----

----

----

|           |   | High   |   |   | Low    |   |   | DividendsPer Share |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
| Fiscal 2011    |   |   |   |   |   |   |   |                    |   |
| First quarter  |   | $      | 10.40  |   |   | $      | 7.95   |                    |   | $ | 0.10 |   |
| Second quarter |   |   | 10.38  |   |   |   | 9.00   |                    |   |   | 0.10 |   |
| Third quarter  |   |   | 9.95   |   |   |   | 8.40   |                    |   |   | 0.10 |   |
| Fourth quarter |   |   | 9.25   |   |   |   | 7.73   |                    |   |   | 0.10 |   |

|           |   | High   |   |   | Low    |   |   | DividendsPer Share |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
| Fiscal 2010    |   |   |   |   |   |   |   |                    |   |
| First quarter  |   | $      | 15.00  |   |   | $      | 11.59  |                    |   | $ | 0.10 |   |
| Second quarter |   |   | 13.40  |   |   |   | 10.15  |                    |   |   | 0.10 |   |
| Third quarter  |   |   | 12.46  |   |   |   | 9.75   |                    |   |   | 0.10 |   |
| Fourth quarter |   |   | 11.42  |   |   |   | 7.80   |                    |   |   | 0.10 |   |

----

----

| Kentucky First Federal Bancorp                                                              | (ii)   |
|---------------------------------------------------------------------------------------------|--------|
| Market Information                                                                          | (ii)   |
| Letter to Shareholders                                                                      | 1      |
| Selected Consolidated Financial and Other Data                                              | 2      |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations | 4      |
| Consolidated Financial Statements                                                           | 30     |
| Corporate Information                                                                       |   |

----

| Tony Whitaker       | Don D. Jennings      |
|---------------------|----------------------|
| Chairman and C.E.O. | President and C.O.O. |

----

----

|                                                    |   | At June 30,    |    |
|---------------------------------------------------------|--------|----------------|---------|
|                                                    |   | 2011           |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                    |   | (In thousands) |    |
|                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                            |   | $              | 226,135 |   |   | $ | 236,939 |   |   | $ | 240,901 |   |   | $ | 247,655 |   |   | $ | 268,916 |   |
| Cash and cash equivalents                               |   |           | 5,049   |   |   |   | 8,362 |   |   |   | 4,217 |   |   |   | 15,966 |   |   |   | 2,720 |   |
| Interest-bearing deposits                               |   |           | 100     |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |
| Securities held to maturity                             |   |           | 6,810   |   |   |   | 9,435 |   |   |   | 14,999 |   |   |   | 16,959 |   |   |   | 59,606 |   |
| Securities available for sale                           |   |           | 203     |   |   |   | 246 |   |   |   | 5,451 |   |   |   | 5,480 |   |   |   | 13,298 |   |
| Loans, net                                              |   |           | 182,796 |   |   |   | 190,618 |   |   |   | 188,931 |   |   |   | 182,051 |   |   |   | 166,156 |   |
| Deposits                                                |   |           | 139,940 |   |   |   | 144,969 |   |   |   | 139,743 |   |   |   | 137,634 |   |   |   | 139,893 |   |
| Federal Home Loan Bank advances                         |   |           | 25,261  |   |   |   | 32,009 |   |   |   | 40,156 |   |   |   | 47,801 |   |   |   | 65,132 |   |
| Shareholders’ equity                              |   |           | 58,697  |   |   |   | 57,808 |   |   |   | 58,538 |   |   |   | 60,017 |   |   |   | 61,445 |   |
| Allowance for loan losses                               |   |           | 764     |   |   |   | 1,535 |   |   |   | 678 |   |   |   | 666 |   |   |   | 720 |   |
| Nonperforming loans (90 days delinquent and nonaccrual) |   |           | 876     |   |   |   | 7,783 |   |   |   | 3,872 |   |   |   | 1,277 |   |   |   | 968 |   |

|                                                    |   | Year Ended June 30,                           |   |
|---------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                    |   | 2011                                          |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                    |   | (Dollars in thousands, except per share data) |   |
|                                                    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest income                                   |   | $                                             | 10,749 |   |   | $ | 11,378 |   |   | $ | 12,226 |   |   | $ | 13,087 |   |   | $ | 12,948 |   |
| Total interest expense                                  |   |                                          | 3,181  |   |   |   | 4,980 |   |   |   | 5,902 |   |   |   | 7,565 |   |   |   | 7,456 |   |
| Net interest income                                     |   |                                          | 7,568  |   |   |   | 6,398 |   |   |   | 6,324 |   |   |   | 5,522 |   |   |   | 5,492 |   |
| Provision for losses on loans                           |   |                                          | 668    |   |   |   | 1,044 |   |   |   | 46 |   |   |   | 12 |   |   |   | — |   |
| Net interest income after provision for losses on loans |   |                                          | 6,900  |   |   |   | 5,354 |   |   |   | 6,278 |   |   |   | 5,510 |   |   |   | 5,492 |   |
| Total non-interest income                               |   |                                          | 242    |   |   |   | 289 |   |   |   | 241 |   |   |   | 182 |   |   |   | 174 |   |
| Total non-interest expenses                             |   |                                          | 5,282  |   |   |   | 5,039 |   |   |   | 4,608 |   |   |   | 4,321 |   |   |   | 4,364 |   |
| Income before federal income taxes                      |   |                                          | 1,860  |   |   |   | 604 |   |   |   | 1,911 |   |   |   | 1,371 |   |   |   | 1,302 |   |
| Federal income taxes                                    |   |                                          | 104    |   |   |   | 203 |   |   |   | 1,183 |   |   |   | 439 |   |   |   | 417 |   |
|                                                    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                              |   | $                                             | 1,756  |   |   | $ | 401 |   |   | $ | 728 |   |   | $ | 932 |   |   | $ | 885 |   |
| Net earnings per share – basic                    |   | $                                             | 0.23   |   |   | $ | 0.05 |   |   | $ | 0.10 |   |   | $ | 0.12 |   |   | $ | 0.11 |   |
| Net earnings per share – diluted                  |   | $                                             | 0.23   |   |   | $ | 0.05 |   |   | $ | 0.10 |   |   | $ | 0.12 |   |   | $ | 0.11 |   |
| Cash dividends declared per common share                |   | $                                             | 0.40   |   |   | $ | 0.40 |   |   | $ | 0.40 |   |   | $ | 0.40 |   |   | $ | 0.40 |   |

----

|                                                                                                                    |   | Year Ended June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                                                    |   | 2011                |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Performance Ratios:                                                                                                     |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets (net income divided by average total assets)                                                   |   |                | 0.75   | % |   |   | 0.17 | % |   |   | 0.30 | % |   |   | 0.35 | % |   |   | 0.33 | % |
| Return on average equity (net income divided by average equity)                                                         |   |                | 3.04   |   |   |   | 0.69 |   |   |   | 1.23 |   |   |   | 1.53 |   |   |   | 1.41 |   |
| Interest rate spread (combined weighted average interest rate earned less combined weighted average interest rate cost) |   |                | 3.29   |   |   |   | 2.46 |   |   |   | 2.29 |   |   |   | 1.65 |   |   |   | 1.61 |   |
| Net interest margin (net interest income divided by average interest-earning assets)                                    |   |                | 3.61   |   |   |   | 2.96 |   |   |   | 2.87 |   |   |   | 2.29 |   |   |   | 2.26 |   |
| Ratio of average interest-earning assets to average interest-bearing liabilities                                        |   |                | 121.00 |   |   |   | 121.62 |   |   |   | 121.53 |   |   |   | 120.28 |   |   |   | 121.16 |   |
| Ratio of total general administrative and other expenses to average total assets                                        |   |                | 2.26   |   |   |   | 2.11 |   |   |   | 1.90 |   |   |   | 1.64 |   |   |   | 1.64 |   |
| Efficiency ratio (1)                                                                                                    |   |                | 67.63  |   |   |   | 75.36 |   |   |   | 70.19 |   |   |   | 75.75 |   |   |   | 77.02 |   |
| Dividend payout ratio (2)                                                                                               |   |                | 63.58  |   |   |   | 283.29 |   |   |   | 160.58 |   |   |   | 126.82 |   |   |   | 153.11 |   |
|                                                                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                                                                                                   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming loans as a percent of total loans at end of period (3)                                                    |   |                | 0.48   |   |   |   | 4.05 |   |   |   | 2.05 |   |   |   | 0.70 |   |   |   | 0.58 |   |
| Nonperforming assets as a percent of total assets at end of period (3)                                                  |   |                | 2.29   |   |   |   | 3.60 |   |   |   | 1.65 |   |   |   | 0.52 |   |   |   | 0.36 |   |
| Allowance for loan losses as a percent of total loans at end of period                                                  |   |                | 0.42   |   |   |   | 0.80 |   |   |   | 0.36 |   |   |   | 0.36 |   |   |   | 0.43 |   |
| Allowance for loan losses as a percent of nonperforming loans at end of period                                          |   |                | 87.21  |   |   |   | 19.72 |   |   |   | 17.51 |   |   |   | 52.15 |   |   |   | 74.38 |   |
| Provision for loan losses to total loans                                                                                |   |                | 0.36   |   |   |   | 0.54 |   |   |   | 0.02 |   |   |   | 0.01 |   |   |   | — |   |
| Net charge-offs to average loans outstanding                                                                            |   |                | 0.76   |   |   |   | 0.10 |   |   |   | 0.02 |   |   |   | 0.04 |   |   |   | — |   |
|                                                                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                                                                                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average equity to average assets                                                                                        |   |                | 24.76  |   |   |   | 24.27 |   |   |   | 24.40 |   |   |   | 23.03 |   |   |   | 23.64 |   |
| Shareholders’ equity or capital to total assets at end of period                                                  |   |                | 25.96  |   |   |   | 24.40 |   |   |   | 24.30 |   |   |   | 24.23 |   |   |   | 22.85 |   |
|                                                                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Regulatory Capital Ratios:                                                                                              |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible capital                                                                                                        |   |                | 20.85  |   |   |   | 19.39 |   |   |   | 17.48 |   |   |   | 16.33 |   |   |   | 16.61 |   |
| Core capital                                                                                                            |   |                | 20.85  |   |   |   | 19.39 |   |   |   | 17.48 |   |   |   | 16.33 |   |   |   | 16.61 |   |
| Risk-based capital                                                                                                      |   |                | 39.01  |   |   |   | 37.35 |   |   |   | 34.34 |   |   |   | 34.03 |   |   |   | 38.61 |   |
| Number of banking offices                                                                                               |   |                | 4      |   |   |   | 4 |   |   |   | 4 |   |   |   | 4 |   |   |   | 4 |   |

----

|   | (1) | Efficiency ratio represents the ratio of non-interest expenses divided by the sum of net interest income and total non-interest income. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)  | Represents dividends paid as a percent of net earnings.  Dividends paid does not include dividends waived by First Federal MHC. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | • | operating two community-oriented savings institutions, First Federal of Hazard, which serves customers in Perry and surrounding counties in eastern Kentucky, and First Federal of Frankfort, which serves customers primarily in Franklin County and surrounding counties in central Kentucky.  Each Bank emphasizes traditional thrift activities of accepting deposits and originating residential mortgage loans for portfolio; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | continuing our historic heavy reliance on our deposit base to fund our lending and investment activities and to supplement deposits with Federal Home Loan Bank of Cincinnati (“FHLB”) advances when advantageous or necessary.  We expect our projected deposit mix to generally retain its existing composition of passbook, transaction and certificate of deposit accounts; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | gradually pursuing opportunities to increase and diversify lending in our market areas; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | applying conservative underwriting practices to maintain the high quality of our loan portfolios; |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | • | managing our net interest margin and interest rate risk; and |
|--------|---------|--------------------------------------------------------------|

|   | • | entertaining possibilities of expansion into other markets through branching or acquisition, if such possibilities are beneficial to the Company’s shareholders, provide a good fit within the Company’s mutual holding company framework and can be accomplished without undue encumbrance of the Company’s other operational areas. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | June 30, 2011                |   |
|----------------------------|--------|----------------------------------------|--------|
|                       |   | Net Portfolio Value (1) |   |   | NPV as % of PortfolioValue of Assets (2) |   |
|                       |   | Change inRates                    |   |   | Amount |   |   | $ Change |   |   | % Change |   |   | NPV Ratio (3) |   |   | BasisPointChanges |   |
|                       |   | (Dollars in thousands)                 |   |
|                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   |                                   | +300   | bp |   | $ | 22,107 |   |   |   | -1,059 |   |   |   | -5 | % |   |   | 21.25 | % |   |   | -38 | bp |
|                       |   |                                   | +200   | bp |   |   | 22,671 |   |   |   | -495 |   |   |   | -2 | % |   |   | 21.54 | % |   |   | -9 | bp |
|                       |   |                                   | +100   | bp |   |   | 23,079 |   |   |   | -87 |   |   |   | 0 | % |   |   | 21.71 | % |   |   | 8 | bp |
|                       |   |                                   | 0      | bp |   |   | 23,166 |   |   |   |   |   |   |   |   |   |   |   | 21.63 | % |   |   |   |   |
|                       |   |                                   | -100   | bp |   |   | 22,969 |   |   |   | -197 |   |   |   | -1 | % |   |   | 21.39 | % |   |   | -24 | bp |
|                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Frankfort |   |                                   | +300   | bp |   | $ | 25,478 |   |   |   | 799 |   |   |   | 3 | % |   |   | 20.16 | % |   |   | 117 | bp |
|                       |   |                                   | +200   | bp |   |   | 25,557 |   |   |   | 878 |   |   |   | 4 | % |   |   | 20.00 | % |   |   | 101 | bp |
|                       |   |                                   | +100   | bp |   |   | 25,293 |   |   |   | 614 |   |   |   | 2 | % |   |   | 19.61 | % |   |   | 62 | bp |
|                       |   |                                   | 0      | bp |   |   | 24,679 |   |   |   |   |   |   |   |   |   |   |   | 18.99 | % |   |   |   |   |
|                       |   |                                   | -100   | bp |   |   | 23,669 |   |   |   | -1,010 |   |   |   | -4 | % |   |   | 18.14 | % |   |   | -84 | bp |
|                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated               |   |                                   | +300   | bp |   | $ | 47,585 |   |   |   | -260 |   |   |   | -1 | % |   |   | 20.65 | % |   |   | 47 | bp |
|                       |   |                                   | +200   | bp |   |   | 48,228 |   |   |   | 383 |   |   |   | 1 | % |   |   | 20.69 | % |   |   | 51 | bp |
|                       |   |                                   | +100   | bp |   |   | 48,372 |   |   |   | 527 |   |   |   | 1 | % |   |   | 20.56 | % |   |   | 38 | bp |
|                       |   |                                   | 0      | bp |   |   | 47,845 |   |   |   |   |   |   |   |   |   |   |   | 20.18 | % |   |   |   |   |
|                       |   |                                   | -100   | bp |   |   | 46,638 |   |   |   | -1,207 |   |   |   | -3 | % |   |   | 19.61 | % |   |   | -57 | bp |

----

| (1) | Net portfolio value represents the discounted present value of the difference between incoming cash flows on interest-earning and other assets and outgoing cash flows on interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (3)  | NPV Ratio represents the net portfolio value divided by the present value of assets. |
|-----------|--------------------------------------------------------------------------------------|

----

----

|                              |   | At June 30,            |    |
|----------------------------------------|--------|------------------------|---------|
|                                   |   | 2011                   |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                   |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                   |   | (Dollars in thousands) |    |
| Real estate loans:                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family                    |   | $                      | 158,821 |   |   |   | 86.4 | % |   | $ | 165,818 |   |   |   | 86.0 | % |   | $ | 163,108 |   |   |   | 85.8 | % |   | $ | 158,007 |   |   |   | 86.1 | % |   | $ | 146,602 |   |   |   | 86.7 | % |
| Construction                           |   |                   | 1,062   |   |   |   | 0.6 | % |   |   | 1,916 |   |   |   | 0.9 | % |   |   | 735 |   |   |   | 0.4 | % |   |   | 3,528 |   |   |   | 1.9 | % |   |   | 6,671 |   |   |   | 3.9 | % |
| Multi-family                           |   |                   | 4,504   |   |   |   | 2.5 | % |   |   | 6,689 |   |   |   | 3.5 | % |   |   | 7,303 |   |   |   | 3.8 | % |   |   | 2,684 |   |   |   | 1.5 | % |   |   | 1,497 |   |   |   | 0.9 | % |
| Nonresidential and other               |   |                   | 12,211  |   |   |   | 6.6 | % |   |   | 10,943 |   |   |   | 5.7 | % |   |   | 11,460 |   |   |   | 6.1 | % |   |   | 11,318 |   |   |   | 6.2 | % |   |   | 6,898 |   |   |   | 4.1 | % |
| Consumer:                              |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer and other                     |   |                   | 4,824   |   |   |   | 2.6 | % |   |   | 4,802 |   |   |   | 2.5 | % |   |   | 4,497 |   |   |   | 2.4 | % |   |   | 4,503 |   |   |   | 2.5 | % |   |   | 4,290 |   |   |   | 2.5 | % |
| Loans on deposits                      |   |                   | 2,405   |   |   |   | 1.3 | % |   |   | 2,754 |   |   |   | 1.4 | % |   |   | 2,909 |   |   |   | 1.5 | % |   |   | 3,384 |   |   |   | 1.8 | % |   |   | 3,204 |   |   |   | 1.9 | % |
| Total loans                            |   |                   | 183,827 |   |   |   | 100 | % |   |   | 192,922 |   |   |   | 100 | % |   |   | 190,012 |   |   |   | 100 | % |   |   | 183,424 |   |   |   | 100 | % |   |   | 169,162 |   |   |   | 100 | % |
|                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses              |   |                   | (764    | ) |   |   |   |   |   |   | (1,535 | ) |   |   |   |   |   |   | (678 | ) |   |   |   |   |   |   | (666 | ) |   |   |   |   |   |   | (720 | ) |   |   |   |   |
| Undisbursed construction loans         |   |                   | (353    | ) |   |   |   |   |   |   | (631 | ) |   |   |   |   |   |   | (404 | ) |   |   |   |   |   |   | (696 | ) |   |   |   |   |   |   | (2,176 | ) |   |   |   |   |
| Deferred loan origination costs (fees) |   |                   | 86      |   |   |   |   |   |   |   | (138 | ) |   |   |   |   |   |   | 1 |   |   |   |   |   |   |   | (11 | ) |   |   |   |   |   |   | (110 | ) |   |   |   |   |
| Loans receivable, net                  |   | $                      | 182,796 |   |   |   |   |   |   | $ | 190,618 |   |   |   |   |   |   | $ | 188,931 |   |   |   |   |   |   | $ | 182,051 |   |   |   |   |   |   | $ | 166,156 |   |   |   |   |   |

----

|                             |   | Real EstateLoans |    |   | ConsumerLoans |   |    | Total Loans |   |
|----------------------------------|--------|-----------------------|---------|--------|---------------|--------|---------|------------------|--------|
|                             |   | (In thousands)        |    |
| One year or less                 |   | $                     | 49,500  |   |          | $      | 7,229   |             |   | $ | 56,729 |   |
| More than one year to five years |   |                  | 75,852  |   |          |   | — |             |   |   | 75,852 |   |
| More than five years             |   |                  | 51,246  |   |          |   | — |             |   |   | 51,246 |   |
| Total                            |   | $                     | 176,598 |   |          | $      | 7,229   |             |   | $ | 183,827 |   |

|                                                 |   | Year Ended June 30, |    |
|------------------------------------------------------|--------|---------------------|---------|
|                                                 |   | 2011                |    |   | 2010 |   |   | 2009 |   |
|                                                 |   | (In thousands)      |    |
|                                                 |   |                |    |   |   |   |   |   |   |
| Net loans at beginning of year                       |   | $                   | 190,618 |   |   | $ | 188,931 |   |   | $ | 182,051 |   |
| Loans originated:                                    |   |                |    |   |   |   |   |   |   |   |   |   |
| Real estate loans:                                   |   |                |    |   |   |   |   |   |   |   |   |   |
| Residential                                          |   |                | 29,996  |   |   |   | 33,643 |   |   |   | 46,531 |   |
| Construction                                         |   |                | 1,324   |   |   |   | 1,277 |   |   |   | 1,203 |   |
| Multi-family                                         |   |                | 2,264   |   |   |   | 315 |   |   |   | 917 |   |
| Nonresidential and other                             |   |                | 2,065   |   |   |   | 1,077 |   |   |   | 5,295 |   |
| Consumer loans                                       |   |                | 4,349   |   |   |   | 962 |   |   |   | 4,326 |   |
| Total loans originated                               |   |                | 39,998  |   |   |   | 37,274 |   |   |   | 58,272 |   |
| Deduct:                                              |   |                |    |   |   |   |   |   |   |   |   |   |
| Real estate loan principal repayments and other      |   |                | (43,935 | ) |   |   | (33,644 | ) |   |   | (51,107 | ) |
| Decrease (increase) in allowance                     |   |                | 771     |   |   |   | (857 | ) |   |   | (12 | ) |
| Transfer to real estate acquired through foreclosure |   |                | (4,648  | ) |   |   | (1,076 | ) |   |   | (273 | ) |
| Other                                                |   |                | (8      | ) |   |   | (10 | ) |   |   | — |   |
| Net loan activity                                    |   |                | (7,822  | ) |   |   | 1,687 |   |   |   | 6,880 |   |
| Net loans at end of period                           |   | $                   | 182,796 |   |   | $ | 190,618 |   |   | $ | 188,931 |   |

----

----

|                                                           |   | Year Ended June 30,    |    |
|----------------------------------------------------------------|--------|------------------------|---------|
|                                                           |   | 2011                   |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                           |   | (Dollars in thousands) |    |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance at beginning of period                               |   | $                      | 1,535   |   |   | $ | 678 |   |   | $ | 666 |   |   | $ | 720 |   |   | $ | 724 |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                                      |   |                   | 668     |   |   |   | 1,044 |   |   |   | 46 |   |   |   | 12 |   |   |   | — |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs:                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans                                              |   |                   | (1,439  | ) |   |   | (187 | ) |   |   | (34 | ) |   |   | (66 | ) |   |   | (4 | ) |
| Consumer loans                                                 |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total charge-offs                                              |   |                   | (1,439  | ) |   |   | (187 | ) |   |   | (34 | ) |   |   | (66 | ) |   |   | (4 | ) |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans                                              |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer loans                                                 |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total recoveries                                               |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs                                                |   | $                      | (1,439  | ) |   | $ | (187 | ) |   | $ | (34 | ) |   | $ | (66 | ) |   | $ | (4 | ) |
| Allowance at end of period                                     |   | $                      | 764     |   |   | $ | 1,535 |   |   | $ | 678 |   |   | $ | 666 |   |   | $ | 720 |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance to nonperforming loans                               |   |                   | 87.21   | % |   |   | 19.72 | % |   |   | 17.51 | % |   |   | 52.15 | % |   |   | 74.38 | % |
| Allowance to total loans outstanding at end of period          |   |                   | 0.42    | % |   |   | 0.80 | % |   |   | 0.36 | % |   |   | 0.36 | % |   |   | 0.43 | % |
| Net charge-offs to average loans outstanding during the period |   |                   | 0.76    | % |   |   | 0.10 | % |   |   | 0.02 | % |   |   | 0.04 | % |   |   | — | % |

----

|                            |   | At June 30, |   |
|---------------------------------|--------|-----------------------|--------|
|                            |   | 2011                  |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                            |   | Amount                |   |   | % ofAllowanceto TotalAllowance |   |   | % ofLoans inCategoryTo TotalLoans |   |   | Amount |   |   | % ofAllowanceto TotalAllowance |   |   | % ofLoans inCategoryTo TotalLoans |   |   | Amount |   |   | % ofAllowanceto TotalAllowance |   |   | % ofLoans inCategoryTo TotalLoans |   |   | Amount |   |   | % ofAllowanceto TotalAllowance |   |   | % ofLoans inCategoryTo TotalLoans |   |   | Amount |   |   | % ofAllowanceto TotalAllowance |   |   | % ofLoans inCategoryTo TotalLoans |   |
| (Dollars in thousands)          |   |
|                            |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans category:                 |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                     |   | $                     | 494    |   |   |   | 64.7 | % |   |   | 86.4 | % |   | $ | 1,200 |   |   |   | 78.2 | % |   |   | 86.0 | % |   | $ | 542 |   |   |   | 80.0 | % |   |   | 85.8 | % |   | $ | 584 |   |   |   | 87.7 | % |   |   | 86.1 | % |   | $ | 636 |   |   |   | 88.3 | % |   |   | 86.7 | % |
| Construction                    |   |                  | 3      |   |   |   | 0.4 |   |   |   | 0.6 |   |   |   | 6 |   |   |   | 0.4 |   |   |   | 0.9 |   |   |   | 2 |   |   |   | 0.3 |   |   |   | 0.4 |   |   |   | 13 |   |   |   | 2.0 |   |   |   | 1.9 |   |   |   | 29 |   |   |   | 4.0 |   |   |   | 3.9 |   |
| Multi-family                    |   |                  | 13     |   |   |   | 1.7 |   |   |   | 2.5 |   |   |   | 277 |   |   |   | 18.1 |   |   |   | 3.5 |   |   |   | 81 |   |   |   | 11.9 |   |   |   | 3.8 |   |   |   | 10 |   |   |   | 1.4 |   |   |   | 1.5 |   |   |   | 7 |   |   |   | 1.0 |   |   |   | 0.9 |   |
| Nonresidential & other      |   |                  | 34     |   |   |   | 4.4 |   |   |   | 6.6 |   |   |   | 36 |   |   |   | 2.3 |   |   |   | 5.7 |   |   |   | 38 |   |   |   | 5.6 |   |   |   | 6.1 |   |   |   | 42 |   |   |   | 6.3 |   |   |   | 6.2 |   |   |   | 30 |   |   |   | 4.2 |   |   |   | 4.1 |   |
| Consumer and other              |   |                  | 13     |   |   |   | 1.7 |   |   |   | 2.6 |   |   |   | 16 |   |   |   | 1.0 |   |   |   | 2.5 |   |   |   | 15 |   |   |   | 2.2 |   |   |   | 2.4 |   |   |   | 17 |   |   |   | 2.6 |   |   |   | 2.5 |   |   |   | 18 |   |   |   | 2.5 |   |   |   | 2.5 |   |
| Loans secured by deposits       |   |                  | 7      |   |   |   | 0.9 |   |   |   | 1.3 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unallocated                     |   |                  | 200    |   |   |   | 26.2 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1.4 |   |   |   | — |   |   |   | — |   |   |   | 1.5 |   |   |   | — |   |   |   | — |   |   |   | 1.8 |   |   |   | — |   |   |   | — |   |   |   | 1.9 |   |
| Total allowance for loan losses |   | $                     | 764    |   |   |   | 100 | % |   |   | 100 | % |   | $ | 1,535 |   |   |   | 100.0 | % |   |   | 100.0 | % |   | $ | 678 |   |   |   | 100.0 | % |   |   | 100.0 | % |   | $ | 666 |   |   |   | 100.0 | % |   |   | 100.0 | % |   | $ | 720 |   |   |   | 100.0 | % |   |   | 100.0 | % |

----

|                                            |   | Year Ended June 30,    |    |
|-------------------------------------------------|--------|------------------------|---------|
|                                            |   | 2011                   |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                            |   | (Dollars in thousands) |    |
|                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccrual loans:                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans                               |   | $                      | 876     |   |   | $ | 7,671 |   |   | $ | 435 |   |   | $ | 666 |   |   | $ | 713 |   |
| Consumer loans                                  |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                           |   |                   | 876     |   |   |   | 7,671 |   |   |   | 435 |   |   |   | 666 |   |   |   | 713 |   |
|                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accruing loans past due 90 days or more:        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans                               |   |                   | — |   |   |   | 112 |   |   |   | 3,437 |   |   |   | 611 |   |   |   | 255 |   |
| Consumer loans                                  |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total of accruing loans past due 90days or more |   |                   | — |   |   |   | 112 |   |   |   | 3,437 |   |   |   | 611 |   |   |   | 255 |   |
| Total nonperforming loans                       |   |                   | 876     |   |   |   | 7,783 |   |   |   | 3,872 |   |   |   | 1,277 |   |   |   | 968 |   |
| Real estate acquired through foreclosure        |   |                   | 4,304   |   |   |   | 748 |   |   |   | 109 |   |   |   | 21 |   |   |   | 8 |   |
| Total nonperforming assets                      |   | $                      | 5,180   |   |   | $ | 8,531 |   |   | $ | 3,981 |   |   | $ | 1,298 |   |   | $ | 976 |   |
|                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonperforming loans to total loans        |   |                   | 0.48    | % |   |   | 4.05 | % |   |   | 2.05 | % |   |   | 0.70 | % |   |   | 0.58 | % |
|                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonperforming loans to total assets       |   |                   | 0.39    | % |   |   | 3.29 | % |   |   | 1.61 | % |   |   | 0.52 | % |   |   | 0.36 | % |
|                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total nonperforming assets to total assets      |   |                   | 2.29    | % |   |   | 3.60 | % |   |   | 1.65 | % |   |   | 0.52 | % |   |   | 0.36 | % |

----

|                    |   | At June 30,    |    |
|-------------------------|--------|----------------|---------|
|                    |   | 2011           |    |   | 2010 |   |   | 2009 |   |
|                    |   | (In thousands) |    |
| Substandard assets      |   | $              | 6,484   |   |   | $ | 7,840 |   |   | $ | 7,905 |   |
| Doubtful assets         |   |           | — |   |   |   | — |   |   |   | — |   |
| Loss assets             |   |           | — |   |   |   | — |   |   |   | — |   |
| Total classified assets |   | $              | 6,484   |   |   | $ | 7,840 |   |   | $ | 7,905 |   |

|                                                |   |       |   |   | Net      |   |
|-----------------------------------------------------|--------|------------|--------|--------|----------|--------|
|                                                |   | Number of  |   |   | Carrying |   |
|                                                |   | Properties |   |   | Value    |   |
| (dollars in thousands)                              |   |       |   |   |     |   |
|                                                |   |       |   |   |     |   |
| Single family, non-owner occupied                   |   |       | 43     |   |     | $      | 2,448 |   |
| 2-4 family, owner occupied                          |   |       | 13     |   |     |   | 1,607 |   |
| 5 or more family, non-owner occupied                |   |       | 1      |   |     |   | 234 |   |
| Building lot                                        |   |       | 1      |   |     |   | 15 |   |
| Total other real estate owned in substandard assets |   |       | 58     |   |     | $      | 4,304 |   |

----

|                              |   |       |   |   | Net      |   |
|-----------------------------------|--------|------------|--------|--------|----------|--------|
|                              |   | Number of  |   |   | Carrying |   |
|                              |   | Properties |   |   | Value    |   |
| (dollars in thousands)            |   |       |   |   |     |   |
|                              |   |       |   |   |     |   |
| Single family, owner occupied     |   |       | 22     |   |     | $      | 1,507 |   |
| Single family, non-owner occupied |   |       | 9      |   |     |   | 635 |   |
| 2-4 family, owner occupied        |   |       | 1      |   |     |   | 38 |   |
| Total substandard loans           |   |       | 32     |   |     | $      | 2,180 |   |

|              |   | At June 30,        |    |
|-------------------|--------|------------------------------|---------|
|              |   | 2011                         |    |   | 2010 |   |
|              |   | 30-59 DaysPast Due |    |   | 60-89 DaysPast Due |   |   | 30-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |
|              |   | (In thousands)               |    |
| Real estate loans |   | $                            | 1,861   |   |   | $ | 1,320 |   |   | $ | 1,026 |   |   | $ | 1,467 |   |
| Consumer loans    |   |                         | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total             |   | $                            | 1,861   |   |   | $ | 1,320 |   |   | $ | 1,026 |   |   | $ | 1,467 |   |

----

|                               |   | At June 30,    |   |
|------------------------------------|--------|----------------|--------|
|                               |   | 2011           |   |   | 2010 |   |   | 2009 |   |
|                               |   | AmortizedCost  |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |
|                               |   | (In thousands) |   |
| Available for sale securities:     |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agency obligations |   | $              | 0      |   |   | $ | 0 |   |   | $ | - |   |   | $ | - |   |   | $ | 5,000 |   |   | $ | 5,136 |   |
| Mortgage-backed securities         |   |           | 199    |   |   |   | 203 |   |   |   | 240 |   |   |   | 246 |   |   |   | 314 |   |   |   | 315 |   |
| Total                              |   | $              | 199    |   |   | $ | 203 |   |   | $ | 240 |   |   | $ | 246 |   |   | $ | 5,314 |   |   | $ | 5,451 |   |
|                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity securities:       |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agency obligations |   | $              | 0      |   |   | $ | 0 |   |   | $ | - |   |   | $ | - |   |   | $ | 3,000 |   |   | $ | 3,002 |   |
| Mortgage-backed securities         |   |           | 6,810  |   |   |   | 7,257 |   |   |   | 9,435 |   |   |   | 10,026 |   |   |   | 11,999 |   |   |   | 12,315 |   |
| Total                              |   | $              | 6,810  |   |   | $ | 7,257 |   |   | $ | 9,435 |   |   | $ | 10,026 |   |   | $ | 14,999 |   |   | $ | 15,317 |   |

----

|                                           |   | One Year or Less  |    |   | More ThanOne Year to Five Years |   |    | More ThanFive Years to Ten Years |   |   | More Than Ten Years |   |   | Total Investment Portfolio |    |
|------------------------------------------------|--------|----------------------------------|---------|--------|----------------------------------------------------------|--------|---------|-----------------------------------------------------------|--------|--------|------------------------------------|--------|--------|--------------------------------------|---------|
|                                           |   | AmortizedCost                    |    |   | WeightedAverageYield                                     |   |    | AmortizedCost                                             |   |   | WeightedAverageYield               |   |   | AmortizedCost                        |    |   | WeightedAverageYield |   |   | AmortizedCost |   |   | WeightedAverageYield |   |   | AmortizedCost |   |   | FairValue |   |   | WeightedAverageYield |   |
|                                           |   | (Dollars in thousands) |    |
| Available for sale securities:                 |   |                             |    |   |                                                     |   |    |                                                      |   |   |                               |   |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agency obligations             |   | $                                | — |   |                                                     |   | — | %                                                         |   | $      | —                            |   |   |                                 | — | % |   | $ | — |   |   |   | — | % |   | $ | — |   |   |   | — | % |   | $ | - |   |   | $ | — |   |   |   | — | % |
| Mortgage-backed securities                     |   |                             | 7       |   |                                                     |   | 2.91    |                                                      |   |   | 28                                 |   |   |                                 | 2.91    |   |   |   | 41 |   |   |   | 2.91 |   |   |   | 123 |   |   |   | 2.91 |   |   |   | 199 |   |   |   | 203 |   |   |   | 2.91 |   |
| Total  available for sale securities |   | $                                | 7       |   |                                                     |   |    |                                                      |   | $      | 28                                 |   |   |                                 |    |   |   | $ | 41 |   |   |   |   |   |   | $ | 123 |   |   |   |   |   |   | $ | 199 |   |   | $ | 203 |   |   |   |   |   |
|                                           |   |                             |    |   |                                                     |   |    |                                                      |   |   |                               |   |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity securities:                   |   |                             |    |   |                                                     |   |    |                                                      |   |   |                               |   |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agency obligations             |   | $                                | — |   |                                                     |   | — |                                                      |   | $      | —                            |   |   |                                 | — |   |   | $ | — |   |   |   | — |   |   | $ | — |   |   |   | — |   |   | $ | — |   |   | $ | — |   |   |   | — |   |
| Mortgage-backed securities                     |   |                             | 672     |   |                                                     |   | 4.18    |                                                      |   |   | 2,989                              |   |   |                                 | 4.19    |   |   |   | 2,300 |   |   |   | 4.25 |   |   |   | 849 |   |   |   | 5.33 |   |   |   | 6,810 |   |   |   | 7,257 |   |   |   | 4.35 |   |
| Total held-to-maturity securities              |   | $                                | 672     |   |                                                     |   |    |                                                      |   | $      | 2,989                              |   |   |                                 |    |   |   | $ | 2,300 |   |   |   |   |   |   | $ | 849 |   |   |   |   |   |   | $ | 6,810 |   |   | $ | 7,257 |   |   |   |   |   |

----

|                                              |   | At June 30,    |    |
|---------------------------------------------------|--------|----------------|---------|
|                                              |   | 2011           |    |   | 2010 |   |   | 2009 |   |
|                                              |   | (In thousands) |    |
| Certificate of deposit accounts                   |   | $              | 93,036  |   |   | $ | 102,666 |   |   | $ | 98,518 |   |
| Demand, transaction and passbook savings accounts |   |           | 46,904  |   |   |   | 42,303 |   |   |   | 41,225 |   |
| Total                                             |   | $              | 139,940 |   |   | $ | 144,969 |   |   | $ | 139,743 |   |

| Maturity Period                  |   | Certificates of Deposit |   |
|---------------------------------------|--------|-----------------------------------|--------|
|                                  |   | (In thousands)                    |   |
|                                  |   |                              |   |
| Three months or less                  |   | $                                 | 5,812  |   |
| Over three months through six months  |   |                              | 7,323  |   |
| Over six months through twelve months |   |                              | 10,250 |   |
| Over twelve months                    |   |                              | 8,572  |   |
| Total                                 |   | $                                 | 31,957 |   |

|                    |   | At June 30,    |   |
|-------------------------|--------|----------------|--------|
|                    |   | 2011           |   |   | 2010 |   |   | 2009 |   |
|                    |   | (In thousands) |   |
| Rate                    |   |           |   |   |   |   |   |   |   |
| 0.01 -  0.99% |   | $              | 7,472  |   |   | $ | 1,507 |   |   | $ | — |   |
| 1.00 -  1.99  |   |           | 56,141 |   |   |   | 21,326 |   |   |   | 4,173 |   |
| 2.00 -  2.99  |   |           | 18,533 |   |   |   | 51,586 |   |   |   | 29,168 |   |
| 3.00 -  3.99  |   |           | 2,669  |   |   |   | 12,337 |   |   |   | 36,066 |   |
| 4.00 -  4.99  |   |           | 7,272  |   |   |   | 7,962 |   |   |   | 14,291 |   |
| 5.00 -  5.99  |   |           | 949    |   |   |   | 7,948 |   |   |   | 14,820 |   |
| Total                   |   | $              | 93,036 |   |   | $ | 102,666 |   |   | $ | 98,518 |   |

----

|              |   | Amount Due             |   |   |                            |   |    |                              |   |
|-------------------|--------|------------------------|--------|--------|---------------------------------|--------|---------|-----------------------------------|--------|
|              |   | Less Than One Year     |   |   | More Than One Year to Two Years |   |    | More ThanTwo Years to Three Years |   |   | More ThanThree Years |   |   | Total |   |   | Percentage ofTotal Certificate Accounts |   |
|              |   | (Dollars in thousands) |   |
|              |   |                   |   |   |                            |   |    |                              |   |   |   |   |   |   |   |   |   |   |
| 0.01 –0.99% |   | $                      | 7,472  |   |                            | $      | — |                              |   | $ | — |   |   | $ | — |   |   | $ | 7,472 |   |   |   | 8.0 | % |
| 1.00 – 1.99 |   |                   | 40,154 |   |                            |   | 14,153  |                              |   |   | 1,337 |   |   |   | 497 |   |   |   | 56,141 |   |   |   | 60.4 |   |
| 2.00 – 2.99 |   |                   | 11,136 |   |                            |   | 2,449   |                              |   |   | 1,743 |   |   |   | 3,205 |   |   |   | 18,533 |   |   |   | 19.9 |   |
| 3.00 – 3.99 |   |                   | 2,249  |   |                            |   | 326,    |                              |   |   | 57 |   |   |   | 37 |   |   |   | 2,669 |   |   |   | 2.9 |   |
| 4.00 – 4.99 |   |                   | 5,598  |   |                            |   | 1,568   |                              |   |   | 91 |   |   |   | 15 |   |   |   | 7,272 |   |   |   | 7.8 |   |
| 5.00 – 5.99 |   |                   | 865    |   |                            |   | 84      |                              |   |   | — |   |   |   | — |   |   |   | 949 |   |   |   | 1.0 |   |
| Total             |   | $                      | 67,474 |   |                            | $      | 18,580  |                              |   | $ | 3,228 |   |   | $ | 3,754 |   |   | $ | 93,036 |   |   |   | 100.0 | % |

|                       |   | Year Ended June 30,    |   |
|----------------------------|--------|------------------------|--------|
|                       |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                       |   | Average                |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |   | Average |   |
|                       |   | Balance                |   |   | Rate |   |   | Balance |   |   | Rate |   |   | Balance |   |   | Rate |   |
|                       |   | (Dollars in thousands) |   |
| Noninterest-bearing demand |   | $                      | 994    |   |   |   | 0.00 | % |   | $ | 1,012 |   |   |   | 0.00 | % |   | $ | 788 |   |   |   | 0.00 | % |
| Interest-bearing demand    |   |                   | 14,442 |   |   |   | 0.10 | % |   |   | 11,973 |   |   |   | 0.87 | % |   |   | 10,366 |   |   |   | 1.52 | % |
| Passbook savings accounts  |   |                   | 30,941 |   |   |   | 1.07 | % |   |   | 29,433 |   |   |   | 1.00 | % |   |   | 30,125 |   |   |   | 1.01 | % |
| Certificates of deposit    |   |                   | 98,574 |   |   |   | 2.17 | % |   |   | 100,723 |   |   |   | 3.01 | % |   |   | 96,807 |   |   |   | 3.78 | % |

|                                         |   | Year Ended June 30, |    |
|----------------------------------------------|--------|---------------------|---------|
|                                         |   | 2011                |    |   | 2010 |   |   | 2009 |   |
|                                         |   | (In thousands)      |    |
|                                         |   |                |    |   |   |   |   |   |   |
| Beginning balance                            |   | $                   | 144,969 |   |   | $ | 139,743 |   |   | $ | 137,634 |   |
| Increase (decrease) before interest credited |   |                | (7,515  | ) |   |   | 1,793 |   |   |   | (2,009 | ) |
| Interest credited                            |   |                | 2,486   |   |   |   | 3,433 |   |   |   | 4,118 |   |
| Net increase (decrease) in deposits          |   |                | (5,029  | ) |   |   | 5,226 |   |   |   | 2,109 |   |
| Ending balance                               |   | $                   | 139,940 |   |   | $ | 144,969 |   |   | $ | 139,743 |   |

----

|                                                                      |   | Year Ended June 30,    |   |
|---------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                      |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                                                                      |   | (Dollars in thousands) |   |
|                                                                      |   |                   |   |   |   |   |   |   |   |
| Balance outstanding at end of period                                      |   | $                      | 25,261 |   |   | $ | 32,009 |   |   | $ | 40,156 |   |
| Maximum amount of advances outstanding at any month end during the period |   | $                      | 38,503 |   |   | $ | 37,564 |   |   | $ | 46,815 |   |
| Average advances outstanding during the period                            |   | $                      | 29,524 |   |   | $ | 35,325 |   |   | $ | 43,200 |   |
| Weighted average interest rate during the period                          |   |                   | 2.35   | % |   |   | 4.38 | % |   |   | 4.13 | % |
| Weighted average interest rate at end of period                           |   |                   | 2.50   | % |   |   | 3.58 | % |   |   | 5.84 | % |

----

----

|                                             |   | 2011    |    |   | 2010      |   |   | 2009   |   |
|--------------------------------------------------|--------|---------|---------|--------|-----------|--------|--------|--------|--------|
|                                             |   |    |    |   | Interest  |   |   |   |   |   |   |   |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                             |   | Average |    |   | And       |   |   | Yield/ |   |   | Average |   |   | And |   |   | Yield/ |   |   | Average |   |   | And |   |   | Yield/ |   |
| (Dollars in thousands)                           |   | Balance |    |   | Dividends |   |   | Cost   |   |   | Balance |   |   | Dividends |   |   | Cost |   |   | Balance |   |   | Dividends |   |   | Cost |   |
|                                             |   |    |    |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                         |   |    |    |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                            |   | $       | 188,237 |   |      | $      | 10,146 |   |   |   | 5.39 | % |   | $ | 190,372 |   |   | $ | 10,475 |   |   |   | 5.50 | % |   | $ | 188,163 |   |   | $ | 11,057 |   |   |   | 5.88 | % |
| Mortgage-backed securities                       |   |    | 8,341   |   |      |   | 355    |   |   |   | 4.26 |   |   |   | 11,139 |   |   |   | 474 |   |   |   | 4.26 |   |   |   | 13,381 |   |   |   | 567 |   |   |   | 4.24 |   |
| Other securities                                 |   |    | 974     |   |      |   | 2      |   |   |   | 0.21 |   |   |   | 4,961 |   |   |   | 169 |   |   |   | 3.41 |   |   |   | 8,187 |   |   |   | 269 |   |   |   | 3.29 |   |
| Other interest-earning assets                    |   |    | 12,359  |   |      |   | 246    |   |   |   | 1.99 |   |   |   | 9,354 |   |   |   | 260 |   |   |   | 2.78 |   |   |   | 10,588 |   |   |   | 333 |   |   |   | 3.15 |   |
| Total interest-earning assets                    |   |    | 209,911 |   |      |   | 10,749 |   |   |   | 5.12 |   |   |   | 215,826 |   |   |   | 11,378 |   |   |   | 5.27 |   |   |   | 220,319 |   |   |   | 12,226 |   |   |   | 5.55 |   |
| Noninterest-earning assets                       |   |    | 23,617  |   |      |   |   |   |   |   |   |   |   |   | 22,952 |   |   |   |   |   |   |   |   |   |   |   | 22,668 |   |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $       | 233,528 |   |      |   |   |   |   |   |   |   |   | $ | 238,778 |   |   |   |   |   |   |   |   |   |   | $ | 242,987 |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                    |   |    |    |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                  |   | $       | 14,442  |   |      | $      | 14     |   |   |   | 0.10 | % |   | $ | 11,973 |   |   | $ | 104 |   |   |   | 0.87 | % |   | $ | 10,366 |   |   | $ | 158 |   |   |   | 1.52 | % |
| Savings                                          |   |    | 30,941  |   |      |   | 330    |   |   |   | 1.07 |   |   |   | 29,433 |   |   |   | 294 |   |   |   | 1.00 |   |   |   | 30,125 |   |   |   | 303 |   |   |   | 1.01 |   |
| Certificates of deposit                          |   |    | 98,574  |   |      |   | 2,142  |   |   |   | 2.17 |   |   |   | 100,723 |   |   |   | 3,035 |   |   |   | 3.01 |   |   |   | 96,807 |   |   |   | 3,657 |   |   |   | 3.78 |   |
| Total deposits                                   |   |    | 143,957 |   |      |   | 2,486  |   |   |   | 1.73 |   |   |   | 142,129 |   |   |   | 3,433 |   |   |   | 2.42 |   |   |   | 137,298 |   |   |   | 4,118 |   |   |   | 3.00 |   |
| Borrowings                                       |   |    | 29,524  |   |      |   | 695    |   |   |   | 2.35 |   |   |   | 35,325 |   |   |   | 1,547 |   |   |   | 4.38 |   |   |   | 43,200 |   |   |   | 1,784 |   |   |   | 4.13 |   |
| Total interest-bearing liabilities               |   |    | 173,481 |   |      |   | 3,181  |   |   |   | 1.83 |   |   |   | 177,454 |   |   |   | 4,980 |   |   |   | 2.81 |   |   |   | 180,498 |   |   |   | 5,902 |   |   |   | 3.27 |   |
| Noninterest-bearing demand deposits              |   |    | 994     |   |      |   |   |   |   |   |   |   |   |   | 1,012 |   |   |   |   |   |   |   |   |   |   |   | 788 |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing liabilities                  |   |    | 1,227   |   |      |   |   |   |   |   |   |   |   |   | 2,353 |   |   |   |   |   |   |   |   |   |   |   | 2,423 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                |   |    | 175,702 |   |      |   |   |   |   |   |   |   |   |   | 180,819 |   |   |   |   |   |   |   |   |   |   |   | 183,709 |   |   |   |   |   |   |   |   |   |
|                                             |   |    |    |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                       |   |    | 57,826  |   |      |   |   |   |   |   |   |   |   |   | 57,959 |   |   |   |   |   |   |   |   |   |   |   | 59,278 |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   | $       | 233,528 |   |      |   |   |   |   |   |   |   |   | $ | 238,778 |   |   |   |   |   |   |   |   |   |   | $ | 242,987 |   |   |   |   |   |   |   |   |   |
| Net interest income/average yield                |   |    |    |   |      | $      | 7,568  |   |   |   | 3.29 | % |   |   |   |   |   | $ | 6,398 |   |   |   | 2.46 | % |   |   |   |   |   | $ | 6,324 |   |   |   | 2.28 | % |
| Net interest margin                              |   |    |    |   |      |   |   |   |   |   | 3.61 | % |   |   |   |   |   |   |   |   |   |   | 2.96 | % |   |   |   |   |   |   |   |   |   |   | 2.87 | % |
| Average interest-earning assets to               |   |    |    |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-bearing liabilities             |   |    |    |   |      |   |   |   |   |   | 121.00 | % |   |   |   |   |   |   |   |   |   |   | 121.62 | % |   |   |   |   |   |   |   |   |   |   | 121.00 | % |

----

|                               |   | Twelve months ended June 30,2011 to June 30, 2010Increase (Decrease)Due to Changes In |   |   | Twelve months ended June 30,2010 to June 30, 2009Increase (Decrease)Due to Changes In |   |
|------------------------------------|--------|---------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|
| (in thousands)                     |   | Volume                                                                                |   |   | Rate                                                                                  |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                               |   |                                                                                  |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:           |   |                                                                                  |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable                   |   | $                                                                                     | (117   | )      |                                                                                  | $      | (212 | ) |   | $ | (329 | ) |   | $ | 134 |   |   | $ | (716 | ) |   | $ | (582 | ) |
| Mortgage-backed securities         |   |                                                                                  | (119   | )      |                                                                                  |   | — |   |   |   | (119 | ) |   |   | (95 | ) |   |   | 2 |   |   |   | (93 | ) |
| Investment securities              |   |                                                                                  | (77    | )      |                                                                                  |   | (90 | ) |   |   | (167 | ) |   |   | (110 | ) |   |   | 10 |   |   |   | (100 | ) |
| Other interest-earning assets      |   |                                                                                  | (121   | )      |                                                                                  |   | 107 |   |   |   | (14 | ) |   |   | (36 | ) |   |   | (37 | ) |   |   | (73 | ) |
| Total interest-earning assets      |   |                                                                                  | (434   | )      |                                                                                  |   | (195 | ) |   |   | (629 | ) |   |   | (107 | ) |   |   | (741 | ) |   |   | (848 | ) |
|                               |   |                                                                                  |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:      |   |                                                                                  |   |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Checking accounts                  |   |                                                                                  | 27     |   |                                                                                  |   | (117 | ) |   |   | (90 | ) |   |   | 31 |   |   |   | (85 | ) |   |   | (54 | ) |
| Savings accounts                   |   |                                                                                  | 15     |   |                                                                                  |   | 21 |   |   |   | 36 |   |   |   | (6 | ) |   |   | (3 | ) |   |   | (9 | ) |
| Certificates of deposit            |   |                                                                                  | (63    | )      |                                                                                  |   | (830 | ) |   |   | (893 | ) |   |   | 155 |   |   |   | (777 | ) |   |   | (622 | ) |
| FHLB Advances                      |   |                                                                                  | (223   | )      |                                                                                  |   | (629 | ) |   |   | (852 | ) |   |   | (354 | ) |   |   | 117 |   |   |   | (237 | ) |
| Total interest-bearing liabilities |   |                                                                                  | (244   | )      |                                                                                  |   | (1,555 | ) |   |   | (1,799 | ) |   |   | (174 | ) |   |   | (748 | ) |   |   | (922 | ) |
| Increase in net interest income    |   | $                                                                                     | (190   | )      |                                                                                  | $      | 1,360 |   |   | $ | 1,170 |   |   | $ | 67 |   |   | $ | 7 |   |   | $ | 74 |   |

----

----

|                                       |   | Total AmountsCommitted |    |   | Less ThanOne Year |   |   | One toThree Years |   |   | Four toFive Years |   |   | More than Five Years |          |
|--------------------------------------------|--------|------------------------|---------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|----------------------|---------------|
|                                       |   | (In thousands)         |    |
| Certificates of deposit                    |   | $                      | 93,036  |   |              | $      | 67,474 |              |   | $      | 21,809            |   |   | $                    | 2,769         |   |   | $ | 984 |   |
| Federal Home Loan Bank advances (1)        |   |                   | 25,249  |   |              |   | 3,184  |              |   |   | 15,365            |   |   |                 | 2,366         |   |   |   | 4,334 |   |
| One to four family residential real estate |   |                   | 1,263   |   |              |   | 1,263  |              |   |   | —           |   |   |                 | —       |   |   |   | — |   |
| Multi-family residential real estate       |   |                   | 400     |   |              |   | 400    |              |   |   | —           |   |   |                 | —       |   |   |   | — |   |
| Unused lines of credit                     |   |                   | 8,914   |   |              |   | 8,914  |              |   |   | —           |   |   |                 | —       |   |   |   | — |   |
| Undisbursed loans                          |   |                   | 353     |   |              |   | 353    |              |   |   | —           |   |   |                 |  — |   |   |   |  — |   |
| Total commitments                          |   | $                      | 129,215 |   |              | $      | 81,588 |              |   | $      | 37,174            |   |   | $                    | 5,135         |   |   | $ | 5,318 |   |

----

| (1) | Net of premium on FHLB borrowings |
|-----|-----------------------------------|

----

----

| /s/ Crowe Horwath LLP |
|-----------------------|
| Crowe Horwath LLP     |

----

|                                                                                                                                 |   | 2011   |    |   | 2010    |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|---------|--------|
|                                                                                                                                 |   |   |    |   | Revised |   |
|                                                                                                                                 |   |   |    |   |    |   |
| ASSETS                                                                                                                               |   |   |    |   |    |   |
|                                                                                                                                 |   |   |    |   |    |   |
| Cash and due from financial institutions                                                                                             |   | $      | 1,002   |   |    | $      | 1,118 |   |
| Interest-bearing demand deposits                                                                                                     |   |   | 4,047   |   |    |   | 7,244 |   |
| Cash and cash equivalents                                                                                                            |   |   | 5,049   |   |    |   | 8,362 |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| Interest-bearing deposits in other financial institutions                                                                            |   |   | 100     |   |    |   | 100 |   |
| Securities available for sale                                                                                                        |   |   | 203     |   |    |   | 246 |   |
| Securities held-to-maturity, at amortized cost- approximate fair value of $7,257 and $10,026 at June 30, 2011 and 2010, respectively |   |   | 6,810   |   |    |   | 9,435 |   |
| Loans held for sale                                                                                                                  |   |   | — |   |    |   | 370 |   |
| Loans, net of allowance of $764 and $1,535 at June 30, 2011 and 2010, respectively                                                   |   |   | 182,796 |   |    |   | 190,618 |   |
| Real estate owned, net                                                                                                               |   |   | 4,304   |   |    |   | 748 |   |
| Premises and equipment, net                                                                                                          |   |   | 2,667   |   |    |   | 2,731 |   |
| Federal Home Loan Bank stock, at cost                                                                                                |   |   | 5,641   |   |    |   | 5,641 |   |
| Accrued interest receivable                                                                                                          |   |   | 538     |   |    |   | 518 |   |
| Bank-owned life insurance                                                                                                            |   |   | 2,607   |   |    |   | 2,518 |   |
| Goodwill                                                                                                                             |   |   | 14,507  |   |    |   | 14,507 |   |
| Other intangible assets                                                                                                              |   |   | 87      |   |    |   | 218 |   |
| Prepaid FDIC assessments                                                                                                             |   |   | 361     |   |    |   | 542 |   |
| Prepaid federal income taxes                                                                                                         |   |   | 22      |   |    |   | — |   |
| Prepaid expenses and other assets                                                                                                    |   |   | 443     |   |    |   | 385 |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| Total assets                                                                                                                         |   | $      | 226,135 |   |    | $      | 236,939 |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                           |   |   |    |   |    |   |   |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| Deposits                                                                                                                             |   | $      | 139,940 |   |    | $      | 144,969 |   |
| Federal Home Loan Bank advances                                                                                                      |   |   | 25,261  |   |    |   | 32,009 |   |
| Advances by borrowers for taxes and insurance                                                                                        |   |   | 471     |   |    |   | 335 |   |
| Accrued interest payable                                                                                                             |   |   | 91      |   |    |   | 145 |   |
| Accrued federal income taxes                                                                                                         |   |   | — |   |    |   | 166 |   |
| Deferred federal income taxes                                                                                                        |   |   | 1,021   |   |    |   | 831 |   |
| Other liabilities                                                                                                                    |   |   | 654     |   |    |   | 676 |   |
| Total liabilities                                                                                                                    |   |   | 167,438 |   |    |   | 179,131 |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| Commitments and contingencies                                                                                                        |   |   | -       |   |    |   | - |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| Shareholders’ equity                                                                                                           |   |   |    |   |    |   |   |   |
| Preferred stock, 500,000 shares authorized, $.01 par value; no shares issued and outstanding                                         |   |   | -       |   |    |   | - |   |
| Common stock, 20,000,000 shares authorized, $.01 par value; 8,596,064 shares issued                                                  |   |   | 86      |   |    |   | 86 |   |
| Additional paid-in capital                                                                                                           |   |   | 36,907  |   |    |   | 36,623 |   |
| Retained earnings                                                                                                                    |   |   | 31,860  |   |    |   | 31,216 |   |
| Unearned employee stock ownership plan (ESOP)                                                                                        |   |   | (1,989  | )      |    |   | (2,169 | ) |
| Treasury shares at cost, 811,375 and 745,530 common shares at                                                                        |   |   |    |   |    |   |   |   |
| June 30, 2011 and 2010, respectively                                                                                                 |   |   | (8,170  | )      |    |   | (7,952 | ) |
| Accumulated other comprehensive income                                                                                               |   |   | 3       |   |    |   | 4 |   |
| Total shareholders’ equity                                                                                                     |   |   | 58,697  |   |    |   | 57,808 |   |
|                                                                                                                                 |   |   |    |   |    |   |   |   |
| Total liabilities and shareholders’ equity                                                                                     |   | $      | 226,135 |   |    | $      | 236,939 |   |

----

|                                                |   | 2011   |   |   | 2010    |   |
|-----------------------------------------------------|--------|--------|--------|--------|---------|--------|
|                                                |   |   |   |   | Revised |   |
| Interest income                                     |   |   |   |   |    |   |
| Loans                                               |   | $      | 10,146 |   |    | $      | 10,475 |   |
| Mortgage-backed securities                          |   |   | 355    |   |    |   | 474 |   |
| Other securities                                    |   |   | 2      |   |    |   | 169 |   |
| Interest-bearing deposits and other                 |   |   | 246    |   |    |   | 260 |   |
| Total interest income                               |   |   | 10,749 |   |    |   | 11,378 |   |
|                                                |   |   |   |   |    |   |   |   |
| Interest expense                                    |   |   |   |   |    |   |   |   |
| Deposits                                            |   |   | 2,486  |   |    |   | 3,433 |   |
| Borrowings                                          |   |   | 695    |   |    |   | 1,547 |   |
| Total interest expense                              |   |   | 3,181  |   |    |   | 4,980 |   |
|                                                |   |   |   |   |    |   |   |   |
| Net interest income                                 |   |   | 7,568  |   |    |   | 6,398 |   |
|                                                |   |   |   |   |    |   |   |   |
| Provision for loan losses                           |   |   | 668    |   |    |   | 1,044 |   |
|                                                |   |   |   |   |    |   |   |   |
| Net interest income after provision for loan losses |   |   | 6,900  |   |    |   | 5,354 |   |
|                                                |   |   |   |   |    |   |   |   |
| Non-interest income                                 |   |   |   |   |    |   |   |   |
| Gains on sales of loans                             |   |   | 155    |   |    |   | 124 |   |
| Earnings on bank-owned life insurance               |   |   | 90     |   |    |   | 90 |   |
| Net gains (losses) on sales of real estate owned    |   |   | (36    | )      |    |   | (27 | ) |
| Unrealized loss-other real estate                   |   |   | (71    | )      |    |   | — |   |
| Other                                               |   |   | 104    |   |    |   | 102 |   |
| Total non-interest income                           |   |   | 242    |   |    |   | 289 |   |
|                                                |   |   |   |   |    |   |   |   |
| Non-interest expense                                |   |   |   |   |    |   |   |   |
| Salaries and employee benefits                      |   |   | 3,057  |   |    |   | 3,131 |   |
| Occupancy and equipment                             |   |   | 355    |   |    |   | 329 |   |
| Data processing                                     |   |   | 246    |   |    |   | 242 |   |
| Audit and accounting                                |   |   | 205    |   |    |   | 166 |   |
| Federal deposit insurance                           |   |   | 197    |   |    |   | 196 |   |
| Franchise and other taxes                           |   |   | 191    |   |    |   | 190 |   |
| Amortization of intangible assets                   |   |   | 131    |   |    |   | 131 |   |
| Real estate owned expense, net                      |   |   | 107    |   |    |   | 32 |   |
| Foreclosure costs                                   |   |   | 52     |   |    |   | — |   |
| Other operating                                     |   |   | 741    |   |    |   | 622 |   |
| Total non-interest expense                          |   |   | 5,282  |   |    |   | 5,039 |   |
|                                                |   |   |   |   |    |   |   |   |
| Income before income taxes                          |   |   | 1,860  |   |    |   | 604 |   |
|                                                |   |   |   |   |    |   |   |   |
| Federal income taxes                                |   |   |   |   |    |   |   |   |
| Current                                             |   |   | (43    | )      |    |   | 443 |   |
| Deferred                                            |   |   | 147    |   |    |   | (240 | ) |
| Total federal income taxes                          |   |   | 104    |   |    |   | 203 |   |
|                                                |   |   |   |   |    |   |   |   |
| NET INCOME                                          |   | $      | 1,756  |   |    | $      | 401 |   |
|                                                |   |   |   |   |    |   |   |   |
| EARNINGS PER SHARE                                  |   |   |   |   |    |   |   |   |
| Basic and diluted                                   |   | $      | 0.23   |   |    | $      | 0.05 |   |

----

|                                                                                                                                                                          |   | 2011   |   |   | 2010    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|
|                                                                                                                                                                          |   |   |   |   | Revised |   |
|                                                                                                                                                                          |   |   |   |   |    |   |
| Net income                                                                                                                                                                    |   | $      | 1,756  |   |    | $      | 401 |   |
|                                                                                                                                                                          |   |   |   |   |    |   |   |   |
| Other comprehensive income (loss), net of tax-related effects:                                                                                                                |   |   |   |   |    |   |   |   |
| Unrealized holding gains (losses) on securities available for sale  during the year, net of tax (benefit) of $0 and $(45) in 2011  and 2010, respectively |   |   | (1     | )      |    |   | (87 | ) |
|                                                                                                                                                                          |   |   |   |   |    |   |   |   |
| Comprehensive income                                                                                                                                                          |   | $      | 1,755  |   |    | $      | 314 |   |

----

|                                                                                        |   |   |   |   |       |   |   |     |   |   | Unearned  |   |   |     |   |   |          |   |   |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|---------------|--------|--------|--------|--------|
|                                                                                        |   |   |   |   |       |   |   |     |   |   | employee  |   |   |     |   |   |          |   |   |   |   |
|                                                                                        |   |   |   |   |       |   |   |     |   |   | stock     |   |   |     |   |   | Accumulated   |   |   |   |   |
|                                                                                        |   |   |   |   | Additional |   |   |     |   |   | ownership |   |   |     |   |   | other         |   |   |   |   |
|                                                                                        |   | Common |   |   | paid-in    |   |   | Retained |   |   | plan      |   |   | Treasury |   |   | comprehensive |   |   |   |   |
|                                                                                        |   | stock  |   |   | capital    |   |   | earnings |   |   | (ESOP)    |   |   | shares   |   |   | income        |   |   | Total  |   |
|                                                                                        |   |   |   |   |       |   |   |     |   |   |      |   |   |     |   |   |          |   |   |   |   |
| Balance at July 1, 2009                                                                     |   | $      | 86     |   |       | $      | 36,223 |     |   | $      | 32,074    |   |   | $        | (2,557 | )      |          | $      | (7,379 | )      |   | $ | 91 |   |   | $ | 58,538 |   |
|                                                                                        |   |   |   |   |       |   |   |     |   |   |      |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| SAB108 adjustment for additional ESOP compensation                                          |   |   | 26     |   |       |   | (123   | )        |   |   | 197       |   |   |     | -      |   |          |   | -      |   |   |   | 100 |   |   |   |   |   |
| Net income (revised)                                                                        |   |   | -      |   |       |   | -      |     |   |   | 401       |   |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | 401 |   |
| Allocation of ESOP shares                                                                   |   |   | -      |   |       |   | 185    |     |   |   | -         |   |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | 185 |   |
| Amortization expense of stock benefit plans                                                 |   |   | -      |   |       |   | 74     |     |   |   | -         |   |   |     | 191    |   |          |   | -      |   |   |   | - |   |   |   | 265 |   |
| Compensation expense related to vesting stock options                                       |   |   | -      |   |       |   | 115    |     |   |   | -         |   |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | 115 |   |
| Acquisition of shares for Treasury                                                          |   |   | -      |   |       |   | -      |     |   |   | -         |   |   |     | -      |   |          |   | (573   | )      |   |   | - |   |   |   | (573 | ) |
| Unrealized gains on securities designated as available for sale, net of related tax effects |   |   | -      |   |       |   | -      |     |   |   | -         |   |   |     | -      |   |          |   | -      |   |   |   | (87 | ) |   |   | (87 | ) |
| Cash dividends of $0.40 per common share                                                    |   |   | -      |   |       |   | -      |     |   |   | (1,136    | )      |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | (1,136 | ) |
|                                                                                        |   |   |   |   |       |   |   |     |   |   |      |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                                                    |   |   | 86     |   |       |   | 36,623 |     |   |   | 31,216    |   |   |     | (2,169 | )      |          |   | (7,952 | )      |   |   | 4 |   |   |   | 57,808 |   |
|                                                                                        |   |   |   |   |       |   |   |     |   |   |      |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                  |   |   | -      |   |       |   | -      |     |   |   | 1,756     |   |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | 1,756 |   |
| Allocation of ESOP shares                                                                   |   |   | -      |   |       |   | (15    | )        |   |   | -         |   |   |     | 180    |   |          |   | -      |   |   |   | - |   |   |   | 165 |   |
| Amortization expense of stock benefit plans                                                 |   |   | -      |   |       |   | 242    |     |   |   | -         |   |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | 242 |   |
| Compensation expense related to vesting stock options                                       |   |   | -      |   |       |   | 57     |     |   |   | -         |   |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | 57 |   |
| Acquisition of shares for Treasury                                                          |   |   | -      |   |       |   | -      |     |   |   | -         |   |   |     | -      |   |          |   | (218   | )      |   |   | - |   |   |   | (218 | ) |
| Unrealized losses on securities available for sale,  net of related tax effects   |   |   | -      |   |       |   | -      |     |   |   | -         |   |   |     | -      |   |          |   | -      |   |   |   | (1 | ) |   |   | (1 | ) |
| Cash dividends of $0.40 per common share                                                    |   |   | -      |   |       |   | -      |     |   |   | (1,112    | )      |   |     | -      |   |          |   | -      |   |   |   | - |   |   |   | (1,112 | ) |
|                                                                                        |   |   |   |   |       |   |   |     |   |   |      |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2011                                                                    |   | $      | 86     |   |       | $      | 36,907 |     |   | $      | 31,860    |   |   | $        | (1,989 | )      |          | $      | (8,170 | )      |   | $ | 3 |   |   | $ | 58,697 |   |

----

|                                                                              |   | 2011   |    |   | 2010    |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|---------|--------|
|                                                                              |   |   |    |   | Revised |   |
| Cash flows from operating activities:                                             |   |   |    |   |    |   |
| Net income                                                                        |   | $      | 1,756   |   |    | $      | 401 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |    |   |    |   |   |   |
| Depreciation                                                                      |   |   | 185     |   |    |   | 172 |   |
| Amortization of deferred loan origination (fees) costs                            |   |   | (8      | )      |    |   | (10 | ) |
| Amortization of premiums on FHLB advances                                         |   |   | (108    | )      |    |   | (352 | ) |
| Amortization of core deposit intangibles                                          |   |   | 131     |   |    |   | 131 |   |
| Net gain on sale of loans                                                         |   |   | (155    | )      |    |   | (124 | ) |
| Net loss on sale of real estate owned                                             |   |   | 107     |   |    |   | 27 |   |
| ESOP compensation expense                                                         |   |   | 180     |   |    |   | 388 |   |
| Amortization of stock benefit plans and stock options expense                     |   |   | 284     |   |    |   | 277 |   |
| Earnings on bank-owned life insurance                                             |   |   | (90     | )      |    |   | (90 | ) |
| Provision for loan losses                                                         |   |   | 668     |   |    |   | 1,044 |   |
| Origination of loans held for sale                                                |   |   | (3,881  | )      |    |   | (4,250 | ) |
| Proceeds from loans held for sale                                                 |   |   | 4,406   |   |    |   | 4,235 |   |
| Increase (decrease) in cash, due to changes in:                                   |   |   |    |   |    |   |   |   |
| Accrued interest receivable                                                       |   |   | (20     | )      |    |   | 232 |   |
| Prepaid expenses and other assets                                                 |   |   | 123     |   |    |   | (582 | ) |
| Accrued interest payable                                                          |   |   | (54     | )      |    |   | (44 | ) |
| Accounts payable and other liabilities                                            |   |   | (22     | )      |    |   | (47 | ) |
| Federal income taxes                                                              |   |   |    |   |    |   |   |   |
| Current                                                                           |   |   | (143    | )      |    |   | 19 |   |
| Deferred                                                                          |   |   | 147     |   |    |   | (239 | ) |
| Net cash provided by operating activities                                         |   |   | 3,506   |   |    |   | 1,188 |   |
|                                                                              |   |   |    |   |    |   |   |   |
| Cash flows from investing activities:                                             |   |   |    |   |    |   |   |   |
| Purchase of available-for-sale securities                                         |   |   | (11,000 | )      |    |   | — |   |
| Investment securities maturities, prepayments and calls:                          |   |   |    |   |    |   |   |   |
| Held to maturity                                                                  |   |   | 13,625  |   |    |   | 5,564 |   |
| Available for sale                                                                |   |   | 41      |   |    |   | 5,073 |   |
| Loans originated for investment, net of principal collected                       |   |   | 3,205   |   |    |   | (3,798 | ) |
| Proceeds from sale of real estate owned                                           |   |   | 294     |   |    |   | 410 |   |
| Additions to premises and equipment, net                                          |   |   | (121    | )      |    |   | (59 | ) |
| Net cash provided by investing activities                                         |   |   | 6,044   |   |    |   | 7,190 |   |
|                                                                              |   |   |    |   |    |   |   |   |
| Cash flows from financing activities:                                             |   |   |    |   |    |   |   |   |
| Net change in deposits                                                            |   |   | (5,029  | )      |    |   | 5,226 |   |
| Payments by borrowers for taxes and insurance, net                                |   |   | 136     |   |    |   | 45 |   |
| Proceeds from Federal Home Loan Bank advances                                     |   |   | 16,000  |   |    |   | 18,500 |   |
| Repayments on Federal Home Loan Bank advances                                     |   |   | (22,640 | )      |    |   | (26,295 | ) |
| Treasury stock repurchases                                                        |   |   | (218    | )      |    |   | (573 | ) |
| Dividends paid on common stock                                                    |   |   | (1,112  | )      |    |   | (1,136 | ) |
| Net cash used in financing activities                                             |   |   | (12,863 | )      |    |   | (4,233 | ) |
|                                                                              |   |   |    |   |    |   |   |   |
| Net increase (decrease) in cash and cash equivalents                              |   |   | (3,313  | )      |    |   | 4,145 |   |
|                                                                              |   |   |    |   |    |   |   |   |
| Beginning cash and cash equivalents                                               |   |   | 8,362   |   |    |   | 4,217 |   |
|                                                                              |   |   |    |   |    |   |   |   |
| Ending cash and cash equivalents                                                  |   | $      | 5,049   |   |    | $      | 8,362 |   |

----

|                                                                   |   | 2011   |   |   | 2010    |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|
|                                                                   |   |   |   |   | Revised |   |
|                                                                   |   |   |   |   |    |   |
| Supplemental disclosure of cash flow information:                      |   |   |   |   |    |   |
| Cash paid during the year for:                                         |   |   |   |   |    |   |
| Federal income taxes                                                   |   | $      | 97     |   |    | $      | 360 |   |
|                                                                   |   |   |   |   |    |   |   |   |
| Interest on deposits and borrowings                                    |   | $      | 3,343  |   |    | $      | 5,376 |   |
|                                                                   |   |   |   |   |    |   |   |   |
| Supplemental disclosure of noncash investing activities:               |   |   |   |   |    |   |   |   |
| Transfers from loans to real estate acquired through foreclosure       |   | $      | 4,643  |   |    | $      | 1,076 |   |
|                                                                   |   |   |   |   |    |   |   |   |
| Loans disbursed upon sales of real estate acquired through foreclosure |   | $      | 686    |   |    | $      | 410 |   |

----

----

----

----

----

----

----

|                                                                  |   | For the fiscal year ended |    |
|-----------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                  |   | June 30,                  |    |
|                                                                  |   | 2011                      |    |   | 2010 |   |
|                                                                  |   |                      |    |   | Revised |   |
|                                                                  |   |                      |    |   |   |   |
| Allocated shares                                                      |   |                      | 100,961 |   |   |   | 70,762 |   |
| Shares committed to be released                                       |   |                      | 10,445  |   |   |   | 28,688 |   |
| Unearned shares                                                       |   |                      | 198,885 |   |   |   | 218,777 |   |
| Total ESOP shares                                                     |   |                      | 310,291 |   |   |   | 318,227 |   |
|                                                                  |   |                      |    |   |   |   |   |   |
| Fair value of unearned shares at end of period (dollars in thousands) |   | $                         | 1,790   |   |   | $ | 1,973 |   |

----

|                                                                 |   | June 30,     |   |
|----------------------------------------------------------------------|--------|--------------|--------|
| (in thousands)                                                       |   | 2010         |   |
|                                                                 |   |         |   |
| Balance Sheet:                                                       |   |         |   |
| Other liabilities as previously reported                             |   | $            | 1,749  |   |
| Income tax adjustment                                                |   |         | (76    | ) |
| Other liabilities as adjusted                                        |   | $            | 1,673  |   |
|                                                                 |   |         |   |   |
| Additional paid-in capital as previously reported                    |   | $            | 36,597 |   |
| ESOP compensation expense adjustment                                 |   |         | 26     |   |
| Additional paid-in capital as adjusted                               |   | $            | 36,623 |   |
|                                                                 |   |         |   |   |
| Retained earnings as previously reported                             |   | $            | 31,363 |   |
| ESOP compensation expense adjustment (net of tax)                    |   |         | (147   | ) |
| Retained earnings as adjusted                                        |   | $            | 31,216 |   |
|                                                                 |   |         |   |   |
| Unearned employee stock ownership plan (ESOP) as previously reported |   | $            | (2,366 | ) |
| ESOP compensation expense adjustment                                 |   |         | 197    |   |
| Unearned employee stock ownership plan (ESOP) as adjusted            |   | $            | (2,169 | ) |
|                                                                 |   |         |   |   |
| For the year ended                                                   |   | June 30,2010 |   |
| Statements of Operations:                                            |   |         |   |   |
| Employee compensation and benefits as previously reported            |   | $            | 3,131  |   |
| ESOP expense adjustment                                              |   |         | 36     |   |
| Employee compensation and benefits as adjusted                       |   | $            | 3,095  |   |
|                                                                 |   |         |   |   |
| Total federal income tax expense (benefit) as previously reported    |   | $            | 215    |   |
| Tax impact of ESOP expense adjustment                                |   |         | (12    | ) |
| Total federal income tax expense (benefit) as adjusted               |   | $            | 203    |   |
|                                                                 |   |         |   |   |
| Net income (loss) as previously reported                             |   | $            | 425    |   |
| ESOP expense adjustment (net of tax)                                 |   |         | (24    | ) |
| Net income (loss) as adjusted                                        |   | $            | 401    |   |
|                                                                 |   |         |   |   |
| Earnings (loss) per share-basic and diluted as previously reported   |   | $            | 0.06   |   |
| ESOP expense adjustment                                              |   |         | (0.01  | ) |
| Earnings (loss) per share-basic and diluted as adjusted              |   | $            | 0.05   |   |

----

|                                                                               |   |   |    |   | Weighted- |   |   | Aggregate |   |
|------------------------------------------------------------------------------------|--------|--------|---------|--------|-----------|--------|--------|-----------|--------|
|                                                                               |   |   |    |   | average   |   |   | Intrinsic |   |
|                                                                               |   |   |    |   | exercise  |   |   | Value     |   |
|                                                                               |   | Shares |    |   | price     |   |   | ($000)    |   |
|                                                                               |   |   |    |   |      |   |   |      |   |   |
| Outstanding at beginning of year                                                   |   |   | 325,800 |   |      | $      | 10.10  |      |   |   |   |   |
| Granted                                                                            |   |   | -       |   |      |   | -      |      |   |   |   |   |
| Exercised                                                                          |   |   | -       |   |      |   | -      |      |   |   |   |   |
| Forfeited                                                                          |   |   | -       |   |      |   | -      |      |   |   |   |   |
|                                                                               |   |   |    |   |      |   |   |      |   |   |   |   |
| Outstanding at end of year                                                         |   |   | 325,800 |   |      | $      | 10.10  |      |   | $ | - |   |
|                                                                               |   |   |    |   |      |   |   |      |   |   |   |   |
|                                                                               |   |   |    |   |      |   |   |      |   |   |   |   |
| Options exercisable at end of year                                                 |   |   | 325,800 |   |      | $      | 10.10  |      |   | $ | - |   |
|                                                                               |   |   |    |   |      |   |   |      |   |   |   |   |
| Weighted average fair value of options granted                                     |   |   |    |   |      |   |   |      |   | $ | 1.75 |   |
|                                                                               |   |   |    |   |      |   |   |      |   |   |   |   |
| Weighted average remaining contractual term of options outstanding and exercisable |   |   |    |   |      |   |   |      |   | 4.5 years |   |

| (in thousands)                             |   | 2011   |   |   | 2010   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
| Intrinsic value of options exercised       |   | $      | -      |   |   | $      | 76 |   |
| Cash received from option exercises        |   |   | -      |   |   |   | 67 |   |
| Tax benefit realized from option exercises |   |   | -      |   |   |   | 9 |   |

----

|                       |   |   |    |   | Weighted-average |   |
|----------------------------|--------|--------|---------|--------|------------------|--------|
|                       |   |   |    |   | grant date       |   |
|                       |   | Shares |    |   | fair value       |   |
| Nonvested at July 1, 2010  |   |   | 24,900  |   |             | $      | 10.10 |   |
| Vested                     |   |   | (24,900 | )      |             |   | 10.10 |   |
| Forfeited                  |   |   | — |   |             |   | — |   |
|                       |   |   |    |   |             |   |   |   |
| Nonvested at June 30, 2011 |   |   | — |   |             | $      | 10.10 |   |

| (in thousands)                                                 |   | 2011   |   |   | 2010     |   |
|----------------------------------------------------------------|--------|--------|--------|--------|----------|--------|
|                                                           |   |   |   |   | Restated |   |
| Net income                                                     |   | $      | 1,756  |   |     | $      | 401 |   |
| Less earnings allocated to unvested shares                     |   |   | 7      |   |     |   | 17 |   |
| Net income allocated to common shareholders, basic and diluted |   | $      | 1,749  |   |     | $      | 384 |   |

----

|                                                                        |   | 2011   |      |   | 2010   |   |
|-----------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Basic                                                                       |   |   |      |   |   |   |
| Weighted-average common shares including unvested common shares outstanding |   |   | 7,530,603 |   |   |   | 7,561,705 |   |
| Less: Weighted-average unvested common shares                               |   |   | 11,256    |   |   |   | 37,512 |   |
| Weighted-average common shares outstanding                                  |   |   | 7,519,347 |   |   |   | 7,524,193 |   |
|                                                                        |   |   |      |   |   |   |   |   |
| Diluted                                                                     |   |   |      |   |   |   |   |   |
| Add: Dilutive effect of assumed exercise of stock options                   |   |   | —   |   |   |   | 27,764 |   |
| Weighted-average common shares outstanding (diluted)                        |   |   | 7,519,347 |   |   |   | 7,551,957 |   |

----

|                                |   | Fair Value Measurements Using |   |
|-------------------------------------|--------|-------------------------------|--------|
|                                |   |                          |   |   | Quotes Prices |   |   |   |   |   |   |   |
|                                |   |                          |   |   | in Active |   |   | Significant |   |   |   |   |
|                                |   |                          |   |   | Markets for |   |   | Other |   |   | Significant |   |
|                                |   |                          |   |   | Identical |   |   | Observable |   |   | Unobservable |   |
|                                |   |                          |   |   | Assets |   |   | Inputs |   |   | Inputs |   |
| (in thousands)                      |   | Fair Value                    |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| 2011                                |   |                          |   |   |   |   |   |   |   |   |   |   |
| Agency mortgage-backed: residential |   | $                             | 203    |   |   | $ | - |   |   | $ | 203 |   |   | $ | - |   |
|                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency mortgage-backed: residential |   | $                             | 246    |   |   |   | - |   |   |   | 246 |   |   |   | - |   |

----

|                         |   | Fair Value Measurements Using |   |
|------------------------------|--------|-------------------------------|--------|
|                         |   |                          |   |   | Quotes Prices |   |   |   |   |   |   |   |
|                         |   |                          |   |   | in Active |   |   | Significant |   |   |   |   |
|                         |   |                          |   |   | Markets for |   |   | Other |   |   | Significant |   |
|                         |   |                          |   |   | Identical |   |   | Observable |   |   | Unobservable |   |
|                         |   |                          |   |   | Assets |   |   | Inputs |   |   | Inputs |   |
| (in thousands)               |   | Fair Value                    |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                         |   |                          |   |   |   |   |   |   |   |   |   |   |
| 2011                         |   |                          |   |   |   |   |   |   |   |   |   |   |
| Impaired loans               |   |                          |   |   |   |   |   |   |   |   |   |   |
| One- to four-family          |   | $                             | 1,033  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,033 |   |
| Other real estate owned, net |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family          |   |                          | 126    |   |   |   | - |   |   |   | - |   |   |   | 126 |   |
| Multi-family                 |   |                          | 186    |   |   |   | - |   |   |   | - |   |   |   | 186 |   |
|                         |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2010                         |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans               |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One- to four-family          |   | $                             | 4,466  |   |   | $ | - |   |   | $ | - |   |   | $ | 4,466 |   |

----

|   | Cash and cash equivalents:  The carrying amounts presented in the consolidated statements of financial condition for cash and cash equivalents are deemed to approximate fair value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Held-to-maturity securities:  For held-to-maturity securities, fair value methods for securities were previously described. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans held for sale:  Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value determined by FHLB pricing schedules. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans:  The loan portfolio has been segregated into categories with similar characteristics, such as one- to four-family residential, multi-family residential and nonresidential real estate.  These loan categories were further delineated into fixed-rate and adjustable-rate loans.  The fair values for the resultant loan categories were computed via discounted cash flow analysis, using current interest rates offered for loans with similar terms to borrowers of similar credit quality.  For loans on deposit accounts and consumer and other loans, fair values were deemed to equal the historic carrying values. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Federal Home Loan Bank stock:  It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deposits:  The fair value of NOW accounts, passbook accounts, and money market deposits are deemed to approximate the amount payable on demand.  Fair values for fixed-rate certificates of deposit have been estimated using a discounted cash flow calculation using the interest rates currently offered for deposits of similar remaining maturities.  The historical carrying amount of accrued interest payable on deposits is deemed to approximate fair value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Advances from the Federal Home Loan Bank:  The fair value of these advances is estimated using the rates currently offered for similar advances of similar remaining maturities or, when available, quoted market prices. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Commitments to extend credit:  For fixed-rate and adjustable-rate loan commitments, the fair value estimate considers the difference between current levels of interest rates and committed rates.  The fair value of outstanding loan commitments at June 30, 2011 and 2010, was not material. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | 2011     |    |   | 2010   |   |
|-----------------------------------------------|--------|----------|---------|--------|--------|--------|
|                                          |   | Carrying |    |   | Fair   |   |   | Carrying |   |   | Fair |   |
| (in thousands)                                |   | value    |    |   | value  |   |   | value |   |   | value |   |
| Financial assets                              |   |     |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                     |   | $        | 5,049   |   |   | $      | 5,049 |   |   | $ | 8,362 |   |   | $ | 8,362 |   |
| Interest-earning deposits                     |   |     | 100     |   |   |   | 100 |   |   |   | 100 |   |   |   | 100 |   |
| Available-for-sale securities                 |   |     | 203     |   |   |   | 203 |   |   |   | 246 |   |   |   | 246 |   |
| Held-to-maturity securities                   |   |     | 6,810   |   |   |   | 7,257 |   |   |   | 9,435 |   |   |   | 10,026 |   |
| Loans held for sale                           |   |     | — |   |   |   | — |   |   |   | 370 |   |   |   | 383 |   |
| Loans receivable - net                        |   |     | 182,796 |   |   |   | 190,183 |   |   |   | 190,618 |   |   |   | 198,203 |   |
| Federal Home Loan Bank stock                  |   |     | 5,641   |   |   |   | N/A |   |   |   | 5,641 |   |   |   | N/A |   |
| Accrued interest receivable                   |   |     | 538     |   |   |   | 538 |   |   |   | 518 |   |   |   | 518 |   |
|                                          |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                         |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                      |   | $        | 139,940 |   |   |   | 141,408 |   |   | $ | 144,969 |   |   | $ | 147,280 |   |
| Advances from the Federal Home Loan Bank      |   |     | 25,261  |   |   |   | 23,797 |   |   |   | 32,009 |   |   |   | 30,590 |   |
| Advances by borrowers for taxes and insurance |   |     | 471     |   |   |   | 471 |   |   |   | 335 |   |   |   | 335 |   |
| Accrued interest payable                      |   |     | 91      |   |   |   | 91 |   |   |   | 145 |   |   |   | 145 |   |

----

| (in thousands)           |   | 2011   |   |   | 2010   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|
|                     |   |   |   |   |   |   |
| Core deposits            |   |   |   |   |   |   |
| Gross Carrying Amount    |   | $      | 918    |   |   | $      | 918 |   |
| Accumulated Amortization |   |   | 831    |   |   |   | 700 |   |
|                     |   | $      | 87     |   |   | $      | 218 |   |

| (in thousands)                                  |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                            |   |   |   |   |   |   |
| Outstanding principal, beginning of year        |   | $      | 593    |   |   | $      | 387 |   |
| Changes in composition of related parties       |   |   | 157    |   |   |   | 214 |   |
| Principal disbursed during the year             |   |   | 156    |   |   |   | 31 |   |
| Principal repaid and refinanced during the year |   |   | (41    | )      |   |   | (39 | ) |
| Outstanding principal, end of year              |   | $      | 865    |   |   | $      | 593 |   |

----

----

----

|                                                       |   |           |   |   | 2011                                 |   |   |                                  |   |   |                 |   |
|------------------------------------------------------------|--------|----------------|--------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|--------|----------------------|--------|
|      (in thousands)               |   | Amortized cost |   |   | Gross unrealized/ unrecognized gains |   |   | Gross unrealized/ unrecognized losses |   |   | Estimated fair value |   |
|                                                       |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |
| Available-for-sale Securities                              |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |
|   Agency mortgage-backed:residential             |   | $              | 199    |   |                                 | $      | 4      |                                  |   | $      | -                    |   |   | $ | 203 |   |
|                                                       |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |   |   |   |   |
| Held-to-maturity Securities                                |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |   |   |   |   |
|     Agency mortgage-backed:residential |   | $              | 6,810  |   |                                 | $      | 447    |                                  |   | $      | -                    |   |   | $ | 7,257 |   |

|                                                       |   |           |   |   | 2010                                 |   |   |                                  |   |   |                 |   |
|------------------------------------------------------------|--------|----------------|--------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|--------|----------------------|--------|
|      (in thousands)               |   | Amortized cost |   |   | Gross unrealized/ unrecognized gains |   |   | Gross unrealized/ unrecognized losses |   |   | Estimated fair value |   |
|                                                       |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |
| Available-for-sale Securities                              |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |
|   Agency mortgage-backed:residential             |   | $              | 240    |   |                                 | $      | 7      |                                  |   | $      | (1                   | )      |   | $ | 246 |   |
|                                                       |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |   |   |   |   |
| Held-to maturity Securities                                |   |           |   |   |                                 |   |   |                                  |   |   |                 |   |   |   |   |   |
|     Agency mortgage-backed:residential |   | $              | 9,435  |   |                                 | $      | 591    |                                  |   | $      | -                    |   |   | $ | 10,026 |   |

|                                                       |   | 2011                 |   |   | 2010           |   |
|------------------------------------------------------------|--------|----------------------|--------|--------|----------------|--------|
|      (in thousands)               |   | Estimated fair value |   |   | Amortized cost |   |   | Estimated fair value |   |   | Amortized cost |   |
|                                                       |   |                 |   |   |           |   |   |   |   |   |   |   |
| Available-for-sale Securities                              |   |                 |   |   |           |   |   |   |   |   |   |   |
|   Agency mortgage-backed:residential             |   | $                    | 203    |   |           | $      | 199 |   |   | $ | 246 |   |   | $ | 240 |   |
|                                                       |   |                 |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Held-to maturity Securities                                |   |                 |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
|     Agency mortgage-backed:residential |   | $                    | 7,257  |   |           | $      | 6,810 |   |   | $ | 10,026 |   |   | $ | 9,435 |   |

----

|                                |   | June 30, 2010          |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   | Less than 12 months    |   |   | 12 months or longer |   |   | Total |   |
| Description of                      |   | Fair                   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| securities                          |   | value                  |   |   | losses |   |   | value |   |   | losses |   |   | value |   |   | losses |   |
|                                |   | (Dollars in thousands) |   |
|                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency mortgage-backed: residential |   | $                      | -      |   |   | $ | - |   |   | $ | 45 |   |   | $ | (1 | ) |   | $ | 45 |   |   | $ | (1 | ) |

| (in thousands)                          |   | 2011   |    |   | 2010   |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|
|                                    |   |   |    |   |   |   |
| Residential real estate                 |   |   |    |   |   |   |
| One- to four-family                     |   | $      | 158,821 |   |   | $      | 165,818 |   |
| Multi-family                            |   |   | 4,504   |   |   |   | 6,689 |   |
| Construction                            |   |   | 1,062   |   |   |   | 1,916 |   |
| Nonresidential real estate and land     |   |   | 12,211  |   |   |   | 10,943 |   |
| Loans on deposits                       |   |   | 2,405   |   |   |   | 2,754 |   |
| Consumer and other                      |   |   | 4,824   |   |   |   | 4,802 |   |
|                                    |   |   | 183,827 |   |   |   | 192,922 |   |
| Less:                                   |   |   |    |   |   |   |   |   |
| Undisbursed portion of loans in process |   |   | 353     |   |   |   | 631 |   |
| Deferred loan origination fees (cost)   |   |   | (86     | )      |   |   | 138 |   |
| Allowance for loan losses               |   |   | 764     |   |   |   | 1,535 |   |
|                                    |   | $      | 182,796 |   |   | $      | 190,618 |   |

| (in thousands)                                    |   | 2011   |    |   | 2010   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                              |   |   |    |   |   |   |
| Nonaccrual loans                                  |   | $      | 876     |   |   | $      | 7,671 |   |
| Loans past due 90 days or more and still accruing |   |   | — |   |   |   | 112 |   |
|   Nonperforming loans                   |   |   | 876     |   |   |   | 7,783 |   |
| Troubled debt restructurings                      |   |   | 729     |   |   |   | — |   |
|                                              |   | $      | 1,605   |   |   | $      | 7,783 |   |

----

| (in thousands)                                             |   | 2011   |   |   | 2010   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                       |   |   |   |   |   |   |
| Year-end loans with no allocated allowance for loan losses |   | $      | 1,136  |   |   | $      | 1,348 |   |
| Year-end loans with allocated allowance for loan losses    |   |   | 1,088  |   |   |   | 5,370 |   |
| Balance at end of year                                     |   | $      | 2,224  |   |   | $      | 6,718 |   |
|                                                       |   |   |   |   |   |   |   |   |
| Amount of the allowance for loan losses allocated          |   | $      | 55     |   |   | $      | 904 |   |
|                                                       |   |   |   |   |   |   |   |   |
| Average of individually impaired loans during year         |   | $      | 2,509  |   |   | $      | 6,961 |   |
| Interest income recognized during impairment               |   | $      | 78     |   |   | $      | 31 |   |
| Cash-basis interest income recognized                      |   | $      | 80     |   |   | $      | 31 |   |

| (in thousands)                               |   | Recorded investment in loans |    |   | Ending allowance attributed to loans |   |    | Unallocated allowance |   |   | Total allowance |   |
|----------------------------------------------|--------|------------------------------|---------|--------|--------------------------------------|--------|---------|-----------------------|--------|--------|-----------------|--------|
| Loans individually evaluated for impairment: |   |                         |    |   |                                 |   |    |                  |   |   |            |   |
| Residential real estate:                     |   |                         |    |   |                                 |   |    |                  |   |   |            |   |
| One- to four-family                          |   | $                            | 2,224   |   |                                 | $      | 55      |                  |   | $      | —         |   |   | $ | 55 |   |
| Multi-family                                 |   |                         | — |   |                                 |   | — |                  |   |   | —         |   |   |   | — |   |
| Construction                                 |   |                         | — |   |                                 |   | — |                  |   |   | —         |   |   |   | — |   |
| Nonresidential real estate and land          |   |                         | — |   |                                 |   | — |                  |   |   | —         |   |   |   | — |   |
| Loans on deposits                            |   |                         | — |   |                                 |   | — |                  |   |   | —         |   |   |   | — |   |
| Consumer and other                           |   |                         | — |   |                                 |   | — |                  |   |   | —         |   |   |   | — |   |
|                                         |   | $                            | 2,224   |   |                                 | $      | 55      |                  |   | $      | —         |   |   | $ | 55 |   |
|                                         |   |                         |    |   |                                 |   |    |                  |   |   |            |   |   |   |   |   |
| Loans collectively evaluated for impairment: |   |                         |    |   |                                 |   |    |                  |   |   |            |   |   |   |   |   |
| Residential real estate:                     |   |                         |    |   |                                 |   |    |                  |   |   |            |   |   |   |   |   |
| One- to four-family                          |   | $                            | 156,597 |   |                                 | $      | 439     |                  |   | $      | —         |   |   | $ | 439 |   |
| Multi-family                                 |   |                         | 4,504   |   |                                 |   | 13      |                  |   |   | —         |   |   |   | 13 |   |
| Construction                                 |   |                         | 1,062   |   |                                 |   | 3       |                  |   |   | —         |   |   |   | 3 |   |
| Nonresidential real estate and land          |   |                         | 12,211  |   |                                 |   | 34      |                  |   |   | —         |   |   |   | 34 |   |
| Loans on deposits                            |   |                         | 2,405   |   |                                 |   | 7       |                  |   |   | —         |   |   |   | 7 |   |
| Consumer and other                           |   |                         | 4,824   |   |                                 |   | 13      |                  |   |   | —         |   |   |   | 13 |   |
| Unallocated                                  |   |                         | — |   |                                 |   | — |                  |   |   | 200             |   |   |   | 200 |   |
|                                         |   | $                            | 181,603 |   |                                 | $      | 509     |                  |   | $      | 200             |   |   | $ | 709 |   |

----

|  (in thousands)                |   | Outstanding Principal Balance |   |   | Allowance for Loan Losses Allocated |   |    | Average Recorded Investment |   |   | Interest Income Recognized |   |   | Cash Received |   |
|-------------------------------------|--------|-------------------------------|--------|--------|-------------------------------------|--------|---------|-----------------------------|--------|--------|----------------------------|--------|--------|---------------|--------|
|                                |   |                          |   |   |                                |   |    |                        |   |   |                       |   |   |          |   |
| With no related allowance recorded: |   |                          |   |   |                                |   |    |                        |   |   |                       |   |   |          |   |
| One- to four-family                 |   | $                             | 1,136  |   |                                | $      | — |                        |   | $      | 1,296                      |   |   | $             | 44     |   |   | $ | 47 |   |
|                                |   |                          |   |   |                                |   |    |                        |   |   |                       |   |   |          |   |   |   |   |   |   |
| With an allowance recorded:         |   |                          |   |   |                                |   |    |                        |   |   |                       |   |   |          |   |   |   |   |   |   |
| One- to four-family                 |   | $                             | 1,088  |   |                                | $      | 55      |                        |   | $      | 1,213                      |   |   | $             | 33     |   |   | $ | 33 |   |

| (in thousands)                              |   | Nonaccrual |    |   | Loans PastDue Over 90Days StillAccruing |   |
|---------------------------------------------|--------|------------|---------|--------|-----------------------------------------|--------|
|                                        |   |       |    |   |                                    |   |
| Consumer and other                          |   | $          | — |   |                                    | $      | - |   |
| One- to four-family residential real estate |   |       | 876     |   |                                    |   | - |   |
|                                        |   |       |    |   |                                    |   |   |   |
| Total                                       |   | $          | 876     |   |                                    | $      | - |   |

----

| (in thousands)                      |   | 30-89 Days Past Due |    |   | Greater than 90 Days Past Due |   |    | Total Past Due |   |   | Loans Not Past Due |   |   | Total  |    |
|-------------------------------------|--------|---------------------|---------|--------|-------------------------------|--------|---------|----------------|--------|--------|--------------------|--------|--------|--------|---------|
|                                |   |                |    |   |                          |   |    |           |   |   |               |   |   |   |    |
| Residential real estate:            |   |                |    |   |                          |   |    |           |   |   |               |   |   |   |    |
| One-to four-family                  |   | $                   | 3,181   |   |                          | $      | 876     |           |   | $      | 4,057              |   |   | $      | 154,764 |   |   | $ | 158,821 |   |
| Multi-family                        |   |                | — |   |                          |   | — |           |   |   | —            |   |   |   | 4,504   |   |   |   | 4,504 |   |
| Construction                        |   |                | — |   |                          |   | — |           |   |   | —            |   |   |   | 1,062   |   |   |   | 1,062 |   |
| Nonresidential real estate and land |   |                | — |   |                          |   | — |           |   |   | —            |   |   |   | 12,211  |   |   |   | 12,211 |   |
| Loans on deposits                   |   |                | — |   |                          |   | — |           |   |   | —            |   |   |   | 2,405   |   |   |   | 2,405 |   |
| Consumer and other                  |   |                | — |   |                          |   | — |           |   |   | —            |   |   |   | 4,824   |   |   |   | 4,824 |   |
| Total                               |   | $                   | 3,181   |   |                          | $      | 876     |           |   | $      | 4,057              |   |   | $      | 179,770 |   |   | $ | 183,827 |   |

----

| (in thousands)                      |   | Pass   |    |   | Special Mention |   |    | Substandard |   |   | Doubtful |   |   | Not rated |    |
|-------------------------------------|--------|--------|---------|--------|-----------------|--------|---------|-------------|--------|--------|----------|--------|--------|-----------|---------|
|                                |   |   |    |   |            |   |    |        |   |   |     |   |   |      |    |
| Residential real estate:            |   |   |    |   |            |   |    |        |   |   |     |   |   |      |    |
| One- to four-family                 |   | $      | — |   |            | $      | 67      |        |   | $      | 2,180    |   |   | $         | — |   |   | $ | 156,574 |   |
| Multi-family                        |   |   | 4,504   |   |            |   | — |        |   |   | —  |   |   |      | — |   |   |   | — |   |
| Construction                        |   |   | 1,062   |   |            |   | — |        |   |   | —  |   |   |      | — |   |   |   | — |   |
| Nonresidential real estate and land |   |   | 11,943  |   |            |   | 268     |        |   |   | —  |   |   |      | — |   |   |   | — |   |
| Loans on deposits                   |   |   | — |   |            |   | — |        |   |   | —  |   |   |      | — |   |   |   | 2,405 |   |
| Consumer and other                  |   |   | — |   |            |   | — |        |   |   | —  |   |   |      | — |   |   |   | 4,824 |   |

| (in thousands)                |   | 2011   |   |   | 2010   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
|                          |   |   |   |   |   |   |
| Balance at beginning of year  |   | $      | 1,535  |   |   | $      | 678 |   |
| Provision for losses on loans |   |   | 668    |   |   |   | 1,044 |   |
| Charge-offs                   |   |   | (1,439 | )      |   |   | (187 | ) |
| Balance at end of year        |   | $      | 764    |   |   | $      | 1,535 |   |

| (in thousands)                      |   | Beginningbalance |   |   | Provision for loan losses |   |    | Loans charged off |   |   | Recoveries |   |   | Ending balance |    |
|-------------------------------------|--------|------------------|--------|--------|---------------------------|--------|---------|-------------------|--------|--------|------------|--------|--------|----------------|---------|
|                                |   |             |   |   |                      |   |    |              |   |   |       |   |   |           |    |
| Residential real estate:            |   |             |   |   |                      |   |    |              |   |   |       |   |   |           |    |
| One- to four-family                 |   | $                | 1,261  |   |                      | $      | 668     |              |   | $      | (1,439     | )      |   | $              | — |   |   | $ | 490 |   |
| Multi-family                        |   |             | 11     |   |                      |   | — |              |   |   | —    |   |   |           | — |   |   |   | 11 |   |
| Construction                        |   |             | 5      |   |                      |   | — |              |   |   | —    |   |   |           | — |   |   |   | 5 |   |
| Nonresidential real estate and land |   |             | 36     |   |                      |   | — |              |   |   | —    |   |   |           | — |   |   |   | 36 |   |
| Loans on deposits                   |   |             | 8      |   |                      |   | — |              |   |   | —    |   |   |           | — |   |   |   | 8 |   |
| Consumer and other                  |   |             | 14     |   |                      |   | — |              |   |   | —    |   |   |           | — |   |   |   | 14 |   |
| Unallocated                         |   |             | 200    |   |                      |   | — |              |   |   | —    |   |   |           | — |   |   |   | 200 |   |
| Totals                              |   | $                | 1,535  |   |                      | $      | 668     |              |   | $      | (1,439     | )      |   | $              | — |   |   | $ | 764 |   |

----

| (in thousands)                          |   | 2011   |   |   | 2010   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |   |
| Balance at beginning of year            |   | $      | 748    |   |   | $      | 109 |   |
| Additions                               |   |   | 4,643  |   |   |   | 1,076 |   |
| Other-than-temporary impairment charges |   |   | (71    | )      |   |   | — |   |
| Disposals                               |   |   | (1,016 | )      |   |   | (437 | ) |
| Balance at end of year                  |   | $      | 4,304  |   |   | $      | 748 |   |

| (in thousands)                 |   | 2011   |   |   | 2010   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
|                           |   |   |   |   |   |   |
| Land                           |   | $      | 860    |   |   | $      | 860 |   |
| Buildings and improvements     |   |   | 3,747  |   |   |   | 3,695 |   |
| Furniture and equipment        |   |   | 1,126  |   |   |   | 1,347 |   |
| Automobiles                    |   |   | 29     |   |   |   | 32 |   |
|                           |   |   | 5,762  |   |   |   | 5,934 |   |
| Less: accumulated depreciation |   |   | 3,095  |   |   |   | 3,203 |   |
| Balance at end of year         |   | $      | 2,667  |   |   | $      | 2,731 |   |

| (in thousands)                                  |   | 2011   |    |   | 2010   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                            |   |   |    |   |   |   |
| Non-interest bearing checking accounts          |   | $      | 996     |   |   | $      | 754 |   |
| Checking accounts                               |   |   | 6,965   |   |   |   | 7,440 |   |
| Savings accounts                                |   |   | 34,147  |   |   |   | 29,506 |   |
| Money market demand deposits                    |   |   | 4,796   |   |   |   | 4,603 |   |
| Total demand, transaction and passbook deposits |   |   | 46,904  |   |   |   | 41,303 |   |
| Certificates of deposit:                        |   |   |    |   |   |   |   |   |
| Original maturities of:                         |   |   |    |   |   |   |   |   |
| Less than 12 months                             |   |   | 5,019   |   |   |   | 4,487 |   |
| 12 months to 36 months                          |   |   | 81,075  |   |   |   | 87,471 |   |
| More than 36 months                             |   |   | 6,942   |   |   |   | 10,708 |   |
| Total certificates of deposit                   |   |   | 93,036  |   |   |   |  102,666 |   |
| Total deposits                                  |   | $      | 139,940 |   |   | $      | 144,969 |   |

----

| (in thousands)      |   | 2011   |   |
|---------------------|--------|--------|--------|
|                |   |   |   |
| 2012                |   | $      | 67,474 |   |
| 2013                |   |   | 18,581 |   |
| 2014                |   |   | 3,228  |   |
| 2015                |   |   | 2,769  |   |
| 2016 and thereafter |   |   | 984    |   |
|                |   | $      | 93,036 |   |

| Maturing year ended June 30, 2011                                                  |   |   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|
| (in thousands)                                                                     |   |   |   |
| 2012                                                                               |   | $      | 3,184  |   |
| 2013                                                                               |   |   | 7,810  |   |
| 2014                                                                               |   |   | 7,555  |   |
| 2015                                                                               |   |   | 2,366  |   |
| 2016                                                                               |   |   | 623    |   |
| 2017                                                                               |   |   | 431    |   |
| 2018                                                                               |   |   | 2,328  |   |
| 2019-2030                                                                          |   |   | 952    |   |
|                                                                               |   | $      | 25,249 |   |
| Premium assigned to borrowings in Frankfort First acquisition, net of amortization |   |   | 12     |   |
|                                                                               |   | $      | 25,261 |   |

----

| Maturing year ended June 30, 2010                                                  |   |   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|
| (in thousands)                                                                     |   |   |   |
| 2011                                                                               |   | $      | 11,640 |   |
| 2012                                                                               |   |   | 3,184  |   |
| 2013                                                                               |   |   | 7,810  |   |
| 2014                                                                               |   |   | 2,555  |   |
| 2015                                                                               |   |   | 2,366  |   |
| 2016                                                                               |   |   | 623    |   |
| 2017                                                                               |   |   | 431    |   |
| 2018-2030                                                                          |   |   | 3,280  |   |
|                                                                               |   | $      | 31,889 |   |
| Premium assigned to borrowings in Frankfort First acquisition, net of amortization |   |   | 120    |   |
|                                                                               |   | $      | 32,009 |   |

| (in thousands)                                                                                                                                                      |   | 2011   |   |    | 2010   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|--------|
|                                                                                                                                                                |   |   |   |    |   |   |
| Federal income taxes at the statutory rate                                                                                                                          |   | $      | 632    |    |   | $      | 205 |   |
| Increase (decrease) resulting primarily from:                                                                                                                       |   |   |   |    |   |   |   |   |
| Cash surrender value of life insurance                                                                                                                              |   |   | (30    | )       |   |   | (30 | ) |
| Compensation expense                                                                                                                                                |   |   | 4      |    |   |   | 28 |   |
| Allowed deduction claimed on amended return for $1.3 million paid to option holders in acquisition of Frankfort First Bancorp, Inc. and other IRS audit adjustments |   |   | (502   | )  |   |   | - |   |
|                                                                                                                                                                |   | $      | 104    |    |   | $      | 203 |   |

----

| (in thousands)                                                                       |   | 2011   |    |   | 2010   |   |
|--------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                 |   |   |    |   |   |   |
| Taxes (payable) refundable on temporary differences at estimated corporate tax rate: |   |   |    |   |   |   |
| Deferred tax assets:                                                                 |   |   |    |   |   |   |
| General loan loss allowance                                                          |   | $      | 260     |   |   | $      | 522 |   |
| Deferred loan origination fees                                                       |   |   | — |   |   |   | 5 |   |
| Deferred compensation and benefits                                                   |   |   | 258     |   |   |   | 224 |   |
| Charitable contributions                                                             |   |   | 3       |   |   |   | 3 |   |
| Purchase accounting adjustments                                                      |   |   | 4       |   |   |   | 41 |   |
| Nonaccrued interest on loans                                                         |   |   | 8       |   |   |   | 22 |   |
| Other real estate owned adjustments                                                  |   |   | 80      |   |   |   | — |   |
| Total deferred tax assets                                                            |   |   | 613     |   |   |   | 817 |   |
|                                                                                 |   |   |    |   |   |   |   |   |
| Deferred tax liabilities:                                                            |   |   |    |   |   |   |   |   |
| Federal Home Loan Bank stock dividends                                               |   |   | (1,074  | )      |   |   | (1,074 | ) |
| Deferred loan origination costs                                                      |   |   | (39     | )      |   |   | (37 | ) |
| Loan servicing rights                                                                |   |   | (11     | )      |   |   | — |   |
| Other                                                                                |   |   | (2      | )      |   |   | — |   |
| Purchase accounting adjustments                                                      |   |   | (248    | )      |   |   | (527 | ) |
| Depreciation                                                                         |   |   | (260    | )      |   |   | (53 | ) |
| Total deferred tax liabilities                                                       |   |   | (1,632  |   |   |   | (1,691 |   |
| Net deferred tax liability                                                           |   | $      | (1,021  | )      |   | $      | (874 | ) |

----

| (in thousands)                                         |   | 2011   |   |   | 2010   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                   |   |   |   |   |   |   |
| Balance at beginning of year                           |   | $      | 253    |   |   | $      | 253 |   |
| Reductions based on tax positions for the current year |   |   | (173   | )      |   |   | — |   |
| Balance at end of year                                 |   | $      | 80     |   |   | $      | 253 |   |

----

|                       |   | As of June 30, 2011    |   |
|----------------------------|--------|------------------------|--------|
|                       |   |                   |   |   |   |   |   | To be “well- |   |
|                       |   |                   |   |   |   |   |   | capitalized” under |   |
|                       |   |                   |   |   | For capital |   |   | prompt corrective |   |
|                       |   | Actual                 |   |   | adequacy purposes |   |   | action provisions |   |
|                       |   | Amount                 |   |   | Ratio |   |   | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                       |   | (Dollars in thousands) |   |
| Tangible capital           |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 19,629 |   |   |   | 19.3 | % |   | $ | 31,525 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
| First Federal of Frankfort |   | $                      | 18,151 |   |   |   | 14.6 | % |   | $ | 31,868 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
| Consolidated               |   | $                      | 44,100 |   |   |   | 20.8 | % |   | $ | 33,175 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 core capital        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 19,629 |   |   |   | 19.3 | % |   | $ | 34,067 |   |   |   | 34.0 | % |   | $ | 35,084 |   |   |   | 3 5.0 | % |
| First Federal of Frankfort |   | $                      | 18,151 |   |   |   | 14.6 | % |   | $ | 34,980 |   |   |   | 34.0 | % |   | $ | 36,225 |   |   |   | 3 5.0 | % |
| Consolidated               |   | $                      | 44,100 |   |   |   | 20.8 | % |   | $ | 39,048 |   |   |   | 34.0 | % |   |   | N/A |   |   |   | N/A |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total risk-based capital   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 19,939 |   |   |   | 40.5 | % |   | $ | 33,941 |   |   |   | 38.0 | % |   | $ | 34,927 |   |   |   | 310.0 | % |
| First Federal of Frankfort |   | $                      | 18,564 |   |   |   | 27.0 | % |   | $ | 35,505 |   |   |   | 38.0 | % |   | $ | 36,881 |   |   |   | 310.0 | % |
| Consolidated               |   | $                      | 44,864 |   |   |   | 39.0 | % |   | $ | 39,201 |   |   |   | 38.0 | % |   |   | N/A |   |   |   | N/A |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 risk-based capital  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 19,629 |   |   |   | 39.8 | % |   |   | N/A |   |   |   | N/A |   |   | $ | 32,956 |   |   |   | 3 6.0 | % |
| First Federal of Frankfort |   | $                      | 18,151 |   |   |   | 26.4 | % |   |   | N/A |   |   |   | N/A |   |   | $ | 34,129 |   |   |   | 3 6.0 | % |
| Consolidated               |   | $                      | 44,100 |   |   |   | 38.3 | % |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

----

|                       |   | As of June 30, 2010    |   |
|----------------------------|--------|------------------------|--------|
|                       |   |                   |   |   |   |   |   | To be “well- |   |
|                       |   |                   |   |   |   |   |   | capitalized” under |   |
|                       |   |                   |   |   | For capital |   |   | prompt corrective |   |
|                       |   | Actual                 |   |   | adequacy purposes |   |   | action provisions |   |
|                       |   | Amount                 |   |   | Ratio |   |   | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                       |   | (Dollars in thousands) |   |
| Tangible capital           |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 18,615 |   |   |   | 17.6 | % |   | $ | 31,589 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
| First Federal of Frankfort |   | $                      | 17,570 |   |   |   | 14.2 | % |   | $ | 31,859 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
| Consolidated               |   | $                      | 43,079 |   |   |   | 19.4 | % |   | $ | 33,333 |   |   |   | 31.5 | % |   |   | N/A |   |   |   | N/A |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 core capital        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 18,615 |   |   |   | 17.6 | % |   | $ | 34,237 |   |   |   | 34.0 | % |   | $ | 35,297 |   |   |   | 3 5.0 | % |
| First Federal of Frankfort |   | $                      | 17,570 |   |   |   | 14.2 | % |   | $ | 34,957 |   |   |   | 34.0 | % |   | $ | 36,196 |   |   |   | 3 5.0 | % |
| Consolidated               |   | $                      | 43,079 |   |   |   | 19.4 | % |   | $ | 39,194 |   |   |   | 34.0 | % |   |   | N/A |   |   |   | N/A |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total risk-based capital   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 19,090 |   |   |   | 36.6 | % |   | $ | 34,175 |   |   |   | 38.0 | % |   | $ | 35,219 |   |   |   | 310.0 | % |
| First Federal of Frankfort |   | $                      | 17,726 |   |   |   | 26.1 | % |   | $ | 35,427 |   |   |   | 38.0 | % |   | $ | 36,783 |   |   |   | 310.0 | % |
| Consolidated               |   | $                      | 44,614 |   |   |   | 37.4 | % |   | $ | 39,557 |   |   |   | 38.0 | % |   |   | N/A |   |   |   | N/A |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 risk-based capital  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First Federal of Hazard    |   | $                      | 18,615 |   |   |   | 35.7 | % |   |   | N/A |   |   |   | N/A |   |   | $ | 33,132 |   |   |   | 3 6.0 | % |
| First Federal of Frankfort |   | $                      | 17,570 |   |   |   | 25.9 | % |   |   | N/A |   |   |   | N/A |   |   | $ | 34,070 |   |   |   | 3 6.0 | % |
| Consolidated               |   | $                      | 43,079 |   |   |   | 36.1 | % |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

----

|                                                    |   | 2011   |   |   | 2010    |   |
|---------------------------------------------------------|--------|--------|--------|--------|---------|--------|
|                                                    |   |   |   |   | Revised |   |
|                                                    |   |   |   |   |    |   |
| ASSETS                                                  |   |   |   |   |    |   |
|                                                    |   |   |   |   |    |   |
| Interest-bearing deposits in First Federal of Hazard    |   | $      | 604    |   |    | $      | 353 |   |
| Interest-bearing deposits in First Federal of Frankfort |   |   | 2,513  |   |    |   | 3,813 |   |
| Other interest-bearing deposits                         |   |   | 37     |   |    |   | 35 |   |
| Investment in First Federal of Hazard                   |   |   | 21,708 |   |    |   | 20,964 |   |
| Investment in Frankfort First                           |   |   | 33,671 |   |    |   | 32,707 |   |
| Prepaid expenses and other assets                       |   |   | 521    |   |    |   | 286 |   |
|                                                    |   |   |   |   |    |   |   |   |
| Total assets                                            |   | $      | 59,054 |   |    | $      | 58,158 |   |
|                                                    |   |   |   |   |    |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY              |   |   |   |   |    |   |   |   |
|                                                    |   |   |   |   |    |   |   |   |
| Accounts payable and other liabilities                  |   | $      | 357    |   |    | $      | 350 |   |
|                                                    |   |   |   |   |    |   |   |   |
| Total liabilities                                       |   |   | 357    |   |    |   | 350 |   |
|                                                    |   |   |   |   |    |   |   |   |
| Shareholders’ equity                              |   |   |   |   |    |   |   |   |
| Common stock                                            |   |   | 86     |   |    |   | 86 |   |
| Additional paid-in capital                              |   |   | 36,907 |   |    |   | 36,623 |   |
| Retained earnings                                       |   |   | 31,860 |   |    |   | 31,216 |   |
| Shares acquired by stock benefit plans                  |   |   | (1,989 | )      |    |   | (2,169 | ) |
| Shares acquired for treasury – at cost            |   |   | (8,170 | )      |    |   | (7,952 | ) |
| Accumulated other comprehensive income                  |   |   | 3      |   |    |   | 4 |   |
| Total shareholders’ equity                        |   |   | 58,697 |   |    |   | 57,808 |   |
|                                                    |   |   |   |   |    |   |   |   |
| Total liabilities and shareholders’ equity        |   | $      | 59,054 |   |    | $      | 58,158 |   |

----

|                                                     |   | 2011   |    |   | 2010   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Revenue                                                  |   |   |    |   |   |   |
| Interest income                                          |   | $      | 164     |   |   | $      | 172 |   |
| Dividends from First Federal of Hazard                   |   |   | — |   |   |   | 5,000 |   |
| Equity in undistributed (excess distributed) earnings of |   |   |    |   |   |   |   |   |
| First Federal of Hazard                                  |   |   | 644     |   |   |   | (4,483 | ) |
| Dividends from Frankfort First                           |   |   | 378     |   |   |   | 190 |   |
| Equity in undistributed earnings of                      |   |   |    |   |   |   |   |   |
| Frankfort First                                          |   |   | 964     |   |   |   | 80 |   |
| Total revenue                                            |   |   | 2,150   |   |   |   | 959 |   |
|                                                     |   |   |    |   |   |   |   |   |
| Non-interest expenses                                    |   |   | 547     |   |   |   | 707 |   |
|                                                     |   |   |    |   |   |   |   |   |
| Earnings before income taxes                             |   |   | 1,603   |   |   |   | 252 |   |
|                                                     |   |   |    |   |   |   |   |   |
| Federal income tax expense (credits)                     |   |   | (153    | )      |   |   | (149 | ) |
|                                                     |   |   |    |   |   |   |   |   |
| NET INCOME                                               |   | $      | 1,756   |   |   | $      | 401 |   |

|                                                                                                 |   | 2011   |   |   | 2010   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash flows from operating activities:                                                                |   |   |   |   |   |   |
| Net earnings for the year                                                                            |   | $      | 1,756  |   |   | $      | 401 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities:                  |   |   |   |   |   |   |   |   |
| Excess (deficit) distributions over earnings (undistributed earnings) from consolidated subsidiaries |   |   | (1,709 | )      |   |   | 4,283 |   |
| Noncash compensation expense                                                                         |   |   | 464    |   |   |   | 665 |   |
| Increase (decrease) in cash due to changes in:                                                       |   |   |   |   |   |   |   |   |
| Prepaid expenses and other assets                                                                    |   |   | (235   | )      |   |   | 363 |   |
| Other liabilities                                                                                    |   |   | 7      |   |   |   | 102 |   |
| Net cash provided by operating activities                                                            |   |   | 283    |   |   |   | 5,814 |   |

----

|                                                 |   | 2011   |   |   | 2010   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash flows from financing activities:                |   |   |   |   |   |   |
| Dividends paid on common stock                       |   |   | (1,112 | )      |   |   | (1,136 | ) |
| Repurchase of treasury shares                        |   |   | (218   | )      |   |   | (573 | ) |
| Net cash used in financing activities                |   |   | (1,330 | )      |   |   | (1,709 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents |   |   | (1,047 | )      |   |   | 4,105 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year       |   |   | 4,201  |   |   |   | 96 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year             |   | $      | 3,154  |   |   | $      | 4,201 |   |

----

| First Federal Savings & Loan of Hazard   |   | First Federal Savings Bank of Frankfort                                           |
|----------------------------------------------|--------|-----------------------------------------------------------------------------------|
|                                         |   |                                                                              |
| Deborah C. Bersaglia, Vice President/        |   | Wick Asbury, Vice President/Lending                                               |
|      Secretary      |   | Brenda Baldwin, Accounting                                                        |
| Holly Caudill, Loan Officer                  |   | Elizabeth Bell, Customer Service                                                  |
| Sandra C. Craft, Vice President/Loan Officer |   | Stan Betsworth, Vice President/Lending                                            |
| Lou Ella R. Farler, Executive Vice President |   | Phyllis Bowman, Loan Servicing                                                    |
| Deloris S. Justice, Assistant Vice President |   | Lisa Brinley, Branch Manager                                                      |
| Kaye Craft, Vice President/Treasurer         |   | Andrea Cline, Asst. Executive Office Coordinator                                  |
| Brenda W. Lovelace, Assistant Vice President |   | Carolyn Eades, Receptionist/Customer Service                                      |
| Margaret P. Pelley, Customer Service         |   | Diana Eads, Customer Service                                                      |
| Peggy H. Steele, Assistant Vice President    |   | Stacey Greenawalt, Vice President/Lending                                         |
| Susie W. Steele, Customer Service            |   | Barry Holder, Branch Manager                                                      |
| Molly Ann E. Toler, Vice President           |   | R. Clay Hulette, President/Treasurer                                              |
| Tony Whitaker, President/CEO                 |   | Don D. Jennings, Chief Executive Officer                                          |
|                                         |   | Teresa A. Kuhl, Executive Vice President/                                         |
|                                         |   |      Operations/Human Resources                          |
|                                         |   | Janet Lewis, Customer Service                                                     |
|                                         |   | Stephanie Lewis, Customer Service                                                 |
|                                         |   | Patty Luttrell, Loan Processing/Compliance                                        |
|                                         |   | Tracey McCoun, Customer Service                                                   |
|                                         |   | Kim Moore, Customer Service Manager                                               |
|                                         |   | Carolyn Mulcahy, Accounting                                                       |
|                                         |   | Jeanie Murphy, Customer Service                                                   |
|                                         |   | David Semones, Loan Processing                                                    |
|                                         |   | Martha Sowders, Customer ServiceLee Ann Hockensmith, Executive Office Coordinator |
|                                         |   | Yvonne Thornberry, Loan Processing/Servicing                                      |
|                                         |   | Nancy Watts, Loan Servicing/ Insurance                                            |
|                                         |   |     Processing                                                |
|                                         |   | Laurel Weeks, Customer Service                                                    |

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| Kentucky First Federal Bancorp                                                                                                                                                                                              |                           | First Federal Savings andLoan Association of Hazard                      |   | First Federal Savings Bank ofFrankfort                                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                        |                           |                                                                     |   |                                                                                     |
| Board of Directors                                                                                                                                                                                                          |                           | Board of Directors                                                       |   | Board of Directors                                                                       |
|                                                                                                                                                                                                                        |                           |                                                                     |   |                                                                                     |
| Stephen G. Barker, Attorney and     Executive Vice President and    General Counsel to    Kentucky River Properties, LLCWalter G. Ecton, Jr., Attorney and |                           | Stephen G. BarkerWalter G. Ecton, Jr.William D. Gorman, Jr.Tony Whitaker |   | Charles A. Cotton, IIIC. Michael DavenportDanny A. GarlandDavid R. HarrodDon D. Jennings |
|     principal of Ecton, Murphy and                                                                                                                                                                      |                           |                                                                     |   | William C. Jennings, Chairman                                                            |
|    Shannon, PLLC                                                                                                                                                                                             |                           |                                                                     |   | William M. Johnson                                                                       |
| David R. Harrod C.P.A. and   principal of Harrod and  Associates, P.S.C.                                                                                                                           |                           |                                                                     |   | Frank McGrathHerman D. Regan, Jr.                                                        |
| Don D. Jennings, President,    Kentucky First Federal Bancorp                                                                                                                                           |                           |                                                                     |   |                                                                                     |
| Herman D. Regan, Jr., Retired    President of Kenvirons, Inc.                                                                                                                                           |                           |                                                                     |   |                                                                                     |
| Tony Whitaker, Chairman of                                                                                                                                                                                                  |                           |                                                                     |   |                                                                                     |
|     Kentucky First Federal Bancorp                                                                                                                                                                      |                           |                                                                     |   |                                                                                     |
|                                                                                                                                                                                                                        |                           | Office Locations                                                         |   |                                                                                     |
|                                                                                                                                                                                                                        |                           |                                                                     |   | First Federal of Frankfort                                                               |
|                                                                                                                                                                                                                        |                           |                                                                     |   | East Branch                                                                              |
| First Federal of Hazard                                                                                                                                                                                                     |                           | First Federal of Frankfort                                               |   | 1980 Versailles Road                                                                     |
| Main Office                                                                                                                                                                                                                 |                           | Main Office                                                              |   | Frankfort, KY 40601                                                                      |
| 479 Main Street                                                                                                                                                                                                             |                           | 216 West Main Street                                                     |   |                                                                                     |
| P.O. Box 1069                                                                                                                                                                                                               |                           | P.O. Box 535                                                             |   | First Federal of Frankfort                                                               |
| Hazard, KY 41702-1069                                                                                                                                                                                                       |                           | Frankfort, KY 40602-0535                                                 |   | West Branch                                                                              |
|                                                                                                                                                                                                                        |                           |                                                                     |   | 1220 US 127 South                                                                        |
|                                                                                                                                                                                                                        |                           |                                                                     |   | Frankfort, KY 40601                                                                      |
|                                                                                                                                                                                                                        |                           |                                                                     |   |                                                                                     |
| Chairman and CEO                                                                                                                                                                                                            |                           | Special Counsel                                                          |   | Shareholder Inquiries and                                                                |
| Tony Whitaker(606) 436-3860                                                                                                                                                                                                 |                           | Kilpatrick Townsend & Stockton LLP, Suite 900                        |   | Availability of 10-K Report: A COPY OF THE COMPANY’S                               |
| firstfederal@windstream.net                                                                                                                                                                                                 |                 | 607 14th Street, NWWashington, DC 20005-2018                             |   | ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED                                            |
|                                                                                                                                                                                                                        |                           |                                                                     |   | JUNE 30, 2011, AS FILED                                                                  |
| Investor Relations                                                                                                                                                                                                          |                           | Transfer Agent and Registrar                                             |   | WITH THE SECURITIES AND                                                                  |
| Don Jennings                                                                                                                                                                                                                |                           | IST Shareholder Services                                                 |   | EXCHANGE COMMISSION                                                                      |
| djennings@ffsbfrankfort.com                                                                                                                                                                                                 |       | 209 W Jackson Blvd, Ste 903                                              |   | WILL BE FURNISHED                                                                        |
|                                                                                                                                                                                                                        |                           | Chicago, IL 60606-6905                                                   |   | WITHOUT CHARGE TO                                                                        |
| Clay Hulette                                                                                                                                                                                                                |                           | (312) 427-2953                                                           |   | SHAREHOLDERS AS OF THE                                                                   |
| chulette@ffsbfrankfort.com                                                                                                                                                                                                  |                      |                                                                     |   | RECORD DATE FOR THE                                                                      |
|                                                                                                                                                                                                                        |                           | Annual Meeting                                                           |   | NOVEMBER 10, 2011                                                                        |
| (502) 223-1638                                                                                                                                                                                                              |                           | The Annual Meeting of Share-                                             |   | ANNUAL MEETING UPON                                                                      |
| P.O. Box 535                                                                                                                                                                                                                |                           | holders will be held on                                                  |   | WRITTEN REQUEST TO:                                                                      |
| Frankfort, KY 40602                                                                                                                                                                                                         |                           | November 10, 2011 at 3:30 p.m.                                           |   |                                                                                     |
| Independent Auditors                                                                                                                                                                                                        |                           | Eastern Time, at the First Federal                                       |   | INVESTOR RELATIONS                                                                       |
| Crowe Horwath, LLP                                                                                                                                                                                                          |                           | Center on the campus of Hazard                                           |   | KENTUCKY FIRST                                                                           |
| 9600 Brownsboro Rd., Ste 400                                                                                                                                                                                                |                           | Community and Technical                                                  |   | FEDERAL BANCORP                                                                          |
| Louisville, KY 40252                                                                                                                                                                                                        |                           | College, One Community College                                           |   | P.O. BOX 535                                                                             |
|                                                                                                                                                                                                                        |                           | Blvd, Hazard, KY                                                         |   | FRANKFORT, KY 40602                                                                      |

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