |   | (13 | ) |
| Gain on sale of securities                                             |   |   | (370           | )      |   |   | –– |   |
| Increase in value of bank-owned life insurance                         |   |   | (90            | )      |   |   | (101 | ) |
| Amortization of mortgage servicing rights                              |   |   | 5              |   |   |   | 6 |   |
| Originations of loans held for sale                                    |   |   | (2,126         | )      |   |   | (906 | ) |
| Proceeds from sale of loans held for sale                              |   |   | 2,156          |   |   |   | 919 |   |
| Loss on sale of foreclosed assets                                      |   |   | –– |   |   |   | 3 |   |
| Expense related to share-based compensation plans                      |   |   | 88             |   |   |   | 52 |   |
| Net change in accrued interest receivable and other assets             |   |   | (390           | )      |   |   | (398 | ) |
| Net change in accrued expenses and other liabilities                   |   |   | (656           | )      |   |   | (461 | ) |
|                                                                   |   |   |           |   |   |   |   |   |
| Net cash provided by operating activities                              |   |   | 221            |   |   |   | 398 |   |
|                                                                   |   |   |           |   |   |   |   |   |
| Investing Activities                                                   |   |   |           |   |   |   |   |   |
| Securities available for sale:                                         |   |   |           |   |   |   |   |   |
| Maturities, prepayments and calls                                      |   |   | 3,688          |   |   |   | 15,043 |   |
| Purchases                                                              |   |   | (16,807        | )      |   |   | (5,989 | ) |
| Proceeds from maturity of held-to-maturity securities                  |   |   | 1,495          |   |   |   | –– |   |
| Proceeds from sale of  held-to-maturity securities           |   |   | 302            |   |   |   | –– |   |
| Proceeds from sale of available for sale securities                    |   |   | 8,886          |   |   |   | –– |   |
| Net change in loans                                                    |   |   | 652            |   |   |   | (3,077 | ) |
| Net changes in certificates of deposit in other financial institutions |   |   | 882            |   |   |   | 6,303 |   |
| Proceeds from sale of foreclosed assets                                |   |   | 90             |   |   |   | 20 |   |
| Purchases of premises and equipment                                    |   |   | (668           | )      |   |   | (143 | ) |
|                                                                   |   |   |           |   |   |   |   |   |
| Net cash (used in) provided by investing activities                    |   |   | (1,480         | )      |   |   | 12,157 |   |

----

|                                                                                               |   | 2011   |   |   | 2010   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Financing Activities                                                                               |   |   |   |   |   |   |
| Net change in deposits                                                                             |   | $      | 5,404  |   |   | $      | 445 |   |
| Net change in short-term borrowings                                                                |   |   | 3,844  |   |   |   | 3,720 |   |
| Net change in long-term debt                                                                       |   |   | (121   | )      |   |   | (253 | ) |
| Cash dividends paid                                                                                |   |   | (744   | )      |   |   | (737 | ) |
| Proceeds from purchase of shares by Dividend Reinvestment Plan                                     |   |   | 118    |   |   |   | 103 |   |
| Shares purchased for deferred compensation plan                                                    |   |   | 27     |   |   |   | 50 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                                          |   |   | 8,528  |   |   |   | 3,328 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Increase in Cash and Cash Equivalents                                                              |   |   | 7,269  |   |   |   | 15,883 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period                                                     |   |   | 10,935 |   |   |   | 31,271 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period                                                           |   | $      | 18,204 |   |   | $      | 47,154 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Supplemental Cash Flows Information                                                                |   |   |   |   |   |   |   |   |
| Interest paid on deposits and borrowings                                                           |   | $      | 1,305  |   |   | $      | 1,817 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Supplemental Disclosure of Non-Cash Investing and Financing Activities                             |   |   |   |   |   |   |   |   |
| Transfers from loans to foreclosed real estate and other repossessed assets                        |   | $      | 213    |   |   | $      | 104 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Unrealized (loss) gains on securities designated as available for sale, net of related tax effects |   | $      | (57    | )      |   | $      | 674 |   |

----

| Note 1: | Summary of Significant Accounting Policies |
|---------|--------------------------------------------|

----

----

----

|                                                                                       |   | Three months endedMarch 31, |      |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|                                                                                       |   | 2011                                       |      |   | 2010 |   |
|                                                                                       |   |                                       |      |
| Basic                                                                                      |   |                                       |      |   |   |   |
| Net income (In thousands)                                                                  |   | $                                          | 738       |   |   | $ | 683 |   |
| Dividends on non-vested restricted stock                                                   |   |                                       | (24       | ) |   |   | (25 | ) |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Net earnings allocated to stockholders                                                     |   | $                                          | 714       |   |   | $ | 658 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Weighted average common shares outstanding                                                 |   |                                       | 4,753,955 |   |   |   | 4,665,937 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Basic earnings per common share                                                            |   | $                                          | 0.15      |   |   | $ | 0.14 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Diluted                                                                                    |   |                                       |      |   |   |   |   |   |
| Net earnings allocated to stockholders                                                     |   | $                                          | 714       |   |   | $ | 658 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Weighted average common shares outstanding for basic earnings per common share             |   |                                       | 4,753,955 |   |   |   | 4,665,937 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Add:  Dilutive effects of assumed exercise of stock options and restricted stock |   |                                       | 18,263    |   |   |   | 16,512 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Average shares and dilutive potential common shares                                        |   |                                       | 4,772,218 |   |   |   | 4,682,449 |   |
|                                                                                       |   |                                       |      |   |   |   |   |   |
| Diluted earnings per common share                                                          |   | $                                          | 0.15      |   |   | $ | 0.14 |   |

----

----

| Note 2: | Securities |
|---------|------------|

|                                                     |   | AmortizedCost  |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | ApproximateFair Value |   |
|----------------------------------------------------------|--------|----------------|---------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------------------------|--------|
|                                                     |   | (In thousands) |    |
| Available-for-sale Securities:                           |   |           |    |   |                 |   |   |                  |   |   |                       |   |
| March 31, 2011                                           |   |           |    |   |                 |   |   |                  |   |   |                       |   |
| U.S. government agencies                                 |   | $              | 75,735  |   |                 | $      | 79     |                  |   | $      | (449                       | )      |   | $ | 75,365 |   |
| State and political subdivisions                         |   |           | 24,900  |   |                 |   | 404    |                  |   |   | ––             |   |   |   | 25,304 |   |
| Equity securities                                        |   |           | 4       |   |                 |   | 10     |                  |   |   | ––             |   |   |   | 14 |   |
|                                                     |   |           |    |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
|                                                     |   | $              | 100,639 |   |                 | $      | 493    |                  |   | $      | (449                       | )      |   | $ | 100,683 |   |
|                                                     |   |           |    |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
| Available-for-sale Securities:                           |   |           |    |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
| December 31, 2010:                                       |   |           |    |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
| U.S. government agencies                                 |   | $              | 61,908  |   |                 | $      | 53     |                  |   | $      | (728                       | )      |   | $ | 61,233 |   |
| State and political subdivisions                         |   |           | 25,008  |   |                 |   | 315    |                  |   |   | (28                        | )      |   |   | 25,295 |   |
| Government sponsored entities mortgage-backed securities |   |           | 9,105   |   |                 |   | 509    |                  |   |   | ––             |   |   |   | 9,614 |   |
| Equity securities                                        |   |           | 4       |   |                 |   | 9      |                  |   |   | ––             |   |   |   | 13 |   |
|                                                     |   |           |    |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
|                                                     |   | $              | 96,025  |   |                 | $      | 886    |                  |   | $      | (756                       | )      |   | $ | 96,155 |   |

----

|                             |   | AmortizedCost  |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | ApproximateFair Value |   |
|----------------------------------|--------|----------------|--------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------------------------|--------|
|                             |   | (In thousands) |   |
| Held-to-maturity Securities:     |   |           |   |   |                 |   |   |                  |   |   |                       |   |
| March 31, 2011:                  |   |           |   |   |                 |   |   |                  |   |   |                       |   |
| State and political subdivisions |   | $              | 4,545  |   |                 | $      | 169    |                  |   | $      | ––             |   |   | $ | 4,714 |   |
|                             |   |           |   |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
| December 31, 2010:               |   |           |   |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
| State and political subdivisions |   | $              | 6,331  |   |                 | $      | 179    |                  |   | $      | ––             |   |   | $ | 6,510 |   |

|              |   | Available-for-sale |    |   | Held-to-maturity |   |
|-------------------|--------|--------------------|---------|--------|------------------|--------|
|              |   | AmortizedCost      |    |   | Fair Value  |   |   | AmortizedCost |   |   | Fair Value |   |
|              |   | (In thousands)     |    |
|              |   |               |    |   |             |   |   |   |   |   |   |   |
| Within one year   |   | $                  | 60      |   |             | $      | 60 |   |   | $ | 110 |   |   | $ | 110 |   |
| One to five years |   |               | 15,846  |   |             |   | 15,917 |   |   |   | 2,083 |   |   |   | 2,182 |   |
| Five to ten years |   |               | 35,330  |   |             |   | 35,568 |   |   |   | 2,352 |   |   |   | 2,422 |   |
| After ten years   |   |               | 49,399  |   |             |   | 49,124 |   |   |   | –– |   |   |   | –– |   |
|              |   |               | 100,635 |   |             |   | 100,669 |   |   |   | 4,545 |   |   |   | 4,714 |   |
|              |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities |   |               | 4       |   |             |   | 14 |   |   |   | –– |   |   |   | –– |   |
|              |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Totals            |   | $                  | 100,639 |   |             | $      | 100,683 |   |   | $ | 4,545 |   |   | $ | 4,714 |   |

----

|               |   | Three months ended March 31, |           |
|--------------------|--------|--------------------------------------------------|----------------|
|               |   | 2011                                             |           |   | 2010 |   |
|               |   | (In thousands)                                   |           |
|               |   |                                             |           |   |   |   |
| Proceeds from sale |   | $                                                | 9,188          |   |   | $ | –– |   |
| Gross gains        |   |                                             | 370            |   |   |   | –– |   |
| Gross losses       |   |                                             | –– |   |   |   | –– |   |

| March 31, 2011      |   |
|-------------------------------|--------|
|                          |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total |   |
| Description ofSecurities |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| (In thousands)                |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies      |   | $ | 39,491 |   |   | $ | (449 | ) |   | $ | –– |   |   | $ | –– |   |   | $ | 39,491 |   |   | $ | (449 | ) |

----

| December 31, 2010           |   |
|---------------------------------------|--------|
|                                  |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total |   |
| Description ofSecurities         |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |   | Fair Value |   |   | UnrealizedLosses |   |
| (In thousands)                        |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies              |   | $ | 33,215 |   |   | $ | (728 | ) |   | $ | –– |   |   | $ | –– |   |   | $ | 33,215 |   |   | $ | (728 | ) |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and political subdivisions      |   |   | 2,484 |   |   |   | (28 | ) |   |   | –– |   |   |   | –– |   |   |   | 2,484 |   |   |   | (28 | ) |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   | $ | 35,699 |   |   | $ | (756 | ) |   | $ | –– |   |   | $ | –– |   |   | $ | 35,699 |   |   | $ | (756 | ) |

| Note 3: | Loans and Allowance for Loan Losses |
|---------|-------------------------------------|

|                           |   | March 31, |    |   | December 31, |   |
|--------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                           |   | 2011           |    |   | 2010              |   |
|                           |   | (In thousands) |    |
|                           |   |           |    |   |              |   |
| Commercial loans               |   | $              | 29,758  |   |              | $      | 32,153 |   |
| Commercial real estate         |   |           | 139,705 |   |              |   | 136,369 |   |
| Residential real estate        |   |           | 62,887  |   |              |   | 63,378 |   |
| Installment loans              |   |           | 44,724  |   |              |   | 46,877 |   |
|                           |   |           |    |   |              |   |   |   |
| Total gross loans              |   |           | 277,074 |   |              |   | 278,777 |   |
|                           |   |           |    |   |              |   |   |   |
| Less allowance for loan losses |   |           | (2,521  | )      |              |   | (2,740 | ) |
|                           |   |           |    |   |              |   |   |   |
| Total loans                    |   | $              | 274,553 |   |              | $      | 276,037 |   |

----

|                               |   | Three months endedMarch 31, |   |
|------------------------------------|--------|--------------------------------------------|--------|
|                               |   | 2011                                       |   |   | 2010 |   |
|                               |   | (In thousands)                             |   |
|                               |   |                                       |   |
| Beginning balance                  |   | $                                          | 2,740  |   |   | $ | 2,390 |   |
| Provision for loan losses          |   |                                       | 648    |   |   |   | 360 |   |
| Loans charged-off                  |   |                                       | (967   | ) |   |   | (311 | ) |
| Recoveries of previous charge-offs |   |                                       | 100    |   |   |   | 88 |   |
| Ending balance                     |   | $                                          | 2,521  |   |   | $ | 2,527 |   |

|                                                  |   | Commercial |   |   | CommercialReal Estate |   |    | Installment |   |   | Residential    |   |   | Unallocated |   |   | Total  |   |
|-------------------------------------------------------|--------|------------|--------|--------|----------------------------|--------|---------|-------------|--------|--------|----------------|--------|--------|-------------|--------|--------|--------|--------|
| (In thousands)                                        |   |
| Allowance for loan losses:                            |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |
| Balance, beginning of period                          |   | $          | 561    |   |                       | $      | 1,566   |        |   | $      | 229            |   |   | $           | 140    |   |   | $      | 244 |   |   | $ | 2,740 |   |
| Provision charged to expense                          |   |       | 196    |   |                       |   | 479     |        |   |   | 131            |   |   |        | (40    | )      |   |   | (118 | ) |   |   | 648 |   |
| Losses charged off                                    |   |       | (388   | )      |                       |   | (321    | )           |   |   | (217           | )      |   |        | (41    | )      |   |   | –– |   |   |   | (967 | ) |
| Recoveries                                            |   |       | 1      |   |                       |   | 14      |        |   |   | 84             |   |   |        | 1      |   |   |   | –– |   |   |   | 100 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Balance, end of period                                |   | $          | 370    |   |                       | $      | 1,738   |        |   | $      | 227            |   |   | $           | 60     |   |   | $      | 126 |   |   | $ | 2,521 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $          | 89     |   |                       | $      | 1,497   |        |   | $      | –– |   |   | $           | 56     |   |   | $      | –– |   |   | $ | 1,642 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $          | 281    |   |                       | $      | 241     |        |   | $      | 227            |   |   | $           | 4      |   |   | $      | 126 |   |   | $ | 879 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $          | 370    |   |                       | $      | 5,073   |        |   | $      | –– |   |   | $           | 71     |   |   | $      | –– |   |   | $ | 5,514 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $          | 29,388 |   |                       | $      | 134,632 |        |   | $      | 44,724         |   |   | $           | 62,816 |   |   | $      | –– |   |   | $ | 271,560 |   |

----

|                                                  |   | Commercial |   |   | CommercialReal Estate |   |    | Installment |   |   | Residential    |   |   | Unallocated |   |   | Total  |   |
|-------------------------------------------------------|--------|------------|--------|--------|----------------------------|--------|---------|-------------|--------|--------|----------------|--------|--------|-------------|--------|--------|--------|--------|
| (In thousands)                                        |   |
| Allowance for loan losses:                            |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |
| Balance, beginning of year                            |   | $          | 890    |   |                       | $      | 999     |        |   | $      | 251            |   |   | $           | 100    |   |   | $      | 150 |   |   | $ | 2,390 |   |
| Provision charged to expense                          |   |       | (110   | )      |                       |   | 1,339   |        |   |   | 296            |   |   |        | 197    |   |   |   | 94 |   |   |   | 1,816 |   |
| Losses charged off                                    |   |       | (256   | )      |                       |   | (775    | )           |   |   | (579           | )      |   |        | (160   | )      |   |   | –– |   |   |   | (1,770 | ) |
| Recoveries                                            |   |       | 37     |   |                       |   | 3       |        |   |   | 261            |   |   |        | 3      |   |   |   | –– |   |   |   | 304 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Balance, end of year                                  |   | $          | 561    |   |                       | $      | 1,566   |        |   | $      | 229            |   |   | $           | 140    |   |   | $      | 244 |   |   | $ | 2,740 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $          | 486    |   |                       | $      | 1,226   |        |   | $      | –– |   |   | $           | 60     |   |   | $      | –– |   |   | $ | 1,772 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $          | 75     |   |                       | $      | 340     |        |   | $      | 229            |   |   | $           | 80     |   |   | $      | 244 |   |   | $ | 968 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $          | 1,184  |   |                       | $      | 5,852   |        |   | $      | –– |   |   | $           | 238    |   |   | $      | –– |   |   | $ | 7,274 |   |
|                                                  |   |       |   |   |                       |   |    |        |   |   |           |   |   |        |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $          | 30,969 |   |                       | $      | 130,517 |        |   | $      | 46,877         |   |   | $           | 63,140 |   |   | $      | –– |   |   | $ | 271,503 |   |

----

|            |   | March 31, 2011 |   |
|-----------------|--------|--------------------------|--------|
| Loan Class |   | Commercial               |   |   | CommercialReal Estate |   |   | Residential |   |   | Installment |   |
|            |   | (In thousands)           |   |
|            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Pass Grade      |   | $                        | 26,421 |   |   | $ | 126,131 |   |   | $ | 62,638 |   |   | $ | 44,717 |   |
| Special Mention |   |                     | 209    |   |   |   | 1,668 |   |   |   | 178 |   |   |   | 7 |   |
| Substandard     |   |                     | 2,893  |   |   |   | 8,284 |   |   |   | –– |   |   |   | –– |   |
| Doubtful        |   |                     | 235    |   |   |   | 3,622 |   |   |   | 71 |   |   |   | –– |   |
|            |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | $                        | 29,758 |   |   | $ | 139,705 |   |   | $ | 62,887 |   |   | $ | 44,724 |   |

|            |   | December 31, 2010 |           |
|-----------------|--------|-------------------|----------------|
| Loan Class      |   | Commercial        |           |   | CommercialReal Estate |   |   | Residential |   |   |   Installment |   |
|            |   | (In thousands)    |           |
|            |   |              |           |   |   |   |   |   |   |   |   |   |
| Pass Grade      |   | $                 | 28,416         |   |   | $ | 122,795 |   |   | $ | 62,517 |   |   | $ | 46,877 |   |
| Special Mention |   |              | 134            |   |   |   | 1,141 |   |   |   | 623 |   |   |   | –– |   |
| Substandard     |   |              | 3,603          |   |   |   | 12,198 |   |   |   | 238 |   |   |   | –– |   |
| Doubtful        |   |              | –– |   |   |   | 235 |   |   |   | –– |   |   |   | –– |   |
|            |   |              |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | $                 | 32,153         |   |   | $ | 136,369 |   |   | $ | 63,378 |   |   | $ | 46,877 |   |

|                   |   | 30-59 DaysPast DueandAccruing |   |   | 60-89 DaysPast DueandAccruing |   |   | GreaterThan 90Days andAccruing |   |   |  NonAccrual |   |   | Total PastDue andNon Accrual |   |   | Current |   |   | Total LoansReceivable |   |
|------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------------------|--------|--------|---------|--------|--------|----------------------------|--------|
|                   |   | (In thousands)                          |   |
| Commercial             |   | $                                       | 164    |   |                                    | $      | 68     |                                     |   | $      | 121              |   |   | $                                           | 236    |   |    | $      | 589    |                       |   | $ | 29,169 |   |   | $ | 29,758 |   |
| Commercial real estate |   |                                    | 94     |   |                                    |   | 62     |                                     |   |   | 51               |   |   |                                        | 2,927  |   |    |   | 3,134  |                       |   |   | 136,571 |   |   |   | 139,705 |   |
| Installment            |   |                                    | 372    |   |                                    |   | 136    |                                     |   |   | 15               |   |   |                                        | 128    |   |    |   | 651    |                       |   |   | 44,073 |   |   |   | 44,724 |   |
| Residential            |   |                                    | 625    |   |                                    |   | 230    |                                     |   |   | ––   |   |   |                                        | 1,382  |   |    |   | 2,237  |                       |   |   | 60,650 |   |   |   | 62,887 |   |
|                   |   |                                    |   |   |                                    |   |   |                                     |   |   |             |   |   |                                        |   |   |    |   |   |                       |   |   |   |   |   |   |   |   |
| Total                  |   | $                                       | 1,255  |   |                                    | $      | 496    |                                     |   | $      | 187              |   |   | $                                           | 4,673  |   |    | $      | 6,611  |                       |   | $ | 270,463 |   |   | $ | 277,074 |   |

----

|                   |   | 30-59 DaysPast DueandAccruing |   |   | 60-89 DaysPast DueandAccruing |   |   | GreaterThan 90Days andAccruing |   |   |  NonAccrual |   |   | Total PastDue andNon Accrual |   |   | Current |   |   | Total LoansReceivable |   |
|------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------|--------|--------|---------------------------------------------|--------|--------|---------|--------|--------|----------------------------|--------|
|                   |   | (In thousands)                          |   |
| Commercial             |   | $                                       | 265    |   |                                    | $      | 201    |                                     |   | $      | 25               |   |   | $                                           | 300    |   |    | $      | 791    |                       |   | $ | 31,362 |   |   | $ | 32,153 |   |
| Commercial real estate |   |                                    | 567    |   |                                    |   | 525    |                                     |   |   | ––   |   |   |                                        | 3,163  |   |    |   | 4,255  |                       |   |   | 132,114 |   |   |   | 136,369 |   |
| Installment            |   |                                    | 421    |   |                                    |   | 159    |                                     |   |   | ––   |   |   |                                        | 240    |   |    |   | 820    |                       |   |   | 46,057 |   |   |   | 46,877 |   |
| Residential            |   |                                    | 529    |   |                                    |   | 279    |                                     |   |   | ––   |   |   |                                        | 823    |   |    |   | 1,631  |                       |   |   | 61,747 |   |   |   | 63,378 |   |
|                   |   |                                    |   |   |                                    |   |   |                                     |   |   |             |   |   |                                        |   |   |    |   |   |                       |   |   |   |   |   |   |   |   |
| Total                  |   | $                                       | 1,782  |   |                                    | $      | 1,164  |                                     |   | $      | 25               |   |   | $                                           | 4,526  |   |    | $      | 7,497  |                       |   | $ | 271,280 |   |   | $ | 278,777 |   |

|                                          |   | RecordedBalance |           |   | UnpaidPrincipalBalance |   |           | SpecificAllowance |   |   | AverageInvestment inImpairedLoans |   |   | InterestIncomeRecognized |           |
|-----------------------------------------------|--------|-----------------|----------------|--------|------------------------|--------|----------------|-------------------|--------|--------|----------------------------------------|--------|--------|--------------------------|----------------|
|                                          |   | (In thousands)  |           |
| Loans without a specific valuation allowance: |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |
| Commercial                                    |   | $               | 138            |   |                   | $      | 138            |              |   | $      | ––                         |   |   | $                        | 328            |   |   | $ | 1 |   |
| Commercial real estate                        |   |            | 1,305          |   |                   |   | 1,305          |              |   |   | ––                         |   |   |                     | 1,246          |   |   |   | 14 |   |
| Residential                                   |   |            | –– |   |                   |   | –– |              |   |   | ––                         |   |   |                     | 39             |   |   |   | –– |   |
| Installment                                   |   |            | –– |   |                   |   | –– |              |   |   | ––                         |   |   |                     | –– |   |   |   | –– |   |
|                                          |   |            | 1,443          |   |                   |   | 1,443          |              |   |   | ––                         |   |   |                     | 1,613          |   |   |   | 15 |   |
| Loans with a specific valuation allowance:    |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
| Commercial                                    |   |            | 232            |   |                   |   | 232            |              |   |   | 89                                     |   |   |                     | 449            |   |   |   | 3 |   |
| Commercial  real estate             |   |            | 3,768          |   |                   |   | 3,768          |              |   |   | 1,497                                  |   |   |                     | 4,557          |   |   |   | 28 |   |
| Residential                                   |   |            | 71             |   |                   |   | 71             |              |   |   | 56                                     |   |   |                     | 116            |   |   |   | –– |   |
|                                          |   |            | 4,071          |   |                   |   | 4,071          |              |   |   | 1,642                                  |   |   |                     | 5,122          |   |   |   | 31 |   |
|                                          |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
| Total:                                        |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
|                                          |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
| Commercial                                    |   | $               | 370            |   |                   | $      | 370            |              |   | $      | 89                                     |   |   | $                        | 777            |   |   | $ | 4 |   |
|                                          |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
| Commercial real estate                        |   | $               | 5,073          |   |                   | $      | 5,073          |              |   | $      | 1,497                                  |   |   | $                        | 5,803          |   |   | $ | 42 |   |
|                                          |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
| Residential                                   |   | $               | 71             |   |                   | $      | 71             |              |   | $      | 56                                     |   |   | $                        | 155            |   |   | $ | –– |   |
|                                          |   |            |           |   |                   |   |           |              |   |   |                                   |   |   |                     |           |   |   |   |   |   |
| Installment                                   |   | $               | –– |   |                   | $      | –– |              |   | $      | ––                         |   |   | $                        | –– |   |   | $ | –– |   |

----

|                                          |   | RecordedBalance |   |   | UnpaidPrincipalBalance |   |   | SpecificAllowance |   |   | AverageInvestment inImpairedLoans |   |   | InterestIncomeRecognized |   |
|-----------------------------------------------|--------|-----------------|--------|--------|------------------------|--------|--------|-------------------|--------|--------|----------------------------------------|--------|--------|--------------------------|--------|
|                                          |   | (In thousands)  |   |
| Loans without a specific valuation allowance: |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |
| Commercial                                    |   | $               | 518    |   |                   | $      | 518    |              |   | $      | ––                         |   |   | $                        | 510    |   |   | $ | 22 |   |
| Commercial real estate                        |   |            | 1,186  |   |                   |   | 1,186  |              |   |   | ––                         |   |   |                     | 1,172  |   |   |   | 45 |   |
| Residential                                   |   |            | 77     |   |                   |   | 77     |              |   |   | ––                         |   |   |                     | 69     |   |   |   | 4 |   |
|                                          |   |            | 1,781  |   |                   |   | 1,781  |              |   |   | ––                         |   |   |                     | 1,751  |   |   |   | 71 |   |
| Loans with a specific valuation allowance:    |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |   |   |   |   |   |
| Commercial                                    |   |            | 666    |   |                   |   | 666    |              |   |   | 486                                    |   |   |                     | 648    |   |   |   | 38 |   |
| Commercial  real estate             |   |            | 4,666  |   |                   |   | 4,666  |              |   |   | 1,226                                  |   |   |                     | 4,688  |   |   |   | 80 |   |
| Residential                                   |   |            | 161    |   |                   |   | 161    |              |   |   | 60                                     |   |   |                     | 148    |   |   |   | 3 |   |
|                                          |   |            | 5,493  |   |                   |   | 5,493  |              |   |   | 1,772                                  |   |   |                     | 5,484  |   |   |   | 121 |   |
|                                          |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |   |   |   |   |   |
| Total:                                        |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |   |   |   |   |   |
|                                          |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |   |   |   |   |   |
| Commercial                                    |   | $               | 1,184  |   |                   | $      | 1,184  |              |   | $      | 486                                    |   |   | $                        | 1,158  |   |   | $ | 60 |   |
|                                          |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |   |   |   |   |   |
| Commercial real estate                        |   | $               | 5,852  |   |                   | $      | 5,852  |              |   | $      | 1,226                                  |   |   | $                        | 5,860  |   |   | $ | 125 |   |
|                                          |   |            |   |   |                   |   |   |              |   |   |                                   |   |   |                     |   |   |   |   |   |   |
| Residential                                   |   | $               | 238    |   |                   | $      | 238    |              |   | $      | 60                                     |   |   | $                        | 217    |   |   | $ | 7 |   |

----

| Note 4: | Benefit Plans |
|---------|---------------|

|                                            |   | Three months endedMarch 31, |   |
|-------------------------------------------------|--------|--------------------------------------------|--------|
|                                            |   | 2011                                       |   |   | 2010 |   |
|                                            |   | (In thousands)                             |   |
|                                            |   |                                       |   |   |   |   |
| Service cost                                    |   | $                                          | 76     |   |   | $ | 67 |   |
| Interest cost                                   |   |                                       | 43     |   |   |   | 45 |   |
| Expected return on assets                       |   |                                       | (60    | ) |   |   | (58 | ) |
| Amortization of prior service cost and net loss |   |                                       | 20     |   |   |   | 21 |   |
|                                            |   |                                       |   |   |   |   |   |   |
| Pension expense                                 |   | $                                          | 79     |   |   | $ | 75 |   |

| Note 5: | Off-Balance-Sheet Activities |
|---------|------------------------------|

|                                      |   | March 31, |   |   | December 31, |   |
|-------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                      |   | 2011           |   |   | 2010              |   |
|                                      |   | (Unaudited)    |   |   |              |   |
|                                      |   | (In thousands) |   |
|                                      |   |           |   |   |              |   |
| Commitments to extend credit              |   | $              | 12,453 |   |              | $      | 12,858 |   |
| Commitment to originate loans             |   |           | 4,500  |   |              |   | 9,200 |   |
| Overdraft program and ready reserve lines |   |           | 29,137 |   |              |   | 29,189 |   |
| Standby letters of credit                 |   |           | 897    |   |              |   | 897 |   |

----

| Note 6: | Fair Value Measurements |
|---------|-------------------------|

|   | Level 1 | Quoted prices in active markets for identical assets or liabilities |
|--------|---------|---------------------------------------------------------------------|

|   | Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   |            |   |   | Fair Value Measurements Using                                  |   |
|----------------------------------------------------------|--------|-----------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                                     |   | Fair Value |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|                                                     |   | (In thousands)  |   |
| March 31, 2011                                           |   |            |   |   |                                                                          |   |   |   |   |   |   |   |
| U.S. government agencies                                 |   | $               | 75,365 |   |                                                                          | $      | –– |   |   | $ | 75,365 |   |   | $ | –– |   |
| State and political subdivisions                         |   |            | 25,304 |   |                                                                          |   | –– |   |   |   | 25,304 |   |   |   | –– |   |
|                                                     |   |            |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities                                        |   |            | 14     |   |                                                                          |   | 14 |   |   |   | –– |   |   |   | –– |   |
|                                                     |   |            |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010                                        |   |            |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| U.S. government agencies                                 |   | $               | 61,233 |   |                                                                          | $      | –– |   |   | $ | 61,233 |   |   | $ | –– |   |
| State and political subdivisions                         |   |            | 25,295 |   |                                                                          |   | –– |   |   |   | 25,295 |   |   |   | –– |   |
| Government sponsored entities mortgage-backed securities |   |            | 9,614  |   |                                                                          |   | –– |   |   |   | 9,614 |   |   |   | –– |   |
| Equity securities                                        |   |            | 13     |   |                                                                          |   | 13 |   |   |   | –– |   |   |   | –– |   |

----

|                            |   |            |   |   | Fair Value Measurements Using                                  |   |
|---------------------------------|--------|-----------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                            |   | Fair Value |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|                            |   | (In thousands)  |   |
| March 31, 2011                  |   |            |   |   |                                                                          |   |   |   |   |   |   |   |
| Impaired loans                  |   | $               | 3,105  |   |                                                                          | $      | –– |   |   | $ | –– |   |   | $ | 1,810 |   |
| Foreclosed assets held for sale |   |            | 213    |   |                                                                          |   | –– |   |   |   | –– |   |   |   | 213 |   |
|                            |   |            |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010               |   |            |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                  |   | $               | 3,595  |   |                                                                          | $      | –– |   |   | $ | –– |   |   | $ | 3,595 |   |
| Mortgage servicing rights       |   |            | 215    |   |                                                                          |   | –– |   |   |   | –– |   |   |   | 215 |   |
| Foreclosed assets held for sale |   |            | 238    |   |                                                                          |   | –– |   |   |   | –– |   |   |   | 238 |   |

----

|                                                    |   | March 31, 2011 |    |   | December 31, 2010 |   |
|---------------------------------------------------------|--------|--------------------------|---------|--------|-----------------------------|--------|
|                                                    |   | CarryingAmount           |    |   | FairValue                   |   |   | CarryingAmount |   |   | FairValue |   |
|                                                    |   | (In thousands)           |    |
|                                                    |   |                     |    |   |                        |   |   |   |   |   |   |   |
| Financial assets                                        |   |                     |    |   |                        |   |   |   |   |   |   |   |
| Cash and cash equivalents                               |   | $                        | 18,204  |   |                        | $      | 18,204 |   |   | $ | 10,935 |   |   | $ | 10,935 |   |
| Certificates of deposit in other financial institutions |   |                     | 1,682   |   |                        |   | 1,682 |   |   |   | 2,564 |   |   |   | 2,564 |   |
| Available-for-sale securities                           |   |                     | 100,683 |   |                        |   | 100,683 |   |   |   | 96,155 |   |   |   | 96,155 |   |
| Held-to-maturity securities                             |   |                     | 4,545   |   |                        |   | 4,714 |   |   |   | 6,331 |   |   |   | 6,510 |   |
| Loans, net of allowance for loan losses                 |   |                     | 274,553 |   |                        |   | 275,128 |   |   |   | 276,037 |   |   |   | 276,699 |   |
| Federal Home Loan Bank stock                            |   |                     | 4,810   |   |                        |   | 4,810 |   |   |   | 4,810 |   |   |   | 4,810 |   |
| Accrued interest receivable                             |   |                     | 1,519   |   |                        |   | 1,519 |   |   |   | 1,441 |   |   |   | 1,441 |   |
|                                                    |   |                     |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                                   |   |                     |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                |   |                     | 330,850 |   |                        |   | 312,239 |   |   |   | 325,446 |   |   |   | 308,387 |   |
| Short-term borrowings                                   |   |                     | 15,687  |   |                        |   | 15,687 |   |   |   | 11,843 |   |   |   | 11,829 |   |
| Federal Home Loan Bank advances                         |   |                     | 43,329  |   |                        |   | 44,781 |   |   |   | 43,450 |   |   |   | 45,316 |   |
| Subordinated debentures                                 |   |                     | 4,000   |   |                        |   | 3,412 |   |   |   | 4,000 |   |   |   | 3,412 |   |
| Interest payable                                        |   |                     | 288     |   |                        |   | 288 |   |   |   | 337 |   |   |   | 337 |   |

----

----

| ITEM 2  | Management’s Discussion and Analysis of Financial |
|-------------------|---------------------------------------------------------|

----

----

----

----

----

|                   |   | Total           |   |   | Tier 1     |   |   | Tier 1     |   |
|------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                   |   | Capital To |   |   | Capital To |   |   | Capital To |   |
|                   |   | Risk-Weighted   |   |   | Risk-Weighted   |   |   | Average         |   |
|                   |   | Assets          |   |   | Assets          |   |   | Assets          |   |
|                   |   |            |   |   |            |   |   |            |   |
| Well capitalized       |   |            | 10.00  | %      |            |   | 6.00   | %               |   |   | 5.00 | % |
| Adequately capitalized |   |            | 8.00   | %      |            |   | 4.00   | %               |   |   | 4.00 | % |
| Undercapitalized       |   |            | 6.00   | %      |            |   | 3.00   | %               |   |   | 3.00 | % |

----

|                             |   | March 31,                   |    |
|----------------------------------|--------|----------------------------------|---------|
|                             |   | 2011                             |    |
|                             |   | (Unaudited)                      |    |
|                             |   | (Dollars in thousands) |    |
|                             |   |                             |    |
| Tier 1 capital                   |   | $                                | 39,188  |   |
| Total risk-based capital         |   |                             | 41,714  |   |
| Risk-weighted assets             |   |                             | 298,251 |   |
| Average total assets             |   |                             | 429,884 |   |
|                             |   |                             |    |   |
| Total risk-based capital ratio   |   |                             | 13.99   | % |
| Tier 1 risk-based capital ratio  |   |                             | 13.14   | % |
| Tier 1 capital to average assets |   |                             | 9.12    | % |

----

| ITEM 3  | Quantitative and Qualitative Disclosures About Market Risk |
|-------------------|------------------------------------------------------------|

| ITEM 4.  | Controls and Procedures |
|--------------------|-------------------------|

----

| ITEM 1.  | Legal Proceedings |
|--------------------|-------------------|

| ITEM 1A.  | Risk Factors |
|---------------------|--------------|

| ITEM 2.  | Unregistered Sales of Equity Securities and Use of Proceeds |
|--------------------|-------------------------------------------------------------|

| Period                        |   | (a)Total Number ofShares (or Units)Purchased |           |   | (b)Average Price PaidPer Share (or Unit) |   |           | (c)Total Number ofShares (or Units)Purchased as PartOf PubliclyAnnounced PlansOr Programs |   |   | (d)Maximum Number orApproximate DollarValue) of Shares (orUnits) that May Yet Be Purchased Under the Plans or Programs |   |
|-------------------------------|--------|------------------------------------------------------------------|----------------|--------|-------------------------------------------------------------------|--------|----------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Month #11/1/2011 to1/31/20110 |   |                                                             | –– |   |                                                              |   | –– |                                                                                                                                   |   |   | ––                                                                                                                                                                                         |   |   |   | — |   |
| Month #22/1/20110 to2/28/2011 |   |                                                             | –– |   |                                                              |   | –– |                                                                                                                                   |   |   | ––                                                                                                                                                                                         |   |   |   | — |   |
| Month #33/1/2011 to3/31/2011  |   |                                                             | —        |   |                                                              |   | –– |                                                                                                                                   |   |   | ––                                                                                                                                                                                         |   |   |   | — |   |

----

| ITEM 3.  | Defaults Upon Senior Securities |
|--------------------|---------------------------------|

| ITEM 4.  | Other Information |
|--------------------|-------------------|

| ITEM 5.  | Exhibits |
|--------------------|----------|

| EX-3.1  |   | Amended Articles of Incorporation of United Bancorp, Inc. (1) |
|---------|--------|---------------------------------------------------------------|
|    |   |                                                          |
| EX-3.2  |   | Amended Code of Regulations of United Bancorp, Inc. (2)       |
|    |   |                                                          |
| EX-4.0  |   | Instruments Defining the Rights of Security Holders           |
|    |   | (See Exhibits 3.1 and 3.2)                                    |
|    |   |                                                          |
| EX 31.1 |   | Rule 13a-14(a) Certification – CEO                      |
|    |   |                                                          |
| EX 31.2 |   | Rule 13a-14(a) Certification – CFO                      |
|    |   |                                                          |
| EX 32.1 |   | Section 1350 Certification – CEO                        |
|    |   |                                                          |
| EX 32.2 |   | Section 1350 Certification – CFO                        |

|   | (1) | Incorporated by reference to Appendix B to the registrant’s Definitive Proxy Statement filed with the Securities and Exchange Commission on March 14, 2001. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated by reference to Appendix C to the registrant’s Definitive Proxy Statement filed with the Securities and Exchange Commission on March 14, 2001. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                  | /s/United Bancorp, Inc. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                                                                                                                                  |                    |
| Date:      May  13, 2011                | By:                | /s/James W. Everson |
|                                                                                                                                                  |                    | James W. Everson |
|                                                                                                                                                  |                    | Chairman, President and ChiefExecutive Officer |
|                                                                                                                                                  |                    |   |
| Date:      May  13, 2011                     | By:                     | /s/Randall M. Greenwood |
|                                                                                                                                                  |                    | Randall M. Greenwood |
|                                                                                                                                                  |                    | Senior Vice President, Chief FinancialOfficer and Treasurer |

----

| Exhibit No. |   | Description                                                                                                                                                       |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                              |
| 3.1         |   | Amended Articles of Incorporation of United Bancorp, Inc.                                                                                                         |
|        |   | incorporated by reference to Appendix B to the registrant’s Definitive Proxy Statement filed with the Securities and Exchange Commission on March 14, 2001. |
|        |   |                                                                                                                                                              |
| 3.2         |   | Amended Code of Regulations of United Bancorp, Inc.                                                                                                               |
|        |   | incorporated by reference to Appendix C to the registrant’s Definitive Proxy Statement filed with the Securities and Exchange Commission on March 14, 2001. |
|        |   |                                                                                                                                                              |
| 4.0         |   | Instruments Defining the Rights of Security Holders (See Exhibits 3.1 and 3.2)                                                                                    |
|        |   |                                                                                                                                                              |
| 31.1        |   | Rule 13a-14(a) Certification – Principal Executive Officer                                                                                                  |
|        |   |                                                                                                                                                              |
| 31.2        |   | Rule 13a-14(a) Certification – Principal Financial Officer                                                                                                  |
|        |   |                                                                                                                                                              |
| 32.1        |   | Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of The Sarbanes-Oxley act of 2002.                                           |
|        |   |                                                                                                                                                              |
| 32.2        |   | Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.                                           |

----