|                                        Delaware                                                               (State of incorporation) |   |                         95-2962743     (I.R.S. Employer Identification No.) |
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| PART I     |   | FINANCIAL INFORMATION                                                                       | Page   |
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| Item 1.    |   | Financial Statements (unaudited)                                                            | 1      |
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| Item 2.    |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14     |
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| Item 3.    |   | Quantitative and Qualitative Disclosures About Market Risk                                  | 16     |
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| Item 4T.   |   | Controls and Procedures                                                                     | 17     |
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| PART II    |   | OTHER INFORMATION                                                                           |   |
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| Item 1.    |   | Legal Proceedings                                                                           | 18     |
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| Item 1A.   |   | Risk Factors                                                                                | 18     |
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| Item 2.    |   | Unregistered Sales of Equity and Securities and Use of Proceeds                             | 18     |
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| Item 3.    |   | Defaults Upon Senior Securities                                                             | 18     |
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| Item 4.    |   | Submission of Matters to a Vote of Security Holders                                         | 18     |
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| Item 5.    |   | Other Information                                                                           | 18     |
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| Item 6.    |   | Exhibits                                                                                    | 18     |
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| Signatures |   |                                                                                        | 19     |

| Assets:                                                                                                               |   |    |  March 31,2011 |   |    |  December 31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------|---------------------|--------|---------|------------------------|--------|
| Cash and cash equivalents                                                                                             |   | $       | 1,084               |   | $       | 1,334                  |   |
| Held to maturity investments (market value $7,900 and $8,199, respectively)                                      |   |    | 7,899               |   |    | 8,200                  |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Real estate owned:                                                                                                    |   |    |                |   |    |                   |   |
|   Land                                                                                                      |   |    | 554                 |   |    | 554                    |   |
|   Buildings                                                                                                 |   |    | 1,900               |   |    | 1,900                  |   |
|                                                                                                                  |   |    | 2,454               |   |    | 2,454                  |   |
|   Accumulated depreciation                                                                                  |   |    | (497                | )      |    | (485                   | )      |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Real estate owned, net                                                                                                |   |    | 1,957               |   |    | 1,969                  |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Other assets                                                                                                          |   |    | 260                 |   |    | 259                    |   |
| Total assets                                                                                                          |   |  $ |  11,200        |   |  $ |  11,762           |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Liabilities and Stockholders’ Equity:                                                                           |   |    |                |   |    |                   |   |
| Liabilities:                                                                                                          |   |    |                |   |    |                   |   |
| Accounts payable and accrued liabilities                                                                              |   | $       | 125                 |   | $       | 220                    |   |
| Other liabilities                                                                                                     |   |    | 2                   |   |    | 2                      |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Total liabilities                                                                                                     |   |    | 127                 |   |    | 222                    |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Commitments and contingencies (Note 3)                                                                                |   |    |                |   |    |                   |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Stockholders’ equity:                                                                                           |   |    |                |   |    |                   |   |
| Common stock ($0.01 par value, 200,000,000 authorized, 46,410,007 issued and 43,075,410 outstanding in 2011 and 2010) |   |    | 464                 |   |    | 464                    |   |
| Additional paid-in capital                                                                                            |   |    | 548,044             |   |    | 548,044                |   |
| Accumulated deficit                                                                                                   |   |    | (535,326            | )      |    | (534,859               | )      |
| Treasury stock, at cost - 3,334,597 shares                                                                            |   |    | (2,109              | )      |    | (2,109                 | )      |
| Total stockholders’ equity                                                                                      |   |    | 11,073              |   |    | 11,540                 |   |
|                                                                                                                  |   |    |                |   |    |                   |   |
| Total liabilities and stockholders’ equity                                                                      |   |  $ |  11,200        |   |  $ |  11,762           |   |

|                                                             |   | Three Months |   |
|------------------------------------------------------------------|--------|--------------|--------|
|                                                             |   | 2011         |   | 2010 |   |
| Operating expenses:                                              |   |         |   |   |   |   |   |
| Compensation and benefits                                        |   | $            | 332    |   | $ | 417 |   |
| Professional and outside services                                |   |         | 53     |   |   | 50 |   |
| Property operating and maintenance                               |   |         | 29     |   |   | 32 |   |
| Depreciation                                                     |   |         | 12     |   |   | 13 |   |
| Insurance                                                        |   |         | 8      |   |   | 7 |   |
| Other operating                                                  |   |         | 27     |   |   | 30 |   |
|                                                             |   |         | 461    |   |   | 549 |   |
| Operating loss                                                   |   |         | (461   | ) |   | (549 | ) |
|                                                             |   |         |   |   |   |   |   |
| Interest income                                                  |   |         | 3      |   |   | 5 |   |
| Realized gains on sales of investment securities                 |   |         | 6      |   |   | 10 |   |
| Loss before income taxes                                         |   |         | (452   | ) |   | (534 | ) |
|                                                             |   |         |   |   |   |   |   |
| Income tax expense                                               |   |         | (15    | ) |   | (11 | ) |
| Net loss                                                         |   | $            | (467   | ) | $ | (545 | ) |
|                                                             |   |         |   |   |   |   |   |
| Per share data:                                                  |   |         |   |   |   |   |   |
| Net loss attributable to common stockholders - basic             |   | $            | (0.01  | ) | $ | (0.01 | ) |
| Net loss attributable to common stockholders - assuming dilution |   | $            | (0.01  | ) | $ | (0.01 | ) |
|                                                             |   |         |   |   |   |   |   |
| Weighted average common shares outstanding                       |   |         |   |   |   |   |   |
| Basic                                                            |   |         | 43,075 |   |   | 43,075 |   |
| Assuming dilution                                                |   |         | 43,075 |   |   | 43,075 |   |
|                                                             |   |         |   |   |   |   |   |

| (in thousands)                                                              |         |     | 2011   |   |   | 2010   |   |
|-----------------------------------------------------------------------------|--------------|----------|--------|--------|--------|--------|--------|
|                                                                        |         |     |   |   |   |   |   |
| Cash flows from operating activities:                                       |         |     |   |   |   |   |   |
| Net loss                                                                    |         |   $ | (467   | )      | $      | (545   | )      |
| Adjustments to reconcile net loss to net cash used by operating activities: |         |     |   |   |   |   |   |
| Depreciation and amortization                                               |         |     | 12     |   |   | 13     |   |
| Realized gains on sales of investment securities                            |         |     | (6     | )      |   | (10    | )      |
| Changes in other assets and liabilities:                                    |         |     |   |   |   |   |   |
| Accrued interest receivable on investment securities                        |         |     | (2     | )      |   | (5     | )      |
| Other assets                                                                |         |     | (1     | )      |   | 49     |   |
| Accounts payable and accrued liabilities                                    |         |     | (95    | )      |   | (175   | )      |
| Other liabilities                                                           |         |     | -      |   |   | (3     | )      |
| Net cash used by operating activities                                       |         |     | (559   | )      |   | (676   | )      |
|                                                                        |         |     |   |   |   |   |   |
| Cash flows from investing activities:                                       |         |     |   |   |   |   |   |
| Maturities of investment securities - held to maturity                      |         |     | 8,200  |   |   | 10,000 |   |
| Purchases of investment securities - held to maturity                       |         |     | (7,897 | )      |   | (9,398 | )      |
| Sales of investment securities                                              |         |     | 117    |   |   | 209    |   |
| Purchases of investments securities                                         |         |     | (111   | )      |   | (199   | )      |
| Investment in real estate limited partnership                               |         |     | -      |   |   | (300   | )      |
| Net cash provided by investing activities                                   |         |     | 309    |   |   | 312    |   |
|                                                                        |         |     |   |   |   |   |   |
| Net change in cash and cash equivalents                                     |         |     | (250   | )      |   | (364   | )      |
| Cash and cash equivalents at beginning of year                              |         |     | 1,334  |   |   | 1,715  |   |
| Cash and cash equivalents at end of period                                  |    |   $ | 1,084  |   | $      | 1,351  |   |
|                                                                        |         |     |   |   |   |   |   |
| Supplemental cash flow disclosure:                                          |         |     |   |   |   |   |   |
| Income taxes paid                                                           |         |   $ | 7      |   | $      | 51     |   |
|                                                                        |         |     |   |   |   |   |   |

|                            | March 31, 2011 |                             | December 31, 2010 |   |
|---------------------------------|----------------|----------------------------------|-------------------|--------|
| (in thousands)                  |           |    Carrying Value |              |   | Cost or Amortized Cost |   |   |  Fair Value |   |   |  Carrying Value |   |   |  Cost or Amortized Cost |   |   |  Fair Value |   |
| Held to Maturity:               |           |                             |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   U.S. Treasury Bills | $              | 7,899                            |              | $      | 7,899 |   | $ | 7,900 |   | $ | 8,200 |   | $ | 8,200 |   | $ | 8,199 |   |

| Held to Maturity:     |   |   | 2011   |   |   | 2010   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|
| Gross unrealized gain |   | $      | 1      |   | $      | (1     | )      |
|                  |   |   |   |   |   |   |   |

|              |   |   | 2011 |   |   | 2010 |   |
|-------------------|--------|--------|------|--------|--------|------|--------|
| Net sale proceeds |   | $      | 117  |   | $      | 209  |   |
| Cost basis        |   |   | (111 | )      |   | (199 | )      |
| Realized gain     |   | $      | 6    |   | $      | 10   |   |

|                           |   | Number of Shares |    | Weighted AverageExercisePrice |   |   | Weighted Average Remaining Contractual Life (in years) |
|--------------------------------|--------|------------------|---------|-------------------------------|--------|--------|--------------------------------------------------------|
| Outstanding at January 1, 2011 |   |             | 836,000 |                          | $      | 0.87   |                                                   |   |   |   |
| Expired                        |   |             | (20,000 | )                             |   | 0.60   |                                                   |   |   |   |
|                           |   |             |    |                          |   |   |                                                   |   |   |   |
| Outstanding at March 31, 2011  |   |             | 816,000 |                          | $      | 0.87   |                                                   |   |   |   |
|                           |   |             |    |                          |   |   |                                                   |   |   |   |
| Exercisable                    |   |             | 816,000 |                          | $      | 0.87   |                                                   | $ | 2.24 |   |

|                                 |   | Total Number of Shares Purchased |   | Average Price Paid per Share (including Broker Commissions) |   | Total Number Shares Purchased as Part of Publicly Announced Plans |   | Maximum Number Shares that may yet be Purchased under the Plan |      |
|--------------------------------------|--------|----------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|
|                                 |   |                             |   |                                                        |   |                                                              |   |                                                           |      |   |   |   |   |
| Beginning balance January 1, 2011    |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,208,109 |   |   | 6,791,891 |   |
| January 1, 2011 - January 31, 2011   |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,208,109 |   |   | 6,791,891 |   |
| February 1, 2011 - February 28, 2011 |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,208,109 |   |   | 6,791,891 |   |
| March 1, 2011 - March 31, 2011       |   |                             | -      |                                                        |   | -                                                                 |   |                                                           | 3,208,109 |   |   | 6,791,891 |   |
| Total                                |   |                             | -      |                                                        |   |                                                              |   |                                                           |      |   |   |   |   |

| (in thousands)   |   | Payments Due by Period |        |
|------------------|--------|------------------------|-------------|
|             |   |                   |  Total |   |   |  Less Than One Year |   |   |  One to Three Years |   |   |  Three to Five Years |   |   |  More than Five Years |   |
|             |   |                   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating leases |   | $                      | 17          |   | $ | 5 |   | $ | 12 |   | $ | - |   | $ | - |   |
| Total            |   | $                      | 17          |   | $ | 5 |   | $ | 12 |   | $ | - |   | $ | - |   |

| ($ in thousands)               |   | March 31, 2011 |   | December 31, 2010 |   |
|--------------------------------|--------|----------------|--------|-------------------|--------|
|                           |   | Carrying Value |   | Fair Value        |   | Carrying Value |   | Fair Value |   |
|                           |   |           |   |              |   |   |   |   |   |   |   |   |   |
| U.S. Treasury Bills            |   | $              | 7,899  |              | $      | 7,900 |   | $ | 8,200 |   | $ | 8,199 |   |
| Weighted average interest rate |   |           | 0.16   | %                 |   |   |   |   | 0.09 | % |   |   |   |