|                                                   Delaware                                                      (State of incorporation) |   | 95-2962743         (I.R.S. Employer      Identification No.) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                 |

----

| PART I        |   | FINANCIAL INFORMATION                                                                                 | Page   |
|---------------|--------|-------------------------------------------------------------------------------------------------------|--------|
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      1.  |   | Financial      Statements (unaudited)                                                                 | 1      |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      2.  |   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations | 14     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      3.  |   | Quantitative      and Qualitative Disclosures About Market Risk                                       | 16     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      4T. |   | Controls      and Procedures                                                                          | 17     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| PART II       |   | OTHER INFORMATION                                                                                     |   |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      1.  |   | Legal      Proceedings                                                                                | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      1A. |   | Risk      Factors                                                                                     | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      2.  |   | Unregistered      Sales of Equity and Securities and Use of Proceeds                                  | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      3.  |   | Defaults      Upon Senior Securities                                                                  | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      4.  |   | Submission      of Matters to a Vote of Security Holders                                              | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      5.  |   | Other      Information                                                                                | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Item      6.  |   | Exhibits                                                                                              | 18     |
|          |   |                                                                                                  |   |
|          |   |                                                                                                  |   |
| Signatures    |   |                                                                                                  | 19     |

----

| Assets:                                                                                                        |   |    |  March      312010 |   |    |  December      312009 |   |
|----------------------------------------------------------------------------------------------------------------|--------|---------|-------------------------|--------|---------|----------------------------|--------|
| Cash      and cash equivalents                                                                                 |   | $       | 1,351                   |   | $       | 1,715                      |   |
| Investment      securities:                                                                                    |   |    |                    |   |    |                       |   |
|   Held      to maturity (market value $9,398 and $10,000,respectively)                               |   |    | 9,399                   |   |    | 9,996                      |   |
|   Total      investment securities                                                                   |   |    | 9,399                   |   |    | 9,996                      |   |
|                                                                                                           |   |    |                    |   |    |                       |   |
| Real      estate owned:                                                                                        |   |    |                    |   |    |                       |   |
|   Land                                                                                               |   |    | 554                     |   |    | 554                        |   |
|   Buildings                                                                                          |   |    | 1,900                   |   |    | 1,900                      |   |
|                                                                                                           |   |    | 2,454                   |   |    | 2,454                      |   |
|   Accumulated      depreciation                                                                      |   |    | (449                    | )      |    | (436                       | )      |
|                                                                                                           |   |    |                    |   |    |                       |   |
| Real      estate owned, net                                                                                    |   |    | 2,005                   |   |    | 2,018                      |   |
|                                                                                                           |   |    |                    |   |    |                       |   |
| Other      assets                                                                                              |   |    | 323                     |   |    | 72                         |   |
| Total      assets                                                                                              |   |  $ |  13,078            |   |  $ |  13,801               |   |
|                                                                                                           |   |    |                    |   |    |                       |   |
| Liabilities      and Stockholders’ Equity:                                                               |   |    |                    |   |    |                       |   |
| Liabilities:                                                                                                   |   |    |                    |   |    |                       |   |
| Accounts      payable and accrued liabilities                                                                  |   | $       | 114                     |   | $       | 289                        |   |
| Other      liabilities                                                                                         |   |    | 9                       |   |    | 12                         |   |
|                                                                                                           |   |    |                    |   |    |                       |   |
| Total      liabilities                                                                                         |   |    | 123                     |   |    | 301                        |   |
|                                                                                                           |   |    |                    |   |    |                       |   |
| 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) |   |    | 464                     |   |    | 464                        |   |
| Additional      paid-in capital                                                                                |   |    | 548,044                 |   |    | 548,044                    |   |
| Accumulated      deficit                                                                                       |   |    | (533,444                | )      |    | (532,899                   | )      |
| Treasury      stock, at cost - 3,334,597 shares                                                                |   |    | (2,109                  | )      |    | (2,109                     | )      |
| Total      stockholders’ equity                                                                          |   |    | 12,955                  |   |    | 13,500                     |   |
|                                                                                                           |   |    |                    |   |    |                       |   |
| Total      liabilities and stockholders’ equity                                                          |   |  $ |  13,078            |   |  $ |  13,801               |   |

----

|                                                                     |   | Three      Months |   |
|--------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                     |   | 2010              |   | 2009 |   |
| Operating      expenses:                                                 |   |              |   |   |   |   |   |
| Compensation      and benefits                                           |   | $                 | 417    |   | $ | 434 |   |
| Professional      and outside services                                   |   |              | 50     |   |   | 389 |   |
| Property      operating and maintenance                                  |   |              | 32     |   |   | 32 |   |
| Depreciation                                                             |   |              | 13     |   |   | 13 |   |
| Insurance                                                                |   |              | 7      |   |   | 17 |   |
| Other      operating                                                     |   |              | 30     |   |   | 31 |   |
|                                                                     |   |              | 549    |   |   | 916 |   |
| Operating      loss                                                      |   |              | (549   | ) |   | (916 | ) |
| Interest      income                                                     |   |              | 5      |   |   | 9 |   |
| Realized      gains on sales of investment securities                    |   |              | 10     |   |   | - |   |
| Other      income                                                        |   |              | -      |   |   | 50 |   |
| Loss      before income taxes                                            |   |              | (534   | ) |   | (857 | ) |
|                                                                     |   |              |   |   |   |   |   |
| Income      tax expense                                                  |   |              | (11    | ) |   | (2 | ) |
| Net      loss                                                            |   | $                 | (545   | ) | $ | (859 | ) |
|                                                                     |   |              |   |   |   |   |   |
| Per      share data:                                                     |   |              |   |   |   |   |   |
| Net      loss attributable to common stockholders - basic                |   | $                 | (0.01  | ) | $ | (0.02 | ) |
| Net      loss attributable to common stockholders - assuming    dilution |   | $                 | (0.01  | ) | $ | (0.02 | ) |
|                                                                     |   |              |   |   |   |   |   |
| Weighted      average common shares outstanding:                         |   |              |   |   |   |   |   |
| Basic                                                                    |   |              | 43,075 |   |   | 43,215 |   |
| Assuming      dilution                                                   |   |              | 43,075 |   |   | 43,215 |   |
|                                                                     |   |              |   |   |   |   |   |

----

| (in      thousands)                                                                   |    |   | 2010   |   |   | 2009    |   |
|---------------------------------------------------------------------------------------|---------|--------|--------|--------|--------|---------|--------|
|                                                                                  |    |   |   |   |   |    |   |
| Cash      flows from operating activities:                                            |    |   |   |   |   |    |   |
| Net      loss                                                                         | $       |   | (545   | )      | $      | (859    | )      |
| Adjustments      to reconcile net loss to net cash used by operating      activities: |    |   |   |   |   |    |   |
| Depreciation      and amortization                                                    |    |   | 13     |   |   | 13      |   |
| Realized      gains on sales of investment securities                                 |    |   | (10    | )      |   | -       |   |
| Changes      in other assets and liabilities:                                         |    |   |   |   |   |    |   |
| Accrued      interest receivable on investment securities                             |    |   | (5     | )      |   | (4      | )      |
| Other      assets                                                                     |    |   | 49     |   |   | (413    | )      |
| Accounts      payable and accrued liabilities                                         |    |   | (175   | )      |   | (160    | )      |
| Other      liabilities                                                                |    |   | (3     | )      |   | (2      | )      |
| Net      cash used by operating activities                                            |    |   | (676   | )      |   | (1,425  | )      |
|                                                                                  |    |   |   |   |   |    |   |
| Cash      flows from investing activities:                                            |    |   |   |   |   |    |   |
| Maturities      of investment securities - held to maturity                           |    |   | 10,000 |   |   | 11,400  |   |
| Purchases      of investment securities - held to maturity                            |    |   | (9,398 | )      |   | (10,891 | )      |
| Sales      of investment securities                                                   |    |   | 209    |   |   | -       |   |
| Purchases      of investments securities                                              |    |   | (199   | )      |   | -       |   |
| Investment      in real estate limited partnership                                    |    |   | (300   | )      |   | -       |   |
| Net      cash provided by investing activities                                        |    |   | 312    |   |   | 509     |   |
|                                                                                  |    |   |   |   |   |    |   |
| Net      change in cash and cash equivalents                                          |    |   | (364   | )      |   | (916    | )      |
| Cash      and cash equivalents at beginning of year                                   |    |   | 1,715  |   |   | 2,667   |   |
| Cash      and cash equivalents at end of period                                       |  $ |   | 1,351  |   | $      | 1,751   |   |
|                                                                                  |    |   |   |   |   |    |   |
| Supplemental      cash flow disclosure:                                               |    |   |   |   |   |    |   |
| Income      taxes paid                                                                | $       |   | 51     |   | $      | 2       |   |
|                                                                                  |    |   |   |   |   |    |   |

----

----

----

|                                 | March      31, 2010 |                                  | December      31, 2009 |   |
|--------------------------------------|---------------------|---------------------------------------|------------------------|--------|
| (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 | $                   | 9,399                                 |                   | $      | 9,399 |   | $ | 9,398 |   | $ | 9,996 |   | $ | 9,996 |   | $ | 10,000 |   |
|                                 |  $             |  9,399                           |                   | $      | 9,399 |   | $ | 9,398 |   | $ | 9,996 |   | $ | 9,996 |   | $ | 10,000 |   |

| Held      to Maturity:            |   |   | 2010   |   |   | 2009   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Gross      unrealized gain (loss) |   | $      | (1     | )      | $      | 4      |   |
|                              |   |   |   |   |   |   |   |

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

----

----

----

----

----

|                                |   | Number      of Shares |    | Weighted      AverageExercisePrice |   |   | Weighted      Average Remaining Contractual      Life (in years) |
|-------------------------------------|--------|-----------------------|---------|------------------------------------|--------|--------|-----------------------------------------------------------------------|
| Outstanding      at January 1, 2010 |   |                  | 851,000 |                               | $      | 0.87   |                                                                  |   |   |   |
| Expired                             |   |                  | (15,000 | )                                  |   | 0.95   |                                                                  |   |   |   |
|                                |   |                  |    |                               |   |   |                                                                  |   |   |   |
| Outstanding      at March 31, 2010  |   |                  | 836,000 |                               | $      | 0.87   |                                                                  |   |   |   |
|                                |   |                  |    |                               |   |   |                                                                  |   |   |   |
| Exercisable                         |   |                  | 836,000 |                               | $      | 0.87   |                                                                  | $ | 3.18 |   |

----

|                                      |   | Total      Number of Shares Purchased |   | Average      Price Paid per Share (including Broker Commissions) |   | Total      Number Shares Purchased as Part of Publicly AnnouncedPlans |   | Maximum      Number Shares that may yet be Purchased under the Plan |      |
|-------------------------------------------|--------|---------------------------------------|--------|------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------|-----------|
|                                      |   |                                  |   |                                                             |   |                                                                  |   |                                                                |      |   |   |   |   |
| Beginning      balance January 1, 2010    |   |                                  | -      |                                                             |   | -                                                                     |   |                                                                | 3,208,109 |   |   | 6,791,891 |   |
| January      1, 2010 - January 31, 2010   |   |                                  | -      |                                                             |   | -                                                                     |   |                                                                | 3,208,109 |   |   | 6,791,891 |   |
| February      1, 2010 - February 28, 2010 |   |                                  | -      |                                                             |   | -                                                                     |   |                                                                | 3,208,109 |   |   | 6,791,891 |   |
| March      1, 2010 - March 31, 2010       |   |                                  | -      |                                                             |   | -                                                                     |   |                                                                | 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 |   | $                           | 9           |   | $ | 9 |   | $ | - |   | $ | - |   | $ | - |   |
| Total                 |   | $                           | 9           |   | $ | 9 |   | $ | - |   | $ | - |   | $ | - |   |

| ($      in thousands)               |   | March      31, 2010 |   | December      31, 2009 |   |
|-------------------------------------|--------|---------------------|--------|------------------------|--------|
|                                |   | Carrying      Value |   | Fair      Value        |   | Carrying      Value |   | Fair      Value |   |
|                                |   |                |   |                   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury Bills            |   | $                   | 9,399  |                   | $      | 9,398 |   | $ | 9,996 |   | $ | 10,000 |   |
| Weighted      average interest rate |   |                | 0.10   | %                      |   |   |   |   | - |   |   |   |   |

----

----

----