|   | (Mark One) |
|--------|------------|

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

|   | [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------|------------------------------------------------------------------------------------------|

|   | For the transition period from _____________ to _____________ |
|--------|---------------------------------------------------------------|

| Pennsylvania                                                   | 25-1606091                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
|                                                           |                              |
| 612 Main Street, Emlenton, Pennsylvania                        | 16373                             |
| (Address of principal executive offices)                       | (Zip Code)                        |

----

| Item 1.                           | Interim Financial Statements (Unaudited)                                                                            |   |
|-----------------------------------|---------------------------------------------------------------------------------------------------------------------|--------|
|                              |                                                                                                                |   |
|                              | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                                              | 1      |
|                              |                                                                                                                |   |
|                              | Consolidated Statements of Operations for the three months ended March 31, 2011 and 2010                            | 2      |
|                              |                                                                                                                |   |
|                              | Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010                            | 3      |
|                              |                                                                                                                |   |
|                              | Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2011 and 2010 | 4      |
|                              |                                                                                                                |   |
|                              | Notes to Consolidated Financial Statements                                                                          | 5      |
|                              |                                                                                                                |   |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations                         | 18     |
|                              |                                                                                                                |   |
| Item 3.                           | Quantitative and Qualitative Disclosures About Market Risk                                                          | 25     |
|                              |                                                                                                                |   |
| Item 4.                           | Controls and Procedures                                                                                             | 26     |
|                              |                                                                                                                |   |
| PART II – OTHER INFORMATION |
|                              |                                                                                                                |   |
| Item 1.                           | Legal Proceedings                                                                                                   | 26     |
|                              |                                                                                                                |   |
| Item 1A.                          | Risk Factors                                                                                                        | 26     |
|                              |                                                                                                                |   |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds                                                         | 27     |
|                              |                                                                                                                |   |
| Item 3.                           | Defaults Upon Senior Securities                                                                                     | 27     |
|                              |                                                                                                                |   |
| Item 4.                           | (Removed and Reserved)                                                                                              | 27     |
|                              |                                                                                                                |   |
| Item 5.                           | Other Information                                                                                                   | 27     |
|                              |                                                                                                                |   |
| Item 6.                           | Exhibits                                                                                                            | 27     |
|                              |                                                                                                                |   |
| Signatures                        |                                                                                                                | 28     |

----

Item 

Emclaire 

|                                                                              |   | March 31, |    |   | December 31, |   |
|-----------------------------------------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                                                              |   | 2011      |    |   | 2010         |   |
|                                                                              |   |      |    |   |         |   |
| Assets                                                                            |   |      |    |   |         |   |
|                                                                              |   |      |    |   |         |   |
| Cash and due from banks                                                           |   | $         | 2,926   |   |         | $      | 2,507 |   |
| Interest earning deposits with banks                                              |   |      | 39,575  |   |         |   | 16,520 |   |
| Cash and cash equivalents                                                         |   |      | 42,501  |   |         |   | 19,027 |   |
| Securities available for sale, at fair value                                      |   |      | 120,833 |   |         |   | 125,820 |   |
| Loans receivable, net of allowance for loan losses of $3,942 and $4,132           |   |      | 300,126 |   |         |   | 306,152 |   |
| Federal bank stocks, at cost                                                      |   |      | 3,964   |   |         |   | 4,129 |   |
| Bank-owned life insurance                                                         |   |      | 5,648   |   |         |   | 5,596 |   |
| Accrued interest receivable                                                       |   |      | 1,653   |   |         |   | 1,763 |   |
| Premises and equipment, net                                                       |   |      | 9,091   |   |         |   | 9,241 |   |
| Goodwill                                                                          |   |      | 3,664   |   |         |   | 3,664 |   |
| Core deposit intangible                                                           |   |      | 1,902   |   |         |   | 2,021 |   |
| Prepaid expenses and other assets                                                 |   |      | 4,068   |   |         |   | 4,472 |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Total Assets                                                                      |   | $         | 493,450 |   |         | $      | 481,885 |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Liabilities and Stockholders' Equity                                              |   |      |    |   |         |   |   |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Liabilities:                                                                      |   |      |    |   |         |   |   |   |
| Deposits:                                                                         |   |      |    |   |         |   |   |   |
| Non-interest bearing                                                              |   | $         | 84,733  |   |         | $      | 75,941 |   |
| Interest bearing                                                                  |   |      | 331,245 |   |         |   | 333,717 |   |
| Total deposits                                                                    |   |      | 415,978 |   |         |   | 409,658 |   |
| Short-term borrowed funds                                                         |   |      | 5,000   |   |         |   | 5,000 |   |
| Long-term borrowed funds                                                          |   |      | 25,000  |   |         |   | 25,000 |   |
| Accrued interest payable                                                          |   |      | 618     |   |         |   | 649 |   |
| Accrued expenses and other liabilities                                            |   |      | 2,737   |   |         |   | 2,460 |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Total Liabilities                                                                 |   |      | 449,333 |   |         |   | 442,767 |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Commitments and Contingent Liabilities                                            |   |      | -       |   |         |   | - |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Stockholders' Equity:                                                             |   |      |    |   |         |   |   |   |
| Cumulative preferred stock, $1.00 par value, $7,500 liquidation value,            |   |
| 3,000,000 shares authorized; 7,500 issued and outstanding                         |   |      | 7,451   |   |         |   | 7,447 |   |
| Warrants                                                                          |   |      | 88      |   |         |   | 88 |   |
| Common stock, $1.25 par value, 12,000,000 shares authorized;                      |   |
| 1,849,425 and 1,559,421 shares issued; 1,747,408 and 1,457,404 shares outstanding |   |      | 2,312   |   |         |   | 1,949 |   |
| Additional paid-in capital                                                        |   |      | 19,056  |   |         |   | 14,812 |   |
| Treasury stock, at cost; 102,017 shares                                           |   |      | (2,114  | )      |         |   | (2,114 | ) |
| Retained earnings                                                                 |   |      | 18,155  |   |         |   | 17,705 |   |
| Accumulated other comprehensive loss                                              |   |      | (831    | )      |         |   | (769 | ) |
|                                                                              |   |      |    |   |         |   |   |   |
| Total Stockholders' Equity                                                        |   |      | 44,117  |   |         |   | 39,118 |   |
|                                                                              |   |      |    |   |         |   |   |   |
| Total Liabilities and Stockholders' Equity                                        |   | $         | 493,450 |   |         | $      | 481,885 |   |

----

Emclaire 

|                                                         |   | For the three months ended |      |
|--------------------------------------------------------------|--------|----------------------------|-----------|
|                                                         |   | March 31,                  |      |   |   |   |
|                                                         |   | 2011                       |      |   | 2010 |   |
|                                                         |   |                       |      |   |   |   |
| Interest and dividend income:                                |   |                       |      |   |   |   |
| Loans receivable, including fees                             |   | $                          | 4,332     |   |   | $ | 4,413 |   |
| Securities:                                                  |   |                       |      |   |   |   |   |   |
| Taxable                                                      |   |                       | 537       |   |   |   | 608 |   |
| Exempt from federal income tax                               |   |                       | 323       |   |   |   | 265 |   |
| Federal bank stocks                                          |   |                       | 13        |   |   |   | 11 |   |
| Interest earning deposits with banks                         |   |                       | 47        |   |   |   | 84 |   |
| Total interest and dividend income                           |   |                       | 5,252     |   |   |   | 5,381 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Interest expense:                                            |   |                       |      |   |   |   |   |   |
| Deposits                                                     |   |                       | 1,175     |   |   |   | 1,426 |   |
| Borrowed funds                                               |   |                       | 341       |   |   |   | 446 |   |
| Total interest expense                                       |   |                       | 1,516     |   |   |   | 1,872 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Net interest income                                          |   |                       | 3,736     |   |   |   | 3,509 |   |
| Provision for loan losses                                    |   |                       | 120       |   |   |   | 128 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Net interest income after provision for loan losses          |   |                       | 3,616     |   |   |   | 3,381 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Noninterest income:                                          |   |                       |      |   |   |   |   |   |
| Fees and service charges                                     |   |                       | 340       |   |   |   | 322 |   |
| Commissions on financial services                            |   |                       | 163       |   |   |   | 180 |   |
| Title premiums                                               |   |                       | 29        |   |   |   | 18 |   |
| Net gain on sales of available for sale securities           |   |                       | 104       |   |   |   | 99 |   |
| Earnings on bank-owned life insurance                        |   |                       | 60        |   |   |   | 58 |   |
| Other                                                        |   |                       | 234       |   |   |   | 165 |   |
| Total noninterest income                                     |   |                       | 930       |   |   |   | 842 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Noninterest expense:                                         |   |                       |      |   |   |   |   |   |
| Compensation and employee benefits                           |   |                       | 1,889     |   |   |   | 1,830 |   |
| Premises and equipment                                       |   |                       | 579       |   |   |   | 550 |   |
| Intangible asset amortization                                |   |                       | 119       |   |   |   | 152 |   |
| Professional fees                                            |   |                       | 182       |   |   |   | 114 |   |
| Federal deposit insurance                                    |   |                       | 143       |   |   |   | 141 |   |
| Other                                                        |   |                       | 671       |   |   |   | 604 |   |
| Total noninterest expense                                    |   |                       | 3,583     |   |   |   | 3,391 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Income before provision for income taxes                     |   |                       | 963       |   |   |   | 832 |   |
| Provision for income taxes                                   |   |                       | 182       |   |   |   | 150 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Net income                                                   |   |                       | 781       |   |   |   | 682 |   |
| Accumulated preferred stock dividends and discount accretion |   |                       | 98        |   |   |   | 98 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Net income available to common stockholders                  |   | $                          | 683       |   |   | $ | 584 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Basic and diluted earnings per common share                  |   | $                          | 0.47      |   |   | $ | 0.41 |   |
|                                                         |   |                       |      |   |   |   |   |   |
| Average common shares outstanding                            |   |                       | 1,460,626 |   |   |   | 1,431,404 |   |

----

Emclaire 

|                                                            |   | For the three months ended |    |
|-----------------------------------------------------------------|--------|----------------------------|---------|
|                                                            |   | March 31,                  |    |
|                                                            |   | 2011                       |    |   | 2010 |   |
|                                                            |   |                       |    |   |   |   |
| Cash flows from operating activities                            |   |                       |    |   |   |   |
| Net income                                                      |   | $                          | 781     |   |   | $ | 682 |   |
| Adjustments to reconcile net income to net cash provided        |   |
| by operating activities:                                        |   |                       |    |   |   |   |   |   |
| Depreciation and amortization of premises and equipment         |   |                       | 207     |   |   |   | 216 |   |
| Provision for loan losses                                       |   |                       | 120     |   |   |   | 128 |   |
| Net amortization                                                |   |                       | 52      |   |   |   | (16 | ) |
| Amortization of intangible assets and mortgage servicing rights |   |                       | 123     |   |   |   | 156 |   |
| Realized gains on sales of available for sale securities, net   |   |                       | (104    | ) |   |   | (99 | ) |
| Net (gains) losses on foreclosed real estate                    |   |                       | (3      | ) |   |   | 32 |   |
| Restricted stock and stock option compensation                  |   |                       | 30      |   |   |   | 41 |   |
| Increase in bank-owned life insurance, net                      |   |                       | (52     | ) |   |   | (51 | ) |
| (Increase) decrease in accrued interest receivable              |   |                       | 110     |   |   |   | (132 | ) |
| (Increase) decrease in prepaid expenses and other assets        |   |                       | 382     |   |   |   | (275 | ) |
| Increase (decrease) in accrued interest payable                 |   |                       | (31     | ) |   |   | 18 |   |
| Increase (decrease) in accrued expenses and other liabilities   |   |                       | 277     |   |   |   | (45 | ) |
| Net cash provided by operating activities                       |   |                       | 1,892   |   |   |   | 655 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Cash flows from investing activities                            |   |                       |    |   |   |   |   |   |
| Loan originations and principal collections, net                |   |                       | 5,767   |   |   |   | 1,149 |   |
| Available for sale securities:                                  |   |                       |    |   |   |   |   |   |
| Sales                                                           |   |                       | 12,079  |   |   |   | 5,080 |   |
| Maturities, repayments and calls                                |   |                       | 3,061   |   |   |   | 17,013 |   |
| Purchases                                                       |   |                       | (10,132 | ) |   |   | (49,272 | ) |
| Redemption of federal bank stocks                               |   |                       | 165     |   |   |   | - |   |
| Proceeds from the sale of foreclosed real estate                |   |                       | 129     |   |   |   | 35 |   |
| Purchases of premises and equipment                             |   |                       | (57     | ) |   |   | (142 | ) |
| Net cash provided by (used in) investing activities             |   |                       | 11,012  |   |   |   | (26,137 | ) |
|                                                            |   |                       |    |   |   |   |   |   |
| Cash flows from financing activities                            |   |                       |    |   |   |   |   |   |
| Net increase in deposits                                        |   |                       | 6,320   |   |   |   | 14,337 |   |
| Dividends paid                                                  |   |                       | (327    | ) |   |   | (294 | ) |
| Proceeds from the issuance of common stock                      |   |                       | 4,577   |   |   |   | - |   |
| Net cash provided by financing activities                       |   |                       | 10,570  |   |   |   | 14,043 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                |   |                       | 23,474  |   |   |   | (11,439 | ) |
| Cash and cash equivalents at beginning of period                |   |                       | 19,027  |   |   |   | 38,952 |   |
| Cash and cash equivalents at end of period                      |   | $                          | 42,501  |   |   | $ | 27,513 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Supplemental information:                                       |   |                       |    |   |   |   |   |   |
| Interest paid                                                   |   | $                          | 1,547   |   |   | $ | 1,854 |   |
| Income taxes paid                                               |   |                       | -       |   |   |   | 100 |   |
|                                                            |   |                       |    |   |   |   |   |   |
| Supplemental noncash disclosure:                                |   |                       |    |   |   |   |   |   |
| Transfers from loans to foreclosed real estate                  |   |                       | 72      |   |   |   | 51 |   |

----

Emclaire 

|                                                 |   | For the three months ended |   |
|------------------------------------------------------|--------|----------------------------|--------|
|                                                 |   | March 31,                  |   |
|                                                 |   | 2011                       |   |   | 2010 |   |
|                                                 |   |                       |   |   |   |   |
| Balance at beginning of period                       |   | $                          | 39,118 |   |   | $ | 37,034 |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Net income                                           |   |                       | 781    |   |   |   | 682 |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Other comprehensive income:                          |   |                       |   |   |   |   |   |   |
| Change in net unrealized gains on available for sale |   |                       |   |   |   |
| securities, net of taxes                             |   |                       | 7      |   |   |   | 332 |   |
| Less: reclassification adjustment for gains          |   |                       |   |   |   |   |   |   |
|  included in net income, net of taxes           |   |                       | 69     |   |   |   | 65 |   |
| Other comprehensive income (loss)                    |   |                       | (62    | ) |   |   | 267 |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Total comprehensive income                           |   |                       | 719    |   |   |   | 949 |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Stock compensation expense                           |   |                       | 30     |   |   |   | 41 |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Dividends declared on preferred stock                |   |                       | (94    | ) |   |   | (94 | ) |
|                                                 |   |                       |   |   |   |   |   |   |
| Dividends declared on common stock                   |   |                       | (233   | ) |   |   | (200 | ) |
|                                                 |   |                       |   |   |   |   |   |   |
| Issuance of common stock (290,004 shares)            |   |                       | 4,577  |   |   |   | - |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Balance at end of period                             |   | $                          | 44,117 |   |   | $ | 37,730 |   |
|                                                 |   |                       |   |   |   |   |   |   |
| Common cash dividend per share                       |   | $                          | 0.16   |   |   | $ | 0.14 |   |

----

Emclaire 

| 1. | Nature of Operations and Basis of Presentation. |
|----|-------------------------------------------------|

----

| (Dollar amounts in thousands, except for per share amounts) |                                             | For the three months ended |      |
|-------------------------------------------------------------|--------------------------------------------------|----------------------------|-----------|
|                                                        |                                             |                       | March 31, |   |
|                                                        |                                             |                       | 2011      |   |   | 2010 |   |
| Earnings per share - basic                                  |                                             |                       |      |   |   |   |
|                                                        |                                             |                       |      |   |   |   |   |
| Net income                                                  |                                             | $                          | 781       |   |   | $ | 682 |   |
| Preferred stock dividends and discount accretion            |                                             |                       | 98        |   |   |   | 98 |   |
| Net income available to common stockholders                 |                                             | $                          | 683       |   |   | $ | 584 |   |
| Average common shares outstanding                           |                                             |                       | 1,460,626 |   |   |   | 1,431,404 |   |
| Basic earnings per common share                             |                                             | $                          | 0.47      |   |   | $ | 0.41 |   |
| Earnings per share - diluted                                |                                             |                       |      |   |   |   |   |   |
| Net income available to common stockholders                 |                                             | $                          | 683       |   |   | $ | 584 |   |
| Average common shares outstanding                           |                                             |                       | 1,460,626 |   |   |   | 1,431,404 |   |
| Add: Dilutive effects of assumed exercises of stock options |                                             |                       | 3,512     |   |   |   | - |   |
| Average shares and dilutive potential common shares         |                                             |                       | 1,464,138 |   |   |   | 1,431,404 |   |
| Diluted earnings per common share                           |                                             | $                          | 0.47      |   |   | $ | 0.41 |   |
| Stock options, restricted stock awards and warrants         |                                             |                       |      |   |   |   |   |   |
|                                                        | not considered in computing diluted earnings per |                       |      |   |   |   |   |   |   |
|                                                        | share because they were antidilutive             |                       |      | 144,111 |   |   |   | 158,861 |   |
|                                                        |                                             |                       |      |   |   |   |   |   |   |

|                                             |   |      |    |   |       |   |   |       |   |   |   |   |
|--------------------------------------------------|--------|-----------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
| (Dollar amounts in thousands)                    |   |      |    |   | Gross      |   |   | Gross      |   |   |   |   |
|                                             |   | Amortized |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                             |   | cost      |    |   | gains      |   |   | losses     |   |   | value  |   |
|                                             |   |      |    |   |       |   |   |       |   |   |   |   |
| Available for sale:                              |   |      |    |   |       |   |   |       |   |   |   |   |
| March 31, 2011:                                  |   |      |    |   |       |   |   |       |   |   |   |   |
| U.S. Treasury and federal agency                 |   | $         | 6,344   |   |       | $      | -      |       |   | $      | (181   | )      |   | $ | 6,163 |   |
| U.S. government sponsored entities and agencies  |   |      | 52,776  |   |       |   | 5      |       |   |   | (757   | )      |   |   | 52,024 |   |
| Mortgage-backed securities: residential          |   |      | 23,522  |   |       |   | 169    |       |   |   | (25    | )      |   |   | 23,666 |   |
| State and political subdivisions                 |   |      | 35,483  |   |       |   | 985    |       |   |   | (27    | )      |   |   | 36,441 |   |
| Equity securities                                |   |      | 2,542   |   |       |   | 1      |       |   |   | (4     | )      |   |   | 2,539 |   |
|                                             |   | $         | 120,667 |   |       | $      | 1,160  |       |   | $      | (994   | )      |   | $ | 120,833 |   |
| December 31, 2010:                               |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| U.S. Treasury and federal agency                 |   | $         | 6,839   |   |       | $      | 6      |       |   | $      | (116   | )      |   | $ | 6,729 |   |
| U.S. government sponsored entities and agencies  |   |      | 62,770  |   |       |   | 79     |       |   |   | (487   | )      |   |   | 62,362 |   |
| Mortgage-backed securities: residential          |   |      | 19,015  |   |       |   | 370    |       |   |   | (5     | )      |   |   | 19,380 |   |
| Collateralized mortgage obligations: residential |   |      | 917     |   |       |   | 5      |       |   |   | -      |   |   |   | 922 |   |
| State and political subdivisions                 |   |      | 33,477  |   |       |   | 589    |       |   |   | (164   | )      |   |   | 33,902 |   |
| Equity securities                                |   |      | 2,542   |   |       |   | -      |       |   |   | (17    | )      |   |   | 2,525 |   |
|                                             |   | $         | 125,560 |   |       | $      | 1,049  |       |   | $      | (789   | )      |   | $ | 125,820 |   |
|                                             |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |

----

|                                  |   |               |    |   |   |   |
|---------------------------------------|--------|--------------------|---------|--------|--------|--------|
| (Dollar amounts in thousands)         |   | Available for sale |    |
|                                  |   | Amortized          |    |   | Fair   |   |
|                                  |   | cost               |    |   | value  |   |
|                                  |   |               |    |   |   |   |
| Due in one year or less               |   | $                  | 999     |   |   | $      | 961 |   |
| Due after one year through five years |   |               | 43,850  |   |   |   | 43,355 |   |
| Due after five through ten years      |   |               | 38,679  |   |   |   | 38,975 |   |
| Due after ten years                   |   |               | 11,075  |   |   |   | 11,337 |   |
| Mortgage-backed securities            |   |               | 23,522  |   |   |   | 23,666 |   |
|                                  |   | $                  | 118,125 |   |   | $      | 118,294 |   |
|                                  |   |               |    |   |   |   |   |   |

|                                            |   |                |   |   |              |   |   |   |   |   |       |   |   |   |   |   |       |   |
|-------------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|
| (Dollar amounts in thousands)                   |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total  |   |
|                                            |   | Fair                |   |   | Unrealized        |   |   | Fair   |   |   | Unrealized |   |   | Fair   |   |   | Unrealized |   |
| Description of Securities                       |   | Value               |   |   | Loss              |   |   | Value  |   |   | Loss       |   |   | Value  |   |   | Loss       |   |
|                                            |   |                |   |   |              |   |   |   |   |   |       |   |   |   |   |   |       |   |
| March 31, 2011:                                 |   |                |   |   |              |   |   |   |   |   |       |   |   |   |   |   |       |   |
| U.S. Treasury and federal agency                |   | $                   | 6,163  |   |              | $      | (181   | )      |   | $      | -          |   |   | $      | -      |   |       | $      | 6,163 |   |   | $ | (181 | ) |
| U.S. government sponsored entities and agencies |   |                | 49,020 |   |              |   | (757   | )      |   |   | -          |   |   |   | -      |   |       |   | 49,020 |   |   |   | (757 | ) |
| Mortgage-backed securities: residential         |   |                | 1,952  |   |              |   | (25    | )      |   |   | -          |   |   |   | -      |   |       |   | 1,952 |   |   |   | (25 | ) |
| State and political subdivisions                |   |                | 1,673  |   |              |   | (27    | )      |   |   | -          |   |   |   | -      |   |       |   | 1,673 |   |   |   | (27 | ) |
| Equity securities                               |   |                | 14     |   |              |   | (2     | )      |   |   | 165        |   |   |   | (2     | )      |       |   | 179 |   |   |   | (4 | ) |
|                                            |   | $                   | 58,823 |   |              | $      | (992   | )      |   | $      | 165        |   |   | $      | (2     | )      |       | $      | 58,988 |   |   | $ | (994 | ) |
|                                            |   |                |   |   |              |   |   |   |   |   |       |   |   |   |   |   |       |   |   |   |   |   |   |   |
| December 31, 2010:                              |   |                |   |   |              |   |   |   |   |   |       |   |   |   |   |   |       |   |   |   |   |   |   |   |
| U.S. Treasury and federal agency                |   | $                   | 4,814  |   |              | $      | (116   | )      |   | $      | -          |   |   | $      | -      |   |       | $      | 4,814 |   |   | $ | (116 | ) |
| U.S. government sponsored entities and agencies |   |                | 43,291 |   |              |   | (487   | )      |   |   |       |   |   |   |   |   |       |   | 43,291 |   |   |   | (487 | ) |
| Mortgage-backed securities: residential         |   |                | 1,994  |   |              |   | (5     | )      |   |   | -          |   |   |   | -      |   |       |   | 1,994 |   |   |   | (5 | ) |
| State and political subdivisions                |   |                | 8,685  |   |              |   | (164   | )      |   |   | -          |   |   |   | -      |   |       |   | 8,685 |   |   |   | (164 | ) |
| Equity securities                               |   |                | 14     |   |              |   | (2     | )      |   |   | 152        |   |   |   | (15    | )      |       |   | 166 |   |   |   | (17 | ) |
|                                            |   | $                   | 58,798 |   |              | $      | (774   | )      |   | $      | 152        |   |   | $      | (15    | )      |       | $      | 58,950 |   |   | $ | (789 | ) |
|                                            |   |                |   |   |              |   |   |   |   |   |       |   |   |   |   |   |       |   |   |   |   |   |   |   |

----

|                                              |   |      |    |   |         |   |
|---------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
| (Dollar amounts in thousands)                     |   | March 31, |    |   | December 31, |   |
|                                              |   | 2011      |    |   | 2010         |   |
|                                              |   |      |    |   |         |   |
| Mortgage loans on real estate:                    |   |      |    |   |         |   |
| Residential first mortgages                       |   | $         | 86,162  |   |         | $      | 84,575 |   |
| Home equity loans and lines of credit             |   |      | 73,012  |   |         |   | 75,458 |   |
| Commercial real estate                            |   |      | 89,872  |   |         |   | 93,028 |   |
|                                              |   |      | 249,046 |   |         |   | 253,061 |   |
| Other loans:                                      |   |      |    |   |         |   |   |   |
| Commercial business                               |   |      | 41,961  |   |         |   | 43,780 |   |
| Consumer                                          |   |      | 13,061  |   |         |   | 13,443 |   |
|                                              |   |      | 55,022  |   |         |   | 57,223 |   |
|                                              |   |      |    |   |         |   |   |   |
| Total loans, gross                                |   |      | 304,068 |   |         |   | 310,284 |   |
| Less allowance for loan losses                    |   |      | 3,942   |   |         |   | 4,132 |   |
| Total loans, net                                  |   | $         | 300,126 |   |         | $      | 306,152 |   |
|                                              |   |      |    |   |         |   |   |   |
| Nonaccrual loans                                  |   | $         | 7,352   |   |         | $      | 6,570 |   |
| Loans 90 days or more past due and still accruing |   |      | 76      |   |         |   | 41 |   |
| Total nonperforming loans                         |   | $         | 7,428   |   |         | $      | 6,611 |   |
|                                              |   |      |    |   |         |   |   |   |

----

|                                                         |   |      |   |   |         |   |
|--------------------------------------------------------------|--------|-----------|--------|--------|--------------|--------|
| (Dollar amounts in thousands)                                |   | March 31, |   |   | December 31, |   |
|                                                         |   | 2011      |   |   | 2010         |   |
|                                                         |   |      |   |   |         |   |
| Loans with no allocated allowance for loan losses            |   | $         | 3,087  |   |         | $      | 2,209 |   |
| Loans with allocated allowance for loan losses               |   |      | 1,992  |   |         |   | 3,215 |   |
| Total impaired loans                                         |   | $         | 5,079  |   |         | $      | 5,424 |   |
| Amount of the allowance for loan losses allocated            |   | $         | 896    |   |         | $      | 1,246 |   |
| Average of individually impaired loans during year           |   | $         | 5,252  |   |         | $      | 2,101 |   |
| Interest income on impaired loans recognized on a cash basis |   |      | 42     |   |         |   | 371 |   |
|                                                         |   |      |   |   |         |   |   |   |

|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
|---------------------------------|--------|---------------------|--------|--------|-----------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|
| (Dollar amounts in thousands)   |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
|                            |   | Impaired Loans with |   |   | Impaired Loans with   |   |
|                            |   | Specific Allowance  |   |   | No Specific Allowance |   |
|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
|                            |   | Unpaid              |   |   |                  |   |   |      |   |   | Unpaid    |   |   |       |   |
|                            |   | Principal           |   |   | Recorded              |   |   | Related   |   |   | Principal |   |   | Recorded   |   |
|                            |   | Balance             |   |   | Investment            |   |   | Allowance |   |   | Balance   |   |   | Investment |   |
|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
| March 31, 2011:                 |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |
| Residential first mortgages     |   | $                   | -      |   |                  | $      | -      |      |   | $      | -         |   |   | $          | -      |   |   | $ | - |   |
| Home equity and lines of credit |   |                | -      |   |                  |   | -      |      |   |   | -         |   |   |       | -      |   |   |   | - |   |
| Commercial real estate          |   |                | 911    |   |                  |   | 686    |      |   |   | 78        |   |   |       | 1,064  |   |   |   | 925 |   |
| Commercial business             |   |                | 1,306  |   |                  |   | 1,306  |      |   |   | 818       |   |   |       | 130    |   |   |   | 105 |   |
| Consumer                        |   |                | -      |   |                  |   | -      |      |   |   | -         |   |   |       | 2,057  |   |   |   | 2,057 |   |
| Total impaired loans            |   | $                   | 2,217  |   |                  | $      | 1,992  |      |   | $      | 896       |   |   | $          | 3,251  |   |   | $ | 3,087 |   |
|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |
| December 31, 2010:              |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |
| Residential first mortgages     |   | $                   | -      |   |                  | $      | -      |      |   | $      | -         |   |   | $          | -      |   |   | $ | - |   |
| Home equity and lines of credit |   |                | -      |   |                  |   | -      |      |   |   | -         |   |   |       | -      |   |   |   | - |   |
| Commercial real estate          |   |                | 1,994  |   |                  |   | 1,769  |      |   |   | 387       |   |   |       | -      |   |   |   | - |   |
| Commercial business             |   |                | 1,446  |   |                  |   | 1,446  |      |   |   | 859       |   |   |       | 98     |   |   |   | 73 |   |
| Consumer                        |   |                | -      |   |                  |   | -      |      |   |   | -         |   |   |       | 2,136  |   |   |   | 2,136 |   |
| Total impaired loans            |   | $                   | 3,440  |   |                  | $      | 3,215  |      |   | $      | 1,246     |   |   | $          | 2,234  |   |   | $ | 2,209 |   |
|                            |   |                |   |   |                  |   |   |      |   |   |      |   |   |       |   |   |   |   |   |   |

----

----

|                            |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |
|---------------------------------|--------|-----------|---------|--------|--------|--------|---------|---------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
| (Dollar amounts in thousands)   |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |
|                            |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |
|                            |   |      |    |   |   |   |    | Special |   |   |        |   |   |     |   |   |   |   |
|                            |   | Not Rated |    |   | Pass   |   |    | Mention |   |   | Substandard |   |   | Doubtful |   |   | Total  |   |
|                            |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |
| March 31, 2011:                 |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |
| Residential first mortgages     |   | $         | 84,958  |   |   | $      | -       |    |   | $      | -           |   |   | $        | 1,204  |   |   | $      | - |   |   | $ | 86,162 |   |
| Home equity and lines of credit |   |      | 73,012  |   |   |   | -       |    |   |   | -           |   |   |     | -      |   |   |   | - |   |   |   | 73,012 |   |
| Commercial real estate          |   |      | -       |   |   |   | 82,077  |    |   |   | 4,162       |   |   |     | 3,633  |   |   |   | - |   |   |   | 89,872 |   |
| Commercial business             |   |      | -       |   |   |   | 38,373  |    |   |   | 1,050       |   |   |     | 2,538  |   |   |   | - |   |   |   | 41,961 |   |
| Consumer                        |   |      | 10,623  |   |   |   | -       |    |   |   | -           |   |   |     | 2,438  |   |   |   | - |   |   |   | 13,061 |   |
| Total                           |   | $         | 168,593 |   |   | $      | 120,450 |    |   | $      | 5,212       |   |   | $        | 9,813  |   |   | $      | - |   |   | $ | 304,068 |   |
|                            |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:              |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Residential first mortgages     |   | $         | 84,045  |   |   | $      | -       |    |   | $      | -           |   |   | $        | 530    |   |   | $      | - |   |   | $ | 84,575 |   |
| Home equity and lines of credit |   |      | 75,458  |   |   |   | -       |    |   |   | -           |   |   |     | -      |   |   |   | - |   |   |   | 75,458 |   |
| Commercial real estate          |   |      | -       |   |   |   | 86,790  |    |   |   | 3,021       |   |   |     | 3,217  |   |   |   | - |   |   |   | 93,028 |   |
| Commercial business             |   |      | -       |   |   |   | 40,625  |    |   |   | 1,081       |   |   |     | 2,030  |   |   |   | 44 |   |   |   | 43,780 |   |
| Consumer                        |   |      | 10,953  |   |   |   | -       |    |   |   | -           |   |   |     | 2,490  |   |   |   | - |   |   |   | 13,443 |   |
| Total                           |   | $         | 170,456 |   |   | $      | 127,415 |    |   | $      | 4,102       |   |   | $        | 8,267  |   |   | $      | 44 |   |   | $ | 310,284 |   |
|                            |   |      |    |   |   |   |    |    |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |

|                            |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |
|---------------------------------|--------|------------|---------|--------|---------------|--------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|
| (Dollar amounts in thousands)   |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |
|                            |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |
|                            |   | Performing |    |   | Nonperforming |   |   |       |   |
|                            |   | Accruing   |    |   | Accruing      |   |   | Accruing   |   |   | Accruing  |   |   |       |   |   |   |   |
|                            |   | Loans Not  |    |   | 30-59 Days    |   |   | 60-89 Days |   |   | 90 Days + |   |   |       |   |   | Total  |   |
|                            |   | Past Due   |    |   | Past Due      |   |   | Past Due   |   |   | Past Due  |   |   | Nonaccrual |   |   | Loans  |   |
|                            |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |
| March 31, 2011:                 |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |
| Residential first mortgages     |   | $          | 83,401  |   |          | $      | 1,326  |       |   | $      | 230       |   |   | $          | 49     |   |   | $      | 1,156 |   |   | $ | 86,162 |   |
| Home equity and lines of credit |   |       | 72,280  |   |          |   | 329    |       |   |   | 22        |   |   |       | 27     |   |   |   | 354 |   |   |   | 73,012 |   |
| Commercial real estate          |   |       | 87,542  |   |          |   | 56     |       |   |   | 25        |   |   |       | -      |   |   |   | 2,249 |   |   |   | 89,872 |   |
| Commercial business             |   |       | 40,462  |   |          |   | 10     |       |   |   | -         |   |   |       | -      |   |   |   | 1,489 |   |   |   | 41,961 |   |
| Consumer                        |   |       | 10,901  |   |          |   | 25     |       |   |   | 31        |   |   |       | -      |   |   |   | 2,104 |   |   |   | 13,061 |   |
| Total loans                     |   | $          | 294,586 |   |          | $      | 1,746  |       |   | $      | 308       |   |   | $          | 76     |   |   | $      | 7,352 |   |   | $ | 304,068 |   |
|                            |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:              |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Residential first mortgages     |   | $          | 81,888  |   |          | $      | 1,875  |       |   | $      | 281       |   |   | $          | 41     |   |   | $      | 490 |   |   | $ | 84,575 |   |
| Home equity and lines of credit |   |       | 74,559  |   |          |   | 541    |       |   |   | 21        |   |   |       | -      |   |   |   | 337 |   |   |   | 75,458 |   |
| Commercial real estate          |   |       | 90,809  |   |          |   | 113    |       |   |   | 26        |   |   |       | -      |   |   |   | 2,080 |   |   |   | 93,028 |   |
| Commercial business             |   |       | 42,168  |   |          |   | 102    |       |   |   | -         |   |   |       | -      |   |   |   | 1,510 |   |   |   | 43,780 |   |
| Consumer                        |   |       | 11,252  |   |          |   | 36     |       |   |   | 2         |   |   |       | -      |   |   |   | 2,153 |   |   |   | 13,443 |   |
| Total loans                     |   | $          | 300,676 |   |          | $      | 2,667  |       |   | $      | 330       |   |   | $          | 41     |   |   | $      | 6,570 |   |   | $ | 310,284 |   |
|                            |   |       |    |   |          |   |   |       |   |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |

----

|                            |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |
|---------------------------------|--------|----------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|--------|--------|
| (Dollar amounts in thousands)   |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |
|                            |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |
|                            |   | Not      |   |   | 30-59 Days |   |   | 60-89 Days |   |   | 90 Days + |   |   | Total  |   |
|                            |   | Past Due |   |   | Past Due   |   |   | Past Due   |   |   | Past Due  |   |   | Loans  |   |
|                            |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |
| March 31, 2011:                 |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |
| Residential first mortgages     |   | $        | -      |   |       | $      | -      |       |   | $      | -         |   |   | $      | 1,156  |   |   | $ | 1,156 |   |
| Home equity and lines of credit |   |     | -      |   |       |   | -      |       |   |   | -         |   |   |   | 354    |   |   |   | 354 |   |
| Commercial real estate          |   |     | 574    |   |       |   | 229    |       |   |   | -         |   |   |   | 1,446  |   |   |   | 2,249 |   |
| Commercial business             |   |     | 108    |   |       |   | -      |       |   |   | -         |   |   |   | 1,381  |   |   |   | 1,489 |   |
| Consumer                        |   |     | 2,104  |   |       |   | -      |       |   |   | -         |   |   |   | -      |   |   |   | 2,104 |   |
| Total loans                     |   | $        | 2,786  |   |       | $      | 229    |       |   | $      | -         |   |   | $      | 4,337  |   |   | $ | 7,352 |   |
|                            |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |
| December 31, 2010:              |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |
| Residential first mortgages     |   | $        | -      |   |       | $      | -      |       |   | $      | -         |   |   | $      | 490    |   |   | $ | 490 |   |
| Home equity and lines of credit |   |     | -      |   |       |   | -      |       |   |   | -         |   |   |   | 337    |   |   |   | 337 |   |
| Commercial real estate          |   |     | 682    |   |       |   | 161    |       |   |   | 813       |   |   |   | 424    |   |   |   | 2,080 |   |
| Commercial business             |   |     | 79     |   |       |   | 6      |       |   |   | 1,251     |   |   |   | 174    |   |   |   | 1,510 |   |
| Consumer                        |   |     | 2,136  |   |       |   | -      |       |   |   | -         |   |   |   | 17     |   |   |   | 2,153 |   |
| Total loans                     |   | $        | 2,897  |   |       | $      | 167    |       |   | $      | 2,064     |   |   | $      | 1,442  |   |   | $ | 6,570 |   |
|                            |   |     |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |   |   |   |

|                                   |   |                             |   |   |   |   |
|----------------------------------------|--------|----------------------------------|--------|--------|--------|--------|
|                                   |   |                             |   |   |   |   |
| (Dollar amounts in thousands)          |   | At or for the three months ended |   |
|                                   |   | March 31,                        |   |
|                                   |   | 2011                             |   |   | 2010   |   |
| Balance at the beginning of the period |   | $                                | 4,132  |   |   | $      | 3,202 |   |
| Provision for loan losses              |   |                             | 120    |   |   |   | 128 |   |
| Charge-offs                            |   |                             | (321   | )      |   |   | (167 | ) |
| Recoveries                             |   |                             | 11     |   |   |   | 11 |   |
| Balance at the end of the period       |   | $                                | 3,942  |   |   | $      | 3,174 |   |
|                                   |   |                             |   |   |   |   |   |   |

----

|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |
|-------------------------------------------|--------|-------------|--------|--------|-------------|--------|--------|-------------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|
| (Dollar amounts in thousands)             |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |
|                                      |   |        |   |   | Home Equity |   |   |        |   |   |       |   |   |     |   |   |   |   |
|                                      |   | Residential |   |   | & Lines |   |   | Commercial  |   |   | Commercial |   |   |     |   |   |   |   |
|                                      |   | Mortgages   |   |   | of Credit   |   |   | Real Estate |   |   | Business   |   |   | Consumer |   |   | Total  |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |
| March 31, 2011:                           |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |
| Beginning Balance                         |   | $           | 398    |   |        | $      | 572    |        |   | $      | 1,707      |   |   | $        | 1,323  |   |   | $      | 132 |   |   | $ | 4,132 |   |
| Charge-offs                               |   |        | -      |   |        |   | (30    | )           |   |   | -          |   |   |     | (281   | )      |   |   | (10 | ) |   |   | (321 | ) |
| Recoveries                                |   |        | -      |   |        |   | -      |        |   |   | -          |   |   |     | 10     |   |   |   | 1 |   |   |   | 11 |   |
| Provision                                 |   |        | 7      |   |        |   | 11     |        |   |   | (241       | )      |   |     | 338    |   |   |   | 5 |   |   |   | 120 |   |
| Ending Balance                            |   | $           | 405    |   |        | $      | 553    |        |   | $      | 1,466      |   |   | $        | 1,390  |   |   | $      | 128 |   |   | $ | 3,942 |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Ending ALL balance attributable to loans: |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |
| Individually evaluated for impairment     |   |        | -      |   |        |   | -      |        |   |   | 78         |   |   |     | 818    |   |   |   | - |   |   |   | 896 |   |
| Collectively evaluated for impairment     |   |        | 405    |   |        |   | 553    |        |   |   | 1,388      |   |   |     | 572    |   |   |   | 128 |   |   |   | 3,046 |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Total loans:                              |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment     |   |        | -      |   |        |   | -      |        |   |   | 1,611      |   |   |     | 1,411  |   |   |   | 2,057 |   |   |   | 5,079 |   |
| Collectively evaluated for impairment     |   |        | 86,162 |   |        |   | 73,012 |        |   |   | 88,261     |   |   |     | 40,550 |   |   |   | 11,004 |   |   |   | 298,989 |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                        |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Beginning Balance                         |   | $           | 356    |   |        | $      | 452    |        |   | $      | 1,895      |   |   | $        | 448    |   |   | $      | 51 |   |   | $ | 3,202 |   |
| Charge-offs                               |   |        | (40    | )      |        |   | (45    | )           |   |   | (61        | )      |   |     | (216   | )      |   |   | (190 | ) |   |   | (552 | ) |
| Recoveries                                |   |        | 2      |   |        |   | 2      |        |   |   | 147        |   |   |     | 5      |   |   |   | 20 |   |   |   | 176 |   |
| Provision                                 |   |        | 80     |   |        |   | 163    |        |   |   | (274       | )      |   |     | 1,086  |   |   |   | 251 |   |   |   | 1,306 |   |
| Ending Balance                            |   | $           | 398    |   |        | $      | 572    |        |   | $      | 1,707      |   |   | $        | 1,323  |   |   | $      | 132 |   |   | $ | 4,132 |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Ending ALL balance attributable to loans: |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |
| Individually evaluated for impairment     |   |        | -      |   |        |   | -      |        |   |   | 387        |   |   |     | 859    |   |   |   | - |   |   |   | 1,246 |   |
| Collectively evaluated for impairment     |   |        | 398    |   |        |   | 572    |        |   |   | 1,320      |   |   |     | 464    |   |   |   | 132 |   |   |   | 2,886 |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Total loans:                              |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment     |   |        | -      |   |        |   | -      |        |   |   | 1,769      |   |   |     | 1,519  |   |   |   | 2,136 |   |   |   | 5,424 |   |
| Collectively evaluated for impairment     |   |        | 84,575 |   |        |   | 75,458 |        |   |   | 91,259     |   |   |     | 42,261 |   |   |   | 11,307 |   |   |   | 304,860 |   |
|                                      |   |        |   |   |        |   |   |        |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |   |

|                          |   |                  |   |                     |              |                  |   |                     |   |   |   |   |
|-------------------------------|--------|-----------------------|--------|--------------------------|-------------------|-----------------------|--------|--------------------------|--------|--------|--------|--------|
|                          |   |                  |   |                     |              |                  |   |                     |   |   |   |   |
| (Dollar amounts in thousands) |   | March 31, 2011        |   |                     | December 31, 2010 |                  |
|                          |   | Gross Carrying Amount |   | Accumulated Amortization |              | Gross Carrying Amount |   | Accumulated Amortization |   |
|                          |   |                  |   |                     |              |                  |   |                     |   |   |   |   |
| Goodwill                      |   | $                     | 3,664  |                     |              | $                     | -      |                     |   | $      | 3,664  |   |   | $ | - |   |
| Core deposit intangibles      |   |                  | 4,027  |                     |              |                  | 2,125  |                     |   |   | 4,027  |   |   |   | 2,006 |   |
| Total                         |   | $                     | 7,691  |                     |              | $                     | 2,125  |                     |   | $      | 7,691  |   |   | $ | 2,006 |   |
|                          |   |                  |   |                     |              |                  |   |                     |   |   |   |   |   |   |   |   |

----

|                              |   |    |    |   |             |   |   |            |   |   |             |   |
|-----------------------------------|--------|---------|---------|--------|------------------|--------|--------|-----------------|--------|--------|------------------|--------|
|                              |   |    |    |   |             |   |   | Aggregate       |   |   | Weighted-Average |   |
|                              |   |    |    |   | Weighted-Average |   |   | Intrinsic Value |   |   | Remaining Term   |   |
|                              |   | Options |    |   | Exercise Price   |   |   | (in thousands)  |   |   | (in years)       |   |
|                              |   |    |    |   |             |   |   |            |   |   |             |   |
| Outstanding as of January 1, 2011 |   |    | 100,750 |   |             | $      | 24.44  |            |   | $      | -                |   |   |   | 6.9 |   |
| Granted                           |   |    | -       |   |             |   | -      |            |   |   | -                |   |   |   | - |   |
| Exercised                         |   |    | -       |   |             |   | -      |            |   |   | -                |   |   |   | - |   |
| Forfeited                         |   |    | -       |   |             |   | -      |            |   |   | -                |   |   |   | - |   |
| Outstanding as of March 31, 2011  |   |    | 100,750 |   |             | $      | 24.44  |            |   | $      | 27               |   |   |   | 6.7 |   |
| Exercisable as of March 31, 2011  |   |    | 76,000  |   |             | $      | 26.00  |            |   | $      | -                |   |   |   | 6.3 |   |
|                              |   |    |    |   |             |   |   |            |   |   |             |   |   |   |   |   |

|                           |   |    |   |   |                  |   |
|--------------------------------|--------|---------|--------|--------|-----------------------|--------|
|                           |   |    |   |   | Weighted-Average      |   |
|                           |   | Options |   |   | Grant-date Fair Value |   |
|                           |   |    |   |   |                  |   |
| Nonvested at January 1, 2011   |   |    | 25,750 |   |                  | $      | 1.89 |   |
| Granted                        |   |    | -      |   |                  |   | - |   |
| Vested                         |   |    | (1,000 | )      |                  |   | 2.65 |   |
| Forfeited                      |   |    | -      |   |                  |   | - |   |
| Nonvested as of March 31, 2011 |   |    | 24,750 |   |                  | $      | 1.84 |   |
|                           |   |    |   |   |                  |   |   |   |

|                           |   |   |   |   |                  |   |
|--------------------------------|--------|--------|--------|--------|-----------------------|--------|
|                           |   |   |   |   |                  |   |
|                           |   |   |   |   | Weighted-Average      |   |
|                           |   | Shares |   |   | Grant-date Fair Value |   |
|                           |   |   |   |   |                  |   |
| Nonvested at January 1, 2011   |   |   | 19,000 |   |                  | $      | 16.79 |   |
| Granted                        |   |   | -      |   |                  |   | - |   |
| Vested                         |   |   | -      |   |                  |   | - |   |
| Forfeited                      |   |   | -      |   |                  |   | - |   |
| Nonvested as of March 31, 2011 |   |   | 19,000 |   |                  | $      | 16.79 |   |
|                           |   |   |   |   |                  |   |   |   |

----

----

|                                            |   |   |    |   |             |   |   |        |   |   |         |   |
|-------------------------------------------------|--------|--------|---------|--------|------------------|--------|--------|-------------|--------|--------|--------------|--------|
| (Dollar amounts in thousands)                   |   |   |    |   | (Level 1)        |   |   | (Level 2)   |   |   |         |   |
|                                            |   |   |    |   | Quoted Prices in |   |   | Significant |   |   | (Level 3)    |   |
|                                            |   |   |    |   | Active Markets   |   |   | Other       |   |   | Significant  |   |
|                                            |   |   |    |   | for Identical    |   |   | Observable  |   |   | Unobservable |   |
| Description                                     |   | Total  |    |   | Assets           |   |   | Inputs      |   |   | Inputs       |   |
|                                            |   |   |    |   |             |   |   |        |   |   |         |   |
| March 31, 2011:                                 |   |   |    |   |             |   |   |        |   |   |         |   |
| U.S. Treasury and federal agency                |   | $      | 6,163   |   |             | $      | -      |        |   | $      | 6,163        |   |   | $ | - |   |
| U.S. government sponsored entities and agencies |   |   | 52,024  |   |             |   | -      |        |   |   | 52,024       |   |   |   | - |   |
| Mortgage-backed securities: residential         |   |   | 23,666  |   |             |   | -      |        |   |   | 23,666       |   |   |   | - |   |
| State and political subdivision                 |   |   | 36,441  |   |             |   | -      |        |   |   | 36,441       |   |   |   | - |   |
| Equity securities                               |   |   | 2,539   |   |             |   | 168    |        |   |   | 2,371        |   |   |   | - |   |
|                                            |   | $      | 120,833 |   |             | $      | 168    |        |   | $      | 120,665      |   |   | $ | - |   |
|                                            |   |   |    |   |             |   |   |        |   |   |         |   |   |   |   |   |
| December 31, 2010:                              |   |   |    |   |             |   |   |        |   |   |         |   |   |   |   |   |
| U.S. Treasury and federal agency                |   | $      | 6,729   |   |             | $      | -      |        |   | $      | 6,729        |   |   | $ | - |   |
| U.S. government sponsored entities and agencies |   |   | 62,362  |   |             |   |   |        |   |   | 62,362       |   |   |   |   |   |
| Mortgage-backed securities: residential         |   |   | 19,380  |   |             |   | -      |        |   |   | 19,380       |   |   |   | - |   |
| Collateralized mortgage obligations             |   |   | 922     |   |             |   | -      |        |   |   | 922          |   |   |   | - |   |
| State and political subdivision                 |   |   | 33,902  |   |             |   | -      |        |   |   | 33,902       |   |   |   | - |   |
| Equity securities                               |   |   | 2,525   |   |             |   | 154    |        |   |   | 2,371        |   |   |   | - |   |
|                                            |   | $      | 125,820 |   |             | $      | 154    |        |   | $      | 125,666      |   |   | $ | - |   |
|                                            |   |   |    |   |             |   |   |        |   |   |         |   |   |   |   |   |

|                                  |   |   |   |   |             |   |   |        |   |   |         |   |
|---------------------------------------|--------|--------|--------|--------|------------------|--------|--------|-------------|--------|--------|--------------|--------|
| (Dollar amounts in thousands)         |   |   |   |   | (Level 1)        |   |   | (Level 2)   |   |   |         |   |
|                                  |   |   |   |   | Quoted Prices in |   |   | Significant |   |   | (Level 3)    |   |
|                                  |   |   |   |   | Active Markets   |   |   | Other       |   |   | Significant  |   |
|                                  |   |   |   |   | for Identical    |   |   | Observable  |   |   | Unobservable |   |
| Description                           |   | Total  |   |   | Assets           |   |   | Inputs      |   |   | Inputs       |   |
|                                  |   |   |   |   |             |   |   |        |   |   |         |   |
| March 31, 2011:                       |   |   |   |   |             |   |   |        |   |   |         |   |
| Impaired commercial real estate loans |   | $      | 608    |   |             | $      | -      |        |   | $      | -            |   |   | $ | 608 |   |
| Impaired commercial business loans    |   |   | 488    |   |             |   | -      |        |   |   | -            |   |   |   | 488 |   |
|                                  |   | $      | 1,096  |   |             | $      | -      |        |   | $      | -            |   |   | $ | 1,096 |   |
|                                  |   |   |   |   |             |   |   |        |   |   |         |   |   |   |   |   |
|                                  |   |   |   |   |             |   |   |        |   |   |         |   |   |   |   |   |
| December 31, 2010:                    |   |   |   |   |             |   |   |        |   |   |         |   |   |   |   |   |
| Impaired commercial real estate loans |   | $      | 1,382  |   |             | $      | -      |        |   | $      | -            |   |   | $ | 1,382 |   |
| Impaired commercial business loans    |   |   | 587    |   |             |   | -      |        |   |   | -            |   |   |   | 587 |   |
|                                  |   | $      | 1,969  |   |             | $      | -      |        |   | $      | -            |   |   | $ | 1,969 |   |
|                                  |   |   |   |   |             |   |   |        |   |   |         |   |   |   |   |   |

----

| 8.  | Fair Values of Financial Instruments (continued). |
|----------|---------------------------------------------------|

|                          |   |            |    |   |              |   |    |            |   |   |       |   |
|-------------------------------|--------|-----------------|---------|--------|-------------------|--------|---------|-----------------|--------|--------|------------|--------|
| (Dollar amounts in thousands) |   | March 31, 2011  |    |   | December 31, 2010 |   |
|                          |   | Carrying amount |    |   | Fair value        |   |    | Carrying amount |   |   | Fair value |   |
|                          |   |            |    |   |              |   |    |            |   |   |       |   |
| Financial assets:             |   |            |    |   |              |   |    |            |   |   |       |   |
| Cash and cash equivalents     |   | $               | 42,501  |   |              | $      | 42,599  |            |   | $      | 19,027     |   |   | $ | 19,027 |   |
| Securities                    |   |            | 120,833 |   |              |   | 120,833 |            |   |   | 125,820    |   |   |   | 125,820 |   |
| Loans receivable, net         |   |            | 300,126 |   |              |   | 305,186 |            |   |   | 306,152    |   |   |   | 308,776 |   |
| Federal bank stocks           |   |            | 3,964   |   |              |   | N/A     |            |   |   | 4,129      |   |   |   | N/A |   |
| Accrued interest receivable   |   |            | 1,653   |   |              |   | 1,653   |            |   |   | 1,763      |   |   |   | 1,763 |   |
|                          |   |            |    |   |              |   |    |            |   |   |       |   |   |   |   |   |
| Financial liabilities:        |   |            |    |   |              |   |    |            |   |   |       |   |   |   |   |   |
| Deposits                      |   |            | 415,978 |   |              |   | 423,708 |            |   |   | 409,658    |   |   |   | 415,040 |   |
| Borrowed funds                |   |            | 30,000  |   |              |   | 32,816  |            |   |   | 30,000     |   |   |   | 33,163 |   |
| Accrued interest payable      |   |            | 618     |   |              |   | 618     |            |   |   | 649        |   |   |   | 649 |   |
|                          |   |            |    |   |              |   |    |            |   |   |       |   |   |   |   |   |
| Off-balance sheet commitments |   |            | -       |   |              |   | -       |            |   |   | -          |   |   |   | - |   |
|                          |   |            |    |   |              |   |    |            |   |   |       |   |   |   |   |   |

----

| 9.  | New Accounting Standards. |
|----------|---------------------------|

Item 

----

----

----

| (Dollar amounts in thousands)              |   | Three months ended March 31, |    |
|--------------------------------------------|--------|------------------------------|---------|
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | 2011                         |    |   | 2010 |   |
|                                       |   | AverageBalance               |    |   | Interest |   |   | Yield /Rate |   |   | AverageBalance |   |   | Interest |   |   | Yield /Rate |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, taxable                             |   | $                            | 295,929 |   |   | $ | 4,222 |   |   |   | 5.79 | % |   | $ | 288,234 |   |   | $ | 4,347 |   |   |   | 6.12 | % |
| Loans, tax exempt                          |   |                         | 12,570  |   |   |   | 158 |   |   |   | 5.11 | % |   |   | 6,965 |   |   |   | 95 |   |   |   | 5.53 | % |
| Total loans receivable                     |   |                         | 308,499 |   |   |   | 4,380 |   |   |   | 5.76 | % |   |   | 295,199 |   |   |   | 4,442 |   |   |   | 6.10 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities, taxable                        |   |                         | 88,015  |   |   |   | 537 |   |   |   | 2.47 | % |   |   | 88,522 |   |   |   | 608 |   |   |   | 2.79 | % |
| Securities, tax exempt                     |   |                         | 34,930  |   |   |   | 463 |   |   |   | 5.38 | % |   |   | 26,562 |   |   |   | 382 |   |   |   | 5.83 | % |
| Total securities                           |   |                         | 122,945 |   |   |   | 1,000 |   |   |   | 3.30 | % |   |   | 115,084 |   |   |   | 990 |   |   |   | 3.49 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning deposits with banks       |   |                         | 21,485  |   |   |   | 47 |   |   |   | 0.89 | % |   |   | 28,354 |   |   |   | 84 |   |   |   | 1.20 | % |
| Federal bank stocks                        |   |                         | 4,070   |   |   |   | 13 |   |   |   | 1.30 | % |   |   | 4,125 |   |   |   | 11 |   |   |   | 1.08 | % |
| Total interest-earning cash equivalents    |   |                         | 25,555  |   |   |   | 60 |   |   |   | 0.95 | % |   |   | 32,479 |   |   |   | 95 |   |   |   | 1.19 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets              |   |                         | 456,999 |   |   |   | 5,440 |   |   |   | 4.83 | % |   |   | 442,762 |   |   |   | 5,527 |   |   |   | 5.06 | % |
| Cash and due from banks                    |   |                         | 2,467   |   |   |   |   |   |   |   |   |   |   |   | 2,156 |   |   |   |   |   |   |   |   |   |
| Other noninterest-earning assets           |   |                         | 22,042  |   |   |   |   |   |   |   |   |   |   |   | 23,183 |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                               |   | $                            | 481,508 |   |   |   |   |   |   |   |   |   |   | $ | 468,101 |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:              |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits           |   | $                            | 181,046 |   |   | $ | 136 |   |   |   | 0.30 | % |   | $ | 158,314 |   |   | $ | 230 |   |   |   | 0.59 | % |
| Time deposits                              |   |                         | 147,898 |   |   |   | 1,039 |   |   |   | 2.85 | % |   |   | 161,236 |   |   |   | 1,196 |   |   |   | 3.01 | % |
| Total interest-bearing deposits            |   |                         | 328,944 |   |   |   | 1,175 |   |   |   | 1.45 | % |   |   | 319,550 |   |   |   | 1,426 |   |   |   | 1.81 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowed funds, short-term                 |   |                         | 5,261   |   |   |   | 60 |   |   |   | 4.63 | % |   |   | 5,001 |   |   |   | 59 |   |   |   | 4.78 | % |
| Borrowed funds, long-term                  |   |                         | 25,000  |   |   |   | 281 |   |   |   | 4.56 | % |   |   | 35,000 |   |   |   | 387 |   |   |   | 4.48 | % |
| Total borrowed funds                       |   |                         | 30,261  |   |   |   | 341 |   |   |   | 4.57 | % |   |   | 40,001 |   |   |   | 446 |   |   |   | 4.52 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities         |   |                         | 359,205 |   |   |   | 1,516 |   |   |   | 1.71 | % |   |   | 359,551 |   |   |   | 1,872 |   |   |   | 2.11 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits        |   |                         | 78,837  |   |   |   | - |   |   |   | - |   |   |   | 67,912 |   |   |   | - |   |   |   | - |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Funding and cost of funds                  |   |                         | 438,042 |   |   |   | 1,516 |   |   |   | 1.40 | % |   |   | 427,463 |   |   |   | 1,872 |   |   |   | 1.78 | % |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities      |   |                         | 4,187   |   |   |   |   |   |   |   |   |   |   |   | 3,135 |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities                          |   |                         | 442,229 |   |   |   |   |   |   |   |   |   |   |   | 430,598 |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity                       |   |                         | 39,279  |   |   |   |   |   |   |   |   |   |   |   | 37,503 |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity |   | $                            | 481,508 |   |   |   |   |   |   |   |   |   |   | $ | 468,101 |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                        |   |                         |    |   |   | $ | 3,924 |   |   |   |   |   |   |   |   |   |   | $ | 3,655 |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread (difference between   |   |                         |    | 3.12 | % |   |   |   |   |   |   |   |   |   |   | 2.95 | % |
| weighted average rate on interest-earning  |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets and interest-bearing liabilities)   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin (net interest          |   |                         |    |   |   |   |   | 3.48 | % |   |   |   |   |   |   |   |   |   |   | 3.35 | % |
| income as a percentage of average          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-earning assets)                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                 |   |                         |   |   |   |   |   |   |   |
|--------------------------------------|--------|------------------------------|--------|--------|--------|--------|--------|--------|--------|
|  (Dollar amounts in thousands)  |   | Three months ended March 31, |   |
|                                 |   | 2011 versus 2010             |   |
|                                 |   | Increase (Decrease) due to   |   |
|                                 |   | Volume                       |   |   | Rate   |   |   | Total  |   |
|  Interest income:               |   |                         |   |   |   |   |   |   |   |
| Loans                                |   | $                            | 195    |   |   | $      | (257   | )      |   | $ | (62 | ) |
| Securities                           |   |                         | 66     |   |   |   | (56    | )      |   |   | 10 |   |
| Interest-earning deposits with banks |   |                         | (18    | )      |   |   | (19    | )      |   |   | (37 | ) |
| Federal bank stocks                  |   |                         | -      |   |   |   | 2      |   |   |   | 2 |   |
|                                 |   |                         |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets        |   |                         | 243    |   |   |   | (330   | )      |   |   | (87 | ) |
|                                 |   |                         |   |   |   |   |   |   |   |   |   |   |
|  Interest expense:              |   |                         |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits            |   |                         | 41     |   |   |   | (292   | )      |   |   | (251 | ) |
| Borrowed funds                       |   |                         | (110   | )      |   |   | 5      |   |   |   | (105 | ) |
|                                 |   |                         |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities   |   |                         | (69    | )      |   |   | (287   | )      |   |   | (356 | ) |
|                                 |   |                         |   |   |   |   |   |   |   |   |   |   |
|  Net interest income            |   | $                            | 312    |   |   | $      | (43    | )      |   | $ | 269 |   |
|                                 |   |                         |   |   |   |   |   |   |   |   |   |   |

| (Dollar amounts in thousands)                     |   | At or for the three months ended |   |
|---------------------------------------------------|--------|----------------------------------|--------|
|                                              |   | March 31,                        |   |
|                                              |   | 2011                             |   |   | 2010 |   |
| Balance at the beginning of the period            |   | $                                | 4,132  |   |   | $ | 3,202 |   |
| Provision for loan losses                         |   |                             | 120    |   |   |   | 128 |   |
| Charge-offs                                       |   |                             | (321   | ) |   |   | (167 | ) |
| Recoveries                                        |   |                             | 11     |   |   |   | 11 |   |
| Balance at the end of the period                  |   | $                                | 3,942  |   |   | $ | 3,174 |   |
|                                              |   |                             |   |   |   |   |   |   |
| Non-performing loans                              |   | $                                | 7,428  |   |   | $ | 3,237 |   |
| Non-performing assets                             |   |                             | 7,747  |   |   |   | 3,470 |   |
| Non-performing loans to total loans               |   |                             | 2.44   | % |   |   | 1.10 | % |
| Non-performing assets to total assets             |   |                             | 1.57   | % |   |   | 0.72 | % |
| Allowance for loan losses to total loans          |   |                             | 1.30   | % |   |   | 1.08 | % |
| Allowance for loan losses to non-performing loans |   |                             | 53.07  | % |   |   | 98.04 | % |

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| (a)   | Not applicable. |
|-----------------|-----------------|

| (b)   | Not applicable. |
|-----------------|-----------------|

Item 

| Exhibit 31.1 | Rule 13a-14(a) Certification of Principal Executive Officer |
|--------------|-------------------------------------------------------------|

| Exhibit 31.2 | Rule 13a-14(a) Certification of Principal Financial Officer |
|--------------|-------------------------------------------------------------|

| Exhibit 32.1 | CEO Certification Pursuant to 18 U.S.C. Section 1350 |
|--------------|------------------------------------------------------|

| Exhibit 32.2 | CFO Certification Pursuant to 18 U.S.C. Section 1350 |
|--------------|------------------------------------------------------|

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Signatures

| Date:  May 13, 2011 | By:           /s/ William C. Marsh |   |
|-------------------------------|-------------------------------------------------------------------------------------------|--------|
|                          | William C. Marsh                                                                          |   |
|                          | Chairman of the Board,                                                                    |   |
|                          | President and Chief Executive Officer                                                     |   |
|                          |                                                                                      |   |
| Date:  May 13, 2011 | By:           /s/ Matthew J. Lucco |   |
|                          | Matthew J. Lucco                                                                          |   |
|                          | Chief Financial Officer                                                                   |   |
|                          | Treasurer                                                                                 |   |

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