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| President's Message                                                    |   | 1      |
|------------------------------------------------------------------------|--------|--------|
|                                                                   |   |   |
| Corporate Profile and Stock Market Information                         |   | 2      |
|                                                                   |   |   |
| Selected Consolidated Financial Information                            |   | 3      |
|                                                                   |   |   |
| Management's Discussion and Analysis of                                |   |   |
| Financial Condition and Results of Operations                          |   | 4      |
|                                                                   |   |   |
| Management’s Report on Internal Control Over Financial Reporting |   | 16     |
|                                                                   |   |   |
| Report of Independent Registered Public Accounting Firm                |   | 17     |
|                                                                   |   |   |
| Consolidated Financial Statements                                      |   | 18     |
|                                                                   |   |   |
| Notes to Consolidated Financial Statements                             |   | 24     |
|                                                                   |   |   |
| Office Locations and Other Corporate Information                       |   | 49     |

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|   |   | To our Shareholders and Customers: The challenges of the economy have continued for the past two years. While we have had record-setting low interest rates, the effects of the decline of the housing market along with high unemployment and higher than normal delinquency remain the main focus of your management team’s attention. The net loss of $225,000 reported for the fiscal year is significantly less than the prior year loss of $1.4 million, primarily due to a $2.1 million reduction in the provision for loan losses.  In accordance with our plan, we have systematically reduced the higher-risk commercial loan portfolio and replaced some of those assets with owner-occupied home loans. Although our non-performing assets have decreased, they are still at an elevated level. Along with this transition, we have experienced a slight shift in our deposit balances, to core deposits from higher-cost certificates of deposit.  At September 30, 2010, we reported total assets of $166.8 million, total deposits of $138.8 million, net loans of $112.0 million and stockholders equity of $16.1 million.  The Bank remains “well capitalized” with a Tier I capital ratio of 8.24% and total risk-based capital ratio of 14.90%. We continue to monitor the expenses of the bank, as well as maintain the cost-control measures which began last year. The focus of your management team continues to be the improvement of asset quality and management of the loan portfolio.  While we have enhanced our credit risk management, when possible we continue to work with borrowers who have demonstrated repayment issues in these tough times. Your Company is mindful of the credit needs in the communities we serve and is committed to maintaining our credit quality yet still providing the loans required by our customers. Sincerely, /s/Frank J. Travea, III Frank J. Travea, IIIPresident and Chief Executive Officer  Route 130 South & Delaware Avenue, P O Box 66, Roebling, NJ 08554 (609) 499-9400  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |  Quarter Ended |  High |  Low |  Dividends |   |
|--------|---------------------|------------|-----------|-----------------|--------|
|   |                |       |      |            |   |
|   | September 30, 2010  | $ 4.20     | $ 4.05    | -               |   |
|   | June 30, 2010       | 5.00       | 3.75      | -               |   |
|   | March 31, 2010      | 4.00       | 3.50      | -               |   |
|   | December 31, 2009   |  6.00 | 4.00      | -               |   |
|   | September 30, 2009  | 5.50       | 3.80      | -               |   |
|   | June 30, 2009       | 6.00       | 5.50      | -               |   |
|   | March 31, 2009      | 8.00       | 4.75      | -               |   |
|   | December 31, 2008   |  8.95 | 4.80      | $.10            |   |

----

|                                                               |  At or for the Year Ended September 30,                                                                                                        |   |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                               | 2010                                                                                                                                                |   | 2009 |   | 2008 |   |
|                                                               | (Dollars in thousands, except per share data)                                                                                                       |   |
| Selected Balance Sheet Data:                                       |                                                                                                                                                |   |   |   |   |   |
| Assets                                                             |  $        166,758                                                                                      |   |  $    172,346 |   |  $    154,666 |   |
| Loans receivable, net                                              |              111,967                                                               |   |          118,428 |   |          109,474 |   |
| Securities                                                         |                 40,720                                              |   |             41,566 |   |             33,034 |   |
| Deposits                                                           |              138,769                                                               |   |          141,218 |   |          130,575 |   |
| Borrowed funds                                                     |                 10,000                                              |   |             13,000 |   |                5,000 |   |
| Shareholders' equity                                               |                 16,116                                              |   |             16,267 |   |             17,308 |   |
| Selected Results of Operations:                                    |                                                                                                                                                |   |   |   |   |   |
| Interest income                                                    |                    7,744                             |   |                8,580 |   |                8,626 |   |
| Interest expense                                                   |                    2,276                             |   |                3,149 |   |                3,451 |   |
| Net interest income                                                |                    5,467                             |   |                5,431 |   |                5,175 |   |
| Provision for loan losses                                          |                    1,100                             |   |                3,245 |   |                     278 |   |
| Non-interest income                                                |                         512 |   |                     698 |   |                     512 |   |
| Non-interest expense                                               |                    5,305                             |   |                5,228 |   |                4,667 |   |
| Net income (loss)                                                  |                      (225)                 |   |             (1,385) |   |                     472 |   |
| Per Share Data:                                                    |                                                                                                                                                |   |   |   |   |   |
| Earnings (loss) per share - basic                        |                    (0.14)                            |   |                (0.84) |   |                   0.28 |   |
| Earnings (loss) per share - diluted                                |                    (0.14)                            |   |                (0.84) |   |                   0.28 |   |
| Book value per share                                               |                       9.56            |   |                   9.65 |   |                10.07 |   |
| Weighted average basic shares outstanding                          |         1,645,350                                                                                           |   |     1,656,166 |   |     1,658,995 |   |
| Weighted average diluted shares outstanding                        |         1,645,350                                                                                           |   |     1,656,166 |   |     1,662,376 |   |
| Performance Ratios:                                                |                                                                                                                                                |   |   |   |   |   |
| Return on average assets        |                    (0.14)                            | %      |                (0.83) | % |                   0.32 | % |
| Return on average equity                                           |                    (1.38)                            |   |                (7.88) |   |                   2.74 |   |
| Net interest rate spread                                           |                       3.18            |   |                   2.92 |   |                   2.99 |   |
| Net interest margin                                                |                       3.50            |   |                   3.37 |   |                   3.61 |   |
| Efficiency ratio                                                   |                    88.73                             |   |                87.30 |   |                82.06 |   |
| Dividend payout ratio                               |  -                                                                                                                                             |   |                (0.12) |   |                   0.36 |   |
| Average interest-earning assets to average                         |                                                                                                                                                |   |   |   |   |   |
|    interest-bearing liabilities                     |                 121.63                                              |   |             123.14 |   |             125.99 |   |
| Asset Quality Ratios:                                              |                                                                                                                                                |   |   |   |   |   |
| Non-performing loans to total assets                               |                       2.95            |   |                   3.98 |   |                   0.60 |   |
| Non-performing loans to total loans, net                           |                       4.26            |   |                   5.66 |   |                   0.83 |   |
| Net charge-offs to average loans                                   |                       0.70            |   |                   1.10 |   |                   0.07 |   |
| Allowance for loan losses to total loans at period end             |                       2.79            |   |                   2.41 |   |                   0.87 |   |
| Allowance for loan losses to non-performing loans                  |                                                                                                                                                |   |   |   |   |   |
|    at period end                                    |                    65.32                             |   |                42.54 |   |             103.66 |   |
| Capital Ratios:                                                    |                                                                                                                                                |   |   |   |   |   |
| Average equity to average assets                                   |                       9.84            |   |                10.47 |   |                11.50 |   |
| Equity to assets at period end                                     |                       9.66            |   |                   9.44 |   |                11.19 |   |

----

----

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| ·   | originate loans with adjustable rate features or shorter term fixed rates for portfolio and sell longer term fixed rate mortgages; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | maintain a high percentage of low-cost transaction and savings accounts which tend to be less interest rate sensitive when interest rates rise; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | lengthen the maturities of our liabilities when it would be cost effective through the pricing and promotion of longer term certificates of deposit or the utilization of longer-term borrowings; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | maintain an investment portfolio, with short to intermediate terms to maturity or adjustable interest rates, that provides a stable cash flow, thereby providing investable funds in varying interest rate cycles. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |   |   |                |   |   |   |   |   |            |   |   | NPV as % of Present |   |
|---------|--------|--------|---------------------|--------|--------|--------|--------|--------|-----------------|--------|--------|---------------------|--------|
|    |   |   | Net Portfolio Value |   |   |   |   |   | Value of Assets |   |
| Change  |   |   | Estimated           |   |   |   |   |   |            |   |   | NPV                 |   |   |   |   |
| in Rate |   |   | Amount              |   |   | Change |   |   | % Change        |   |   | Ratio (1)           |   |   | Change (2) |   |
|    |   |   | ($ in thousands)    |   |   |   |   |   |            |   |   |                |   |
|    |   |   |                |   |   |   |   |   |            |   |   |                |   |   |   |   |
|    | +300   | bp     |                | $      | 16,239 |   |   | $      | (4,095          | )      |   |                | (20    | %) |   |   | 9.60 | % |   |   | -197 | bp |
|    | +200   | bp     |                |   | 18,287 |   |   |   | (2,047          | )      |   |                | (10    | %) |   |   | 10.63 | % |   |   | -94 | bp |
|    | +100   | bp     |                |   | 19,697 |   |   |   | (637            | )      |   |                | (3     | %) |   |   | 10.63 | % |   |   | -26 | bp |
|    | +50    | bp     |                |   | 20,002 |   |   |   | (332            | )      |   |                | (2     | %) |   |   | 10.63 | % |   |   | -14 | bp |
|    | 0      | bp     |                |   | 20,334 |   |   |   |            |   |   |                |   |   |   |   | 10.63 | % |   |   |   |   |
|    | -50    | bp     |                |   | 20,279 |   |   |   | (55             | )      |   |                | 0      | % |   |   | 10.63 | % |   |   | -6 | bp |
|    | -100   | bp     |                |   | 19,951 |   |   |   | (383            | )      |   |                | (2     | %) |   |   | 10.63 | % |   |   | -24 | bp |

|  (1) |   | Calculated as the estimated NPV divided by the present value of assets.                                                                                                   |
|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (2) |   | Calculated as the increase (decrease) in the NPV ratio assuming the indicated change in interest rates over the estimated NPV ratio assuming no change in interest rates. |

|   | This table indicates that the Bank’s net portfolio value would be expected to decrease in the event of an increase or decrease in prevailing market interest rates.  The decrease in net portfolio value would be greater in the event of a rise in interest rates. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                   | Year Ended September 30, 2010                                      |   |                     | Year Ended September 30, 2009 |       |   |
|--------------------------------------------------------|--------------------------------------------------------------------|--------|--------------------------|-------------------------------|------------|--------|
|                                                   | Average                                                            |   |                     |                          | Average    |   |   | Average |   |   |   | Average |   |   |
|                                                   | Balance                                                            |   | Interest                 |                          | Yield/Cost |   |   | Balance |   | Interest |   | Yield/Cost |   |   |
|                                                   | (Dollars in thousands)                                             |   |                     |
| Interest-earning assets:                               |                                                               |   |                     |                          |       |   |   |   |   |   |   |   |   |   |
|  Loans receivable (1)                             |  $   115,304                                   |   |  $  6,200 |                          | 5.38       | %      |   |  $   116,495 |   |  $  6,504 |   | 5.58 | % |   |
|  Investment securities                            | 39,476                                                             |   | 1,503                    |                          | 3.81       |   |   | 42,137 |   | 2,025 |   | 4.81 |   |   |
|  Other interest-earning assets (2)                | 1,559                                                              |   | 41                       |                          | 2.63       |   |   | 2,322 |   | 51 |   | 2.20 |   |   |
|   Total interest-earning assets              | 156,339                                                            |   | 7,744                    |                          | 4.95       |   |   | 160,954 |   | 8,580 |   | 5.33 |   |   |
| Non-interest-earning assets                            | 9,015                                                              |   |                     |                          |       |   |   | 6,934 |   |   |   |   |   |   |
|   Total assets                               |  $   165,354                                   |   |                     |                          |       |   |   |  $   167,888 |   |   |   |   |   |   |
|                                                   |                                                               |   |                     |                          |       |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                          |                                                               |   |                     |                          |       |   |   |   |   |   |   |   |   |   |
|  Interest-bearing checking                        |  $         7,002 |   | 14                       |                          | 0.20       |   |   |  $         8,004 |   | 17 |   | 0.21 |   |   |
|  Savings accounts                                 | 17,834                                                             |   | 53                       |                          | 0.30       |   |   | 16,672 |   | 80 |   | 0.48 |   |   |
|  Money market accounts                            | 22,576                                                             |   | 245                      |                          | 1.09       |   |   | 19,451 |   | 280 |   | 1.44 |   |   |
|  Certificates of deposit                          | 70,202                                                             |   | 1,626                    |                          | 2.32       |   |   | 72,328 |   | 2,358 |   | 3.26 |   |   |
|   Total interest-bearing deposits            | 117,614                                                            |   | 1,938                    |                          | 1.65       |   |   | 116,455 |   | 2,735 |   | 2.35 |   |   |
|  Borrowings                                       | 10,918                                                             |   | 339                      |                          | 3.11       |   |   | 14,248 |   | 414 |   | 2.91 |   |   |
|    Total interest-bearing liabilities   | 128,532                                                            |   | 2,277                    |                          | 1.77       |   |   | 130,703 |   | 3,149 |   | 2.41 |   |   |
| Non-interest-bearing liabilities (3)                   | 20,556                                                             |   |                     |                          |       |   |   | 19,613 |   |   |   |   |   |   |
|   Total liabilities                          | 149,088                                                            |   |                     |                          |       |   |   | 150,316 |   |   |   |   |   |   |
| Stockholders’ equity                             | 16,266                                                             |   |                     |                          |       |   |   | 17,572 |   |   |   |   |   |   |
|  Total liabilities and stockholders’ equity |  $   165,354                                   |   |                     |                          |       |   |   |  $   167,888 |   |   |   |   |   |   |
| Net interest income                                    |                                                               |   |  $  5,467 |                          |       |   |   |   |   |  $  5,431 |   |   |   |   |
| Interest rate spread (4)                               |                                                               |   |                     |                          | 3.18       | %      |   |   |   |   |   | 2.92 | % |   |
| Net interest margin (5)                                |                                                               |   |                     |                          | 3.50       | %      |   |   |   |   |   | 3.37 | % |   |
| Ratio of average interest-earning assets               |                                                               |   |                     |                          |       |   |   |   |   |   |   |   |   |   |
|  to average interest-bearing liabilities          |                                                               |   |                     |                          | 121.63     | %      |   |   |   |   |   | 123.14 | % |   |

| (1) | Average balances include non-accrual loans.  Interest income includes amortization of net deferred loan fees and (costs) of $(18,600) and $300 for the fiscal years 2010 and 2009, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes interest-bearing deposits in other financial institutions and FHLB stock.  Tax exempt interest is not presented on a taxable equivalent basis. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes average non-interest-bearing deposits of $19,069,000 and $17,857,000 for the years ended September 30, 2010 and 2009, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
|-----|--------------------------------------------------------------------------------------------------------|

----

|                                                 | Year Ended September 30,           |    |   | Year Ended September 30,                 |    |
|------------------------------------------------------|------------------------------------|---------|--------|------------------------------------------|---------|
|                                                 | 2010 vs. 2009                      |    |   | 2009 vs. 2008                            |    |
|                                                 | Increase (Decrease) Due to         |    |   | Increase (Decrease) Due to               |    |
|                                                 | Volume                             |    |   | Rate                                     |    |   | Net |   |   | Volume |   | Rate |   |   | Net |   |
|                                                 | (In thousands)                     |    |
| Interest-earning assets:                             |                               |    |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |
|  Loans receivable                               |  $    (66 | )       |   |  $  (238                  | )       |   |  $  (304 | ) |   |  $    488 |   |  $  (907 | )  |   |  $  (419 | )  |
|  Investment securities                          | (122                               | )  |   | (400                                     | )  |   | (522 | )  |   | 435 |   | (39 | )  |   | 396 |   |
|  Other interest-earning assets                  | (19                                | )  |   | 9                                        |    |   | (10 | )  |   | 19 |   | (42 | )  |   | (23 | )  |
|   Total interest-earning assets            | (207                               | )  |   | (629                                     | )  |   | (836 | )  |   | 942 |   | (988 | )  |   | (46 | )  |
|                                                 |                               |    |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                        |                               |    |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |
|  Interest-bearing checking                      | (2                                 | )  |   | (1                                       | )  |   | (3 | )  |   | 0 |   | (4 | )  |   | (4 | )  |
|  Savings accounts                               | 5                                  |    |   | (32                                      | )  |   | (27 | )  |   | 1 |   | (22 | )  |   | (21 | )  |
|  Money market accounts                          | 41                                 |    |   | (76                                      | )  |   | (35 | )  |   | 51 |   | (178 | )  |   | (127 | )  |
|  Certificates of deposit                        | (67                                | )  |   | (665                                     | )  |   | (732 | )  |   | 282 |   | (538 | )  |   | (256 | )  |
|  Borrowings                                     | (102                               | )  |   | 27                                       |    |   | (75 | )  |   | 218 |   | (112 | )  |   | 106 |   |
|    Total interest-bearing liabilities | (125                               | )  |   | (747                                     | )  |   | (872 | )  |   | 552 |   | (854 | )  |   | (302 | )  |
|                                                 |                               |    |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                  |  $    (82 | )  |   |  $     118 |    |   |  $        36 |   |   |  $    390 |   |  $  (134 | )  |   |  $     256 |   |
|                                                 |                               |    |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |

----

| ·   | historical experience; |
|--------------------|------------------------|

| ·   | volume; |
|--------------------|---------|

| ·   | type of lending conducted by the Bank; |
|--------------------|----------------------------------------|

| ·   | industry standards; |
|--------------------|---------------------|

| ·   | the level and status of past due and non-performing loans; |
|--------------------|------------------------------------------------------------|

| ·   | the real estate market; |
|--------------------|-------------------------|

| ·   | the general economic conditions in the Bank’s lending area; and |
|--------------------|-----------------------------------------------------------------------|

| ·   | other factors affecting the collectibility of the loans in its portfolio. |
|--------------------|---------------------------------------------------------------------------|

----

|                                                |   |   | September 30,  |   |
|-----------------------------------------------------|--------|--------|----------------|--------|
|                                                |   |   | 2010           |   |   |   | 2009 |   |
|                                                |   |   | (In thousands) |   |
| Non-accrual loans                                   |   |   | $              | 4,650  |   |   |   | $ | 6,864 |   |
| Accruing loans past due 90 days or more             |   |   |           | 261    |   |   |   |   | -- |   |
|     Total non-performing loans  |   |   |           | 4,911  |   |   |   |   | 6,864 |   |
|  Real estate owned                             |   |   |           | 749    |   |   |   |   | 1,203 |   |
|     Total non-performing assets |   |   | $              | 5,660  |   |   |   | $ | 8,067 |   |

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|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |   September 30,                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          | 2010                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2009 |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Assets                                                                         |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Cash and due from banks                                                        |                                                                                                                                                                                                                      |  $                              908,152                        |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |  $                                       2,081,500                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Interest-bearing deposits                                                      |                                                                                                                                                                                                                      |                               5,110,630                             |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                             1,992,787                             |                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           | Total cash and cash equivalents                                                                                                                                                                                           |                               6,018,782                             |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                             4,074,287                             |                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Securities available for sale                                                  |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                            40,592,885                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                          41,417,779                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Securities held to maturity; approximate fair                                  |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |
|   value of $132,000 (2010) and $150,000 (2009), respectively         |                                                                                                                                                                                                                      |                                    127,306 |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                  148,011 |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Loans receivable, net                                                          |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                         111,967,100                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                       118,428,046                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Real estate owned                                                              |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                    749,310                                                                                                       |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                             1,203,000                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Accrued interest receivable                                                    |                                                                                                                                                                                                                      |                                    503,831 |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                  609,213 |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Federal Home Loan Bank of New York stock, at cost                              |                                    745,500 |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                  859,300                   |                                                                                                                                                                                                                                                                                                          |
| Premises and equipment                                                         |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                               3,223,924                                                                                                                                   |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                             3,293,334                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Other assets                                                                   |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                               2,829,024                                                                                                                                   |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                             2,313,249                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           | Total assets                                                                                                                                                                                                              |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |  $                   166,757,662                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |  $                                 172,346,219 |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Liabilities and stockholders' equity                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Liabilities                                                                    |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Deposits                                                                       |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |  $                   138,768,915                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |  $                                 141,218,085 |   |
| Borrowed funds                                                                 |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                            10,000,000                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |                                          13,000,000 |   |
| Advances from borrowers for taxes and insurance                                |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                    455,803                                                                                                       |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                  492,883                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Other liabilities                                                              |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                               1,417,337                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |                                             1,368,082 |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           | Total liabilities                                                                                                                                                                                                         |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                         150,642,055                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                       156,079,050                                                                                                                                                                     |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Commitments and contingencies                                                  |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                      - |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                    - |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Stockholders' equity                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
| Serial preferred stock, par value $.10, authorized 5,000,000                   |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |
|    shares, no shares issued                                          |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                      - |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                    - |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Common stock; par value $.10; 20,000,000 shares authorized                     |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |
|    and 1,718,473 shares issued                                       |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                    171,847                                                                                                       |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                  171,847                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Additional paid-in-capital                                                     |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                            10,348,052                                                                                                                                                    |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                          10,379,826                                                                                                                                                    |   |
| Treasury stock, at cost; 31,946 shares                                         |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                 (190,398                                                                                                                        | )                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                |                                               (190,398                                                                                                                        | )  |
| Unallocated employee stock ownership plan shares                               |                                 (310,261                  | )                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                            |                                               (387,826                                    | )                                                                                                                                                                                                                                                                                                             |
| Unallocated restricted stock plan shares                                       |                                                                                                                                                                                                                      |                                    (93,041 | )                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                            |                                                  (96,374 | )                                                                                                                                                                                                                                                                                                                                                                                                              |
| Deferred compensation obligation                                               |                                                                                                                                                                                                                      |                                    239,893 |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                  187,121 |                                                                                                                                                                                                                                                                                                                                                                                                                |
| Stock purchased for deferred compensation plan                                 |                                 (239,893                  | )                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                            |                                               (187,121                                    | )                                                                                                                                                                                                                                                                                                        |
| Retained earnings - substantially restricted                                   |                               5,502,021                             |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                             5,727,021                                               |                                                                                                                                                                                                                                                                                                          |
| Accumulated other comprehensive income (loss):                                 |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |
|    Unrealized gain on securities available for sale, net of tax |                                    812,867 |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                  798,070                   |                                                                                                                                                                                                                                                                                                          |
|    Defined benefit plan, net of tax                             |                                 (125,480                  | )                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                            |                                               (134,997                                    | )                                                                                                                                                                                                                                                                                                        |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           | Total stockholders' equity                                                                                                                                                                                                |                                                                                                                                                                                                                      |                            16,115,607                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                          16,267,169                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           | Total liabilities and stockholders' equity                                                                                                                                                                                |  $                   166,757,662                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |  $                                 172,346,219                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|                                                                           |                                                                                                                                                                                                                      |                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |

----

|                                                    |                                  |   |                                                                                                                            |   Year Ended                                                                                                                                                                                                               |    |
|---------------------------------------------------------|---------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                    |                                  |   |                                                                                                                            |   September 30,                                                                                                                                                                                                            |    |
|                                                    |                                  |   |                                                                                                                            | 2010                                                                                                                                                                                                                            |    |   |   | 2009 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Interest income:                                        |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|    Loans receivable                      |                                  |   | $                                                                                                                               | 6,200,022                                                                                                                                                                                                                       |    |   | $  |             6,503,426 |   |
|    Securities                            |                                  |   |                                                                                                                            |                 1,502,612                                                                                                                       |    |   |   |                2,024,743 |   |
|    Other interest-earning assets         |                                  |   |                                                                                                                            |                        41,238                                                                                |    |   |   |                          51,461 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    | Total interest income                 |   |                                                                                                                            |               7,743,872                                                                                                                                   |    |   |   |                8,579,630 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Interest expense:                                       |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|    Deposits                              |                                  |   |                                                                                                                            |                 1,937,714                                                                                                                       |    |   |   |                 2,735,421 |   |
|    Borrowed funds                        |                                  |   |                                                                                                                            |                    338,746                                                                                                       |    |   |   |                      413,606 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    | Total interest expense                |   |                                                                                                                            |               2,276,460                                                                                                                                   |    |   |   |                 3,149,027 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Net interest income                                     |                                  |   |                                                                                                                            |                5,467,412                                                                                                                             |    |   |   |                5,430,603 |   |
| Provision for loan losses                               |                                  |   |                                                                                                                            |                 1,100,000                                                                                                                       |    |   |   |                3,245,000 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    | Net interest income after             |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    |   provision for loan losses |   |                                                                                                                            |                4,367,412                                                                                                                             |    |   |   |                 2,185,603 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Non-interest income:                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|    Loan fees                             |                                  |   |                                                                                                                            |                       86,389                                                                                      |    |   |   |                         95,031 |   |
|    Account servicing and other           |                                  |   |                                                                                                                            |                    423,557                                                                                                       |    |   |   |                      431,205 |   |
|    Gain on sale of loans                 |                                  |   |                                                                                                                            |                           1,973                                                               |    |   |   |                         31,748 |   |
|    Gain on sale of securities            |                                  |   |                                                                                                                            |                                      - |    |   |   |                       140,156 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    | Total non-interest income             |   |                                                                                                                            |                       511,919                                                                                     |    |   |   |                      698,140 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Non-interest expense:                                   |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|    Compensation and benefits             |                                  |   |                                                                                                                            |               2,288,409                                                                                                                                   |    |   |   |                 2,551,758 |   |
|    Occupancy and equipment               |                                  |   |                                                                                                                            |                    524,308                                                                                                       |    |   |   |                     595,722 |   |
|    Service bureau and data processing    |                                  |   |                    536,090       |                                                                                                                                                                                                                            |    |   |                     548,043 |   |
|    Federal deposit insurance premiums    |                                  |   |                     318,736 |                                                                                                                                                                                                                            |    |   |                      315,437 |   |
|    Real estate and repossessed assets    |                                  |   |                     596,331 |                                                                                                                                                                                                                            |    |   |                       197,714 |   |
|    Other                                 |                                  |   |                                                                                                                            |                 1,041,395                                                                                                                       |    |   |   |                  1,019,250 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    | Total non-interest expense            |   |                                                                                                                            |               5,305,269                                                                                                                                   |    |   |   |                5,227,924 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Loss before income tax benefit                          |                                  |   |                                                                                                                            |                 (425,938                                                                                                                        | )  |   |   |               (2,344,181 | )  |
| Income tax benefit                                      |                                  |   |                                                                                                                            |                 (200,938                                                                                                                        | )  |   |   |                   (958,801 | )  |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
|                                                    | Net loss                              |   | $                                                                                                                               | (225,000                                                                                                                                                                                                                        | )  |   | $  |           (1,385,380 | )  |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Basic and diluted loss per common share                 |                                  | $      | (0.14                                                                                                                           | )                                                                                                                                                                                                                               |    | $  |                        (0.84 | )  |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |
| Weighted average shares outstanding - basic and diluted |                                  |   |                1,645,350                             |                                                                                                                                                                                                                            |    |   |                  1,656,166 |   |
|                                                    |                                  |   |                                                                                                                            |                                                                                                                                                                                                                            |    |   |   |   |   |

----

|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |   Year Ended                                                         |
|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |   September 30,                                                      |
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 | 2010                                                                      |   | 2009 |
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |                                                                      |   |   |
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |                                                                      |   |   |
| Net loss                                                                             |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |  $      (225,000)                      |   |  $   (1,385,380) |
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |                                                                      |   |   |
| Other comprehensive income (loss):                                                   |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |                                                                      |
|     Unrealized net holding gains on securities                   |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |
|        available for sale, net of tax of $9,840   |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |
|        and $471,354, respectively                 |                                                                                                                                  |   |                                                                                            |              14,797 |                                                                                 |            706,775 |
|     Reclassification adjustment for gains included in net income |                       - |   |            (84,178)                      |
|     Adjustment to minimum pension liability, net of tax          |                                                                                                                                  |   |                                                                                            |                                                                                 |
|        of $6,329 and $55,933, respectively        |                                                                                                                                  |   |                9,517 |                                                                                 |              84,111 |
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |                                                                      |   |   |
| Comprehensive loss                                                                   |                                                                                                                                  |   |                                                                                            |                                                                                 |  $      (200,686)                                 |                                                                      |  $      (678,672) |
|                                                                                 |                                                                                                                                  |   |                                                                                            |                                                                                 |                                                                                 |                                                                      |   |   |

----

|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    | Common       |   |   |     |   |   | Accumulated   |     |   |   |   |
|-------------------------------------------------|--------|--------|---------|--------|------------|--------|------------|----------|--------|--------|-------------|--------|--------|-------------|----------|--------|--------------|--------|---------|--------------|--------|--------|----------|--------|--------|---------------|----------|--------|--------|--------|
|                                            |   |   |    |   | Additional |   |       |     |   |   | Unallocated |   |   | Unallocated |     |   | Deferred     |   |    | Stock for    |   |   |     |   |   | Other         |     |   |   |   |
|                                            |   | Common |    |   | Paid-in    |   |       | Treasury |   |   | ESOP        |   |   | RSP         |     |   | Compensation |   |    | Deferred     |   |   | Retained |   |   | Comprehensive |     |   |   |   |
|                                            |   | Stock  |    |   | Capital    |   |       | Stock    |   |   | Shares      |   |   | Shares      |     |   | Obilgation   |   |    | Compensation |   |   | Earnings |   |   | Income (Loss) |     |   | Total  |   |
|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |
| Balance - September 30, 2008                    |   | $      | 171,847 |   |       | $      | 10,442,095 |     |   | $      | -           |   |   | $           | (465,390 | )      |         | $      | (93,869 | )            |   | $      | 157,609  |   |   | $             | (157,609 | )      |   | $      | 7,296,951 |   |   | $ | (43,635 | ) |   | $ | 17,307,999 |   |
|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid on common stock                  |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | (166,358 | ) |   |   | - |   |   |   | (166,358 | ) |
| Net loss                                        |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | (1,385,380 | ) |   |   | - |   |   |   | (1,385,380 | ) |
| Treasury stock purchased                        |   |   | -       |   |       |   | -          |     |   |   | (190,398    | )      |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | (190,398 | ) |
| Amortization of ESOP shares                     |   |   | -       |   |       |   | (26,601    | )        |   |   | -           |   |   |        | 77,564   |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | 50,963 |   |
| Change in unrealized gain (loss) on             |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  securities available for sale, net of tax |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | 622,597 |   |   |   | 622,597 |   |
| Deferred compensation plan                      |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | 29,512   |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | 29,512 |   |
| Common stock acquired for deferred              |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  compensation plan                         |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | (29,512  | )      |   |   | - |   |   |   | - |   |   |   | (29,512 | ) |
| Common stock acquired by RSP                    |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | (59,600 | )            |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | (59,600 | ) |
| Allocation of RSP shares                        |   |   | -       |   |       |   | (32,138    | )        |   |   | -           |   |   |        | -        |   |         |   | 57,095  |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | 24,957 |   |
| Tax expense of stock benefit plans              |   |   | -       |   |       |   | (3,530     | )        |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | (3,530 | ) |
| Adjustment to minimum pension                   |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  liability, net of tax                     |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | 77,393 |   |   |   | 77,393 |   |
| Adjustment to apply SFAS No. 158                |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (codified into ASC Topic 715)             |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  measurement date provisions,              |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  net of tax                                |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | (18,192 | ) |   |   | 6,718 |   |   |   | (11,474 | ) |
|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - September 30, 2009                    |   |   | 171,847 |   |       |   | 10,379,826 |     |   |   | (190,398    | )      |   |        | (387,826 | )      |         |   | (96,374 | )            |   |   | 187,121  |   |   |          | (187,121 | )      |   |   | 5,727,021 |   |   |   | 663,073 |   |   |   | 16,267,169 |   |
|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                        |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | (225,000 | ) |   |   | - |   |   |   | (225,000 | ) |
| Amortization of ESOP shares                     |   |   | -       |   |       |   | (38,154    | )        |   |   | -           |   |   |        | 77,565   |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | 39,411 |   |
| Change in unrealized gain (loss) on             |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  securities available for sale, net of tax |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | 14,797 |   |   |   | 14,797 |   |
| Deferred compensation plan                      |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | 52,772   |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | 52,772 |   |
| Common stock acquired for deferred              |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  compensation plan                         |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | (52,772  | )      |   |   | - |   |   |   | - |   |   |   | (52,772 | ) |
| Allocation of RSP shares                        |   |   | -       |   |       |   | 9,181      |     |   |   | -           |   |   |        | -        |   |         |   | 3,333   |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | 12,514 |   |
| Tax expense of stock benefit plans              |   |   | -       |   |       |   | (2,801     | )        |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | - |   |   |   | (2,801 | ) |
| Adjustment to minimum pension                   |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  liability, net of tax                     |   |   | -       |   |       |   | -          |     |   |   | -           |   |   |        | -        |   |         |   | -       |         |   |   | -        |   |   |          | -        |   |   |   | - |   |   |   | 9,517 |   |   |   | 9,517 |   |
|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - September 30, 2010                    |   | $      | 171,847 |   |       | $      | 10,348,052 |     |   | $      | (190,398    | )      |   | $           | (310,261 | )      |         | $      | (93,041 | )            |   | $      | 239,893  |   |   | $             | (239,893 | )      |   | $      | 5,502,021 |   |   | $ | 687,387 |   |   | $ | 16,115,607 |   |
|                                            |   |   |    |   |       |   |       |     |   |   |        |   |   |        |     |   |         |   |    |         |   |   |     |   |   |          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                 |   |   |  Year Ended    |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|-------------|
|                                                                                                                                                                                                 |   |   |  September 30, |        |
|                                                                                                                                                                                                 |   |   | 2010                |        |   | 2009 |   |
|                                                                                                                                                                                                 |   |   |                |        |   |   |   |
| Cash flows from operating activities:                                                                                                                                                                |   |   |                |        |   |   |   |
|    Net loss                                                                                                                                                                           |   |   | $                   | (225,000    | ) |   | $ | (1,385,380 | ) |
|    Adjustments to reconcile net income to                                                                                                                                             |   |   |                |        |   |   |   |   |   |
|     net cash provided by operating activities:                                                                                                                                   |   |   |                |        |   |   |   |   |   |
|        Depreciation                                                                                                                                               |   |   |                | 158,257     |   |   |   | 257,727 |   |
|        Amortization of premiums and discounts, net                                                                                                                |   |   | 54,976              |        |   |   | 28,171 |   |
|        Amortization of deferred loan fees and costs, net                                                                                                          |   |   | 18,566              |        |   |   | (285 | ) |
|        Provision for loan losses                                                                                                                                  |   |   |                | 1,100,000   |   |   |   | 3,245,000 |   |
|        Provision for loss on real estate owned                                                                                                                    |   |   |                | 482,385     |   |   |   | 187,500 |   |
|        Loss on sale of real estate owned                                                                                                                          |   |   |                | 15,847      |   |   |   | - |   |
|        Gain on sale of securities held for sale                                                                                                                   |   |   |                | -           |   |   |   | (140,156 | ) |
|        Origination of loans held for sale, net of repayments                                                                                                      |   |   | (1,773,470          | )           |   |   | (4,752,835 | ) |
|        Gain on sale of loans                                                                                                                                      |   |   |                | (1,973      | ) |   |   | (31,748 | ) |
|        Proceeds from sale of loans held for sale                                                                                                                  |   |   |                | 1,269,843   |   |   |   | 4,784,583 |   |
|        Loss on disposition of premises and equipment                                                                                                              |   |   | -                   |        |   |   | 4,594 |   |
|        Increase in other assets                                                                                                                                   |   |   |                | (499,947    | ) |   |   | (1,760,797 | ) |
|        Decrease in accrued interest receivable                                                                                                                    |   |   |                | 105,382     |   |   |   | 65,739 |   |
|        Increase in other liabilities                                                                                                                              |   |   |                | 30,303      |   |   |   | 137,891 |   |
|        Amortization/allocation of ESOP and RSP                                                                                                                    |   |   |                | 51,925      |   |   |   | 75,920 |   |
|        Increase in deferred compensation stock obligation                                                                                                         |   |   | 52,772              |        |   |   | 29,512 |   |
|                                                                                                                                                                                                 |   |   |                |        |   |   |   |   |   |
|                          Net cash provided by operating activities           |   |   |                | 839,866     |   |   |   | 745,436 |   |
|                                                                                                                                                                                                 |   |   |                |        |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                |   |   |                |        |   |   |   |   |   |
|    Purchase of securities available for sale                                                                                                                                          |   |   |                | (21,793,940 | ) |   |   | (27,450,996 | ) |
|    Proceeds from sales of securities available for sale                                                                                                                               |   |   | -                   |        |   |   | 3,140,156 |   |
|    Proceeds from payments and maturities of                                                                                                                                           |   |   |                |        |   |   |   |   |   |
|     securities available for sale                                                                                                                                                |   |   |                | 22,588,519  |   |   |   | 16,894,925 |   |
|    Proceeds from payments and maturities                                                                                                                                              |   |   |                |        |   |   |   |   |   |
|     of securities held to maturity                                                                                                                                               |   |   |                | 20,681      |   |   |   | 32,755 |   |
|    Net decrease (increase) in loans                                                                                                                                                   |   |   |                | 5,155,965   |   |   |   | (13,279,238 | ) |
|    Proceeds from sale of real estate owned                                                                                                                                            |   |   |                | 647,473     |   |   |   | - |   |
|    Redemption (purchase)  of Federal Home Loan Bank Stock                                                                                                                   |   |   | 113,800             |        |   |   | (414,000 | ) |
|    Purchase of premises and equipment                                                                                                                                                 |   |   |                | (88,847     | ) |   |   | (192,983 | ) |
|                                                                                                                                                                                                 |   |   |                |        |   |   |   |   |   |
|                          Net cash provided by (used in) investing activities |   |   |                | 6,643,651   |   |   |   | (21,269,381 | ) |
|                                                                                                                                                                                                 |   |   |                |        |   |   |   |   |   |

----

|                                                                             |   |  Year Ended    |       |
|----------------------------------------------------------------------------------|--------|---------------------|------------|
|                                                                             |   |  September 30, |       |
|                                                                             |   | 2010                |       |   | 2009 |   |
|                                                                             |   |                |       |   |   |   |
| Cash flows from financing activities:                                            |   |                |       |   |   |   |
|     Net (decrease) increase in deposits                      |   |                | (2,449,170 | ) |   |   | 10,643,446 |   |
|     Net increase in short-term borrowed funds                |   |                | 3,000,000  |   |   |   | - |   |
|     Proceeds from long-term borrowed funds                   |   |                | -          |   |   |   | 9,000,000 |   |
|     Repayment of long-term borrowed funds                    |   |                | (6,000,000 | ) |   |   | (1,000,000 | ) |
|     (Decrease) increase in advance payments by borrowers     |   |                |       |   |   |   |   |   |
|       for taxes and insurance                      |   |                | (37,080    | ) |   |   | 44,820 |   |
|     Dividends paid                                           |   |                | -          |   |   |   | (166,358 | ) |
|     Purchase of treasury stock                               |   |                | -          |   |   |   | (190,398 | ) |
|     Purchase of common shares by RSP                         |   |                | -          |   |   |   | (59,600 | ) |
|     Purchase of common shares for deferred compensation plan |   |                | (52,772    | ) |   |   | (29,512 | ) |
|                                                                             |   |                |       |   |   |   |   |   |
| Net cash (used in) provided by financing activities                              |   |                | (5,539,022 | ) |   |   | 18,242,398 |   |
|                                                                             |   |                |       |   |   |   |   |   |
|                                                                             |   |                |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                             |   |                | 1,944,495  |   |   |   | (2,281,547 | ) |
|                                                                             |   |                |       |   |   |   |   |   |
| Cash and cash equivalents - beginning                                            |   |                | 4,074,287  |   |   |   | 6,355,834 |   |
|                                                                             |   |                |       |   |   |   |   |   |
| Cash and cash equivalents - ending                                               |   | $                   | 6,018,782  |   |   | $ | 4,074,287 |   |
|                                                                             |   |                |       |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information                                |   |                |       |   |   |   |   |   |
|                                                                             |   |                |       |   |   |   |   |   |
| Cash paid for:                                                                   |   |                |       |   |   |   |   |   |
|     Interest on deposits and borrowed funds                  |   | $                   | 2,277,140  |   |   | $ | 3,149,912 |   |
|                                                                             |   |                |       |   |   |   |   |   |
|     Income taxes (refunds), net                              |   | $                   | (432,185   | ) |   | $ | 625,983 |   |
|                                                                             |   |                |       |   |   |   |   |   |
| Transfer of loans to real estate owned                                           |   | $                   | 692,015    |   |   | $ | 1,085,000 |   |
|                                                                             |   |                |       |   |   |   |   |   |

----

----

----

----

----

|                                             |   |  Year Ended    |      |
|--------------------------------------------------|--------|---------------------|-----------|
|                                             |   |  September 30, |      |
|                                             |   | 2010                |      |   | 2009 |   |
|                                             |   |                |      |   |   |   |
| Net loss                                         |   | $                   | (225,000  | ) |   | $ | (1,385,380 | ) |
|                                             |   |                |      |   |   |   |   |   |
| Weighted average common shares                   |   |                |      |   |   |   |   |   |
|   outstanding for computation of       |   |                |      |   |   |   |   |   |
|   basic EPS (1)                        |   |                | 1,645,350 |   |   |   | 1,656,166 |   |
|                                             |   |                |      |   |   |   |   |   |
| Common-equivalent shares due to                  |   |                |      |   |   |   |   |   |
|   the dilutive effect of stock options |   |                |      |   |   |   |   |   |
|   and RSP awards                       |   |                | -         |   |   |   | - |   |
|                                             |   |                |      |   |   |   |   |   |
| Weighted-average common shares                   |   |                |      |   |   |   |   |   |
|   for computation of diluted EPS       |   |                | 1,645,350 |   |   |   | 1,656,166 |   |
|                                             |   |                |      |   |   |   |   |   |
| Loss per common share:                           |   |                |      |   |   |   |   |   |
|    Basic                          |   | $                   | (0.14     | ) |   | $ | (0.84 | ) |
|    Diluted                        |   | $                   | (0.14     | ) |   | $ | (0.84 | ) |
|                                             |   |                |      |   |   |   |   |   |
| (1) Excludes unallocated ESOP shares             |   |                |      |   |   |   |   |   |

----

|                                                                       |   |  September 30, 2010 |       |
|----------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                       |   | Amortized                |       |   |  Gross Unrealized |   |   | Estimated |   |
|                                                                       |   | Cost                     |       |   | Gains |   |   | Losses |   |   | Fair Value |   |
|                                                                       |   |                     |       |   |   |   |   |   |   |   |   |   |
| Investment Securities                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
|    U.S. Government and Agency Securities:                   |   |                     |       |   |   |   |   |   |   |   |   |   |
|       Due after one year through five years  |   | $                        | 4,000,000  |   |   | $ | 33,440 |   |   | $ | - |   |   | $ | 4,033,440 |   |
|       Due after five years through ten years |   |                     | 10,748,648 |   |   |   | 55,347 |   |   |   | 2,810 |   |   |   | 10,801,185 |   |
|    Marketable Equity Securities                             |   |                     | 2,888      |   |   |   | - |   |   |   | 2,780 |   |   |   | 108 |   |
|                                                                       |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage-backed Securities:                              |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       GNMA                                   |   |                     | 3,154,034  |   |   |   | 94,307 |   |   |   | - |   |   |   | 3,248,341 |   |
|       FHLMC                                  |   |                     | 11,347,975 |   |   |   | 724,496 |   |   |   | - |   |   |   | 12,072,471 |   |
|       FNMA                                   |   |                     | 9,985,915  |   |   |   | 451,425 |   |   |   | - |   |   |   | 10,437,340 |   |
|                                                                       |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   | $                        | 39,239,460 |   |   | $ | 1,359,015 |   |   | $ | 5,590 |   |   | $ | 40,592,885 |   |

|                                                                       |   |  September 30, 2009 |       |
|----------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                       |   | Amortized                |       |   |  Gross Unrealized |   |   | Estimated |   |
|                                                                       |   | Cost                     |       |   | Gains |   |   | Losses |   |   | Fair Value |   |
|                                                                       |   |                     |       |   |   |   |   |   |   |   |   |   |
| Investment Securities                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
|    U.S. Government and Agency Securities:                   |   |                     |       |   |   |   |   |   |   |   |   |   |
|       Due within one year                    |   | $                        | 1,000,000  |   |   | $ | 2,190 |   |   | $ | - |   |   | $ | 1,002,190 |   |
|       Due after one year through five years  |   |                     | 3,000,000  |   |   |   | 26,693 |   |   |   | - |   |   |   | 3,026,693 |   |
|       Due after five years through ten years |   |                     | 1,500,000  |   |   |   | 735 |   |   |   | 1,875 |   |   |   | 1,498,860 |   |
|    Marketable Equity Securities                             |   |                     | 2,888      |   |   |   | - |   |   |   | 2,280 |   |   |   | 608 |   |
|                                                                       |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage-backed Securities:                              |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       GNMA                                   |   |                     | 3,229,146  |   |   |   | 75,784 |   |   |   | - |   |   |   | 3,304,930 |   |
|       FHLMC                                  |   |                     | 18,256,114 |   |   |   | 847,987 |   |   |   | - |   |   |   | 19,104,101 |   |
|       FNMA                                   |   |                     | 13,100,843 |   |   |   | 384,410 |   |   |   | 4,856 |   |   |   | 13,480,397 |   |
|                                                                       |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   | $                        | 40,088,991 |   |   | $ | 1,337,799 |   |   | $ | 9,011 |   |   | $ | 41,417,779 |   |

----

|                                                                     |   |  September 30, 2010 |      |
|--------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                     |   |  Under One Year     |      |   |  One Year or More |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                     |      |   | Gross |   |   |   |   |   | Gross |   |
|                                                                     |   | Estimated                |      |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
|                                                                     |   | Fair Value               |      |   | Loss |   |   | Fair Value |   |   | Loss |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |
| U.S. Government and Agency Securities                                    |   | $                        | 1,997,190 |   |   | $ | 2,810 |   |   | $ | - |   |   | $ | - |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable Equity Securities                                             |   |                     | -         |   |   |   | - |   |   |   | 108 |   |   |   | 2,780 |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total available for sale |   | $                        | 1,997,190 |   |   | $ | 2,810 |   |   | $ | 108 |   |   | $ | 2,780 |   |

|                                                                     |   |  September 30, 2009 |      |
|--------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                     |   |  Under One Year     |      |   |  One Year or More |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                     |      |   | Gross |   |   |   |   |   | Gross |   |
|                                                                     |   | Estimated                |      |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
|                                                                     |   | Fair Value               |      |   | Loss |   |   | Fair Value |   |   | Loss |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |
| U.S. Government and Agency Securities                                    |   | $                        | 748,125   |   |   | $ | 1,875 |   |   | $ | - |   |   | $ | - |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable Equity Securities                                             |   |                     | -         |   |   |   | - |   |   |   | 608 |   |   |   | 2,280 |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed Securities:                                              |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     FNMA                                             |   |                     | 954,049   |   |   |   | 4,856 |   |   |   | - |   |   |   | - |   |
|                                                                     |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total available for sale |   | $                        | 1,702,174 |   |   | $ | 6,731 |   |   | $ | 608 |   |   | $ | 2,280 |   |

|                        |   |  September 30, 2010 |    |
|-----------------------------|--------|--------------------------|---------|
|                        |   | Amortized                |    |   |  Gross Unrealized |   |   | Estimated |   |
|                        |   | Cost                     |    |   | Gains |   |   | Losses |   |   | Fair Value |   |
|                        |   |                     |    |   |   |   |   |   |   |   |   |   |
| Mortgage-backed Securities: |   |                     |    |   |   |   |   |   |   |   |   |   |
|    GNMA      |   | $                        | 22,120  |   |   | $ | 700 |   |   | $ | - |   |   | $ | 22,820 |   |
|    FHLMC     |   |                     | 54,018  |   |   |   | 2,268 |   |   |   | 21 |   |   |   | 56,265 |   |
|    FNMA      |   |                     | 51,168  |   |   |   | 2,223 |   |   |   | - |   |   |   | 53,391 |   |
|                        |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | $                        | 127,306 |   |   | $ | 5,191 |   |   | $ | 21 |   |   | $ | 132,476 |   |

----

|                        |   |  September 30, 2009 |
|-----------------------------|--------|--------------------------|
|                        |   | Amortized                |   |   |  Gross Unrealized |   |   | Estimated |   |
|                        |   | Cost                     |   |   | Gains |   |   | Losses |   |   | Fair Value |   |
|                        |   |                     |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed Securities: |   |                     |   |   |   |   |   |   |   |   |   |   |
|    GNMA      |   | $                        | 23,490 |   |   | $ | 590 |   |   | $ | - |   |   | $ | 24,080 |   |
|    FHLMC     |   |                     | 58,159 |   |   |   | 1,047 |   |   |   | - |   |   |   | 59,206 |   |
|    FNMA      |   |                     | 66,362 |   |   |   | 186 |   |   |   | - |   |   |   | 66,548 |   |
|                        |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | $                        | 148,011 |   |   | $ | 1,823 |   |   | $ | - |   |   | $ | 149,834 |   |

|                                                                                                                                |   |   |  September 30, |        |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------|-------------|
|                                                                                                                                |   |   | 2010                |        |   | 2009 |   |
|                                                                                                                                |   |   |                |        |   |   |   |
| Mortgage loans:                                                                                                                     |   |   |                |        |   |   |   |
|     One-to-four family residential                                                                              |   | $      | 61,113,082          |        |   | $ | 62,137,507 |   |
|     Multi-family residential                                                                                    |   |   | 2,993,818           |        |   |   | 3,801,451 |   |
|     Commercial real estate                                                                                      |   |   |                | 18,935,564  |   |   |   | 21,424,193 |   |
|     Construction and land                                                                                       |   |   |                | 2,814,368   |   |   |   | 5,785,211 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
|                                                                                                                                |   |   |                | 85,856,832  |   |   |   | 93,148,362 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
| Consumer and other loans:                                                                                                           |   |   |                |        |   |   |   |   |
|     Home equity                                                                                                 |   |   |                | 28,250,278  |   |   |   | 27,530,197 |   |
|     Other consumer                                                                                              |   |   |                | 356,837     |   |   |   | 350,010 |   |
|     Commercial                                                                                                  |   |   |                | 742,973     |   |   |   | 1,289,739 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
|                                                                                                                                |   |   |                | 29,350,088  |   |   |   | 29,169,946 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
|                     Total loans |   |   |                | 115,206,920 |   |   |   | 122,318,308 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
| Less:                                                                                                                               |   |   |                |        |   |   |   |   |   |
|     Loans in process                                                                                            |   |   |                | 57,503      |   |   |   | 987,018 |   |
|     Net deferred loan origination fees (costs)                                                                  |   |   | (25,534             | )           |   |   | (16,353 | ) |
|     Allowance for loan losses                                                                                   |   |   | 3,207,851           |        |   |   | 2,919,597 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
|                                                                                                                                |   |   |                | 3,239,820   |   |   |   | 3,890,262 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |
|                                                                                                                                |   |   | $                   | 111,967,100 |   |   | $ | 118,428,046 |   |
|                                                                                                                                |   |   |                |        |   |   |   |   |   |

----

|                                                 |   |  September 30,  |   |
|------------------------------------------------------|--------|----------------------|--------|
|                                                 |   | 2010                 |   |   | 2009 |   |
|                                                 |   |  (In thousands) |   |
|                                                 |   |                 |   |   |   |   |
| Impaired loans with a related allowance              |   | $                    | 4,311  |   |   | $ | 4,943 |   |
| Impaired loans without a related allowance           |   |                 | 768    |   |   |   | 255 |   |
| Total impaired loans                                 |   |                 | 5,079  |   |   |   | 5,198 |   |
|                                                 |   |                 |   |   |   |   |   |   |
| Related allowance for loan losses for impaired loans |   |                 | 1,911  |   |   |   | 1,435 |   |
|                                                 |   |                 |   |   |   |   |   |   |
| Non-accrual loans                                    |   |                 | 4,650  |   |   |   | 6,864 |   |
|                                                 |   |                 |   |   |   |   |   |   |
| Average monthly balance of impaired loans            |   |                 | 4,793  |   |   |   | 2,803 |   |
|                                                 |   |                 |   |   |   |   |   |   |
| Interest income recognized on impaired loans         |   |                 |   |   |   |   |   |   |
|     during the period of impairment   |   |                 | 26     |   |   |   | 1 |   |

|                      |   |  Year Ended    |      |
|---------------------------|--------|---------------------|-----------|
|                      |   |  September 30, |      |
|                      |   | 2010                |      |   | 2009 |   |
|                      |   |                |      |   |   |   |
|                      |   |                |      |   |   |   |
| Balance - beginning       |   | $                   | 2,919,597 |   |   | $ | 955,687 |   |
| Provision for loan losses |   |                | 1,100,000 |   |   |   | 3,245,000 |   |
| Charge-offs               |   |                | (812,229  | ) |   |   | (1,281,090 | ) |
| Recoveries                |   |                | 483       |   |   |   | - |   |
|                      |   |                |      |   |   |   |   |   |
| Balance - ending          |   | $                   | 3,207,851 |   |   | $ | 2,919,597 |   |

|                    |   |  Year Ended    |     |
|-------------------------|--------|---------------------|----------|
|                    |   |  September 30, |     |
|                    |   | 2010                |     |   | 2009 |   |
|                    |   |                |     |   |   |   |
|                    |   |                |     |   |   |   |
| Balance - beginning     |   | $                   | 755,288  |   |   | $ | 754,962 |   |
| Loan disbursements      |   |                | 45,014   |   |   |   | 77,400 |   |
| Collection of principal |   |                | (103,817 | ) |   |   | (77,074 | ) |
|                    |   |                |     |   |   |   |   |   |
| Balance - ending        |   | $                   | 696,485  |   |   | $ | 755,288 |   |

----

|                                        |   |  September 30, |      |
|---------------------------------------------|--------|---------------------|-----------|
|                                        |   | 2010                |      |   | 2009 |   |
|                                        |   |                |      |   |   |   |
| Real estate acquired in settlement of loans |   | $                   | 1,135,410 |   |   | $ | 1,390,500 |   |
| Allowance for losses                        |   |                | (386,100  | ) |   |   | (187,500 | ) |
|                                        |   |                |      |   |   |   |   |   |
|                                        |   | $                   | 749,310   |   |   | $ | 1,203,000 |   |

|                 |   |  Year Ended    |     |
|----------------------|--------|---------------------|----------|
|                 |   |  September 30, |     |
|                 |   | 2010                |     |   | 2009 |   |
|                 |   |                |     |   |   |   |
| Balance - beginning  |   | $                   | 187,500  |   |   | $ | - |   |
| Provision for losses |   |                | 482,385  |   |   |   | 187,500 |   |
| Charge-offs          |   |                | (283,785 | ) |   |   | - |   |
|                 |   |                |     |   |   |   |   |   |
| Balance - ending     |   | $                   | 386,100  |   |   | $ | 187,500 |   |

|                 |   | Year Ended          |    |
|----------------------|--------|---------------------|---------|
|                 |   |  September 30, |    |
|                 |   | 2010                |    |   | 2009 |   |
|                 |   |                |    |   |   |   |
| Provision for losses |   | $                   | 482,385 |   |   | $ | 187,500 |   |
| Loss on sale, net    |   |                | 15,847  |   |   |   | - |   |
| Carrying costs       |   |                | 98,099  |   |   |   | 10,214 |   |
|                 |   |                |    |   |   |   |   |   |
|                 |   | $                   | 596,331 |   |   | $ | 197,714 |   |

|                       |   |  September 30, |    |
|----------------------------|--------|---------------------|---------|
|                       |   | 2010                |    |   | 2009 |   |
|                       |   |                |    |   |   |   |
|                       |   |                |    |   |   |   |
| Loans receivable           |   | $                   | 363,320 |   |   | $ | 381,576 |   |
| Mortgage-backed securities |   |                | 88,878  |   |   |   | 143,094 |   |
| Investment securities      |   |                | 51,633  |   |   |   | 84,543 |   |
|                       |   |                |    |   |   |   |   |   |
|                       |   | $                   | 503,831 |   |   | $ | 609,213 |   |

----

|                              |   |  September 30, |      |
|-----------------------------------|--------|---------------------|-----------|
|                              |   | 2010                |      |   | 2009 |   |
|                              |   |                |      |   |   |   |
| Land                              |   | $                   | 1,423,262 |   |   | $ | 1,423,262 |   |
| Buildings and improvements        |   |                | 2,819,385 |   |   |   | 2,748,009 |   |
| Furniture, fixtures and equipment |   |                | 1,150,138 |   |   |   | 1,132,667 |   |
|                              |   |                |      |   |   |   |   |   |
|                              |   |                | 5,392,785 |   |   |   | 5,303,938 |   |
|                              |   |                |      |   |   |   |   |   |
| Less accumulated depreciation     |   |                | 2,168,861 |   |   |   | 2,010,604 |   |
|                              |   |                |      |   |   |   |   |   |
|                              |   | $                   | 3,223,924 |   |   | $ | 3,293,334 |   |
|                              |   |                |      |   |   |   |   |   |

|   | Buildings                                   |   | 25 to 50 years |   |
|--------|---------------------------------------------|--------|----------------|--------|
|   | Paving and other building related additions |   | 5 to 10 years  |   |
|   | Furniture and equipment                     |   | 3 to 10 years  |   |

|                                      |   |  September 30, |       |
|-------------------------------------------|--------|---------------------|------------|
|                                      |   | 2010                |       |   | 2009 |   |
|                                      |   |                |       |   |   |   |
| Loan portfolios                           |   |                |       |   |   |   |
|   serviced for:                 |   |                |       |   |   |   |
|       FNMA  |   | $                   | 9,628,298  |   |   | $ | 9,596,632 |   |
|       Other |   |                | 2,226,950  |   |   |   | 2,167,601 |   |
|                                      |   |                |       |   |   |   |   |   |
|                                      |   | $                   | 11,855,248 |   |   | $ | 11,764,233 |   |

|                               |   |  September 30, |   |
|------------------------------------|--------|---------------------|--------|
|                               |   |                |   |   | 2010 |   |   |   |   |   | 2009 |   |
|                               |   | Weighted            |   |   |   |   |   | Weighted |   |   |   |   |
|                               |   | Average             |   |   |   |   |   | Average |   |   |   |   |
|                               |   | Rate                |   |   | Amount |   |   | Rate |   |   | Amount |   |
|                               |   |                |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing deposits      |   |                | 0.00   | % |   | $ | 18,572,819 |   |   |   | 0.00 | % |   | $ | 17,984,214 |   |
| Interest-bearing checking accounts |   |                | 0.19   | % |   |   | 7,034,127 |   |   |   | 0.21 | % |   |   | 7,110,307 |   |
| Money market accounts              |   |                | 0.83   | % |   |   | 26,413,581 |   |   |   | 1.22 | % |   |   | 25,334,455 |   |
| Savings accounts                   |   |                | 0.23   | % |   |   | 18,246,608 |   |   |   | 0.37 | % |   |   | 17,164,785 |   |
| Certificates of deposits           |   |                | 2.17   | % |   |   | 68,501,780 |   |   |   | 2.94 | % |   |   | 73,624,324 |   |
|                               |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                     |   |                | 1.27   | % |   | $ | 138,768,915 |   |   |   | 1.81 | % |   | $ | 141,218,085 |   |

----

|                         |   |  September 30,  |   |
|------------------------------|--------|----------------------|--------|
|                         |   | 2010                 |   |   | 2009 |   |
|                         |   |  (In thousands) |   |
|                         |   |                 |   |   |   |   |
|  1 year or less         |   | $                    | 42,746 |   |   | $ | 53,390 |   |
|  Over 1 year to 3 years |   |                 | 13,440 |   |   |   | 8,684 |   |
|  Over 3 years           |   |                 | 12,316 |   |   |   | 11,550 |   |
|                         |   |                 |   |   |   |   |   |   |
|                         |   | $                    | 68,502 |   |   | $ | 73,624 |   |

|                                            |   |  Year Ended    |      |
|-------------------------------------------------|--------|---------------------|-----------|
|                                            |   |  September 30, |      |
|                                            |   | 2010                |      |   | 2009 |   |
|                                            |   |                |      |   |   |   |
|  Interest-bearing checking accounts        |   | $                   | 13,831    |   |   | $ | 17,130 |   |
|  Money market accounts                     |   |                | 245,043   |   |   |   | 280,354 |   |
|  Savings accounts                          |   |                | 53,356    |   |   |   | 80,052 |   |
|  Certificates of deposit                   |   |                | 1,625,484 |   |   |   | 2,357,885 |   |
|                                            |   |                |      |   |   |   |   |   |
|        Total |   | $                   | 1,937,714 |   |   | $ | 2,735,421 |   |

|                 |   | September 30, 2010                                                                                                                     |   | September 30, 2009                                                                                                                    |
|----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|                 |   |                                                                                                                                   |   | Weighted                                                                                                                              |   |   |   | Weighted |
|                 |   |                                                                                                                                   |   | Average                                                                                                                               |   |   |   | Average |
|                 |   | Amount                                                                                                                                 |   | Rate                                                                                                                                  |   | Amount |   | Rate |
|                 |   |                                                                                                                                   |   |                                                                                                                                  |   |   |   |   |
| Due by September 30, |   |                                                                                                                                   |   |                                                                                                                                  |   |   |   |   |
|                 |   |                                                                                                                                   |   |                                                                                                                                  |   |   |   |   |
| 2010                 |   |  $                     - |   |                       - |   |  $       6,000,000 |   | 3.88% |
| 2011                 |   |           1,000,000                                                                  |   | 2.83%                                                                                                                                 |   |           1,000,000 |   | 2.83% |
| 2012                 |   |           1,000,000                                                                  |   | 2.93%                                                                                                                                 |   |           1,000,000 |   | 2.93% |
| 2013                 |   |           3,000,000                                                                  |   | 3.23%                                                                                                                                 |   |           3,000,000 |   | 3.23% |
| 2014                 |   |           2,000,000                                                                  |   | 3.57%                                                                                                                                 |   |           2,000,000 |   | 3.57% |
|                 |   |                                                                                                                                   |   |                                                                                                                                  |   |   |   |   |
|                 |   |  $       7,000,000                                                                             |   | 3.23%                                                                                                                                 |   |  $     13,000,000 |   | 3.53% |

----

|   |                            |   |  Year Ended    |     |
|--------|---------------------------------|--------|---------------------|----------|
|   |                            |   |  September 30, |     |
|   |                            |   | 2010                |     |   | 2009 |   |
|   |                            |   |                |     |   |   |   |
|   |                            |   |                |     |   |   |   |
|   |  Current tax expense:      |   |                |     |   |   |   |
|   |     Federal |   | $                   | 164,964  |   |   | $ | 36,263 |   |
|   |     State   |   |                | 58,297   |   |   |   | 20,473 |   |
|   |                            |   |                |     |   |   |   |   |   |
|   |                            |   |                | 223,261  |   |   |   | 56,736 |   |
|   |                            |   |                |     |   |   |   |   |   |
|   |  Deferred tax benefit:     |   |                |     |   |   |   |   |   |
|   |     Federal |   |                | (322,584 | ) |   |   | (782,094 | ) |
|   |     State   |   |                | (101,615 | ) |   |   | (233,443 | ) |
|   |                            |   |                |     |   |   |   |   |   |
|   |                            |   |                | (424,199 | ) |   |   | (1,015,537 | ) |
|   |                            |   |                |     |   |   |   |   |   |
|   |                            |   | $                   | (200,938 | ) |   | $ | (958,801 | ) |

|                                                           |   |  Year Ended    |     |
|----------------------------------------------------------------|--------|---------------------|----------|
|                                                           |   |  September 30, |     |
|                                                           |   | 2010                |     |   | 2009 |   |
|                                                           |   |                |     |   |   |   |
|                                                           |   |                |     |   |   |   |
|  Tax benefit at federal statutory rates                   |   | $                   | (144,819 | ) |   | $ | (797,022 | ) |
|                                                           |   |                |     |   |   |   |   |   |
|  Increase in tax benefit resulting from:                  |   |                |     |   |   |   |   |   |
|     State taxes, net of federal tax effect |   |                | (28,590  | ) |   |   | (140,560 | ) |
|     Other items                            |   |                | (27,529  | ) |   |   | (21,219 | ) |
|                                                           |   |                |     |   |   |   |   |   |
|                                                           |   | $                   | (200,938 | ) |   | $ | (958,801 | ) |

----

|                                                                         |   |  September 30, |      |
|------------------------------------------------------------------------------|--------|---------------------|-----------|
|                                                                         |   | 2010                |      |   | 2009 |   |
|                                                                         |   |                |      |   |   |   |
|  Deferred tax assets:                                                   |   |                |      |   |   |   |
|     Allowance for loan and REO losses                    |   | $                   | 1,380,343 |   |   | $ | 1,151,110 |   |
|     Pension liabilities                                  |   |                | 327,694   |   |   |   | 296,413 |   |
|     Deferred compensation                                |   |                | 179,576   |   |   |   | 128,178 |   |
|     Uncollected interest                                 |   |                | 152,580   |   |   |   | 78,802 |   |
|     Depreciation                                         |   |                | 121,129   |   |   |   | 85,312 |   |
|     Other, net                                           |   |                | 20,816    |   |   |   | 22,205 |   |
|                                                                         |   |                |      |   |   |   |   |   |
|  Total deferred tax assets                                              |   |                | 2,182,138 |   |   |   | 1,762,020 |   |
|                                                                         |   |                |      |   |   |   |   |   |
|  Deferred tax liabilities:                                              |   |                |      |   |   |   |   |   |
|     Net unrealized gain on securities available for sale |   |                | 540,558   |   |   |   | 530,718 |   |
|     Deferred loan origination costs                      |   |                | 82,352    |   |   |   | 82,576 |   |
|     Prepaid expenses                                     |   |                | 33,250    |   |   |   | 30,777 |   |
|                                                                         |   |                |      |   |   |   |   |   |
|  Total deferred tax liabilities                                         |   |                | 656,160   |   |   |   | 644,071 |   |
|                                                                         |   |                |      |   |   |   |   |   |
|     Net deferred tax asset included in other assets      |   | $                   | 1,525,978 |   |   | $ | 1,117,949 |   |

----

|                                                 |                                                        |   |  September 30, |   |
|------------------------------------------------------|-------------------------------------------------------------|--------|---------------------|--------|
|                                                 |                                                        |   | 2010                |   |   | 2009 |   |
|                                                 |                                                        |   |                |   |   |   |   |
|                                                 |                                                        |   |                |   |   |   |   |
| GAAP capital                                         |                                                        |   | $                   | 14,324 |   |   | $ | 14,484 |   |
| Add (subtract):                                      | Unrealized gain  on securities available for sale |   |                | (813   | ) |   |   | (798 | ) |
|                                                 | Adjustment to record funded status of pension               |   |                | 125    |   |   |   | 135 |   |
|                                                 |                                                        |   |                |   |   |   |   |   |   |
| Core and tangible capital                            |                                                        |   |                | 13,636 |   |   |   | 13,821 |   |
| Add:   Allowable allowance for loan losses |                                                        |   | 1,250               |   |   |   | 1,340 |   |
|                                                 |                                                        |   |                |   |   |   |   |   |   |
| Total risk-based capital                             |                                                        |   | $                   | 14,886 |   |   | $ | 15,161 |   |

|                                                   |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |   To be Well-                                          |
|--------------------------------------------------------|--------|--------------------------------------------|--------------------------------------------|--------|-------------------------|-------------------------------------------------------------|-------------------------------------------------------------|--------|--------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
|                                                   |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |   Capitalized Under                                    |
|                                                   |   |                                       |                                       |   |                    |                                                        |   For Capital                                          |   |   Prompt Corrective |
|                                                   |   |                                       | Actual                                     |   | Adequacy Purposes  |                                                        |   Action Provisions                               |
|                                                   |   |                                       | Amount                                     |   | Ratio                   |                                                        | Amount                                                      |   | Ratio                    |                                                        | Amount                                                      |   | Ratio |
|                                                   |   |                                       | (Dollars in thousands)                     |
|                                                   |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |                                                        |   |   |
| As of September 30, 2010                               |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |                                                        |
|     Tangible capital               |   |  $   13,636            |                                       | 8.24%  |                    |  $      2,481            |                                                        | 1.50%  |                     |  N/A                                                   |                                                        |                          - |
|     Tier 1 (core) capital          |   |       13,636 |                                       | 8.24%  |                    |          6,616 |                                                        | 4.00%  |                     |          8,270 |                                                        | 5.00% |
|     Risk-based capital:            |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |                                                        |   |
|         Tier 1 |   |                                       |       13,636 |   | 13.65%                  |                                                        |          3,997 |   | 4.00%                    |                                                        |          5,995 |   | 6.00% |
|         Total  |   |                                       |       14,886 |   | 14.90%                  |                                                        |          7,994 |   | 8.00%                    |                                                        |          9,992 |   | 10.00% |
|                                                   |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |                                                        |   |   |
| As of September 30, 2009                               |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |                                                        |
|     Tangible capital               |   |  $   13,821            |                                       | 8.08%  |                    |  $      2,565            |                                                        | 1.50%  |                     |  N/A                                                   |                                                        |                          - |
|     Tier 1 (core) capital          |   |       13,821 |                                       | 8.08%  |                    |          6,841 |                                                        | 4.00%  |                     |          8,551 |                                                        | 5.00% |
|     Risk-based capital:            |   |                                       |                                       |   |                    |                                                        |                                                        |   |                     |                                                        |                                                        |   |
|         Tier 1 |   |                                       |       13,821 |   | 12.89%                  |                                                        |          4,290 |   | 4.00%                    |                                                        |          6,434 |   | 6.00% |
|         Total  |   |                                       |       15,161 |   | 14.14%                  |                                                        |          8,579 |   | 8.00%                    |                                                        |        10,724            |   | 10.00% |

----

----

|                                                                    |   |  At or for the Year Ending |     |
|-------------------------------------------------------------------------|--------|---------------------------------|----------|
|                                                                    |   |  September 30,             |     |
|                                                                    |   | 2010                            |     |   | 2009 |   |
|                                                                    |   |                            |     |   |   |   |
|  Change in benefit obligation:                                     |   |                            |     |   |   |   |
|                                                                    |   |                            |     |   |   |   |
|  Benefit obligation at beginning of year                           |   | $                               | 742,145  |   |   | $ | 730,739 |   |
|      Service cost                              |   |                            | 23,352   |   |   |   | 25,268 |   |
|      Interest cost                             |   |                            | 42,672   |   |   |   | 51,152 |   |
|      Adjustment for change in measurement date |   |                            | -        |   |   |   | 19,105 |   |
|      Actuarial (gain) loss                     |   |                            | 12,297   |   |   |   | (84,119 | ) |
|                                                                    |   |                            |     |   |   |   |   |   |
|  Benefit obligation at end of year                                 |   |                            | 820,466  |   |   |   | 742,145 |   |
|                                                                    |   |                            |     |   |   |   |   |   |
|  Change in plan assets:                                            |   |                            |     |   |   |   |   |   |
|                                                                    |   |                            |     |   |   |   |   |   |
|  Market value of assets - beginning                                |   |                            | -        |   |   |   | - |   |
|  Employer contributions                                            |   |                            | -        |   |   |   | - |   |
|  Annuity payments                                                  |   |                            | -        |   |   |   | - |   |
|                                                                    |   |                            |     |   |   |   |   |   |
|  Market value of assets - ending                                   |   |                            | -        |   |   |   | - |   |
|                                                                    |   |                            |     |   |   |   |   |   |
|  Funded status and accrued plan cost                               |   |                            |     |   |   |   |   |   |
|    included in other liabilities at end of year          |   | $                               | (820,466 | ) |   | $ | (742,145 | ) |

|                     |   |   |   |                                                                           |    September 30,                               |
|--------------------------|--------|--------|--------|--------------------------------------------------------------------------------|----------------------------------------------------------|
|                     |   |   |   |                                                                           | 2010                                                     |   | 2009 |
|                     |   |   |   |                                                                           |                                                     |   |   |
|  Net loss           |   |   |   |                                                                           |  $       131,688 |   |  $       126,313 |
|  Prior service cost |   |   |   |             77,236 |                                                     |             98,458 |
|                     |   |   |   |                                                                           |                                                     |   |   |
|                     |   |   |   |                                                                           |  $       208,924 |   |  $       224,771 |

----

|                                                                          |   |  Year Ended    |    |
|-------------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                          |   |  September 30, |    |
|                                                                          |   | 2010                |    |   | 2009 |   |
| Components of net periodic benefit cost:                                      |   |                |    |   |   |   |
|    Service cost                                                |   | $                   | 23,352  |   |   | $ | 25,268 |   |
|    Interest cost                                               |   |                | 42,672  |   |   |   | 51,152 |   |
|    Amortization of unrecognized loss                           |   |                | 6,920   |   |   |   | 19,964 |   |
|    Amortization of unrecognized past service liability         |   |                | 21,224  |   |   |   | 24,776 |   |
|                                                                          |   |                |    |   |   |   |   |   |
| Net periodic benefit cost included in                                         |   |                |    |   |   |   |   |   |
|   compensation and benefits expense                                 |   |                | 94,168  |   |   |   | 121,160 |   |
|                                                                          |   |                |    |   |   |   |   |   |
| Changes in benefit obligation recognized in other                             |   |                |    |   |   |   |   |   |
|   comprehensive (income) loss:                                      |   |                |    |   |   |   |   |   |
|       Net (gain) loss                           |   |                | 12,297  |   |   |   | (84,119 | ) |
|       Adjustment for change in measurement date |   |                | -       |   |   |   | (11,185 | ) |
|       Amortization of loss                      |   |                | (6,920  | ) |   |   | (19,964 | ) |
|       Amortization of prior service cost        |   |                | (21,224 | ) |   |   | (24,776 | ) |
|                                                                          |   |                |    |   |   |   |   |   |
| Benefit obligation recognized in other                                        |   |                |    |   |   |   |   |   |
|   comprehensive income                                              |   |                | (15,847 | ) |   |   | (140,044 | ) |
|                                                                          |   |                |    |   |   |   |   |   |
| Total recognized in net periodic benefit cost                                 |   |                |    |   |   |   |   |   |
|   and other comprehensive (income) loss                             |   | $                   | 78,321  |   |   | $ | (18,884 | ) |
|                                                                          |   |                |    |   |   |   |   |   |

----

|                               |   |  Year Ended September 30, |    |
|------------------------------------|--------|--------------------------------|---------|
|                               |   |  2010                     |    |   |  2009 |   |
|                               |   |                           |    |   | Weighted |   |   |   |   |   | Weighted |   |
|                               |   |                           |    |   | Average |   |   |   |   |   | Average |   |
|                               |   | Number                         |    |   | Exercise |   |   | Number |   |   | Exercise |   |
|                               |   | of Shares                      |    |   | Price |   |   | of Shares |   |   | Price |   |
|                               |   |                           |    |   |   |   |   |   |   |   |   |   |
| Outstanding at beginning of period |   |                           | 106,242 |   |   | $ | 11.323 |   |   |   | 112,456 |   |   | $ | 10.896 |   |
| Granted                            |   |                           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Exercised                          |   |                           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited                          |   |                           | (3,000  | ) |   |   | 12.725 |   |   |   | (6,214 | ) |   |   | 3.595 |   |
|                               |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at end of period       |   |                           | 103,242 |   |   | $ | 11.283 |   |   |   | 106,242 |   |   | $ | 11.323 |   |
|                               |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at period end  |   |                           | 103,242 |   |   |   |   |   |   |   | 106,242 |   |   |   |   |   |

|                                                                                                                           |   |                                                                                                                           |   | Weighted Average |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------|
| Number                                                                                                                         |   |  Exercise                                                                                                                 |   | Remaining        |
| of Shares                                                                                                                      |   |  Price                                                                                                                    |   | Contractual Life |
|                                                                                                                           |   |                                                                                                                           |   |             |
|                     54,642 |   |  $                 10.000            |   | 5.3 years        |
|                     48,600 |   |                     12.725 |   | 5.9 years        |
|                                                                                                                           |   |                                                                                                                           |   |             |
|                   103,242            |   |  $                 11.283            |   | 5.6 years        |

----

|                                   |   |  Year Ended September 30, |   |
|----------------------------------------|--------|--------------------------------|--------|
|                                   |   |  2010                     |   |   |  2009 |   |
|                                   |   |                           |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                   |   |                           |   |   | Average |   |   |   |   |   | Average |   |
|                                   |   | Number                         |   |   | Grant Date |   |   | Number |   |   | Grant Date |   |
|                                   |   | of Shares                      |   |   | Fair Value |   |   | of Shares |   |   | Fair Value |   |
|                                   |   |                           |   |   |   |   |   |   |   |   |   |   |
| Unvested share awards at               |   |                           |   |   |   |   |   |   |   |   |   |   |
|   beginning of period        |   |                           | 8,431  |   |   | $ | 7.968 |   |   |   | 5,289 |   |   | $ | 11.082 |   |
| Granted                                |   |                           | -      |   |   |   | - |   |   |   | 6,257 |   |   |   | 5.750 |   |
| Vested                                 |   |                           | (2,518 | ) |   |   | 8.786 |   |   |   | (3,115 | ) |   |   | 8.800 |   |
| Forfeited                              |   |                           | (1,001 | ) |   |   | 7.398 |   |   |   | - |   |   |   | - |   |
|                                   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unvested share awards at end of period |   |                           | 4,912  |   |   | $ | 7.665 |   |   |   | 8,431 |   |   | $ | 7.968 |   |

----

|   |                            |   |   |                                               |                                                                     |   Year Ended                                  |
|--------|---------------------------------|--------|--------|----------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------|
|   |                            |   |   |                                               |                                                                     |   September 30,                               |
|   |                            |   |   |                                               |                                                                     | 2010                                               |   | 2009 |
|   |                            |   |   |                                               |                                                                     |                                               |   |   |
|   | Allocated shares                |   |   |                                               |            84,295 |                                               |            75,145 |
|   | Unreleased shares               |   |   |                                               |            36,602 |                                               |            45,752 |
|   |                            |   |   |                                               |                                                                     |                                               |   |   |
|   | Total ESOP shares               |   |   |                                               |          120,897            |                                               |          120,897 |
|   |                            |   |   |                                               |                                                                     |                                               |   |   |
|   | Fair value of unreleased shares |   |   |  $      151,898 |                                                                     |  $      183,010 |

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

| Level 2: | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or observable market data. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Unobservable inputs where there is little, if any, market activity and that are developed based on the best information available under the circumstances. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          |   | Fair Value Measurements at September 30, 2010 |   |
|-------------------------------|--------|-----------------------------------------------|--------|
| (Dollars in thousands)        |   | Level 1                                       |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                          |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale |   | $                                             | -      |   |   | $ | 40,593 |   |   | $ | - |   |   | $ | 40,593 |   |
| Impaired loans                |   |                                          | -      |   |   |   | - |   |   |   | 2,400 |   |   |   | 2,400 |   |
| Real estate owned             |   |                                          | -      |   |   |   | - |   |   |   | 749 |   |   |   | 749 |   |

|                          |   | Fair Value Measurements at September 30, 2009 |   |
|-------------------------------|--------|-----------------------------------------------|--------|
| (Dollars in thousands)        |   | Level 1                                       |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                          |   |                                          |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale |   | $                                             | -      |   |   | $ | 41,418 |   |   | $ | - |   |   | $ | 41,418 |   |
| Impaired loans                |   |                                          | -      |   |   |   | - |   |   |   | 3,508 |   |   |   | 3,508 |   |
| Real estate owned             |   |                                          | -      |   |   |   | - |   |   |   | 1,203 |   |   |   | 1,203 |   |

----

|                          |   |  September 30, 2010 |    |   |   September 30, 2009 |   |
|-------------------------------|--------|--------------------------|---------|--------|---------------------------|--------|
|                          |   | Carrying                 |    |   | Fair                      |   |   | Carrying |   |   | Fair |   |
|                          |   | Amount                   |    |   | Value                     |   |   | Amount |   |   | Value |   |
|                          |   |                     |    |   |                      |   |   |   |   |   |   |   |
| Financial Assets              |   |                     |    |   |                      |   |   |   |   |   |   |   |
|                          |   |                     |    |   |                      |   |   |   |   |   |   |   |
| Cash and cash equivalents     |   | $                        | 6,019   |   |                      | $      | 6,019 |   |   | $ | 4,074 |   |   | $ | 4,074 |   |
| Securities available for sale |   |                     | 40,593  |   |                      |   | 40,593 |   |   |   | 41,418 |   |   |   | 41,418 |   |
| Securities held to maturity   |   |                     | 127     |   |                      |   | 132 |   |   |   | 148 |   |   |   | 150 |   |
| Loans receivable              |   |                     | 111,967 |   |                      |   | 118,333 |   |   |   | 118,428 |   |   |   | 122,742 |   |
| Accrued interest receivable   |   |                     | 504     |   |                      |   | 504 |   |   |   | 609 |   |   |   | 609 |   |
| FHLB stock                    |   |                     | 746     |   |                      |   | 746 |   |   |   | 859 |   |   |   | 859 |   |
|                          |   |                     |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities         |   |                     |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |                     |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                      |   |                     | 138,769 |   |                      |   | 141,321 |   |   |   | 141,218 |   |   |   | 143,212 |   |
| Borrowed funds                |   |                     | 10,000  |   |                      |   | 10,412 |   |   |   | 13,000 |   |   |   | 13,370 |   |

----

----

----

| ROEBLING FINANCIAL CORP, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| BOARD OF DIRECTORS AND EXECUTIVE OFFICERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| John J. Ferry, Chairman of the Board of DirectorsPresident, John J. Ferry Enterprises, Inc.John A. LaVecchia, Director and Vice ChairmanSenior Automotive Consultant, Northeast Auto ComplexFrank J. Travea, III, President and Chief Executive OfficerJanice A. Summers, Senior Vice President, Chief Operating Officer andChief Financial OfficerMark V. Dimon, Director and TreasurerFormer Sole Proprietor, Dimon OilJoan K. Geary, Director and SecretaryPresident, Keating Realty CompanyGeorge N. Nyikita, DirectorManager of Corporate Development, Pennoni AssociatesRobert R. Semptimphelter, Sr., DirectorPrincipal, Farnsworth & Semptimphelter, LLC ROEBLING BANK OFFICERS Frank J. Travea, III, President and CEOJanice A. Summers, Senior Vice President, COO and CFOHarry McElhone, Vice President and Chief Credit OfficerBonnie L. Horner, Vice President, Consumer LendingJohn C. Lauricella, Vice President and Commercial Loan OfficerDonna M. Rinaldi, Assistant Vice President and Human Resource Director |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| ROEBLING BANK OFFICES Route 130 South and Delaware Avenue, Roebling, New Jersey34 Main Street, Roebling, New Jersey8 Jacobstown Road, New Egypt, New Jersey3104 Bridgeboro Road, Delran, New Jersey1934 Route 541, Westampton, New Jersey (Banking and Administrative Center)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| CORPORATE OFFICERoute 130 South and Delaware AvenueRoebling, New Jersey 08554                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | TRANSFER AGENTRegistrar and Transfer Company10 Commerce DriveCranford, New Jersey 07016 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| INDEPENDENT AUDITORSFontanella and Babitts534 Union BoulevardTotowa, New Jersey 07512                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | SPECIAL COUNSELMalizia Spidi & Fisch, PC1227 25th Street, N.W., Suite 200 WestWashington, D.C.  20037 |