----

----

----

|   | ■ | In fiscal 2011, we recorded strong deposit growth of 8.0% and modest loan growth of 1.9%. Our expansion into Holmes County, Ohio has helped us maintain the size of our loan portfolio in difficult economic times. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ■ | Our book value per share at the end of fiscal year 2011 was $18.76, an increase of 3.6% from fiscal year end 2010. We paid dividends of $0.68 per share in fiscal 2011. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ■ | Credit quality continues to remain a primary focus of our organization. Unemployment rates in part of our market area remain high, and the anticipated economic recovery has been soft. Although we experienced slight increases in net charge offs, our credit quality ratios remain better than the industry. Our delinquency ratio declined to 1.19% in fiscal 2011 compared to 2.34% in the prior year. Our net charge-off ratio was 0.36% for fiscal 2011, a slight increase of 0.14% for the prior year, but below the industry average of 1.08%1.  Non-performing assets to total assets equaled .82% at year end, down from 1.06% last year, and well below the industry average of 2.70%2. We increased our allowance for loan losses and had a total loan coverage ratio on June 30, 2011 of 1.18%, up from 1.10% in fiscal 2010. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ■ | In April 2011, the Bank filed an application with the Office of the Comptroller of the Currency to convert from a federal savings bank to a national bank. We believe the national bank charter better aligns with the Bank's current and long term business plan. When approved, we will convert from a thrift holding company to a bank holding company. We currently anticipate our conversion will occur in the second or third quarter of Fiscal 2012. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ■ | In May, we launched a new suite of Kasasa© branded checking and savings products. The program is designed to improve our ratio of lower cost deposits and improve our non-interest income. Additionally, we expect to see this targeted marketing improve our customer demographics. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| /s/ Trent B. Troyer                     |                  | /s/ E. L. Loader |   |
|-----------------------------------------|-----------------------|------------------|--------|
| Trent B. Troyer                         |                  | E. L. Loader     |   |
| President & Chief Executive Officer | Chairman of the Board |

----

----

----

----

|               |   | High   |   |   | Low    |   |   | Cash Dividends Declared |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
| Fiscal 2010        |   |   |   |   |   |   |   |                    |   |
| Quarter Ended      |   |   |   |   |   |   |   |                    |   |
| September 30, 2009 |   | $      | 15.00  |   |   | $      | 12.00  |                    |   | $ | 0.17 |   |
| December 31, 2009  |   |   | 15.50  |   |   |   | 11.83  |                    |   |   | 0.17 |   |
| March 31, 2010     |   |   | 14.00  |   |   |   | 12.01  |                    |   |   | 0.17 |   |
| June 30, 2010      |   |   | 15.00  |   |   |   | 13.01  |                    |   |   | 0.17 |   |

|               |   | High   |   |   | Low    |   |   | Cash Dividends Declared |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
| Fiscal 2011        |   |   |   |   |   |   |   |                    |   |
| Quarter Ended      |   |   |   |   |   |   |   |                    |   |
| September 30, 2010 |   | $      | 15.00  |   |   | $      | 13.00  |                    |   | $ | 0.17 |   |
| December 31, 2010  |   |   | 15.00  |   |   |   | 13.50  |                    |   |   | 0.17 |   |
| March 31, 2011     |   |   | 15.00  |   |   |   | 14.10  |                    |   |   | 0.17 |   |
| June 30, 2011      |   |   | 15.96  |   |   |   | 14.25  |                    |   |   | 0.17 |   |

----

----

|                                                                        |   | At June 30,    |    |
|-----------------------------------------------------------------------------|--------|----------------|---------|
| Selected consolidated financial condition data:                             |   | 2011           |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                        |   | (In thousands) |    |
| Total amount of:                                                            |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                                      |   | $              | 219,536 |   |   | $ | 206,465 |   |   | $ | 189,014 |   |   | $ | 181,738 |   |   | $ | 172,994 |   |
| Interest-bearing deposits                                                   |   |           | 14,944  |   |   |   | 7,896 |   |   |   | 12,574 |   |   |   | 11,347 |   |   |   | 7,162 |   |
| Investment securities available for sale —carried at fair value       |   |           | 6,021   |   |   |   | 8,040 |   |   |   | 5,865 |   |   |   | 5,623 |   |   |   | 3,448 |   |
| Mortgage-backed securities available for sale — carried at fair value |   |           | 6,257   |   |   |   | 216 |   |   |   | 231 |   |   |   | 243 |   |   |   | 267 |   |
| Mortgage-backed securities held to maturity - at cost                       |   |           | 51      |   |   |   | 57 |   |   |   | 62 |   |   |   | 80 |   |   |   | 97 |   |
| Loans receivable - net (1)                                                  |   |           | 182,226 |   |   |   | 180,214 |   |   |   | 161,749 |   |   |   | 156,232 |   |   |   | 153,947 |   |
| Deposits                                                                    |   |           | 185,043 |   |   |   | 171,339 |   |   |   | 153,627 |   |   |   | 141,332 |   |   |   | 139,922 |   |
| FHLB advances and other borrowings                                          |   |           | 13,767  |   |   |   | 14,329 |   |   |   | 14,669 |   |   |   | 20,595 |   |   |   | 13,131 |   |
| Shareholders' equity                                                        |   |           | 18,971  |   |   |   | 18,295 |   |   |   | 17,885 |   |   |   | 18,180 |   |   |   | 18,135 |   |

|                                                    |   | For the year ended June 30,           |   |
|---------------------------------------------------------|--------|---------------------------------------|--------|
| Summary of earnings:                                    |   | 2011                                  |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                    |   | (In thousands, except per share data) |   |
| Interest income                                         |   | $                                     | 10,558 |   |   | $ | 10,311 |   |   | $ | 10,473 |   |   | $ | 11,815 |   |   | $ | 11,472 |   |
| Interest expense                                        |   |                                  | 2.989  |   |   |   | 3,677 |   |   |   | 4,196 |   |   |   | 5,141 |   |   |   | 4,969 |   |
| Net interest income                                     |   |                                  | 7,569  |   |   |   | 6,634 |   |   |   | 6,277 |   |   |   | 6,674 |   |   |   | 6,503 |   |
|                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for losses on loans                           |   |                                  | 846    |   |   |   | 548 |   |   |   | 444 |   |   |   | 858 |   |   |   | 275 |   |
| Net interest income after provision for losses on loans |   |                                  | 6,723  |   |   |   | 6,086 |   |   |   | 5,833 |   |   |   | 5,816 |   |   |   | 6,228 |   |
|                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income                                            |   |                                  | 1,147  |   |   |   | 867 |   |   |   | 742 |   |   |   | 586 |   |   |   | 580 |   |
|                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest expense                                     |   |                                  | 5,813  |   |   |   | 5,489 |   |   |   | 4,956 |   |   |   | 4,622 |   |   |   | 4,342 |   |
| Earnings before income taxes                            |   |                                  | 2,057  |   |   |   | 1,464 |   |   |   | 1,619 |   |   |   | 1,780 |   |   |   | 2,466 |   |
|                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal income taxes                                    |   |                                  | 705    |   |   |   | 505 |   |   |   | 562 |   |   |   | 610 |   |   |   | 843 |   |
|                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings                                            |   | $                                     | 1,352  |   |   | $ | 959 |   |   | $ | 1,057 |   |   | $ | 1,170 |   |   | $ | 1,623 |   |
| Earnings per share                                      |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                   |   | $                                     | 1.34   |   |   | $ | 0.95 |   |   | $ | 1.02 |   |   | $ | l.08 |   |   | $ | 1.45 |   |
|                                                    |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                 |   | $                                     | 1.33   |   |   | $ | 0.95 |   |   | $ | 1.02 |   |   | $ | l.08 |   |   | $ | 1.44 |   |

| (1) | Includes loans held for sale. |
|-----|-------------------------------|

----

|                                                                    |   | At or for the year ended June 30, |   |
|-------------------------------------------------------------------------|--------|-----------------------------------|--------|
| Selected financial ratios and other data:                               |   | 2011                              |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                                |   |                              | 0.64   | % |   |   | 0.49 | % |   |   | 0.57 | % |   |   | 0.66 | % |   |   | 0.98 | % |
| Return on average equity                                                |   |                              | 7.26   |   |   |   | 5.32 |   |   |   | 5.87 |   |   |   | 6.42 |   |   |   | 8.95 |   |
| Interest rate spread                                                    |   |                              | 3.69   |   |   |   | 3.44 |   |   |   | 3.44 |   |   |   | 3.66 |   |   |   | 3.77 |   |
| Net interest margin                                                     |   |                              | 3.77   |   |   |   | 3.55 |   |   |   | 3.60 |   |   |   | 3.92 |   |   |   | 4.10 |   |
| Other expense to average assets                                         |   |                              | 2.76   |   |   |   | 2.79 |   |   |   | 2.70 |   |   |   | 2.61 |   |   |   | 2.61 |   |
| Average equity to average assets                                        |   |                              | 8.85   |   |   |   | 9.15 |   |   |   | 9.80 |   |   |   | 10.31 |   |   |   | 10.90 |   |
| Nonperforming assets to total assets                                    |   |                              | 0.82   |   |   |   | 1.06 |   |   |   | 0.57 |   |   |   | 0.64 |   |   |   | 0.47 |   |
| Nonperforming and impaired assets to total assets                       |   |                              | 1.26   |   |   |   | 1.94 |   |   |   | 1.09 |   |   |   | 1.02 |   |   |   | 0.47 |   |
| Nonperforming and impaired loans to total loans                         |   |                              | 1.52   |   |   |   | 2.24 |   |   |   | 1.14 |   |   |   | 1.17 |   |   |   | 0.52 |   |
| Net charge-offs to total loans                                          |   |                              | 0.36   |   |   |   | 0.14 |   |   |   | 0.14 |   |   |   | 0.20 |   |   |   | 0.06 |   |
| Delinquent loans to total loans (1)                                     |   |                              | 1.19   |   |   |   | 2.34 |   |   |   | 1.69 |   |   |   | 1.45 |   |   |   | 0.90 |   |
| Allowance for loan losses to total loans                                |   |                              | 1.18   |   |   |   | 1.10 |   |   |   | 1.04 |   |   |   | 0.94 |   |   |   | 0.60 |   |
| Allowance for loan losses to nonperforming and impaired loans           |   |                              | 78.40  |   |   |   | 49.69 |   |   |   | 87.41 |   |   |   | 80.15 |   |   |   | 115.38 |   |
| Average interest-earning assets to average interest-bearing liabilities |   |                              | 105.70 |   |   |   | 105.77 |   |   |   | 106.52 |   |   |   | 108.46 |   |   |   | 108.88 |   |
| Dividend payout ratio                                                   |   |                              | 50.89  |   |   |   | 71.74 |   |   |   | 66.41 |   |   |   | 59.40 |   |   |   | 37.70 |   |
| Number of full service offices                                          |   |                              | 5      |   |   |   | 5 |   |   |   | 4 |   |   |   | 3 |   |   |   | 3 |   |

| (1) | Delinquent loans are loans as to which a scheduled payment has not been made within 30 days after the due date. |
|-----|-----------------------------------------------------------------------------------------------------------------|

----

----

----

|   | • | general economic conditions and weakening in the economy, specifically the real estate market, either nationally or in our market area; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | • | deteriorating credit and asset quality; |
|--------|---------|-----------------------------------------|

|   | • | political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in the interest rate environment and reductions in interest margins; |
|--------|---------|------------------------------------------------------------------------------|

|   | • | prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; |
|--------|---------|---------------------------------------------------------------------------------------------|

|   | • | our ability to maintain required capital levels and adequate sources of funding and liquidity; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | competitive pressures among depository institutions; |
|--------|---------|------------------------------------------------------|

|   | • | effects of critical accounting policies and judgments; |
|--------|---------|--------------------------------------------------------|

|   | • | required changes in accounting policies or procedures; |
|--------|---------|--------------------------------------------------------|

|   | • | legislative or regulatory changes or actions, including the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act); |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our ability to attract and retain key personnel; |
|--------|---------|--------------------------------------------------|

|   | • | our ability to dividend money from First Federal to FFD; and |
|--------|---------|--------------------------------------------------------------|

|   | • | our reputation in our primary market. |
|--------|---------|---------------------------------------|

----

|   | • | Local market areas and national economic developments; |
|--------|---------|--------------------------------------------------------|

|   | • | Levels of, and trends in, delinquencies and impaired loans; |
|--------|---------|-------------------------------------------------------------|

|   | • | Levels of, and trends in, recoveries of prior charge-offs; |
|--------|---------|------------------------------------------------------------|

|   | • | Adverse situations that may affect specific borrowers' ability to repay; |
|--------|---------|--------------------------------------------------------------------------|

|   | • | Effects of any changes in lending policies and procedures; |
|--------|---------|------------------------------------------------------------|

|   | • | Credit concentrations; |
|--------|---------|------------------------|

|   | • | Volume and terms of loans; and |
|--------|---------|--------------------------------|

|   | • | Current collateral values, where applicable. |
|--------|---------|----------------------------------------------|

----

----

----

----

----

----

----

----

|                                                                                      |   | Year ended June 30          |    |
|-------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                      |   |                        |    |   | 2011 |   |   |   |   |   |   |   |   |  2010 |   |   |   |   |   |   |   |   | 2009 |   |   |   |   |
|                                                                                      |   | Average outstanding balance |    |   | Interest earned/paid |   |   | Yield/rate |   |   | Average outstanding balance |   |   | Interest earned/paid |   |   | Yield/rate |   |   | Average outstanding balance |   |   | Interest earned/paid |   |   | Yield/rate |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   | (Dollars in thousands) |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                                                  |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable                                                                          |   | $                           | 181,322 |   |   | $ | 10,254 |   |   |   | 5.66 | % |   | $ | 170,354 |   |   | $ | 9,919 |   |   |   | 5.82 | % |   | $ | 158,768 |   |   | $ | 10,067 |   |   |   | 6.34 | % |
| Mortgage-backed securities                                                                |   |                        | 1,473   |   |   |   | 21 |   |   |   | 1.43 |   |   |   | 282 |   |   |   | 9 |   |   |   | 3.19 |   |   |   | 305 |   |   |   | 17 |   |   |   | 5.57 |   |
| Investment securities                                                                     |   |                        | 6,551   |   |   |   | 166 |   |   |   | 2.53 |   |   |   | 7,755 |   |   |   | 267 |   |   |   | 3.44 |   |   |   | 5,725 |   |   |   | 242 |   |   |   | 4.23 |   |
| Interest-bearing deposits and other                                                       |   |                        | 11,174  |   |   |   | 117 |   |   |   | 1.05 |   |   |   | 8,563 |   |   |   | 116 |   |   |   | 1.35 |   |   |   | 9,774 |   |   |   | 147 |   |   |   | 1.50 |   |
| Total interest-earning assets                                                             |   |                        | 200,520 |   |   |   | 10,558 |   |   |   | 5.27 |   |   |   | 186,954 |   |   |   | 10,311 |   |   |   | 5.52 |   |   |   | 174,572 |   |   |   | 10,473 |   |   |   | 6.00 |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets                                                               |   |                        | 9,794   |   |   |   |   |   |   |   |   |   |   |   | 9,971 |   |   |   |   |   |   |   |   |   |   |   | 9,289 |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                              |   | $                           | 210,314 |   |   |   |   |   |   |   |   |   |   | $ | 196,925 |   |   |   |   |   |   |   |   |   |   | $ | 183,861 |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                             |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                  |   | $                           | 175,637 |   |   |   | 2,405 |   |   |   | 1.37 |   |   | $ | 162,353 |   |   |   | 3,060 |   |   |   | 1.88 |   |   | $ | 145,603 |   |   |   | 3,450 |   |   |   | 2.37 |   |
| Borrowings                                                                                |   |                        | 14,068  |   |   |   | 584 |   |   |   | 4.15 |   |   |   | 14,395 |   |   |   | 617 |   |   |   | 4.29 |   |   |   | 18,281 |   |   |   | 746 |   |   |   | 4.08 |   |
| Total interest-bearing liabilities                                                        |   |                        | 189,705 |   |   |   | 2,989 |   |   |   | 1.58 |   |   |   | 176,748 |   |   |   | 3,677 |   |   |   | 2.08 |   |   |   | 163,884 |   |   |   | 4.196 |   |   |   | 2.56 |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities                                                          |   |                        | 1,994   |   |   |   |   |   |   |   |   |   |   |   | 2,150 |   |   |   |   |   |   |   |   |   |   |   | 1,957 |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                         |   |                        | 191,699 |   |   |   |   |   |   |   |   |   |   |   | 178,898 |   |   |   |   |   |   |   |   |   |   |   | 165,841 |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                |   |                        | 18,615  |   |   |   |   |   |   |   |   |   |   |   | 18,027 |   |   |   |   |   |   |   |   |   |   |   | 18,020 |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity                                          |   | $                           | 210,314 |   |   |   |   |   |   |   |   |   |   | $ | 196,925 |   |   |   |   |   |   |   |   |   |   | $ | 183,861 |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                       |   |                        |    |   |   | $ | 7,569 |   |   |   |   |   |   |   |   |   |   | $ | 6,634 |   |   |   |   |   |   |   |   |   |   | $ | 6,277 |   |   |   |   |   |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread                                                                      |   |                        |    |   |   |   |   |   |   |   | 3.69 | % |   |   |   |   |   |   |   |   |   |   | 3.44 | % |   |   |   |   |   |   |   |   |   |   | 3.44 | % |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin (net interest income as a percent of average interest-earning assets) |   |                        |    |   |   |   |   |   |   |   | 3.77 | % |   |   |   |   |   |   |   |   |   |   | 3.55 | % |   |   |   |   |   |   |   |   |   |   | 3.60 | % |
|                                                                                      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to average interest-bearing liabilities                   |   |                        |    |   |   |   |   |   |   |   | 105.70 | % |   |   |   |   |   |   |   |   |   |   | 105.77 | % |   |   |   |   |   |   |   |   |   |   | 106.52 | % |

----

|                                       |   | Year ended June 30, |   |
|--------------------------------------------|--------|---------------------|--------|
|                                       |   |                |   |   | 2011 vs. 2010 Increase (decrease) due to |   |   |   |   |   |   |   |   | 2010 vs. 2009 Increase (decrease) due to |   |   |   |   |
|                                       |   | Volume              |   |   | Rate |   |   | Total |   |   | Volume |   |   | Rate |   |   | Total |   |
|                                       |   |                |   |   |   |   |   | (In thousands) |   |   |   |   |   |   |   |
| Interest income attributable to:           |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable                           |   | $                   | 626    |   |   | $ | (291 | ) |   | $ | 335 |   |   | $ | 706 |   |   | $ | (854 | ) |   | $ | (148 | ) |
| Mortgage-backed securities                 |   |                | 19     |   |   |   | (7 | ) |   |   | 12 |   |   |   | (1 | ) |   |   | (7 | ) |   |   | (8 | ) |
| Investment securities                      |   |                | (37    | ) |   |   | (64 | ) |   |   | (101 | ) |   |   | 75 |   |   |   | (50 | ) |   |   | 25 |   |
| Interest-bearing deposits and other        |   |                | 31     |   |   |   | (30 | ) |   |   | 1 |   |   |   | (17 | ) |   |   | (14 | ) |   |   | (31 | ) |
|                                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest income                      |   |                | 639    |   |   |   | (392 | ) |   |   | 247 |   |   |   | 763 |   |   |   | (925 | ) |   |   | (162 | ) |
|                                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense attributable to:          |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                   |   |                | 235    |   |   |   | (890 | ) |   |   | (655 | ) |   |   | 368 |   |   |   | (758 | ) |   |   | (390 | ) |
| Borrowings                                 |   |                | (14    | ) |   |   | (19 | ) |   |   | (33 | ) |   |   | (165 | ) |   |   | 36 |   |   |   | (129 | ) |
| Total interest expense                     |   |                | 221    |   |   |   | (909 | ) |   |   | (688 | ) |   |   | 203 |   |   |   | (722 | ) |   |   | (519 | ) |
|                                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (Decrease) in net interest income |   | $                   | 418    |   |   | $ | 517 |   |   | $ | 935 |   |   | $ | 560 |   |   | $ | (203 | ) |   | $ | 357 |   |

----

----

| June 30,2011                     |   |
|----------------------------------|--------|
| Net Interest Income              |   |   | Net Portfolio Value |   |
| Projected interest rate scenario |   |   | Estimated NII |   |   | Change from base |   |   | Percent change from base |   |   | Estimated value |   |   | Change from base |   |   | Percent change from base |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             | + 300  |   |   | $ | 9,249 |   |   | $ | 1,341 |   |   |   | 16.96 | % |   | $ | 18,997 |   |   | $ | (3,401 | ) |   |   | (15.18 | )% |
|                             | + 200  |   |   |   | 8,670 |   |   |   | 762 |   |   |   | 9.64 |   |   |   | 19,609 |   |   |   | (2,789 | ) |   |   | (12.45 | ) |
|                             | + 100  |   |   |   | 8,250 |   |   |   | 342 |   |   |   | 4.32 |   |   |   | 20,902 |   |   |   | (1,496 | ) |   |   | (6.68 | ) |
| Base                             |   |   |   | 7,908 |   |   |   | - |   |   |   | - |   |   |   | 22,398 |   |   |   | - |   |   |   | - |   |
|                             | -100   |   |   |   | 7,634 |   |   |   | (274 | ) |   |   | (3.46 | ) |   |   | 23,985 |   |   |   | 1,587 |   |   |   | 7.09 |   |
|                             | -200   |   |   |   | 7,128 |   |   |   | (780 | ) |   |   | (9.86 | ) |   |   | 26,362 |   |   |   | 3,964 |   |   |   | 17.70 |   |
|                             | -300   |   |   |   | 6,629 |   |   |   | (1,279 | ) |   |   | (16.17 | ) |   |   | 29,694 |   |   |   | 7,296 |   |   |   | 32.57 |   |

| June 30, 2010                    |   |
|----------------------------------|--------|
| Net Interest Income              |   |   | Net Portfolio Value |   |
| Projected interest rate scenario |   |   | Estimated NII |   |   | Change from base |   |   | Percent change from base |   |   | Estimated value |   |   | Change from base |   |   | Percent change from base |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             | + 300  |   |   | $ | 8,097 |   |   | $ | 596 |   |   |   | 7.95 | % |   | $ | 16,038 |   |   | $ | (6,657 | ) |   |   | (29.33 | )% |
|                             | +200   |   |   |   | 7,791 |   |   |   | 290 |   |   |   | 3.86 |   |   |   | 17,919 |   |   |   | (4,776 | ) |   |   | (21.04 | ) |
|                             | + 100  |   |   |   | 7,607 |   |   |   | 106 |   |   |   | 1.42 |   |   |   | 20,379 |   |   |   | (2,316 | ) |   |   | (10.21 | ) |
| Base                             |   |   |   | 7,501 |   |   |   | - |   |   |   | - |   |   |   | 22,695 |   |   |   | - |   |   |   | - |   |
|                             | -100   |   |   |   | 7,188 |   |   |   | (313 | ) |   |   | (4.17 | ) |   |   | 25,046 |   |   |   | 2,351 |   |   |   | 10.36 |   |
|                             | -200   |   |   |   | 6,654 |   |   |   | (847 | ) |   |   | (11.30 | ) |   |   | 27,499 |   |   |   | 4,804 |   |   |   | 21.17 |   |
|                             | -300   |   |   |   | 6,103 |   |   |   | (1,398 | ) |   |   | (18.64 | ) |   |   | 30,620 |   |   |   | 7,925 |   |   |   | 34.92 |   |

----

----

|                                                                        |   | Year ended June 30, |   |
|-----------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                        |   | 2011                |   |   | 2010 |   |
|                                                                        |   | (In thousands)      |   |
|                                                                        |   |                |   |
| Net earnings                                                                |   | $                   | 1,352  |   |   | $  | 959.00 |   |
| Adjustments to reconcile net earnings to net cash from operating activities |   |                | 1,893  |   |   |   | (1,759 | ) |
| Net cash from operating activities                                          |   |                | 3,245  |   |   |   | (800 | ) |
| Net cash used in investing activities                                       |   |                | (8,443 | ) |   |   | (20,605 | ) |
| Net cash from financing activities.                                         |   |                | 12,460 |   |   |   | 16,684 |   |
| Net change in cash and cash equivalents                                     |   |                | 7,262  |   |   |   | (4,721 | ) |
|                                                                        |   |                |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                              |   |                | 9,034  |   |   |   | 13,755 |   |
|                                                                        |   |                |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                    |   | $                   | 16,296 |   |   | $  | 9,034 |   |

----

|                                                                      |   | Payments due by period |          |
|---------------------------------------------------------------------------|--------|------------------------|---------------|
|                                                                      |   | Less than 1 year       |          |   | 1-2 years |   |   | 2-3 years |   |   | 3-4 years |   |   | More than 4 years |   |   | Total |   |
|                                                                      |   | (In thousands)         |          |
| Contractual obligations:                                                  |   |                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Advances from the Federal Home Loan Bank                                  |   | $                      | 1,390         |   |   | $ | 2,336 |   |   | $ | 2,389 |   |   | $ | 3,718 |   |   | $ | 3,304 |   |   | $ | 13,137 |   |
| Other borrowed funds                                                      |   |                   | -             |   |   |   | 630 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 630 |   |
| Operating Leases                                                          |   |                   | 13            |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24 |   |
| Certificates of deposit                                                   |   |                   | 45,065        |   |   |   | 22,806 |   |   |   | 19,054 |   |   |   | 824 |   |   |   | 8940 |   |   |   | 96,689 |   |
|                                                                      |   |                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount of commitments expiring per period Commitments to originate loans: |   |                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Overdraft lines of credit                                                 |   |                   | 1,651         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,651 |   |
| Home equity lines of credit                                               |   |                   | 16,765        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,765 |   |
| Commercial lines of credit                                                |   |                   | 21,013        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,013 |   |
| One- to four-family and multi-family loans                                |   |                   | 1,354         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,354 |   |
| One- to four-family commitment to sell                                    |   |                   | -             |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Non-residential real estate and land loans                                |   |                   | 3,484         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,484 |   |
| Non-mortgage loans                                                        |   |                   | 1,829         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,829 |   |
| Standby letters of credit                                                 |   |                   | 1,098         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,098 |   |
|                                                                      |   |                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total contractual obligations                                             |   |                   | S 93 662 |   |   | $ | 25,783 |   |   | $ | 21,443 |   |   | $ | 4,542 |   |   | $ | 12,244 |   |   | $ | 157 674 |   |

----

| /s/Trent B. Troyer      |   | /s/ Robert R. Gerber    |
|-------------------------|--------|-------------------------|
|                    |   |                    |
| Trent B. Troyer         |   | Robert R. Gerber        |
| Chief Executive Officer |   | Chief Financial Officer |

----

| Crowe Horwath. | Crowe Horwath LLP                              |
|----------------|------------------------------------------------|
|           | Independent Member Crowe Horwath International |

|               | /s/ Crowe Horwath LLP |
|--------------------|-----------------------|
|               | Crowe Horwath LLP     |
|               |                  |
| Cleveland, Ohio    |                  |
| September 19, 2011 |                  |

----

| ASSETS                                                                                          |   | 2011   |    |   | 2010   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                            |   |   |    |   |   |   |
| Cash and due from financial institutions                                                        |   | $      | 1,352   |   |   | $      | 1,138 |   |
| Interest-bearing deposits in other financial institutions, including overnight deposits         |   |   | 14.944  |   |   |   | 7,896 |   |
| Cash and cash equivalents                                                                       |   |   | 16,296  |   |   |   | 9,034 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Investment securities available for sale                                                        |   |   | 6,021   |   |   |   | 8,040 |   |
| Mortgage-backed securities available for sale                                                   |   |   | 6,257   |   |   |   | 216 |   |
| Mortgage-backed securities held to maturity, fair value 2011 - $51, 2010 - $57                  |   |   | 51      |   |   |   | 57 |   |
| Loans receivable - net of allowance of $2,174 and $1,993                                        |   |   | 182,226 |   |   |   | 178,837 |   |
| Loans held for sale                                                                             |   |   | -       |   |   |   | 1,377 |   |
| Premises and equipment, net                                                                     |   |   | 3,910   |   |   |   | 3,955 |   |
| Federal Home Loan Bank of Cincinnati stock, at cost                                             |   |   | 2,422   |   |   |   | 2,422 |   |
| Loan servicing rights                                                                           |   |   | 732     |   |   |   | 655 |   |
| Accrued interest receivable                                                                     |   |   | 515     |   |   |   | 556 |   |
| Prepaid expenses and other assets                                                               |   |   | 1,106   |   |   |   | 1,316 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Total assets                                                                                    |   | $      | 219,536 |   |   | $      | 206,465 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                            |   |   |    |   |   |   |   |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Deposits                                                                                        |   |   |    |   |   |   |   |   |
| Non-interest bearing                                                                            |   | $      | 15,746  |   |   | $      | 13,257 |   |
| Interest bearing                                                                                |   |   | 169,297 |   |   |   | 158,082 |   |
| Total deposits                                                                                  |   |   | 185,043 |   |   |   | 171,339 |   |
| Federal Home Loan Bank advances                                                                 |   |   | 13,137  |   |   |   | 13,699 |   |
| Other borrowed funds                                                                            |   |   | 630     |   |   |   | 630 |   |
| Accrued interest payable                                                                        |   |   | 118     |   |   |   | 145 |   |
| Accrued and deferred federal income taxes                                                       |   |   | 62      |   |   |   | 170 |   |
| Other liabilities                                                                               |   |   | 1,575   |   |   |   | 2,187 |   |
| Total liabilities                                                                               |   |   | 200,565 |   |   |   | 188,170 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Commitments and contingent liabilities (Note 14)                                                |   |   |    |   |   |   |   |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Shareholders' equity                                                                            |   |   |    |   |   |   |   |   |
| Preferred stock - authorized 1,000,000 shares without par value; no shares issued               |   |   | -       |   |   |   | - |   |
| Common stock - authorized 5,000,000 shares without par or stated value; 1,454,750 shares issued |   |   | -       |   |   |   | - |   |
| Additional paid-in capital                                                                      |   |   | 8,334   |   |   |   | 8,334 |   |
| Retained earnings                                                                               |   |   | 16,686  |   |   |   | 16,022 |   |
| Accumulated other comprehensive income, net                                                     |   |   | 35      |   |   |   | 29 |   |
| Treasury stock, at cost (2011 - 443,154 shares, 2010 - 443,904 shares)                          |   |   | (6,084  | )      |   |   | (6,090 | ) |
| Total shareholders' equity                                                                      |   |   | 18,971  |   |   |   | 18,295 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Total liabilities and shareholders' equity                                                      |   | $      | 219,536 |   |   | $      | 206,465 |   |

----

|                                                                 |   | 2011   |   |   | 2010   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Interest and dividend income                                         |   |   |   |   |   |   |
| Loans, including fees                                                |   | $      | 10,254 |   |   | $      | 9,919 |   |
| Mortgage-backed securities                                           |   |   | 21     |   |   |   | 9 |   |
| Investment securities                                                |   |   | 166    |   |   |   | 267 |   |
| Interest-bearing deposits and other                                  |   |   | 117    |   |   |   | 116 |   |
|                                                                 |   |   | 10,558 |   |   |   | 10,311 |   |
| Interest expense                                                     |   |   |   |   |   |   |   |   |
| Deposits                                                             |   |   | 2,405  |   |   |   | 3,060 |   |
| Borrowings                                                           |   |   | 584    |   |   |   | 617 |   |
|                                                                 |   |   | 2,989  |   |   |   | 3,677 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net interest income                                                  |   |   | 7,569  |   |   |   | 6,634 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Provision for loan losses                                            |   |   | 846    |   |   |   | 548 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net interest income after provision for loan losses                  |   |   | 6,723  |   |   |   | 6,086 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Noninterest income                                                   |   |   |   |   |   |   |   |   |
| Net gain on sales of loans                                           |   |   | 678    |   |   |   | 371 |   |
| Mortgage servicing revenue (loss) net of amortization and impairment |   |   | (8     | )      |   |   | 49 |   |
| Service charges on deposit accounts                                  |   |   | 361    |   |   |   | 322 |   |
| Other                                                                |   |   | 116    |   |   |   | 125 |   |
|                                                                 |   |   | 1,147  |   |   |   | 867 |   |
| Noninterest expense                                                  |   |   |   |   |   |   |   |   |
| Employee and director compensation and benefits                      |   |   | 2,619  |   |   |   | 2,431 |   |
| Occupancy and equipment                                              |   |   | 555    |   |   |   | 544 |   |
| Franchise taxes                                                      |   |   | 245    |   |   |   | 230 |   |
| FDIC insurance premiums                                              |   |   | 261    |   |   |   | 242 |   |
| Data processing                                                      |   |   | 386    |   |   |   | 383 |   |
| ATM processing                                                       |   |   | 141    |   |   |   | 134 |   |
| Professional and consulting fees                                     |   |   | 299    |   |   |   | 259 |   |
| Postage and stationary supplies                                      |   |   | 153    |   |   |   | 173 |   |
| Advertising                                                          |   |   | 198    |   |   |   | 151 |   |
| Checking account maintenance expense                                 |   |   | 213    |   |   |   | 228 |   |
| Loss on sale of real estate owned                                    |   |   | 8      |   |   |   | 29 |   |
| Other                                                                |   |   | 735    |   |   |   | 685 |   |
|                                                                 |   |   | 5,813  |   |   |   | 5,489 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Income before income taxes                                           |   |   | 2,057  |   |   |   | 1,464 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Income tax expense                                                   |   |   | 705    |   |   |   | 505 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net income                                                           |   | $      | 1,352  |   |   | $      | 959 |   |
| Earnings per share:                                                  |   |   |   |   |   |   |   |   |
| Basic                                                                |   | $      | 1.34   |   |   | $      | .95 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Diluted                                                              |   | $      | 1.33   |   |   | $      | .95 |   |

----

|                                                                                                                                  |   | 2011   |   |   | 2010   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net income                                                                                                                            |   | $      | 1,352  |   |   | $      | 959 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of related tax effects:                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities available for sale during the period, net of taxes of $3 and $61in 2011 and 2010, respectively |   |   | 6      |   |   |   | 118 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                  |   | $      | 1,358  |   |   | $      | 1,077 |   |

----

|                                                                                      |   | Common stock |   |   | Additional paid-in capital |   |   | Retained earnings |   |    | Accumulated other comprehensive income (loss}, net |   |   | Treasury stock |     |   | Total  |    |
|-------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|---------------------------------|--------|--------|-------------------|--------|---------|----------------------------------------------------|--------|--------|----------------|----------|--------|--------|---------|
|                                                                                      |   |              |   |   |                            |   |   |              |   |    |                                               |   |   |           |     |   |   |    |   |   |   |   |   |   |
| Balance at July 1, 2009                                                                   |   | $                 |   |   |                            | $      | 8,312  |              |   | $       | 15,751                                             |   |   | $              | (89      | )      |   | $       | (6,089 | ) |   | $ | 17,885 |   |
| Net income                                                                                |   |              | -      |   |                            |   | -      |              |   |    | 959                                                |   |   |           | -        |   |   |    | - |   |   |   | 959 |   |
| Purchase of 1,700 shares of treasury stock                                                |   |              |   |   |                            |   |   |              |   |    |                                               |   |   |           |     |   |   |    | (24 | ) |   |   | (24 | ) |
| Change in unrealized losses on securities available for sale, net of related tax benefits |   |              | -      |   |                            |   | -      |              |   |    | -                                                  |   |   |           | 118      |   |   |    | - |   |   |   | 118 |   |
| Exercise of 2,640 stock options, including tax benefit                                    |   |              | -      |   |                            |   | 22     |              |   |    | -                                                  |   |   |           | -        |   |   |    | 23 |   |   |   | 45 |   |
|                                                                                      |   |              |   |   |                            |   |   |              |   |    |                                               |   |   |           |     |   |   |    |   |   |   |   |   |
| Dividends of $.68 per share                                                               |   |              | -      |   |                            |   | -      |              |   |    | (688                                          | )      |   |           |     |   |   |    | - |   |   |   | (688 | ) |
|                                                                                      |   |              |   |   |                            |   |   |              |   |    |                                               |   |   |           |     |   |   |    |   |   |   |   |   |   |
| Balance at June 30, 2010                                                                  |   |              | -      |   |                            |   | 8,334  |              |   |    | 16,022                                             |   |   |           | 29       |   |   |    | (6,090 | ) |   |   | 18,295 |   |
|                                                                                      |   |              |   |   |                            |   |   |              |   |    |                                               |   |   |           |     |   |   |    |   |   |   |   |   |   |
| Net income                                                                                |   |              | -      |   |                            |   | -      |              |   |    | 1,352                                              |   |   |           | -        |   |   |    | - |   |   |   | 1,352 |   |
| Change in unrealized losses on securities available for sale, net of related tax benefits |   | -                 |   |   | -                               |   |   | -                 |   |    |                                               | 6      |   |           | -        |   |   |    | 6 |   |
| Exercise of 750 stock options, including tax benefit                                 |   |              | -      |   |                            |   | -      |              |   |    | -                                                  |   |   |           | -        |   |   |    | 6 |   |   |   | 6 |   |
| Dividends of $.68 per share                                                               |   |              | -      |   |                            |   | -      |              |   |    | (688                                               | )      |   |           | -        |   |   |    | -  |   |   |   | (688  | )  |
|                                                                                      |   |              |   |   |                            |   |   |              |   |    |                                               |   |   |           |     |   |   |    |   |   |   |   |   |   |
| Balance at June 30, 2011                                                                  |   |  $      |   |   |                            | $      | 8,334  |              |   |  $ | 16,686                                             |   |   |  $        | 35  |   |   |  $ | (6,084   | ) |   |  $ | 18,971  |   |

----

|                                                                                     |   | 2011   |    |   | 2010   |   |
|------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Cash flows from operating activities:                                                    |   |   |    |   |   |   |
| Net income                                                                               |   | $      | 1,352   |   |   | $      | 959 |   |
| Adjustments to reconcile net earnings to net cash from operating activities:             |   |   |    |   |   |   |   |   |
| Net amortization of investment securities                                                |   |   | (3      | )      |   |   | 1 |   |
| Net amortization of mortgage-backed securities available for sale                        |   |   | 5       |   |   |   | - |   |
| Depreciation and amortization                                                            |   |   | 564     |   |   |   | 476 |   |
| Provision for loan losses                                                                |   |   | 846     |   |   |   | 548 |   |
| Valuation loss (recovery of valuation loss) on mortgage servicing rights                 |   |   | (67     | )      |   |   | (64 | ) |
| Net gain on sales of loans                                                               |   |   | (678    | )      |   |   | (371 | ) |
| Net losses on real estate owned                                                          |   |   | 8       |   |   |   | 29 |   |
| Origination of loans held for sale                                                       |   |   | (27,262 | )      |   |   | (18,314 | ) |
| Proceeds from sales of loans held for sale                                               |   |   | 29,001  |   |   |   | 17,427 |   |
| Increase (decrease) in cash due to changes in:                                           |   |   |    |   |   |   |   |   |
| Net deferred loan origination costs                                                      |   |   | (24     | )      |   |   | (48 | ) |
| Accrued interest receivable                                                              |   |   | 41      |   |   |   | (41 | ) |
| Prepaid expenses and other assets                                                        |   |   | 210     |   |   |   | (1,031 | ) |
| Other liabilities                                                                        |   |   | (672    | )      |   |   | (385 | ) |
| Accrued interest payable                                                                 |   |   | (27     | )      |   |   | (27 | ) |
| Deferred federal income taxes                                                            |   |   | (49     | )      |   |   | 41 |   |
| Net cash from operating activities                                                       |   |   | 3,245   |   |   |   | (800 | ) |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash flows from investing activities:                                                    |   |   |    |   |   |   |   |   |
| Purchase of investment securities designated as available for sale                       |   |   | (5,999  | )      |   |   | (5,998 | ) |
| Proceeds from maturities/calls of investment securities designated as available for sale |   |   | 8,000   |   |   |   | 4,000 |   |
| Purchase of mortgage-backed securities designated as available for sale                  |   |   | (6,065  | )      |   |   | - |   |
| Principal repayments on mortgage-backed securities designated as available for sale      |   |   | 48      |   |   |   | - |   |
| Principal repayments on mortgage-backed securities designated as held to maturity        |   |   | 6       |   |   |   | 21 |   |
| Loan originations and payments, net                                                      |   |   | (4,615  | )      |   |   | (19,239 | ) |
| Proceeds from participation loan sales to other financial institutions                   |   |   | 300     |   |   |   | 1,000 |   |
| Additions to premises and equipment                                                      |   |   | (214    | )      |   |   | (821 | ) |
| Proceeds from sale of real estate owned                                                  |   |   | 96      |   |   |   | 432 |   |
| Net cash from investing activities                                                       |   |   | (8,443  | )      |   |   | (20,605 | ) |

----

|                                          |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash flows from financing activities:         |   |   |   |   |   |   |
| Net change in deposits                        |   | $      | 13,704 |   |   | $      | 17,712 |   |
| Proceeds from Federal Home Loan Bank advances |   |   | 5,000  |   |   |   | 1,100 |   |
| Repayments of Federal Home Loan Bank advances |   |   | (5,562 | )      |   |   | (1,270 | ) |
| Repayments of other borrowed funds            |   |   | -      |   |   | (170   | ) |
| Proceeds from exercise of stock options       |   |   | 6      |   |   |   | 24 |   |
| Purchase of treasury stock                    |   |   | -      |   |   |   | (24 | ) |
| Cash dividends paid                           |   |   | (688   | )      |   |   | (688 | ) |
| Net cash from financing activities            |   |   | 12,460 |   |   |   | 16,684 |   |
|                                          |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents       |   |   | 7,262  |   |   |   | (4,721 | ) |
|                                          |   |   |   |   |   |   |   |   |
| Beginning cash and cash equivalents           |   |   | 9,034  |   |   |   | 13,755 |   |
|                                          |   |   |   |   |   |   |   |   |
| Ending cash and cash equivalents              |   | $      | 16,296 |   |   | $      | 9,034 |   |
|                                          |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:           |   |   |   |   |   |   |   |   |
| Cash paid during the year for:                |   |   |   |   |   |   |   |   |
| Federal income taxes                          |   | $      | 815    |   |   | $      | 615 |   |
| Interest paid                                 |   | $      | 3,016  |   |   | $      | 3,704 |   |
|                                          |   |   |   |   |   |   |   |   |
|                                          |   |   |   |   |   |   |   |   |
| Supplemental noncash disclosures:             |   |   |   |   |   |   |   |   |
| Transferred from loans to real estate owned   |   | $      | 104    |   |   | $      | 340 |   |

----

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|   2011                                                         |   |   | Amortized Cost  |   |   |   | Gross Unrealized Gains |   |   |   | Gross Unrealized  Losses |   |   |   | Fair Value |   |
|---------------------------------------------------------------------|--------|--------|----------------------|--------|--------|--------|-----------------------------|--------|--------|--------|-------------------------------|--------|--------|--------|------------|--------|
|                                                                |   |   |  (In thousands) |   |
|                                                                |   |   |                 |   |
| U.S. Government agency obligations                                  |   | $      | 5,999                |   |   | $      | 20                          |   |   | $      | -                             |   |   | $      | 6,019      |   |
| Equity securities                                                   |   |   | 2                    |   |   |   | -                           |   |   |   | -                             |   |   |   | 2          |   |
|                                                                |   |   |                 |   |   |   |                        |   |   |   |                          |   |   |   |       |   |
| Total                                                               |   |   | 6,001                |   |   |   | 20                          |   |   |   | -                             |   |   |   | 6,021      |   |
|                                                                |   |   |                 |   |   |   |                        |   |   |   |                          |   |   |   |       |   |
| Mortgage Backed Securities:                                         |   |   |                 |   |   |   |                        |   |   |   |                          |   |   |   |       |   |
| Federal National Mortgage Association participation certificates    |   |   | 156                  |   |   |   | 1                           |   |   |   |                          |   |   |   | 157        |   |
| Government National Mortgage Association participation certificates |   |   | 6.069                |   |   |   | 31                          |   |   |   |                          |   |   |   | 6,100      |   |
| Total mortgage-backed securities available for sale                 |   |   | 6.225                |   |   |   | 32                          |   |   |   | -                             |   |   |   | 6,257      |   |
|                                                                |   |   |                 |   |   |   |                        |   |   |   |                          |   |   |   |       |   |
| Total                                                               |   | $      | 12.226               |   |   | $      | 52                          |   |   | $      | -                             |   |   | $      | 12,278     |   |

|   2010                                                         |   |   | Amortized Cost |   |   |   | Gross Unrealized Gains |   |   |   |   Gross Unrealized  Losses   |   |   |   |   Fair Value   |   |
|---------------------------------------------------------------------|--------|--------|---------------------|--------|--------|--------|-----------------------------|--------|--------|--------|--------------------------------------------------|--------|--------|--------|-------------------------------|--------|
|                                                                |   |   | (In thousands)      |   |
|                                                                |   |   |                |   |
| U.S. Government agency obligations                                  |   | $      | 7,997               |   |   | $      | 41                          |   |   | $      | -                                                |   |   | $      | 8,038                         |   |
| Equity securities                                                   |   |   | 2                   |   |   |   | -                           |   |   |   | -                                                |   |   |   | 2                             |   |
| Total                                                               |   |   | 7,999               |   |   |   | 41                          |   |   |   | -                                                |   |   |   | 8,040                         |   |
| Mortgage Backed Securities:                                         |   |   |                |   |   |   |                        |   |   |   |                                             |   |   |   |                          |   |
| Federal National Mortgage Association participation certificates    |   |   | 168                 |   |   |   | 2                           |   |   |   |                                             |   |   |   | 170                           |   |
| Government National Mortgage Association participation certificates |   |   | 45                  |   |   |   | 1                           |   |   |   |                                             |   |   |   | 46                            |   |
| Total mortgage-backed securities available for sale                 |   |   | 213                 |   |   |   | 3                           |   |   |   | -                                                |   |   |   | 216                           |   |
|                                                                |   |   |                |   |   |   |                        |   |   |   |                                             |   |   |   |                          |   |
| Total                                                               |   | $      | 8,212               |   |   | $      | 44                          |   |   | $      | -                                                |   |   | $      | 8,256                         |   |

----

|                                                                      |   |     |   |   | Gross         |   |   | Gross        |   |   |   |   |
|---------------------------------------------------------------------------|--------|----------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                      |   | Carrying |   |   | Unrecognized  |   |   | Unrecognized |   |   | Fair   |   |
| 2011                                                                      |   | Amount   |   |   | Gains         |   |   | Losses       |   |   | Value  |   |
|                                                                      |   |     |   |   | (Inthousands) |   |   |         |   |
|                                                                      |   |     |   |   |          |   |   |         |   |   |   |   |
| Federal Home Loan Mortgage (FHLMC) Corporation participation certificates |   | $        | 51     |   |          | $      | -      |         |   | $      | -      |   |   | $ | 51 |   |
| Total mortgage-backed securities held to maturity                         |   | $        | 51     |   |          | $      | -      |         |   | $      | -      |   |   | $ | 51 |   |

|                                                                      |   |     |   |   | Gross         |   |   | Gross        |   |   |   |   |
|---------------------------------------------------------------------------|--------|----------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------|--------|
|                                                                      |   | Carrying |   |   | Unrecognized  |   |   | Unrecognized |   |   | Fair   |   |
| 2010                                                                      |   | Amount   |   |   | Gains         |   |   | Losses       |   |   | Value  |   |
|                                                                      |   |     |   |   | (Inthousands) |   |   |         |   |
|                                                                      |   |     |   |   |          |   |   |         |   |   |   |   |
| Federal Home Loan Mortgage (FHLMC) Corporation participation certificates |   | $        | 57     |   |          | $      | -      |         |   | $      | -      |   |   | $ | 57 |   |
| Total mortgage-backed securities held to maturity                         |   | $        | 57     |   |          | $      | -      |         |   | $      | -      |   |   | $ | 57 |   |

|                        |   | Held to maturity |   |   | Available for sale |   |
|-----------------------------|--------|------------------|--------|--------|--------------------|--------|
|                        |   | Carrying         |   |   | Fair               |   |   | Amortized |   |   | Fair |   |
|                        |   | amount           |   |   | value              |   |   | cost |   |   | value |   |
|                        |   |             |   |   | (in thousands)     |   |   |   |   |
|                        |   |             |   |   |               |   |   |   |   |
| Due in one year or less     |   | $                | -      |   |               | $      | - |   |   | $ | - |   |   | $ | - |   |
| Due from one to five years  |   |             | -      |   |               |   | - |   |   |   | - |   |   |   | - |   |
| Due from five to ten years  |   |             | -      |   |               |   | - |   |   |   | 3,999 |   |   |   | 4,014 |   |
| Due after ten years         |   |             | -      |   |               |   | - |   |   |   | 2,000 |   |   |   | 2,005 |   |
| Mortgage-backed-residential |   |             | 51     |   |               |   | 51 |   |   |   | 6,225 |   |   |   | 6,257 |   |
| Total                       |   | $                | 51     |   |               | $      | 51 |   |   | $ | 12,224 |   |   | $ | 12,276 |   |

----

|                                    |           | 2011   |    |   | 2010   |   |
|-----------------------------------------|----------------|--------|---------|--------|--------|--------|
|                                    | (in thousands) |
| Residential real estate                 |           |   |    |   |   |   |   |   |
| One- to four-family                     |           | $      | 69,689  |   |   | $      | 68,171 |   |
| Multi-family                            |           |   | 6,961   |   |   |   | 8,328 |   |
| Nonresidential real estate and land     |           |   | 81,955  |   |   |   | 80,066 |   |
| Commercial loans — secured        |           |   | 22,637  |   |   |   | 20,056 |   |
| Commercial loans — unsecured      |           |   | 132     |   |   |   | 101 |   |
| Consumer and other loans                |           |   | 6.086   |   |   |   | 6,048 |   |
|                                    |           |   | 187,460 |   |   |   | 182,770 |   |
| Net deferred loan origination costs     |           |   | 293     |   |   |   | 269 |   |
| Undisbursed portion of loans in process |           |   | (3,353  | )      |   |   | (2,209 | ) |
| Allowance for loan losses               |           |   | (2,174  | )      |   |   | (1,993 | ) |
|                                    |           |   |    |   |   |   |   |   |
| Loans, net                              |           | $      | 182,226 |   |   | $      | 178,837 |   |

|                      |           |   | 2011   |   |   |   | 2010   |   |
|---------------------------|----------------|--------|--------|--------|--------|--------|--------|--------|
|                      | (in thousands) |   |
| Beginning balance         |           | $      | 1,993  |   |   | $      | 1,694  |   |
| Provision for loan losses |           |   | 846    |   |   |   | 548    |   |
| Loans charged-off         |           |   | (667   | )      |   |   | (257   | )      |
| Recoveries                |           |   | 2      |   |   |   | 8      |   |
|                      |           |   |   |   |   |   |   |   |
| Ending balance            |           | $      | 2,174  |   |   | $      | 1,993  |   |

|                                              |   | Residential    |   | Nonresidential |   |   | Commercial  |   |   |      |   |   |   |   |
|---------------------------------------------------|--------|----------------|--------|----------------|--------|--------|-------------|--------|--------|-----------|--------|--------|--------|--------|
|                                              |   | real           |   | real estate    |   |   | secured and |   |   | Consumer  |   |   |   |   |
|                                              |   | estate         |   | and land       |   |   | unsecured   |   |   | and other |   |   | Total  |   |
|                                              |   | (in thousands) |   |
| Allowance for loan losses                         |   |           |   |           |   |   |        |   |   |      |   |   |   |   |
| Ending allowance balance attributable to loans:   |   |           |   |           |   |   |        |   |   |      |   |   |   |   |
| Individually evaluated for impairment             | $      | 323            |   | $              | 222    |   |        | $      | 23     |      |   | $      | -      |   |   | $ | 568 |   |
| Collectively evaluated for impairment             |   | 612            |   |           | 639    |   |        |   | 245    |      |   |   | 110    |   |   |   | 1,606 |   |
|                                              |   |           |   |           |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Total ending allowance balance               | $      | 935            |   | $              | 861    |   |        | $      | 268    |      |   | $      | 110    |   |   | $ | 2.174 |   |
|                                              |   |           |   |           |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
|                                              |   |           |   |           |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Loans                                             |   |           |   |           |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment  | $      | 1,802          |   | $              | 587    |   |        | $      | 71     |      |   | $      | -      |   |   | $ | 2,460 |   |
| Loans collectively evaluated for impairment       |   | 74,707         |   |           | 79,211 |   |        |   | 21,897 |      |   |   | 6,125  |   |   |   | 181,940 |   |
|                                              |   |           |   |           |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Total ending loan balance                         | $      | 76,509         |   | $              | 79,798 |   |        | $      | 21,968 |      |   | $      | 6,125  |   |   | $ | 184,400 |   |

----

|                                                       |   | 2011          |   |   | 2010   |   |
|------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|
|                                                       |   | (inthousands) |   |
|                                                       |   |          |   |   |   |   |
| Year-end loans with no allocated allowance for loan losses |   | $             | 886    |   |   | $      | 444 |   |
| Year-end loans with allocated allowance for loan losses    |   |          | 1,574  |   |   |   | 3,480 |   |
|                                                       |   |          |   |   |   |   |   |   |
| Total                                                      |   | $             | 2,460  |   |   | $      | 3,924 |   |
|                                                       |   |          |   |   |   |   |   |   |
| Amount of the allowance for loan losses allocated          |   | $             | 568    |   |   | $      | 582 |   |

|                                               |   |          | 2011   |   |   |   | 2010  |   |
|----------------------------------------------------|--------|---------------|--------|--------|--------|--------|-------|--------|
|                                               |   | (inthousands) |   |
|                                               |   |          |   |
| Average of individually impaired loans during year |   | $             | 2,833  |   |   | $      | 2,739 |   |
| Interest income recognized during impairment       |   |          | 112    |   |   |   | 49    |   |
| Cash-basis interest income recognized              |   | $             | 112    |   |   | $      | 47    |   |

----

|                                 |   | Unpaid         |   |   |       |   |   | Allowance for |   |
|--------------------------------------|--------|----------------|--------|--------|------------|--------|--------|---------------|--------|
|                                 |   | principal      |   |   | Recorded   |   |   | loan losses   |   |
|                                 |   | balance        |   |   | investment |   |   | allocated     |   |
|        |   | (in thousands) |   |
| With no related allowance recorded:  |   |           |   |
| Residential                          |   |           |   |   |       |   |   |          |   |
| One- to four-family                  |   | $              | 878    |   |       | $      | 878    |          |   | $ | - |   |
| Multi-family                         |   |           | -      |   |       |   | -      |          |   |   | - |   |
| Nonresidential real estate and land  |   |           | -      |   |       |   | -      |          |   |   | - |   |
| Commercial loans - secured           |   |           | 8      |   |       |   | 8      |          |   |   | - |   |
| Commercial loans — unsecured   |   |           | -      |   |       |   | -      |          |   |   | - |   |
| Consumer and other loans             |   |           | -      |   |       |   | -      |          |   |   | - |   |
|                                 |   |           |   |   |       |   |   |          |   |   |   |   |
| With an allowance recorded:          |   |           |   |   |       |   |   |          |   |   |   |   |
| Residential                          |   |           |   |   |       |   |   |          |   |   |   |   |
| One- to four-family                  |   | $              | 933    |   |       | $      | 924    |          |   | $ | 323 |   |
| Multi-family                         |   |           | -      |   |       |   | -      |          |   |   | - |   |
| Nonresidential real estate and land  |   |           | 590    |   |       |   | 587    |          |   |   | 222 |   |
| Commercial loans - secured           |   |           | 64     |   |       |   | 63     |          |   |   | 23 |   |
| Commercial loans — unsecured   |   |           | -      |   |       |   | -      |          |   |   | - |   |
| Consumer and other loans             |   |           | -      |   |       |   | -      |          |   |   | - |   |
|                                 |   |           |   |   |       |   |   |          |   |   |   |   |
| Total                                |   | $              | 2,473  |   |       | $      | 2,460  |          |   | $ | 568 |   |

----

|                                     |   | Average recorded investment |   |   | Interest income recognized  |   |   | Cash Basisinterest recognized |   |
|------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-------------------------------|--------|
|                                     |   |                        |   |   | June 30, 2011(in thousands) |   |   |                          |   |
| With no related allowance recorded:      |   |                        |   |   |                        |   |   |                          |   |
| Residential                              |   |                        |   |   |                        |   |   |                          |   |
| One- to four-family                      |   | $                           | 291    |   |                        | $      | 14     |                          |   | $ | 14 |   |
| Multi-family                             |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Nonresidential real estate and land      |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Commercial loans - secured               |   |                        | 8      |   |                        |   | -      |                          |   |   | - |   |
| Commercial loans — unsecured       |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Consumer and other loans                 |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Total with no related allowance recorded |   |                        | 299    |   |                        |   | 14     |                          |   |   | 14 |   |
|                                     |   |                        |   |   |                        |   |   |                          |   |   |   |   |
| With an allowance recorded:              |   |                        |   |   |                        |   |   |                          |   |   |   |   |
| Residential                              |   |                        |   |   |                        |   |   |                          |   |   |   |   |
| One- to four-family                      |   | $                           | 1,055  |   |                        |   | 68     |                          |   |   | 68 |   |
| Multi-family                             |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Nonresidential real estate and land      |   |                        | 1,263  |   |                        |   | 26     |                          |   |   | 26 |   |
| Commercial loans - secured               |   |                        | 216    |   |                        |   | 4      |                          |   |   | 4 |   |
| Commercial loans — unsecured       |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Consumer and other loans                 |   |                        | -      |   |                        |   | -      |                          |   |   | - |   |
| Total with an allowance recorded         |   |                        | 2,534  |   |                        |   | 98     |                          |   |   | 98 |   |
|                                     |   |                        |   |   |                        |   |   |                          |   |   |   |   |
| Total                                    |   | $                           | 2.833  |   |                        | $      | 112    |                          |   | $ | 112 |   |

|                                |   | June 30, 2011  |   |   | June 30, 2010 |   |
|-------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                |   | (in thousands) |   |
| Residential real estate             |   |           |   |   |          |   |
| One- to four-family                 |   | $              | 1,073  |   |          | $      | 210 |   |
| Multi-family                        |   |           | -      |   |          |   | - |   |
| Nonresidential real estate and land |   |           | 646    |   |          |   | 1,783 |   |
| Commercial loans — secured    |   |           | 58     |   |          |   | 141 |   |
| Commercial loans — unsecured  |   |           | -      |   |          |   | - |   |
| Consumer and other loans            |   |           | 20     |   |          |   | 54 |   |
|                                |   | $              | 1,797  |   |          | $      | 2,188 |   |

----

|                                |   |     | 30-59  |   |     |   | 60-89  |     |   | Greater than   |     |   |   |      |   |   |   |   |    |   |
|-------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|----------------|----------|--------|--------|-----------|--------|--------|--------|--------|---------|--------|
|                                |   | days     |   |   | days     |   |   | 90 days  |   |           | Total    |   |   | Loans not |   |   |   |   |
|                                |   | past due |   |   | past due |   |   | past due |   |           | past due |   |   | past due  |   |   | Total  |   |
|                                |   |     |   |   |     |   |   |     |   | (in thousands) |     |   |   |      |   |   |   |
| Residential real estate             |   |     |   |   |     |   |   |     |   |           |     |   |   |      |   |   |   |   |    |   |
| One- to four-family                 |   | $        | 386    |   |     | $      | 534    |     |   | $              | 300      |   |   | $         | 1,220  |   |   | $      | 68,320  |   |   | $ | 69,540 |   |
| Multi-family                        |   |     | 103    |   |     |   | -      |     |   |           | -        |   |   |      | 103    |   |   |   | 6,866   |   |   |   | 6,969 |   |
| Nonresidential real estate and land |   |     | 337    |   |     |   | 146    |     |   |           | 181      |   |   |      | 664    |   |   |   | 79,134  |   |   |   | 79,798 |   |
| Commercial loans - secured     |   |     | 2      |   |     |   | 48     |     |   |           | 53       |   |   |      | 103    |   |   |   | 21,733  |   |   |   | 21,836 |   |
| Commercial loans - unsecured   |   |     | -      |   |     |   | -      |     |   |           | -        |   |   |      | -      |   |   |   | 132     |   |   |   | 132 |   |
| Consumer and other loans            |   |     | 63     |   |     |   | 28     |     |   |           | 12       |   |   |      | 103    |   |   |   | 6,022   |   |   |   | 6,125 |   |
|                                |   |     |   |   |     |   |   |     |   |           |     |   |   |      |   |   |   |   |    |   |   |   |   |   |
| Total                               |   | $        | 891    |   |     | $      | 756    |     |   | $              | 546      |   |   | $         | 2.193  |   |   | $      | 182,207 |   |   | $ | 184,400 |   |

----

|                                |   |      |   |   |   |   |    |  Special             |   |   |        |   |   |     |   |   |   |   |
|-------------------------------------|--------|-----------|--------|--------|--------|--------|---------|---------------------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
|                                |   | Not rated |   |   | Pass   |   |    | mention                   |   |   | Substandard |   |   | Doubtful |   |   | Total  |   |
|                                |   |      |   |   |   |   |    |  (in thousands) |   |   |        |   |   |     |   |   |   |   |
| Residential real estate             |   |      |   |   |   |   |    |                      |   |   |        |   |   |     |   |   |   |   |
| One- to four-family                 |   | $         | 67,094 |   |   | $      | -       |                      |   | $      | 641         |   |   | $        | 1,765  |   |   | $      | 40 |   |   | $ | 69,540 |   |
| Multi-family                        |   |      | -      |   |   |   | 6,923   |                      |   |   | 46          |   |   |     | -      |   |   |   | - |   |   |   | 6,969 |   |
| Nonresidential real estate and land |   |      | -      |   |   |   | 78,625  |                      |   |   | 397         |   |   |     | 595    |   |   |   | 181 |   |   |   | 79,798 |   |
| Commercial loans — secured    |   |      | -      |   |   |   | 21,715  |                      |   |   | 113         |   |   |     | 8      |   |   |   | - |   |   |   | 21,836 |   |
| Commercial loans — unsecured  |   |      | -      |   |   |   | 79      |                      |   |   | -           |   |   |     | -      |   |   |   | 53 |   |   |   | 132 |   |
| Consumer and other loans            |   |      | 6,068  |   |   |   | -       |                      |   |   | 51          |   |   |     | -      |   |   |   | 6 |   |   |   | 6,125 |   |
|                                |   |      |   |   |   |   |    |                      |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Total                               |   | $         | 73,162 |   |   | $      | 107,342 |                      |   | $      | 1,248       |   |   | $        | 2,368  |   |   | $      | 280 |   |   | $ | 184,400 |   |

|                    |   |               |   |   | Resideitial         |   |   |         |   |
|-------------------------|--------|--------------------|--------|--------|---------------------|--------|--------|--------------|--------|
|                    |   | Consumer and other |   |   | One- to four-family |   |   | Multi-Family |   |   | Total |   |
|                    |   |               |   |   | (in thousands)      |   |   |         |   |
| Residential real estate |   |               |   |   |                |   |   |         |   |   |   |   |
| Nonperforming           |   | $                  | 20     |   |                | $      | 1,073  |         |   | $ | - |   |   | $ | 1,093 |   |
| Performing              |   |               | 6,105  |   |                |   | 68,467 |         |   |   | 6,969 |   |   |   | 81,541 |   |
|                    |   |               |   |   |                |   |   |         |   |   |   |   |   |   |   |   |
| Total                   |   | $                  | 6,125  |   |                | $      | 69,540 |         |   | $ | 6,969 |   |   | $ | 82,634 |   |

----

|                                                                            |   |     |   |   | Fair Value Measurements |   |
|---------------------------------------------------------------------------------|--------|----------|--------|--------|-------------------------|--------|
|                                                                            |   |     |   |   | at June 30, 2011 Using  |   |
|                                                                            |   |     |   |   | Quoted Prices in        |   |   | Significant |   |   |   |   |
|                                                                            |   | Carrying |   |   | Active Markets          |   |   | Other |   |   | Significant |   |
|                                                                            |   | Amount   |   |   | for Identical           |   |   | Observable |   |   | Unobservable |   |
|                                                                            |   |     |   |   | Assets                  |   |   | Inputs |   |   | Inputs |   |
|                                                                            |   |     |   |   | (Level 1)               |   |   | (Level 2) |   |   | (Level 3) |   |
|                                                                            |   |     |   |   |                    |   |   | (in thousands) |   |   |   |   |
| Assets:                                                                         |   |     |   |   |                    |   |   |   |   |   |   |   |
| Available for sale securities                                                   |   |     |   |   |                    |   |   |   |   |   |   |   |
| U. S. government agency obligations                                             |   | $        | 6,019  |   |                    | $      | - |   |   | $ | 6,019 |   |   | $ | - |   |
| Equity securities                                                               |   |     | 2      |   |                    |   | 2 |   |   |   | - |   |   |   | - |   |
| Federal National Mortgage Association participation certificates-residential    |   |     | 157    |   |                    |   | - |   |   |   | 157 |   |   |   | - |   |
| Government National Mortgage Association participation certificates-residential |   |     | 6.100  |   |                    |   | - |   |   |   | 6.100 |   |   |   | - |   |
|                                                                            |   |     |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Total securities available for sale                                             |   | $        | 12.278 |   |                    | $      | 2 |   |   | $ | 12.276 |   |   | $ | - |   |

----

|                                                                            |   |     |   |   | Fair Value Measurements |   |
|---------------------------------------------------------------------------------|--------|----------|--------|--------|-------------------------|--------|
|                                                                            |   |     |   |   | at June 30, 2010 Using  |   |
|                                                                            |   |     |   |   | Quoted Prices in        |   |   | Significant |   |   |   |   |
|                                                                            |   | Carrying |   |   | Active Markets          |   |   | Other |   |   | Significant |   |
|                                                                            |   | Amount   |   |   | for Identical           |   |   | Observable |   |   | Unobservable |   |
|                                                                            |   |     |   |   | Assets                  |   |   | Inputs |   |   | Inputs |   |
|                                                                            |   |     |   |   | (Level 1)               |   |   | (Level 2) |   |   | (Level 3) |   |
|                                                                            |   |     |   |   |                    |   |   | (in thousands) |   |   |   |   |
| Assets:                                                                         |   |     |   |   |                    |   |   |   |   |   |   |   |
| Available for sale securities                                                   |   |     |   |   |                    |   |   |   |   |   |   |   |
| U. S. government agency obligations                                             |   | $        | 8,038  |   |                    | $      | - |   |   | $ | 8,038 |   |   | $ | - |   |
| Equity securities                                                               |   |     | 2      |   |                    |   | 2 |   |   |   | - |   |   |   | - |   |
| Federal National Mortgage Association participation certificates-residential    |   |     | 170    |   |                    |   | - |   |   |   | 170 |   |   |   | - |   |
| Government National Mortgage Association participation certificates-residential |   |     | 46     |   |                    |   | - |   |   |   | 46 |   |   |   | - |   |
|                                                                            |   |     |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Total securities available for sale                                             |   | $        | 8,256  |   |                    | $      | 2 |   |   | $ | 8,254 |   |   | $ | - |   |

|                                |   | Fair Value Measurementsat June 30, 2011 Using |   |
|-------------------------------------|--------|-----------------------------------------------|--------|
|                                |   | Quoted Prices in                              |   |   | Significant |   |   |   |   |
|                                |   | Active Markets                                |   |   | Other |   |   | Significant |   |
|                                |   | for Identical                                 |   |   | Observable |   |   | Unobservable |   |
|                                |   | Assets                                        |   |   | Inputs |   |   | Inputs |   |
|                                |   | (Level 1)                                     |   |   | (Level 2) |   |   | (Level 3) |   |
|                                |   |                                          |   |   | (in thousands) |   |   |   |   |
| Assets:                             |   |                                          |   |   |   |   |   |   |   |
| Loan servicing rights               |   | $                                             | -      |   |   | $ | 97 |   |   | $ | - |   |
| Impaired loans, net of allowance    |   |                                          | -      |   |   |   | - |   |   |   | - |   |
| Residential one-to-four-family      |   |                                          | -      |   |   |   | - |   |   |   | 601 |   |
| Nonresidential real estate and land |   |                                          | -      |   |   |   | - |   |   |   | 365 |   |
| Commercial loans — secured    |   |                                          | -      |   |   |   | - |   |   |   | 40 |   |
| Total                               |   | $                                             | -      |   |   | $ | 97 |   |   | $ | 1,006 |   |

----

|                             |   | Fair Value Measurementsat June 30, 2011 Using |   |
|----------------------------------|--------|-----------------------------------------------|--------|
|                             |   | Quoted Prices in                              |   |   | Significant |   |   |   |   |
|                             |   | Active Markets                                |   |   | Other |   |   | Significant |   |
|                             |   | for Identical                                 |   |   | Observable |   |   | Unobservable |   |
|                             |   | Assets                                        |   |   | Inputs |   |   | Inputs |   |
|                             |   | (Level 1)                                     |   |   | (Level 2) |   |   | (Level 3) |   |
|                             |   |                                          |   |   | (in thousands) |   |   |   |   |
| Assets:                          |   |                                          |   |   |   |   |   |   |   |
| Loan servicing rights            |   | $                                             | -      |   |   | $ | 209 |   |   | $ | - |   |
| Impaired loans, net of allowance |   |                                          | -      |   |   |   | - |   |   |   | 2,898 |   |

|                                      |   | 2011     |     |   | 2010           |   |
|-------------------------------------------|--------|----------|----------|--------|----------------|--------|
|                                      |   | Carrying |     |   | Fair           |   |   | Carrying |   |   | Fair |   |
|                                      |   | Amount   |     |   | Value          |   |   | Amount |   |   | Value |   |
|                                      |   |     |     |   | (in thousands) |   |   |   |   |
| Financial assets                          |   |     |     |   |           |   |   |   |   |   |   |   |
| Cash and cash equivalents                 |   | $        | 16,296 $ |   |           |   | 16,296 |   |   | $ | 9,034 $ |   |   |   | 9,034 |   |
| Investment securities                     |   |     | 6,021    |   |           |   | 6,021 |   |   |   | 8,040 |   |   |   | 8,040 |   |
| Mortgage-backed securities                |   |     | 6,308    |   |           |   | 6,308 |   |   |   | 273 |   |   |   | 273 |   |
| Loans, net, including loans held for sale |   |     | 182,226  |   |           |   | 182,004 |   |   |   | 180,214 |   |   |   | 183,277 |   |
| Federal Home Loan Bank stock              |   |     | 2,422    |   |           |   | n/a |   |   |   | 2,422 |   |   |   | n/a |   |
| Accrued interest receivable               |   |     | 515      |   |           |   | 515 |   |   |   | 556 |   |   |   | 556 |   |
|                                      |   |     |     |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                     |   |     |     |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                  |   | $        | (185,043 | )      |           | $      | (187,265 | ) |   | $ | (171,339 | ) |   | $ | (172,763 | ) |
| Federal Home Loan Bank advances           |   |     | (13,137  | )      |           |   | (13,667 | ) |   |   | (13,699 | ) |   |   | (14,585 | ) |
| Other borrowed funds                      |   |     | (630     | )      |           |   | (630 | ) |   |   | (630 | ) |   |   | (630 | ) |
| Accrued interest payable                  |   |     | (118     | )      |           |   | (118 | ) |   |   | (145 | ) |   |   | (145 | ) |

----

|                                   |   | 2011           |   |   | 2010   |   |
|----------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                   |   | (in thousands) |   |
| Mortgage loan portfolios serviced for: |   |           |   |   |   |   |
| FHLMC and others                       |   | $              | 94,164 |   |   | $      | 86,705 |   |

|                                         |   | 2011           |   |   | 2010   |   |
|----------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                         |   | (in thousands) |   |
| Servicing rights net of valuation allowance: |   |           |   |   |   |   |
| Beginning of year                            |   | $              | 655    |   |   | $      | 626 |   |
| Additions                                    |   |           | 315    |   |   |   | 192 |   |
| Amortized to expense                         |   |           | (305   | )      |   |   | (227 | ) |
| Change in valuation allowance                |   |           | 67     |   |   |   | 64 |   |
|                                         |   |           |   |   |   |   |   |   |
| End of year                                  |   | $              | 732    |   |   | $      | 655 |   |
|                                         |   |           |   |   |   |   |   |   |
| Valuation allowance:                         |   |           |   |   |   |   |   |   |
| Beginning of year                            |   | $              | 108    |   |   | $      | 172 |   |
| Additions expensed                           |   |           | -      |   |   |   | 26 |   |
| Reductions credited to operations            |   |           | (67    | )      |   |   | (90 | ) |
|                                         |   |           |   |   |   |   |   |   |
| End of year                                  |   | $              | 41     |   |   | $      | 108 |   |

----

|                              |   | 2011           |   |   | 2010   |   |
|-----------------------------------|--------|----------------|--------|--------|--------|--------|
|                              |   | (in thousands) |   |
|                              |   |           |   |
| Land                              |   | $              | 1,071  |   |   | $      | 999 |   |
| Buildings                         |   |           | 3,105  |   |   |   | 3,059 |   |
| Furniture, fixtures and equipment |   |           | 1.652  |   |   |   | 1,626 |   |
|                              |   |           | 5,828  |   |   |   | 5,684 |   |
|                              |   |           |   |   |   |   |   |   |
| Less: Accumulated depreciation    |   |           | 1.918  |   |   |   | 1,729 |   |
|                              |   |           |   |   |   |   |   |   |
| Premises and equipment, net       |   | $              | 3,910  |   |   | $      | 3,955 |   |

| June 30, 2012                                                                                  |   | $      | 13,000 |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                2013 |   |   | 11,000 |   |
| Total                                                                                          |   | $      | 24,000 |   |

|          |   | (in thousands) |   |
|---------------|--------|----------------|--------|
|          |   |           |   |
| June 30, 2012 |   | $              | 45,065 |   |
| 2013          |   |           | 22,806 |   |
| 2014          |   |           | 19,054 |   |
| 2015          |   |           | 824    |   |
| 2016          |   |           | 8,940  |   |
| Thereafter    |   |           | -      |   |
| Total         |   | $              | 96,689 |   |

----

|                                                                                                                                                                              |   | 2011           |   |   | 2010   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                                                                                                                                              |   | (in thousands) |   |
| Maturities May 2012 through June 2017, putable fixed rate advance with rates from 2.82% to 4.68%, averaging 3.95% in 2011 and rates from 2.82% to 4.82%, averaging 4.34% in 2010  |   | $              | 6,000  |   |   | $      | 11,000 |   |
|                                                                                                                                                                              |   |           |   |   |   |   |   |   |
| Maturities June 2014 through April 2025, fixed rate select payment mortgage matched amortizing advances with rates from 2.72% to 6.10%, averaging 3.60% in 2011 and 3.59% in 2010 |   |           | 1,849  |   |   |   | 2,205 |   |
|                                                                                                                                                                              |   |           |   |   |   |   |   |   |
| Maturity October 2014, fixed rate amortizing advances with a rate of 4.06%                                                                                                        |   |           | 152    |   |   |   | 194 |   |
|                                                                                                                                                                              |   |           |   |   |   |   |   |   |
| Maturity October 2013, fixed rate balloon payment amortizing advance with a rate of 4.43%                                                                                         |   |           | 136    |   |   |   | 300 |   |
|                                                                                                                                                                              |   |           |   |   |   |   |   |   |
| Maturities April 2014 through April 2016, fixed rate balloon payment advances with rates of 1.53% to 2.59%, averaging 2.02%                                                       |   |           | 5,000  |   |   |   | - |   |
|                                                                                                                                                                              |   |           |   |   |   |   |   |   |
| Total                                                                                                                                                                             |   | $              | 13,137 |   |   | $      | 13,699 |   |

|          |   | (in thousands) |   |
|---------------|--------|----------------|--------|
|          |   |           |   |
| June 30, 2012 |   | $              | 1,390  |   |
| 2013          |   |           | 2,336  |   |
| 2014          |   |           | 2,389  |   |
| 2015          |   |           | 3,718  |   |
| 2016          |   |           | 1,681  |   |
| Thereafter    |   |           | 1,623  |   |
| Total         |   | $              | 13,137 |   |

----

|                            |   | 2011   |    |   | 2010   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|
|                            |   |   |    |   |   |   |
| Allocated to participants       |   |   | 134,872 |   |   |   | 128,772 |   |
| Unreleased                      |   |   | -       |   |   |   | - |   |
| Shares committed to be released |   |   | -       |   |   |   | - |   |
|                            |   |   |    |   |   |   |   |   |
| Total ESOP shares               |   |   | 134.872 |   |   |   | 128.772 |   |
| Fair value of unreleased shares |   | $      | -       |   |   | $      | - |   |

----

|                             |   | Shares |   |   | Weighted average exerciseprice |   | Weighted average remaining contractual term |   | Aggregate intrinsicvalue |   |
|----------------------------------|--------|--------|--------|--------|--------------------------------|--------|---------------------------------------------|--------|--------------------------|--------|
| Outstanding at beginning of year |   |   | 19,570 |   |                           | $      | 11.56                                       |   |                     |   |   |   |
| Granted                          |   |   | -      |   |                           |   | -                                           |   |                     |   |   |   |
| Exercised                        |   |   | (750   | )      |                           |   | 8.38                                        |   |                     |   |   |   |
| Forfeited or expired             |   |   | -      |   |                           |   | -                                           |   |                     |   |   |   |
| Outstanding at end of year       |   |   | 18,820 |   |                           | $      | 11.68                                       |   | 1.6 yrs                  |   | $ | 58,860 |   |
| Exercisable at end of year       |   |   | 18,820 |   |                           | $      | 11.68                                       |   | 1.6 yrs                  |   | $ | 58,860 |   |
| Options available for grant      |   |   | -      |   |                           |   |                                        |   |                     |   |   |   |   |

|                                       |   | 2011           |   |   | 2010   |   |
|--------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                       |   | (In thousands) |   |
|                                       |   |           |   |   |   |   |   |   |
| Intrinsic value of options exercised       |   | $              | 4      |   |   | $      | 13 |   |
| Cash received from options exercised       |   |           | 6      |   |   |   | 24 |   |
| Tax benefit realized from option exercises |   |           | -      |   |   |   | - |   |

----

|                       |   | 2011   |           |   | 2010   |   |
|----------------------------|--------|--------|----------------|--------|--------|--------|
|                       |   |   | (In thousands) |   |
| Current expense            |   | $      | 754            |   |   | $      | 464 |   |
| Deferred expense (benefit) |   |   | (49            | )      |   |   | 41 |   |
|                       |   |   |           |   |   |   |   |   |
| Total                      |   |   | 705            |   |   | $      | 505 |   |

|                                                    |   | 2011   |           |   | 2010   |   |
|---------------------------------------------------------|--------|--------|----------------|--------|--------|--------|
|                                                    |   |   | (In thousands) |   |
| Federal statutory rate times financial statement income |   | $      | 699            |   |   | $      | 498 |   |
| Effect of:                                              |   |   |           |   |   |   |   |   |
| Other, net                                              |   |   | 6              |   |   |   | 7 |   |
|                                                    |   |   |           |   |   |   |   |   |
| Total                                                   |   | $      | 705            |   |   | $      | 505 |   |
|                                                    |   |   |           |   |   |   |   |   |
| Effective tax rate                                      |   |   | 34.3           | %      |   |   | 34.5 | % |

----

|                                                 |   | 2011           |   |   | 2010   |   |
|------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                 |   | (In thousands) |   |
| Deferred tax assets:                                 |   |           |   |   |   |   |
| Accrued compensation                                 |   | $              | 37     |   |   | $      | - |   |
| Retirement expense                                   |   |           | 14     |   |   |   | 18 |   |
| Allowance for loan losses                            |   |           | 739    |   |   |   | 678 |   |
| Nonaccrual loan interest                             |   |           | 30     |   |   |   | 48 |   |
| Other                                                |   |           | 7      |   |   |   | 11 |   |
| Deferred tax assets                                  |   |           | 827    |   |   |   | 755 |   |
|                                                 |   |           |   |   |   |   |   |   |
| Deferred tax liabilities:                            |   |           |   |   |   |   |   |   |
| Net deferred loan origination cost                   |   | $              | (87    | )      |   | $      | (80 | ) |
| Prepaid expense                                      |   |           | (61    | )      |   |   | (54 | ) |
| Federal Home Loan Bank dividends                     |   |           | (438   | )      |   |   | (438 | ) |
| Depreciation                                         |   |           | (187   | )      |   |   | (204 | ) |
| Net unrealized gain on available for sale securities |   |           | (18    | )      |   |   | (15 | ) |
| Loan servicing rights                                |   |           | (249   | )      |   |   | (223 | ) |
| Deferred tax liability                               |   |           | (1,040 | )      |   |   | (1,014 | ) |
|                                                 |   |           |   |   |   |   |   |   |
| Net deferred tax liability                           |   | $              | (213   | )      |   | $      | (259 | ) |

----

|              |   | (In thousands) |   |
|-------------------|--------|----------------|--------|
| Beginning balance |   | $              | 4,199  |   |
| New loans         |   |           | 2,544  |   |
| Repayments        |   |           | (1,977 | ) |
|              |   |           |   |   |
| Ending balance    |   | $              | 4,766  |   |

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|                                          |   | Actual |   |   | Required For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Regulations |   |
|-----------------------------------------------|--------|--------|--------|--------|----------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
|                                          |   | Amount |   |   | Ratio                                  |   |   | Amount                                                            |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                          |   |   |   |   |                                   |   |   | As of June 30, 2011                                               |   |   |   |   |   |   |   |
| Total capital to risk weighted assets         |   | $      | 20,794 |   |                                   |   | 12.4   | %                                                                 |   | $ | 13,388 |   |   |   | 8.0 | % |   | $ | 16,735 |   |   |   | 10.0 | % |
|                                          |   |   |   |   |                                   |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (core) capital to risk weighted assets |   |   | 19,137 |   |                                   |   | 11.4   | %                                                                 |   |   | 6,694 |   |   |   | 4.0 | % |   |   | 10,041 |   |   |   | 6.0 | % |
|                                          |   |   |   |   |                                   |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (core) capital to Adjusted assets      |   |   | 19,137 |   |                                   |   | 8.7    | %                                                                 |   |   | 8,779 |   |   |   | 4.0 | % |   |   | 10,973 |   |   |   | 5.0 | % |

|                                           |   | Actual |   |   | Required For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Regulations |   |
|------------------------------------------------|--------|--------|--------|--------|----------------------------------------|--------|--------|-------------------------------------------------------------------|--------|
|                                           |   | Amount |   |   | Ratio                                  |   |   |                                                              | Amount |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                           |   |   |   |   | As of June 30, 2010                    |   |   |                                                              |   |   |   |   |
| Total capital to risk weighted assets          |   | $      | 19,754 |   |                                   |   | 12.0   | %                                                                 |   | $ | 13,180 |   |   |   | 8.0 | % |   | $ | 16,475 |   |   |   | 10.0 | % |
|                                           |   |   |   |   |                                   |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (core) capital to risk weighted assets  |   |   | 18,342 |   |                                   |   | 11.1   | %                                                                 |   |   | 6,590 |   |   |   | 4.0 | % |   |   | 9,885 |   |   |   | 6.0 | % |
|                                           |   |   |   |   |                                   |   |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 (core) capital to adjusted total assets |   |   | 18,342 |   |                                   |   | 8.9    | %                                                                 |   |   | 8,256 |   |   |   | 4.0 | % |   |   | 10,320 |   |   |   | 5.0 | % |

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|                      |   | 2011           |   |   | 2010          |   |
|---------------------------|--------|----------------|--------|--------|---------------|--------|
|                      |   | (In thousands) |   |
|                      |   | Fixed Rate     |   |   | Variable Rate |   |   | Fixed Rate |   |   | Variable Rate |   |
| Commitments to make loans |   | $              | 1,138  |   |          | $      | 2,176 |   |   | $ | 577 |   |   | $ | 2,991 |   |
| Unused lines of credit    |   |           | 9      |   |          |   | 39,420 |   |   |   | - |   |   |   | 34,744 |   |
| Standby letters of credit |   |           | -      |   |          |   | 1,098 |   |   |   | - |   |   |   | 68 |   |

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|                                        |   | 2011   |   |   | 2010   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|
| ASSETS                                      |   |   |   |   |   |   |
| Cash and due from financial institutions    |   | $      | 21     |   |   | $      | 27 |   |
| Investment in Bank subsidiary               |   |   | 19,171 |   |   |   | 18,371 |   |
| Prepaid federal income taxes                |   |   | 394    |   |   |   | 512 |   |
| Prepaid expenses and other assets           |   |   | 15     |   |   |   | 17 |   |
|                                        |   |   |   |   |   |   |   |   |
| Total assets                                |   | $      | 19,601 |   |   | $      | 18,927 |   |
| LIABILITIES AND SHAREHOLDERS EQUITY         |   |   |   |   |   |   |   |   |
| Other borrowed funds                        |   | $      | 630    |   |   | $      | 630 |   |
| Accrued interest payable                    |   |   | -      |   |   |   | 2 |   |
|                                        |   |   |   |   |   |   |   |   |
| Total liabilities                           |   |   | 630    |   |   |   | 632 |   |
| Common stock and additional paid-in capital |   |   | 8,334  |   |   |   | 8,334 |   |
| Retained earnings                           |   |   | 16,686 |   |   |   | 16,022 |   |
| Accumulated other comprehensive income, net |   |   | 35     |   |   |   | 29 |   |
| Treasury stock — at cost              |   |   | (6,084 | )      |   |   | (6,090 | ) |
|                                        |   |   |   |   |   |   |   |   |
| Total shareholders' equity                  |   |   | 18.971 |   |   |   | 18,295 |   |
| Total liabilities and shareholders' equity  |   | $      | 19,601 |   |   | $      | 18,927 |   |

|                                                         |   | 2011   |   |   | 2010   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Income                                                       |   |   |   |   |   |   |
| Interest income                                              |   | $      | -      |   |   | $      | - |   |
| Dividends from subsidiaries                                  |   |   | 775    |   |   |   | 1,150 |   |
|                                                         |   |   | 775    |   |   |   | 1,150 |   |
| Expense                                                      |   |   |   |   |   |   |   |   |
| Interest expense                                             |   |   | 32     |   |   |   | 27 |   |
| Other expense                                                |   |   | 298    |   |   |   | 267 |   |
|                                                         |   |   | 330    |   |   |   | 294 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Income before income tax and undistributed subsidiary income |   |   | 445    |   |   |   | 856 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Income tax (benefit)                                         |   |   | (112   | )      |   |   | (100 | ) |
| Equity in undistributed subsidiary income                    |   |   | 795    |   |   |   | 3 |   |
| Net income                                                   |   | $      | 1,352  |   |   | $      | 959 |   |

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|                                                                                |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash flows from operating activities:                                               |   |   |   |   |   |   |
| Net income                                                                          |   | $      | 1,352  |   |   | $      | 959 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Equity in undistributed net income of Bank subsidiary                               |   |   | (795   | )      |   |   | (3 | ) |
| Increase (decrease) in cash due to changes in:                                      |   |   |   |   |   |   |   |   |
| Prepaid expenses and other assets and accrued interest payable                      |   |   | 2      |   |   |   | - |   |
| Prepaid federal income taxes                                                        |   |   | 117    |   |   |   | (113 | ) |
| Net cash provided by operating activities                                           |   |   | 676    |   |   |   | 843 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                               |   |   |   |   |   |   |   |   |
| Proceeds from (repayments of) borrowed funds                                        |   |   | -      |   |   |   | (170 | ) |
| Return of accumulated dividends on unawarded recognition and retention plan shares  |   |   | -      |   |   |   | - |   |
| Proceeds from exercise of stock options                                             |   |   | 6      |   |   |   | 24 |   |
| Purchase of treasury stock                                                          |   |   | -      |   |   |   | (24 | ) |
| Cash dividends paid on common stock                                                 |   |   | (688   | )      |   |   | (688 | ) |
| Net cash used in financing activities                                               |   |   | (682   | )      |   |   | (858 | ) |
|                                                                                |   |   |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                           |   |   | (6     | )      |   |   | (15 | ) |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                      |   |   | 27     |   |   |   | 42 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                            |   | $      | 21     |   |   | $      | 27 |   |

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|                                                                           |   | 2011   |      |   | 2010   |   |
|--------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Basic                                                                          |   |   |      |   |   |   |
| Net income                                                                     |   | $      | 1,352     |   |   | $      | 959 |   |
|                                                                           |   |   |      |   |   |   |   |   |
| Weighted average common shares outstanding                                     |   |   | 1,011,557 |   |   |   | 1,010,830 |   |
|                                                                           |   |   |      |   |   |   |   |   |
| Basic earnings per common share                                                |   | $      | 1.34      |   |   | $      | .95 |   |
|                                                                           |   |   |      |   |   |   |   |   |
| Diluted                                                                        |   |   |      |   |   |   |   |   |
| Net income                                                                     |   | $      | 1,352     |   |   | $      | 959 |   |
|                                                                           |   |   |      |   |   |   |   |   |
| Weighted average common shares outstanding for basic earnings per common share |   |   | 1,011,557 |   |   |   | 1,010,830 |   |
| Add: Dilutive effects of assumed exercises of stock options                    |   |   | 2,797     |   |   |   | 3,062 |   |
|                                                                           |   |   |      |   |   |   |   |   |
| Average shares and dilutive potential common shares                            |   |   | 1,014,354 |   |   |   | 1,013,892 |   |
|                                                                           |   |   |      |   |   |   |   |   |
| Diluted earnings per common share                                              |   | $      | 1.33      |   |   | $      | .95 |   |

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| Tuscarawas County Chamber of Commerce                 | Tuscarawas County Farm Bureau                     |
|-------------------------------------------------------|---------------------------------------------------|
| CIC Board of Trustees                                 | Tuscarawas AAA Board of Directors                 |
| American Red Cross Board of Directors                 | Tuscarawas County Board of Realtors               |
| Kent State Tuscarawas University Foundation           | United Way of Tuscarawas County                   |
| Kent State University Tuscarawas County               | Union Hospital Development &                  |
| District Trustees Board                               | Community Relations                               |
| Tuscarawas County Community Foundation                | Tuscora Chapter SHRM                              |
| East Central Ohio Builders & Industry Association | Dover Public Library Board of Directors           |
| Rainbow Connection Board of Directors                 | Holmes County Tourism Board                       |
| Leadership Tuscarawas                                 | Tuscarawas County YMCA Board of Directors         |
| New Philadelphia Kiwanis Club                         | Tuscarawas County - Save our Homes Task Force     |
| Dover Rotary Club                                     | Indian Valley Foundation                          |
| Tuscarawas Center for the Arts                        | New Phila Business & Community Association    |
| Holmes County Chamber of Commerce                     | American Red Cross Home Town Heroes Program       |
| Berlin Main Street Merchants                          | Ohio Bankers League Board of Directors            |
| Sugarcreek Business Association                       | Dover Lions Club                                  |
| Business Factory Board of Directors                   | Tuscarawas County Convention & Visitors Board |
| Tuscarawas County 4-H Advisors                        | Tuscarawas County OSU Agriculture 4-H Board       |
|  Tuscarawas County Pork Producers                | Society for Equal Access                          |

| Rainbow Connection                 | American Red Cross                      |
|------------------------------------|-----------------------------------------|
| Dress a Child                      | Harbor House                            |
| Community Hospice of Tusc. Co.     | American Cancer Society -Relay for Life |
| Tuscarawas County Food Pantry Love | Salvation Army                          |
| Center Food Pantry                 | United Way of Tuscarawas County         |
|  of Holmes County             | Union Hospital Breast Center            |
| Share-A-Christmas                  | P.A.L. Mission Campaign                 |
| Running Water 5K                   | Big Brothers Big Sisters                |
| Tuscarawas Co. Literacy Coalition  | Society for Equal Access                |

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