UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
D.C. 20549
 
 FORM
10-Q
 (Mark
One)
 x
              QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
 
 For
      the quarterly period ended
                September
      30, 2010
 
 OR
 
  ̈
              TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
 
 For the
transition period from     _____________________ to
________________________
 
 Commission
File Number 029276
 
 FIRST
      ROBINSON FINANCIAL CORPORATION(Exact
      name of registrant as specified in its
charter)
 DELAWARE
                    
                    36-4145294(State
      or other jurisdiction of
                    
                    (I.R.S.
      Employerincorporation
      or organization)
                    
                    Identification
      Number)501
      East Main Street, Robinson, Illinois
                    
                    62454(Address
      of principal executive offices)
                    
                    (Zip
      Code)
 
 Registrant’s telephone number, including area code
                    (618)
      544-8621
 
 None(Former
      name, former address and former fiscal year, if changed since last
      report)
  Indicate
by check markwhether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes x No  ̈
 
 Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File requested to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that
registrant was required to submit and post such files). Yes  ̈ No  ̈
 
 Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.
 
 Larger
      Accelerated
                    Filer
                   ̈
                  Accelerated
      Filer
                   ̈Non-Accelerated
      Filer
                   ̈
      (Do not check if a smaller reporting
                    company)
                  Smaller
      Reporting
                    Company
                  x
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act.) Yes  ̈ No x
 
 The
number of shares outstanding of each of the issuer’s classes of common stock, as
of the latest practicable date: 428,704 shares of common stock, par value $.01
per share, as of November 12, 2010.
  
  FIRST
ROBINSON FINANCIAL CORPORATION
 Index to
Form 10-Q
 
 PAGEPART
      1. FINANCIAL INFORMATIONItem
      1.
                                                            Financial
      Statements
                                                            
                                                            3Condensed
      Consolidated Balance Sheets as of September 30, 2010 and March 31,
      2010
                                                            
                                                            3Condensed
      Consolidated Statements of Operations for the Three-Month and Six-Month
      Periods Ended September 30, 2010 and 2009
                                                            
                                                            4Condensed
      Consolidated Statements of Changes in Stockholders’ Equity For the
      Six-Month Periods ended September 30, 2010 and 2009
                                                            
                                                            6Condensed
      Consolidated Statements of Cash Flows for the Six-Month Periods Ended
      September 30, 2010 and 2009
                                                            
                                                            7Notes
      to Condensed Consolidated Financial Statements
                                                            
                                                            9Item
      2.
                                                            Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
                                                            
                                                            19Item
      3.
                                                            Quantitative
      and Qualitative Disclosures about Market Risk
                                                            
                                                            34Item
      4T.
                                                            Controls
      and Procedures
                                                            
                                                            34PART
      II. OTHER INFORMATIONItem
      1.
                                                            Legal
      Proceedings
                                                            
                                                            35Item
      1A.
                                                            Risk
      Factors
                                                            
                                                            35Item
      2.
                                                            Unregistered
      Sales of Equity Securities and Use of Proceeds
                                                            
                                                            35Item
      3.
                                                            Defaults
      Upon Senior Executives
                                                            
                                                            35Item
      4.
                                                            Removed
      and Reserved
                                                            
                                                            35Item
      5.
                                                            Other
      Information
                                                            
                                                            35Item
      6.
                                                            Exhibits
                                                            
                                                            35SIGNATURES
                                                            
                                                            36CERTIFICATIONS
                                                            
                                                            38
  2
  Item
1:
 FIRST
ROBINSON FINANCIAL CORPORATION
 CONDENSED
CONSOLIDATED BALANCE SHEETS
 (In
thousands, except share data)
 
 (Unaudited)September 30, 2010
                    
                    
                    March 31, 2010ASSETSCash
      and cash equivalents
                    
                    $
                    7,314
                    
                    
                    $
                    6,562Interest-bearing
      deposits
                    
                    
                    3,081
                    
                    
                    
                    3,475Federal
      funds sold
                    
                    
                    —
                    
                    
                    
                    7,852Cash
      and cash equivalents
                    
                    
                    10,395
                    
                    
                    
                    17,889Available-for-sale
      securities
                    
                    
                    51,958
                    
                    
                    
                    55,399Loans,
      held for sale
                    
                    
                    682
                    
                    
                    
                    88Loans,
      net of allowance for loan losses of $1,060 and $973 at September 30, 2010
      and March 31, 2010, respectively
                    
                    
                    115,951
                    
                    
                    
                    100,063Federal
      Reserve and Federal Home Loan Bank stock
                    
                    
                    1,051
                    
                    
                    
                    1,008Premises
      and equipment, net
                    
                    
                    3,894
                    
                    
                    
                    4,018Foreclosed
      assets held for sale, net
                    
                    
                    55
                    
                    
                    
                    52Interest
      receivable
                    
                    
                    988
                    
                    
                    
                    906Prepaid
      income taxes
                    
                    
                    133
                    
                    
                    
                    380Cash
      surrender value of life insurance
                    
                    
                    1,529
                    
                    
                    
                    1,504Other
      assets
                    
                    
                    1,596
                    
                    
                    
                    1,682Total
      Assets
                    
                    $
                    188,232
                    
                    
                    $
                    182,989LIABILITIES
      AND STOCKHOLDERS’ EQUITYLiabilitiesDeposits
                    
                    $
                    156,770
                    
                    
                    $
                    149,312Other
      borrowings
                    
                    
                    14,840
                    
                    
                    
                    17,621Federal
      funds purchased
                    
                    
                    35
                    
                    
                    
                    —Short-term
      borrowings
                    
                    
                    1,800
                    
                    
                    
                    1,700Advances
      from borrowers for taxes and insurance
                    
                    
                    115
                    
                    
                    
                    196Deferred
      income taxes
                    
                    
                    797
                    
                    
                    
                    779Interest
      payable
                    
                    
                    215
                    
                    
                    
                    251Other
      liabilities
                    
                    
                    1,222
                    
                    
                    
                    1,085Total
      Liabilities
                    
                    
                    175,794
                    
                    
                    
                    170,944Commitments
      and Contingencies
                    
                    
                    —
                    
                    
                    
                    —Stockholders’
      EquityPreferred
      stock, $.01 par value; authorized 500,000 shares, no shares issued and
      outstanding
                    
                    
                    —
                    
                    
                    
                    —Common
      stock, $ .01 par value; authorized 2,000,000 shares; 859,625 shares
      issued; outstanding September 30, 2010– 428,704 shares; March 31, 2010 –
      433,198 shares
                    
                    
                    9
                    
                    
                    
                    9Additional
      paid-in capital
                    
                    
                    8,769
                    
                    
                    
                    8,783Retained
      earnings
                    
                    
                    10,637
                    
                    
                    
                    10,182Accumulated
      other comprehensive income
                    
                    
                    1,071
                    
                    
                    
                    976Treasury
      stock, at costCommon:
      September 30, 2010 – 430,921 shares; March 31, 2010 – 426,427
      shares
                    
                    
                    (8,048
                    )
                    
                    
                    (7,905
                    )Total
      Stockholders’ Equity
                    
                    
                    12,438
                    
                    
                    
                    12,045Total
      Liabilities and Stockholders’ Equity
                    
                    $
                    188,232
                    
                    
                    $
                    182,989
 
 See Notes
to Condensed Consolidated Financial Statements
  3
  FIRST
ROBINSON FINANCIAL CORPORATION
 CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
 For the
Three and Six-Month Periods Ended September 30, 2010 and 2009
 (In
thousands, except per share data)
 (Unaudited)
 
 Three-Month Period
                  
                  
                  Six-Month Period2010
                  
                  
                  2009
                  
                  
                  2010
                  
                  
                  2009Interest
      and Dividend Income:Loans
                  
                  $
                  1,627
                  
                  
                  $
                  1,414
                  
                  
                  $
                  3,164
                  
                  
                  $
                  2,761Securities:Taxable
                  
                  
                  421
                  
                  
                  
                  518
                  
                  
                  
                  871
                  
                  
                  
                  1,085Tax-exempt
                  
                  
                  30
                  
                  
                  
                  37
                  
                  
                  
                  59
                  
                  
                  
                  75Other
      interest income
                  
                  
                  5
                  
                  
                  
                  1
                  
                  
                  
                  10
                  
                  
                  
                  5Dividends
      on Federal Reserve Bank stock
                  
                  
                  3
                  
                  
                  
                  2
                  
                  
                  
                  6
                  
                  
                  
                  5Total
      Interest and Dividend Income
                  
                  
                  2,086
                  
                  
                  
                  1,972
                  
                  
                  
                  4,110
                  
                  
                  
                  3,931Interest
      Expense:Deposits
                  
                  
                  591
                  
                  
                  
                  823
                  
                  
                  
                  1,212
                  
                  
                  
                  1,745Other
      borrowings
                  
                  
                  29
                  
                  
                  
                  18
                  
                  
                  
                  53
                  
                  
                  
                  28Total
      Interest Expense
                  
                  
                  620
                  
                  
                  
                  841
                  
                  
                  
                  1,265
                  
                  
                  
                  1,773Net
      Interest Income
                  
                  
                  1,466
                  
                  
                  
                  1,131
                  
                  
                  
                  2,845
                  
                  
                  
                  2,158Provision
      for Loan Losses
                  
                  
                  45
                  
                  
                  
                  135
                  
                  
                  
                  90
                  
                  
                  
                  180Net
      Interest Income After Provision for Loan Losses
                  
                  
                  1,421
                  
                  
                  
                  996
                  
                  
                  
                  2,755
                  
                  
                  
                  1,978Non-interest
      income:Charges
      and fees on deposit accounts
                  
                  
                  240
                  
                  
                  
                  256
                  
                  
                  
                  489
                  
                  
                  
                  476Charges
      and other fees on loans
                  
                  
                  68
                  
                  
                  
                  78
                  
                  
                  
                  158
                  
                  
                  
                  178Net
      gain on sale of loans
                  
                  
                  206
                  
                  
                  
                  55
                  
                  
                  
                  341
                  
                  
                  
                  182Net
      gain (loss) on sale of foreclosed property
                  
                  
                  (2
                  )
                  
                  
                  —
                  
                  
                  
                  15
                  
                  
                  
                  —Net
      realized gain on sale of available-for-sale investments
                  
                  
                  —
                  
                  
                  
                  5
                  
                  
                  
                  —
                  
                  
                  
                  106Net
      gain on sale of equipment
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  4
                  
                  
                  
                  —Other
                  
                  
                  130
                  
                  
                  
                  121
                  
                  
                  
                  267
                  
                  
                  
                  239Total
      Non-Interest Income
                  
                  
                  642
                  
                  
                  
                  515
                  
                  
                  
                  1,274
                  
                  
                  
                  1,181Non-interest
      expense:Compensation
      and employee benefits
                  
                  
                  799
                  
                  
                  
                  690
                  
                  
                  
                  1,538
                  
                  
                  
                  1,340Occupancy
      and equipment
                  
                  
                  184
                  
                  
                  
                  176
                  
                  
                  
                  352
                  
                  
                  
                  360Data
      processing
                  
                  
                  70
                  
                  
                  
                  66
                  
                  
                  
                  140
                  
                  
                  
                  126Audit,
      legal and other professional
                  
                  
                  77
                  
                  
                  
                  107
                  
                  
                  
                  142
                  
                  
                  
                  192Advertising
                  
                  
                  72
                  
                  
                  
                  75
                  
                  
                  
                  134
                  
                  
                  
                  177Telephone
      and postage
                  
                  
                  53
                  
                  
                  
                  50
                  
                  
                  
                  96
                  
                  
                  
                  104FDIC
      insurance
                  
                  
                  52
                  
                  
                  
                  50
                  
                  
                  
                  103
                  
                  
                  
                  181Loss
      on cost basis equity investment
                  
                  
                  —
                  
                  
                  
                  137
                  
                  
                  
                  —
                  
                  
                  
                  137Other
                  
                  
                  149
                  
                  
                  
                  183
                  
                  
                  
                  298
                  
                  
                  
                  341Total
      Non-Interest Expense
                  
                  
                  1,456
                  
                  
                  
                  1,534
                  
                  
                  
                  2,803
                  
                  
                  
                  2,958
 
 See Notes
to Condensed Consolidated Financial Statements.
  4
  FIRST
ROBINSON FINANCIAL CORPORATION
 CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
 For the
Three and Six-Month Periods Ended September 30, 2010 and 2009
 (In
thousands, except per share data)
 (Unaudited)
 
 Three-Month Period
                  
                  
                  Six-Month Period2010
                  
                  
                  2009
                  
                  
                  2010
                  
                  
                  2009Income
      (loss) before income taxes
                  
                  
                  607
                  
                  
                  
                  (23
                  )
                  
                  
                  1,226
                  
                  
                  
                  201Provision
      for income taxes
                  
                  
                  203
                  
                  
                  
                  11
                  
                  
                  
                  406
                  
                  
                  
                  72Net
      Income (Loss)
                  
                  $
                  404
                  
                  
                  $
                  (34
                  )
                  
                  $
                  820
                  
                  
                  $
                  129Earnings
      (Loss) Per Share-Basic
                  
                  $
                  0.98
                  
                  
                  $
                  (0.08
                  )
                  
                  $
                  1.98
                  
                  
                  $
                  0.31Earnings
      (Loss) Per Share-Diluted
                  
                  $
                  0.94
                  
                  
                  $
                  (0.08
                  )
                  
                  $
                  1.91
                  
                  
                  $
                  0.30
 
 See Notes
to Condensed Consolidated Financial Statements
  5
 
 FIRST
ROBINSON FINANCIAL CORPORATION
 CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
 For the
Six-Months Ended September 30, 2010 and 2009
 (In
thousands, except share data)
 (Unaudited)
 
 AccumulatedAdditional
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      OtherCommon Stock
                                                      
                                                      
                                                      Paid-in
                                                      
                                                      
                                                      Retained
                                                      
                                                      
                                                      Comprehensive
                                                      
                                                      
                                                      Treasury
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      ComprehensiveShares
                                                      
                                                      
                                                      Amount
                                                      
                                                      
                                                      Capital
                                                      
                                                      
                                                      Earnings
                                                      
                                                      
                                                      Income
                                                      
                                                      
                                                      Stock
                                                      
                                                      
                                                      Total
                                                      
                                                      
                                                      IncomeBalance,
      April 1, 2009
                                                      
                                                      
                                                      435,232
                                                      
                                                      
                                                      $
                                                      9
                                                      
                                                      
                                                      $
                                                      8,791
                                                      
                                                      
                                                      $
                                                      10,560
                                                      
                                                      
                                                      $
                                                      782
                                                      
                                                      
                                                      $
                                                      (7,835
                                                      )
                                                      
                                                      $
                                                      12,307Comprehensive
      incomeNet
      income
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      129
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      129
                                                      
                                                      
                                                      $
                                                      129Unrealized
      appreciation on available-for-sale securities, net of taxes of
      $146
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      203Less
      reclassification adjustment for realized gains included in income net of
      taxes $35
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      71Total
      unrealized appreciation on available-for-sale securities, net of taxes of
      $111
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      132
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      132
                                                      
                                                      
                                                      
                                                      132Total
      comprehensive income
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      $
                                                      261Treasury
      shares purchased
                                                      
                                                      
                                                      (2,034
                                                      )
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (70
                                                      )
                                                      
                                                      
                                                      (70
                                                      )Dividends
      on common stock, $0.80 per share
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (348
                                                      )
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (348
                                                      )Incentive
      compensation
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (14
                                                      )
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (14
                                                      )Balance,
      September 30, 2009
                                                      
                                                      
                                                      433,198
                                                      
                                                      
                                                      $
                                                      9
                                                      
                                                      
                                                      $
                                                      8,777
                                                      
                                                      
                                                      $
                                                      10,341
                                                      
                                                      
                                                      $
                                                      914
                                                      
                                                      
                                                      $
                                                      (7,905
                                                      )
                                                      
                                                      $
                                                      12,136Balance,
      April 1, 2010
                                                      
                                                      
                                                      433,198
                                                      
                                                      
                                                      $
                                                      9
                                                      
                                                      
                                                      $
                                                      8,783
                                                      
                                                      
                                                      $
                                                      10,182
                                                      
                                                      
                                                      $
                                                      976
                                                      
                                                      
                                                      $
                                                      (7,905
                                                      )
                                                      
                                                      $
                                                      12,045Comprehensive
      incomeNet
      income
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      820
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      820
                                                      
                                                      
                                                      $
                                                      820Change
      in unrealized appreciation on available-for-sale securities, net of taxes
      of $60
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      95
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      95
                                                      
                                                      
                                                      
                                                      95Total
      comprehensive income
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      $
                                                      915Treasury
      shares purchased
                                                      
                                                      
                                                      (4,494
                                                      )
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (143
                                                      )
                                                      
                                                      
                                                      (143
                                                      )Dividends
      on common stock, $0.85 per share
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (365
                                                      )
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (365
                                                      )Incentive
      compensation
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (14
                                                      )
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      
                                                      (14
                                                      )Balance,
      September 30, 2010
                                                      
                                                      
                                                      428,704
                                                      
                                                      
                                                      $
                                                      9
                                                      
                                                      
                                                      $
                                                      8,769
                                                      
                                                      
                                                      $
                                                      10,637
                                                      
                                                      
                                                      $
                                                      1,071
                                                      
                                                      
                                                      $
                                                      (8,048
                                                      )
                                                      
                                                      $
                                                      12,438
 
 See Notes
to Condensed Consolidated Financial Statements
  6
  FIRST
ROBINSON FINANCIAL CORPORATION
 CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
 For the
Six-Months Ended September 30, 2010 and 2009
 (In
thousands)
 (Unaudited)
 
 2010
                  
                  
                  2009Cash
      flows from operating activities:Net
      income
                  
                  $
                  820
                  
                  
                  $
                  129Items
      not requiring (providing) cashDepreciation
      and amortization
                  
                  
                  154
                  
                  
                  
                  150Provision
      for loan losses
                  
                  
                  90
                  
                  
                  
                  180Amortization
      of premiums and discounts on securities
                  
                  
                  132
                  
                  
                  
                  126Amortization
      of loan servicing rights
                  
                  
                  143
                  
                  
                  
                  57Deferred
      income taxes
                  
                  
                  (43
                  )
                  
                  
                  (38
                  )Originations
      of mortgage loans held for sale
                  
                  
                  (21,189
                  )
                  
                  
                  (18,555
                  )Proceeds
      from the sale of mortgage loans
                  
                  
                  20,936
                  
                  
                  
                  18,710Net
      gain on loans sold
                  
                  
                  (341
                  )
                  
                  
                  (182
                  )Net
      gain on sale of foreclosed property
                  
                  
                  (15
                  )
                  
                  
                  —Net
      gain on sale of equipment
                  
                  
                  (4
                  )
                  
                  
                  —Loss
      on cost basis equity investment
                  
                  
                  —
                  
                  
                  
                  137Net
      realized gain on sale of securities
                  
                  
                  —
                  
                  
                  
                  (106
                  )Cash
      surrender value of life insurance
                  
                  
                  (25
                  )
                  
                  
                  (24
                  )Changes
      in:Interest
      receivable
                  
                  
                  (82
                  )
                  
                  
                  (175
                  )Other
      assets
                  
                  
                  (63
                  )
                  
                  
                  (211
                  )Interest
      payable
                  
                  
                  (36
                  )
                  
                  
                  (30
                  )Other
      liabilities
                  
                  
                  137
                  
                  
                  
                  94Income
      taxes, prepaid
                  
                  
                  247
                  
                  
                  
                  109Net
      cash provided by operating activities
                  
                  
                  861
                  
                  
                  
                  371Cash
      flows from investing activities:Purchase
      of available-for-sale securities
                  
                  
                  (2,631
                  )
                  
                  
                  (26,983
                  )Proceeds
      from maturities of available-for-sale securities
                  
                  
                  1,398
                  
                  
                  
                  330Proceeds
      from sales of available-for-sale securities
                  
                  
                  —
                  
                  
                  
                  15,448Repayment
      of principal on mortgage-backed securities
                  
                  
                  4,698
                  
                  
                  
                  6,579Purchase
      of Federal Home Loan Bank stock
                  
                  
                  (43
                  )
                  
                  
                  (195
                  )Net
      change in loans
                  
                  
                  (16,033
                  )
                  
                  
                  (8,574
                  )Purchase
      of premises and equipment
                  
                  
                  (44
                  )
                  
                  
                  (103
                  )Proceeds
      from sale of equipment
                  
                  
                  24
                  
                  
                  
                  —Proceeds
      from sale of foreclosed assets
                  
                  
                  67
                  
                  
                  
                  16Net
      cash used in investing activities
                  
                  
                  (12,564
                  )
                  
                  
                  (13,482
                  )
 
 See Notes
to Condensed Consolidated Financial Statements.
  7
  FIRST
ROBINSON FINANCIAL CORPORATION
 CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 For The
Six-Months Ended September 30, 2010 and 2009
 (In
thousands)
 (Unaudited)
  2010
                  
                  
                  2009Cash
      flows from financing activities:Net
      increase in deposits
                  
                  $
                  7,458
                  
                  
                  $
                  8,175Federal
      funds purchased
                  
                  
                  14,280
                  
                  
                  
                  —Repayment
      of federal funds purchased
                  
                  
                  (14,245
                  )
                  
                  
                  —Proceeds
      from other borrowings
                  
                  
                  54,401
                  
                  
                  
                  54,591Repayment
      of other borrowings
                  
                  
                  (57,182
                  )
                  
                  
                  (52,118
                  )Advances
      from Federal Home Loan Bank
                  
                  
                  10
                  
                  
                  
                  5,500Repayment
      of advances from Federal Home Loan Bank
                  
                  
                  (10
                  )
                  
                  
                  (5,500
                  )Net
      change in from short-term borrowings
                  
                  
                  100
                  
                  
                  
                  2,500Purchase
      of incentive plan shares
                  
                  
                  (14
                  )
                  
                  
                  (14
                  )Purchase
      of treasury stock
                  
                  
                  (143
                  )
                  
                  
                  (70
                  )Dividends
      paid
                  
                  
                  (365
                  )
                  
                  
                  (348
                  )Net
      increase in advances from borrowers for taxes and
insurance
                  
                  
                  (81
                  )
                  
                  
                  (100
                  )Net
      cash provided by financing activities
                  
                  
                  4,209
                  
                  
                  
                  12,616Decrease
      in cash and cash equivalents
                  
                  
                  (7,494
                  )
                  
                  
                  (495
                  )Cash
      and cash equivalents at beginning of period
                  
                  
                  17,889
                  
                  
                  
                  13,709Cash
      and cash equivalents at end of period
                  
                  $
                  10,395
                  
                  
                  $
                  13,214Supplemental
      Cash Flows Information:Interest
      paid
                  
                  $
                  1,302
                  
                  
                  $
                  1,803Income
      taxes paid (net of refunds)
                  
                  
                  202
                  
                  
                  
                  —Real
      estate acquired in settlement of loans
                  
                  
                  55
                  
                  
                  
                  —
 
 See Notes
to Condensed Consolidated Financial Statements.
  8
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 1.
              Basis of
      Presentation
 
 The
condensed consolidated financial statements include the accounts of First
Robinson Financial Corporation (the “Company”) and its wholly owned subsidiary,
First Robinson Savings Bank, National Association (the “Bank”). All significant
intercompany accounts and transactions have been eliminated in consolidation.
The accompanying condensed consolidated financial statements are unaudited and
should be read in conjunction with the consolidated financial statements and
notes thereto included in the Company’s Form 10-K filed with the Securities and
Exchange Commission. The accompanying unaudited interim condensed consolidated
financial statements have been prepared in accordance with the rules and
regulations for reporting on Form 10-Q and Article 8-03 of Regulation of S-X.
Accordingly, they do not include information or footnotes necessary for a
complete presentation of financial condition, results of operations, changes in
stockholders’ equity, and cash flows in conformity with accounting principles
generally accepted in the United States of America. In the opinion of management
of the Company, the unaudited condensed consolidated financial statements
reflect all adjustments (consisting of normal recurring adjustments) necessary
to present fairly the financial position of the Company at September 30, 2010,
the results of its operations for the three and six month periods ended
September 30, 2010 and 2009, the changes in stockholders’ equity for the six
month periods ended September 30, 2010 and 2009, and cash flows for the six
month periods ended September 30, 2010 and 2009. The results of operations for
those months ended September 30, 2010 are not necessarily indicative of the
results to be expected for the full year.
 
 The
Condensed Consolidated Balance Sheet of the Company, as of March 31, 2010, has
been derived from the audited Consolidated Balance Sheet for the Company as of
that date.
 
 2.
              Newly Adopted and
      Recent Accounting
Pronouncements
 
 In July
2010, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Update (ASU) No. 2010-20, “Receivables (Topic 310) –
Disclosures about the Credit Quality of Financing Receivables and the Allowance
for Credit Losses,” which requires significant new disclosures about the
allowance for credit losses and the credit quality of financing receivables. The
requirements are intended to enhance transparency regarding credit losses and
the credit quality of loan losses receivables. Under this statement, allowance
for credit losses and fair value are to be disclosed by portfolio segment, while
credit quality information, impaired financing receivables and nonaccrual status
are to be presented by class of financing receivable. Disclosure of the nature
and extent, the financial impact and segment information of troubled debt
restructurings will also be required. The dislcosures are to be presented at the
level of disaggregation that management uses when assessing and monitoring the
portfolio’s risk and performance. ASU 2010-20 is effective for interim and
annual reporting periods after December 15, 2010. The Company is currently
assessing the effects of adopting the provisions of ASU 2010-20 and will provide
the required disclosure in their March 2011 Report on Form 10-K.
 
 In
January 2010, the FASB issued ASU No. Topic 2010-06, “Fair Value Measurements and
Disclosures (Topic 820) – Improving Disclosures about Fair Value
Measurements.” ASU 2010-06 amends the fair value disclosure guidance. The
amendments include new disclosures and changes to clarify existing disclosure
requirements. ASU 2010-06 was effective for interim and annual reporting periods
beginning after December 15, 2009, except for the disclosures about purchases,
sales, issuances and settlements of Level 3 fair value measurements. Those
disclosures are effective for fiscal years beginning after December 15, 2010,
and for interim periods within those fiscal years. Adoption of this update did
not have a material impact on the Company’s financial
statements.
  9
 
 FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 3.
              Fair Value
      Measurements
  FASB ASC
No. 820 defines fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. FASB ASC No. 820 also establishes a fair
value hierarchy which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value.
The standard describes three levels of inputs that may be used to measure fair
value:
 
 Level 1
              Quoted
      prices in active markets for identical assets or
    liabilities.
 
 Level 2
              Observable
      inputs other than Level 1 prices, such as quoted prices for similar assets
      or liabilities; quoted prices in markets that are not active; or other
      inputs that are observable or can be corroborated by observable market
      data for substantially the full term of the assets or
      liabilities.
 
 Level 3
              Unobservable
      inputs that are supported by little or no market activity and that are
      significant to the fair value of the assets or
  liabilities.
  Following
is a description of the valuation methodologies used for instruments measured at
fair value on a recurring basis and recognized in the accompanying condensed
consolidated balance sheet at September 30, 2010 and March 31,
2010.
  Available-for-Sale
Securities
  The fair
value of available-for-sale securities are determined by various valuation
methodologies. Where quoted market prices are available in an active market,
securities are classified within Level 1. The Company has no Level 1 securities.
If quoted market prices are not available, then fair values are estimated using
pricing models or quoted prices of securities with similar characteristics.
Level 2 securities include obligations of U.S. government corporations and
agencies, obligations of states and political subdivisions, and mortgage-backed
securities. The value of the Company’s Level 2 securities is set forth below. In
certain cases where Level 1 or Level 2 inputs are not available, securities are
classified within Level 3 of the hierarchy. The Company has no Level 3
available-for-sale securities.
  10
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
  The
following table presents the Company’s assets that are measured at fair value on
a recurring basis and the level within the FASB ASC No. 820 hierarchy in which
the fair value measurements fall as of September 30, 2010 and March 31, 2010 (in
thousands):
 
 Carrying value at September 30, 2010Description
                            
                            Fair Value
                            
                            
                            Quoted Prices in
                              Active Markets
                              for Identical
                              Assets
                              (Level 1)
                            
                            
                            Significant
                              Other
                              Observable
                              Inputs
                              (Level 2)
                            
                            
                            Significant
                              Unobservable
                              Inputs
                              (Level 3)U.S.
      government sponsored enterprises (GSE)
                            
                            $
                            14,016
                            
                            
                            $
                            —
                            
                            
                            $
                            14,016
                            
                            
                            $
                            —Mortgage-backed,
      GSE residential
                            
                            
                            31,656
                            
                            
                            
                            —
                            
                            
                            
                            31,656
                            
                            
                            
                            —Mortgage-backed,
      GSE commercial
                            
                            
                            1,572
                            
                            
                            
                            —
                            
                            
                            
                            1,572
                            
                            
                            
                            —State
      and political subdivisions
                            
                            
                            4,714
                            
                            
                            
                            —
                            
                            
                            
                            4,714
                            
                            
                            
                            —Total
      available-for-sale securities
                            
                            $
                            51,958
                            
                            
                            $
                            —
                            
                            
                            $
                            51,958
                            
                            
                            $
                            —
  Carrying value at March 31, 2010Description
                            
                            Fair Value
                            
                            
                            Quoted Prices in
                              Active Markets
                              for Identical
                              Assets
                              (Level 1)
                            
                            
                            Significant
                              Other
                              Observable
                              Inputs
                              (Level 2)
                            
                            
                            Significant
                              Unobservable
                              Inputs
                              (Level 3)U.S.
      government sponsored enterprises (GSE)
                            
                            $
                            15,191
                            
                            
                            $
                            —
                            
                            
                            $
                            15,191
                            
                            
                            $
                            —Mortgage-backed,
      GSE residential
                            
                            
                            36,472
                            
                            
                            
                            —
                            
                            
                            
                            36,472
                            
                            
                            
                            —State
      and political subdivisions
                            
                            
                            3,736
                            
                            
                            
                            —
                            
                            
                            
                            3,736
                            
                            
                            
                            —Total
      available-for-sale securities
                            
                            $
                            55,399
                            
                            
                            $
                            —
                            
                            
                            $
                            55,399
                            
                            
                            $
                            —
  The
Company may be required, from time to time, to measure certain other financial
assets and liabilities on a nonrecurring basis. These adjustments to fair value
usually result from application of lower-of-cost-or-market accounting or
write-downs of individual assets. Following is a description of the valuation
methodologies for assets measured at fair value on a non-recurring basis and
recognized in the accompanying balance sheets, as well as the general
classification of such assets and liabilities pursuant to the valuation
hierarchy.
  Impaired
Loans (Collateral
Dependent)
  Loans for
which it is probable that the Company will not collect all principal and
interest due according to contractual terms are measured for impairment in
accordance with the provisions of FASB ASC No. 310-10-45 (“ASC 310-45”)
“Accounting by Creditors for Impairment of a Loan.” Allowable methods for
estimating fair value include using the fair value of the collateral for
collateral dependent loans.
  If the
impaired loan is identified as collateral dependent, then the fair value method
of measuring the amount of the impairment is utilized. This method requires
reviewing an independent appraisal of the collateral and applying a discount
factor to the value based on management’s estimation process.
 
 Impaired
loans are classified within Level 3 of the fair value hierarchy.
 
 Mortgage
Servicing Rights
 
 The fair
value used to determine the valuation allowance is estimated using discounted
cash flow models. Due to the nature of the valuation inputs, mortgage servicing
rights are classified within Level 3 of the hierarchy.
  11
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 Foreclosed
Assets Held for Sale
 
 Fair
value of foreclsoed assets held for sale is based on market prices determined by
appraisals less discounts for costs to sell. Foreclosed assets held for sale are
classified within Level 2 of the valuation hierarchy.
 
 The
following table presents the fair value measurement of assets measured at fair
value on a nonrecurring basis and the level within the FASB ASC No. 820 fair
value hierarchy in which the fair value measurements fall at September 30, 2010
and March 31, 2010:
 
 Carrying value at September 30, 2010Quoted Prices in
                  
                  
                  SignificantActive Markets
                  
                  
                  Other
                  
                  
                  Significantfor Identical
                  
                  
                  Observable
                  
                  
                  UnobservableAssets
                  
                  
                  Inputs
                  
                  
                  InputsDescription
                  
                  Fair Value
                  
                  
                  (Level 1)
                  
                  
                  (Level 2)
                  
                  
                  (Level 3)Impaired
      loans (collateral dependent)
                  
                  $
                  321
                  
                  
                  $
                  —
                  
                  
                  $
                  —
                  
                  
                  $
                  321
 
 Carrying value at March 31, 2010Quoted Prices in
                  
                  
                  SignificantActive Markets
                  
                  
                  Other
                  
                  
                  Significantfor Identical
                  
                  
                  Observable
                  
                  
                  UnobservableAssets
                  
                  
                  Inputs
                  
                  
                  InputsDescription
                  
                  Fair Value
                  
                  
                  (Level 1)
                  
                  
                  (Level 2)
                  
                  
                  (Level 3)Impaired
      loans (collateral dependent)
                  
                  $
                  66
                  
                  
                  $
                  —
                  
                  
                  $
                  —
                  
                  
                  $
                  66Motgage
      servicing rights
                  
                  
                  422
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  422Foreclosed
      assets held for sale, net
                  
                  
                  52
                  
                  
                  
                  —
                  
                  
                  
                  52
                  
                  
                  
                  —
 
 The
following methods were used to estimate fair values of the Company’s financial
instruments. The fair values of certain of these instruments were calculated by
discounting expected cash flows, which involves significant judgments by
management and uncertainties. Fair value is the estimated amount at which
financial assets or liabilities could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale. Because no
market exists for certain of these financial instruments and
because management does not intend to sell these financial instruments, the
Company does not know whether the fair values shown below represent values at
which the respective financial instruments could be sold individually or in the
aggregate.
 
 Carrying
amount is the estimated fair value for cash and cash equivalents,
interest-bearing deposits, loans held for sale, federal funds sold, Federal
Reserve and Federal Home Loan Bank stocks, accrued interest receivable and
payable, and advances from borrowers for taxes and insurance. Security fair
values equal quoted market prices, if available. If quoted market prices are not
available, fair value is estimated based on quoted market prices of similar
securities. The fair value of loans is estimated by discounting the future cash
flows using the current rates at which similar loans would be made to borrowers
with similar credit ratings and for the same remaining maturities. Loans with
similar characteristics were aggregated for purposes of the calculations. On
demand deposits, savings accounts, NOW accounts, and certain money market
deposits the carrying amount approximates fair value. The fair value of
fixed-maturity time deposits is estimated using a discounted cash flow
calculation that applies the rates currently offered for deposits of similar
remaining maturities. On other borrowings and short-term borrowings, rates
currently available to the Company for debt with similar terms and remaining
maturities are used to estimate the fair value of existing debt. The fair value
of commitments to originate loans is estimated using the fees currently charged
to enter into similar agreements, taking into account the remaining terms of the
agreements and the present creditworthiness of the counterparties. For
fixed-rate loan commitments, fair value also considers the difference between
current levels of interest rates and the committed rates. The fair value of
forward sale commitments is estimated based on current market prices for loans
of similar terms and credit quality. The fair values of letters of credit and
lines of credit are based on fees currently charged for similar agreements or on
the estimated cost to terminate or otherwise settle the obligations with the
counterparties at the reporting date.
  12
 
 FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 September 30, 2010
                  
                  
                  March 31, 2010Carrying
                  
                  
                  
                  
                  
                  CarryingAmount
                  
                  
                  Fair Value
                  
                  
                  Amount
                  
                  
                  Fair Value(In thousands)Financial
      assetsCash
      and cash equivalents
                  
                  $
                  7,314
                  
                  
                  $
                  7,314
                  
                  
                  $
                  6,562
                  
                  
                  $
                  6,562Interest-bearing
      deposits
                  
                  
                  3,081
                  
                  
                  
                  3,081
                  
                  
                  
                  3,475
                  
                  
                  
                  3,475Federal
      funds sold
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  7,852
                  
                  
                  
                  7,852Available-for-sale
      securities
                  
                  
                  51,958
                  
                  
                  
                  51,958
                  
                  
                  
                  55,399
                  
                  
                  
                  55,399Loans
      held for sale
                  
                  
                  682
                  
                  
                  
                  682
                  
                  
                  
                  88
                  
                  
                  
                  88Loans,
      net of allowance for loan losses
                  
                  
                  115,951
                  
                  
                  
                  117,477
                  
                  
                  
                  100,063
                  
                  
                  
                  101,214Federal
      Reserve and Federal Home Loan Bank stock
                  
                  
                  1,051
                  
                  
                  
                  1,051
                  
                  
                  
                  1,008
                  
                  
                  
                  1,008Interest
      receivable
                  
                  
                  988
                  
                  
                  
                  988
                  
                  
                  
                  906
                  
                  
                  
                  906Financial
      liabilitiesDeposits
                  
                  
                  156,770
                  
                  
                  
                  150,772
                  
                  
                  
                  149,312
                  
                  
                  
                  139,318Other
      borrowings
                  
                  
                  14,840
                  
                  
                  
                  14,850
                  
                  
                  
                  17,621
                  
                  
                  
                  17,630Federal
      funds purchased
                  
                  
                  35
                  
                  
                  
                  35
                  
                  
                  
                  —
                  
                  
                  
                  —Short-term
      borrowings
                  
                  
                  1,800
                  
                  
                  
                  1,800
                  
                  
                  
                  1,700
                  
                  
                  
                  1,700Advances
      from borrowers for taxes and insurance
                  
                  
                  115
                  
                  
                  
                  115
                  
                  
                  
                  196
                  
                  
                  
                  196Interest
      payable
                  
                  
                  215
                  
                  
                  
                  215
                  
                  
                  
                  251
                  
                  
                  
                  251Unrecognized
      financial instruments (net of contract amount)Commitments
      to originate loans
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —Letters
      of credit
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —Lines
      of credit
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
 
 4.
              Federal Home Loan Bank
      Stock
 
 The
Company owns approximately $879,000 of Federal Home Loan Bank of Chicago
(“FHLB”) stock. During the third quarter of 2007, the FHLB of Chicago received a
Cease and Desist Order from its regulator, the Federal Housing Finance Board.
The order generally prohibits capital stock repurchases and redemptions until a
time to be determined by the Federal Housing Finance Board. The FHLB will
continue to provide liquidity and funding through advances. With regard to
dividends, which have not been declared since July 24, 2007, the FHLB will
continue to assess its dividend capacity each quarter and make appropriate
requests for approval. Management performed an analysis and deemed the Company’s
cost method investment in FHLB stock to be recoverable as of September 30,
2010.
 
 5.
              Authorized Share
      Repurchase Program
 
 The Board
of Directors voted, on August 17, 2010, to approve a stock repurchase program of
approximately 5,000 shares, or approximately 1.2% of the Company’s issued and
outstanding shares. The repurchase program will expire the earlier of the
completion of the purchase of the shares or August 16, 2011. The previous
program that was approved July 24, 2009, expired on August 2, 2010, with 6,444
of the authorized 14,110 shares purchased.
  13
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 6.
              Investment
      Securities
 
 The
amortized cost and approximate fair values of available-for-sale securities are
as follows:
  Amortized
                          Cost
                        
                        
                        Gross
                          Unrealized
                          Gains
                        
                        
                        Gross
                          Unrealized
                          Losses
                        
                        
                        Approximate
                          Fair Value(In
      thousands)September
      30, 2010U.S.
      government sponsored enterprises (GSE)
                        
                        $
                        13,634
                        
                        
                        $
                        382
                        
                        
                        $
                        —
                        
                        
                        $
                        14,016Mortgage-backed
      securities, GSE, residential
                        
                        
                        30,322
                        
                        
                        
                        1,334
                        
                        
                        
                        —
                        
                        
                        
                        31,656Mortgage-backed
      securities, GSE, commercial
                        
                        
                        1,615
                        
                        
                        
                        —
                        
                        
                        
                        (43
                        )
                        
                        
                        1,572State
      and political subdivisions
                        
                        
                        4,636
                        
                        
                        
                        78
                        
                        
                        
                        —
                        
                        
                        
                        4,714$
                        50,207
                        
                        
                        $
                        1,794
                        
                        
                        $
                        (43
                        )
                        
                        $
                        51,958March
      31, 2010U.S.
      government sponsored enterprises (GSE)
                        
                        $
                        14,852
                        
                        
                        $
                        339
                        
                        
                        $
                        —
                        
                        
                        $
                        15,191Mortgage-backed
      securities, GSE residential
                        
                        
                        35,308
                        
                        
                        
                        1,186
                        
                        
                        
                        (22
                        )
                        
                        
                        36,472State
      and political subdivisions
                        
                        
                        3,644
                        
                        
                        
                        96
                        
                        
                        
                        (4
                        )
                        
                        
                        3,736$
                        53,804
                        
                        
                        $
                        1,621
                        
                        
                        $
                        (26
                        )
                        
                        $
                        55,399
 
 The
amortized cost and fair value of available-for-sale securities at September 30,
2010, by contractual maturity, are shown below. Expected maturities will differ
from contractual maturities because issuers may have the right to call or prepay
obligations with or without call or prepayment penalties.
 
 Amortized
                          Cost
                        
                        
                        Fair
                          Value(In thousands)Within
      one year
                        
                        $
                        6,306
                        
                        
                        $
                        6,392One
      to five years
                        
                        
                        11,107
                        
                        
                        
                        11,453Five
      to ten years
                        
                        
                        857
                        
                        
                        
                        88518,270
                        
                        
                        
                        18,730Mortgage-backed
      securities
                        
                        
                        31,937
                        
                        
                        
                        33,228Totals
                        
                        $
                        50,207
                        
                        
                        $
                        51,958
 
 There
were no sales of investment securities during the six months ended September 30,
2010. Proceeds from the sale of investment securities available-for-sale during
the six-months ended September 30, 2009 were $15,448,000. Gross gains of
$113,000 and gross losses of $7,000 were realized on the sales for the
six-months ended September 30, 2009.
  14
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 The
following table shows our investments’ gross unrealized losses and fair value
(in thousands), aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position at
September 30, 2010 and March 31, 2010. At September 30, 2010, the Company does
not hold any security that it considers other-than-temporarily
impaired.
 
 Description of Securities
                              
                              Less than 12 Months
                              
                              
                              More than 12 Months
                              
                              
                              TotalFair Value
                              
                              
                              Unrealized
                                Losses
                              
                              
                              Fair Value
                              
                              
                              Unrealized
                                Losses
                              
                              
                              Fair Value
                              
                              
                              Unrealized
                                LossesAs
      of September 30, 2010Mortgage-backed
      securities, GSE, commercial
                              
                              $
                              1,572
                              
                              
                              $
                              43
                              
                              
                              $
                              —
                              
                              
                              $
                              —
                              
                              
                              $
                              1,572
                              
                              
                              $
                              43Total
      temporarily impaired securities
                              
                              $
                              1,572
                              
                              
                              $
                              43
                              
                              
                              $
                              —
                              
                              
                              $
                              —
                              
                              
                              $
                              1,572
                              
                              
                              $
                              43As
      of March 31, 2010Mortgage-backed
      securities, GSE, residential
                              
                              $
                              2,712
                              
                              
                              $
                              22
                              
                              
                              $
                              —
                              
                              
                              $
                              —
                              
                              
                              $
                              2,712
                              
                              
                              $
                              22State
      and political subdivisions
                              
                              
                              303
                              
                              
                              
                              2
                              
                              
                              
                              227
                              
                              
                              
                              2
                              
                              
                              
                              530
                              
                              
                              
                              4Total
      temporarily impaired securities
                              
                              $
                              3,015
                              
                              
                              $
                              24
                              
                              
                              $
                              227
                              
                              
                              $
                              2
                              
                              
                              $
                              3,242
                              
                              
                              $
                              26
 
 There is
one security in an unrealized loss position in the investment portfolio at
September 30, 2010, due to interest rate changes and not credit events. The
unrealized loss is considered temporary and, therefore, has not been recognized
into income, because the issuer is of high credit quality and management has the
ability and intent to hold for the foreseeable future. The fair value is
expected to recover as the investment approaches its maturity date or there is a
downward shift in interest rates. All but one of the mortgage-backed securities
in the portfolio are residential properties. The mortgage-backed security with a
temporary loss is secured by 5 or more dwelling units.
 
 7.
              Accumulated Other
      Comprehensive Income
 
 Other
comprehensive income components and related taxes were as follows at September
30:
  2010
                      
                      
                      2009(In thousands)Unrealized
      gains on available-for-sale securities
                      
                      $
                      155
                      
                      
                      $
                      349Less
      reclassification adjustment for realized gains included in
      income
                      
                      
                      —
                      
                      
                      
                      106Other
      comprehensive income, before tax effect
                      
                      
                      155
                      
                      
                      
                      243Less
      tax expense
                      
                      
                      60
                      
                      
                      
                      111Other
      comprehensive income related to available-for-sale
    securities
                      
                      $
                      95
                      
                      
                      $
                      132
  The
components of accumulated other comprehensive income, included in stockholders’
equity, are as follows:
  September 30,
                        2010
                      
                      
                      March 31,
                        2010(In thousands)Net
      unrealized gain on securities available for sale
                      
                      $
                      1,751
                      
                      
                      $
                      1,595Tax
      effect
                      
                      
                      (680
                      )
                      
                      
                      (619
                      )Net-of-tax
      amount
                      
                      $
                      1,071
                      
                      
                      $
                      976
  15
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 8.
              Lines of
      Credit
 
 The
Company’s $2.5 million revolving line of credit note payable matured September
30, 2010 and was renewed until September 30, 2011. The balance of the revolving
line of credit was $1,800,000 and $1,700,000 as of September 30, 2010 and March
31, 2010, respectively. The note bears interest at the prime commercial rate
with a floor of 3.50% which was the rate on September 30, 2010 and is secured by
100% of the stock of the Bank.
 
 The Bank
maintains a $5,000,000 revolving line of credit, of which $35,000 was
outstanding at September 30, 2010 with no amount outstanding at March 31, 2010,
with an unaffiliated financial institution. The line bears interest at the
federal funds rate of the financial institution (1.15% at September 30, 2010),
has an open-end maturity and is unsecured if used for less than thirty (30)
consecutive days.
 
 The Bank
has also established borrowing capabilities at the Federal Reserve Bank of St.
Louis discount window. Investment securities of $3,000,000 have been pledged as
collateral. As of September 30, 2010 and March 31, 2010 no amounts were
outstanding. The primary credit borrowing rate at September 30, 2010 was 0.50%,
has a term of up to 90 days, and has no restrictions on use of the funds
borrowed.
 
 9.
              Other
      Borrowings
 
 Other
borrowings included the following:
  September 30,
                      2010
                    
                    
                    March 31,
                      2010(In thousands)Securities
      sold under repurchase agreements
                    
                    $
                    14,840
                    
                    
                    $
                    17,621
  Securities
sold under agreements to repurchase consist of obligations of the Company to
other parties. The obligations are secured by investments and such collateral is
held by the Company in safekeeping at a correspondent bank. The maximum amount
of outstanding agreements at any month end during the six months ending
September 30, 2010 and the twelve months ending March 31, 2010 totaled
$20,388,000 and $20,023,000, respectively. The monthly average of such
agreements totaled $18,861,000 for the six months ending September 30, 2010 and
$15,222,000 for the twelve months ending March 31, 2010. The average rate on the
agreements for the six months ending September 30, 2010 was 0.17% and 0.14% for
the twelve months ending March 31, 2010. The agreements at September 30, 2010,
mature periodically within 24 months.
  The
Company has a repurchase agreement with one customer with an outstanding balance
of $8.5 million at September 30, 2010. The repurchase agreement matures
daily.
  16
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 10.
              Earnings (Loss) Per
      Share for the Three-Month
Periods
 
 Basic
earnings (loss) per share is calculated by dividing net income (loss) by the
weighted average number of common shares outstanding during the period. Diluted
earnings (loss) per share gives effect to the increase in the average shares
outstanding resulting from the exercise of dilutive stock options and the effect
of the incentive plan shares. The Company had 15,996 incentive plan shares
outstanding at September 30, 2009 that were excluded from the calculation as
they were anti-dilutive. The components of basic and diluted earnings (loss) per
share for the three months ended September 30, 2010 and 2009 were computed as
follows (dollar amounts in thousands except share data):
 
 WeightedAverage
                              
                              
                              Per ShareIncome (Loss)
                              
                              
                              Shares
                              
                              
                              AmountFor
      the Three-Months Ended September 30, 2010:Basic
      Earnings per Share:Income
      available to common stockholders
                              
                              $
                              404
                              
                              
                              
                              412,485
                              
                              
                              $
                              0.98Effect
      of Dilutive Securities:Incentive
      plan shares
                              
                              
                              
                              
                              
                              
                              16,244Diluted
      Earnings per Share:Income
      available to common stockholders
                              
                              $
                              404
                              
                              
                              
                              428,729
                              
                              
                              $
                              0.94For
      the Three-Months Ended September 30, 2009:Basic
      Earnings (Loss) per Share:Income
      (loss) available to common stockholders
                              
                              $
                              (34
                              )
                              
                              
                              417,916
                              
                              
                              $
                              (0.08
                              )Effect
      of Dilutive Securities:Incentive
      plan shares
                              
                              
                              
                              
                              
                              
                              —Diluted
      Earnings (Loss) per Share:Income
      (loss) available for common stockholders
                              
                              $
                              (34
                              )
                              
                              
                              417,916
                              
                              
                              $
                              (0.08
                              )
  17
  FIRST
ROBINSON FINANCIAL CORPORATION
 NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 11.
              Earnings Per Share for
      the Six-Month Periods
 
 Basic
earnings per share is calculated by dividing net income by the weighted average
number of common shares outstanding during the period. Diluted earnings per
share gives effect to the increase in the average shares outstanding which would
have resulted from the exercise of dilutive stock options. As of September 30,
2010 and 2009, all outstanding options had been exercised. Therefore, there is
no dilutive effect with regards to options for the earnings per share
calculation for the six month periods ended September 30, 2010 and 2009. The
components of basic and diluted earnings per share for the six months ended
September 30, 2010 and 2009 were computed as follows (dollar amounts in
thousands except share data):
 
 WeightedAverage
                      
                      
                      Per
      ShareIncome
                      
                      
                      Shares
                      
                      
                      AmountFor
      the Six-Months Ended September 30, 2010:Basic
      Earnings per Share:Income
      available to common stockholders
                      
                      $
                      820
                      
                      
                      
                      413,265
                      
                      
                      $
                      1.98Effect
      of Dilutive Securities:Unearned
      incentive plan shares
                      
                      
                      
                      
                      
                      
                      16,056Diluted
      Earnings per Share:Income
      available to common stockholders
                      
                      $
                      820
                      
                      
                      
                      429,321
                      
                      
                      $
                      1.91For
      the Six-Months Ended September 30, 2009:Basic
      Earnings per Share:Income
      available to common stockholders
                      
                      $
                      129
                      
                      
                      
                      418,586
                      
                      
                      $
                      0.31Effect
      of Dilutive Securities:Unearned
      incentive plan shares
                      
                      
                      
                      
                      
                      
                      15,947Diluted
      Earnings per Share:Income
      available for common stockholders
                      
                      $
                      129
                      
                      
                      
                      434,533
                      
                      
                      $
                      0.30
  18
  Item
2:
 FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Management’s
discussion and analysis of financial condition and results of operations is
intended to assist in understanding the financial condition and results of the
Company. The information contained in this section should be read in conjunction
with the unaudited condensed consolidated financial statements and accompanying
notes thereto.
 
 Forward-Looking
Statements
 
 When used
in this filing and in future filings by First Robinson Financial Corporation
(the “Company”) with the Securities and Exchange Commission, in the Company’s
press releases or other public or shareholder communications, or in oral
statements made with the approval of an authorized executive officer, the words
or phrases “believe,” “expect,” “should,” “would be,” “will allow,” “intends
to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,”
“estimate,” “project” or similar expressions are intended to identify
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Examples of forward-looking statements include,
but are not limited to, estimates with respect to our financial condition,
results of operations and business that are subject to various factors that
could cause actual results to differ materially from these estimates and most
other statements that are not historical in nature. These factors and statements
are subject to risks and uncertainties, including but not limited to, the effect
of the current severe disruption in financial markets and the United States
government programs introduced to restore stability and liquidity, changes in
economic conditions nationally and in the Company’s market area;
legislative/regulatory provisions; monetary and fiscal policies of the U.S.
Government, including policies of the U.S. Treasury and the Federal Reserve
Board; the quality of composition of the loan or investment portfolios; changes
in accounting principles, policies, or guidelines; fluctuations in interest
rates; deposit flows; demand for loans in the Company’s market area; real estate
values; credit quality and adequacy of reserves; competition; customer growth
and retention; earnings growth and expectations; new products and services;
technological factors affecting operations, pricing of products and services;
employees; unforseen difficulties and higher than expected costs associated with
the implementation of our Strategic Plan; or failure to improve operating
efficiencies through expense controls; all or some of which could cause actual
results to differ materially from historical earnings and those presently
anticipated or projected. References in this filing to “we,” “us,” and “our”
refer to the Company and/or the Bank, as the content requires. The Company does
not undertake, and specifically disclaims any obligation, to update any
forward-looking statements to reflect occurrences or unanticipated events or
circumstances after the date of such statements.
 
 Critical
Accounting Policies
 
 The
accounting and reporting policies of the Company are in accordance with
accounting principles generally accepted in the United States and conform to
general practices within the banking industry. The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions.
The financial position and results of operations can be affected by these
estimates and assumptions and are integral to the understanding of reported
results. Critical accounting policies are those policies that management
believes are the most important to the portrayal of the Company's financial
condition and results, and they require management to make estimates that are
difficult, subjective, or complex.
 
 Allowance for Loan Losses -
The allowance for loan losses provides coverage for probable losses inherent in
the Company's loan portfolio. Management evaluates the adequacy of the allowance
for credit losses each quarter based on changes, if any, in underwriting
activities, the loan portfolio composition (including product mix and
geographic, industry or customer-specific concentrations), trends in loan
performance, regulatory guidance and economic factors. This evaluation is
inherently subjective, as it requires the use of significant management
estimates. Many factors can affect management's estimates of specific and
expected losses, including volatility of default probabilities, rating
migrations, loss severity and economic and political conditions. The allowance
is increased through provisions charged to operating earnings and reduced by net
charge-offs.
 
 The
Company determines the amount of the allowance based on relative risk
characteristics of the loan portfolio. The allowance recorded for commercial
loans is based on reviews of individual credit relationships and an analysis of
the migration of commercial loans and actual loss experience. The allowance
recorded for homogeneous consumer loans is based on an analysis of loan mix,
risk characteristics of the portfolio, fraud loss and bankruptcy experiences,
and historical losses, adjusted for current trends, for each homogenous category
or group of loans. The allowance for credit losses relating to impaired loans is
based on the loan's observable market price, the collateral for certain
collateral-dependent loans, or the discounted cash flows using the loan's
effective interest rate.
  19
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Regardless
of the extent of the Company's analysis of customer performance, portfolio
trends or risk management processes, certain inherent but undetected losses are
probable within the loan portfolio. This is due to several factors including
inherent delays in obtaining information regarding a customer's financial
condition or changes in their unique business conditions, the judgmental nature of
individual loan evaluations, regulatory input, collateral assessments and the
interpretation of economic trends. Volatility of economic or customer-specific
conditions affecting the identification and estimation of losses for larger
non-homogeneous credits and the sensitivity of assumptions utilized to establish
allowances for homogeneous groups of loans are among other factors. The Company estimates
a range of inherent losses related to the existence of the exposures. The
estimates are based upon the Company's evaluation of risk associated with the
commercial and consumer allowance levels and the estimated impact of the current
economic environment.
 
 Overview
and Recent Developments
 
 The
Company is the holding company for First Robinson Savings Bank, National
Association (the “Bank”). The Company is headquartered in Robinson, Illinois and
operates three full service banking offices and one drive-up facility in
Crawford County, Illinois and one full service banking office in Knox County,
Indiana. Assets grew $5.2 million, or 2.9%, from $183.0 million at March 31,
2010 to $188.2 million at September 30, 2010. See “Financial Condition” for more
information. The Company is reporting net income of $404,000 for the three month
period and $820,000 for the six month period ending September 30, 2010, versus a
net loss of $34,000 in the three months ending September 30, 2009 and net income
of $129,000 for the six months ended September 30, 2009. See “Results of
Operations” for further information. Basic and diluted earnings per share for
the three month period were $0.98 and $0.94, respectively, per share for the
three-months ended September 30, 2010 compared to basic and diluted loss per
share of $(0.08) for the three-months ended September 30, 2009. Diluted earnings
per share reflect incentive plan shares and the potential dilutive impact of
stock options granted under the stock option plan and the effect of the
incentive plan shares, however, if there is a net loss, dilutive shares are not
included in the calculation as they become anti-dilutive. For the six-months
ended September 30, 2010, basic earnings per share are being reported at $1.98
with diluted earnings per share at $1.91 compared to basic earnings per share of
$0.31 and diluted earnings per share of $0.30 for the six months ended September
30, 2009. We continue to maintain a strong presence in the community and are one
of the few independent community banks in our primary market area. To visit
First Robinson Savings Bank on the web, go to www.frsb.net.
 
 In
response to the current national and international economic recession and to
strengthen supervision of financial institutions and systemically important
nonbank financial companies, Congress and the U.S. government have taken a
variety of actions including the passage of legislation and the implementation
of certain programs. By far, the most significant of these was the passage, on
July 21, 2010, into law, the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Act”). The Act represents the most comprehensive change to
banking laws since the Great Depression of the 1930’s, and mandates change in
several key areas: regulation and compliance (both with respect to financial
institutions and systemically important nonbank financial companies), securities
regulation, executive compensation, regulation of derivatives, corporate
governance, and consumer protection. While these changes in the law will have a
major impact on large institutions, even relatively smaller institutions such as
ours will be affected.
 
 In this
respect, it is noteworthy that preemptive rights heretofore granted to national
banking associations by the OCC under the National Bank Act, and to federal
savings banks by the Office of Thrift Supervision (which will be merged into the
OCC) under the Home Owners Loan Act, will be diminished with repsect to consumer
financial laws and regulations. Thus, Congress has authorized states to enact
their own substantive protections and to allow state attorneys general to
initiate civil actions to enforce federal consumer protections. In this respect
the Company will be subject to regulation by a new consumer protection bureau
housed within the Federal Reserve, known as the Bureau of Consumer Financial
Protection. The Bureau will consolidate enforcement currently undertaken by
myriad financial regulatory agencies, and will have substantial power to define
the rights of consumers and responsibilities of providers, including the
Company. In addition, and among many other legislative changes that the Company
will assess, the Company will (1) experience a new assessment model from the
FDIC based on assets, not deposits, (2) be required to retain some credit risk
for certain mortgages it sells into secondary markets via asset backed
securities, (3) be subject to enhanced executive compensation and corporate
governance requirements, and (4) be able, for the first time (and perhaps
competitively compelled) to offer interest on business transaction and other
accounts.
  20
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 The
extent to which the new legislation and existing and planned governmental
initiatives hereunder will succeed in ameliorating tight credit conditions or
otherwise result in an improvement in the national economy is uncertain. In
addition, because most of the component parts of the new legislation will be
subject to intensive agency rulemaking and subsequent public comment over the
next six to 18 months prior to eventual implementation, it will be difficult to
predict the ultimate effect of the Act on the Company at this time. It is not
unlikely, however, that the Company’s expenses will increase as a result of new
compliance requirements.
 
 Asset
Quality
  Delinquencies.
When a borrower fails to make a required payment on a loan, the Company attempts
to cause the delinquency to be cured by contacting the borrower. In the case of
loans secured by real estate, reminder notices are sent to borrowers. If payment
is late, appropriate late charges are assessed and a notice of late charges is
sent to the borrower. If the loan is between 60-90 days delinquent, the loan
will generally be referred to the Company’s legal counsel for
collection.
  When a
loan becomes more than 90 days delinquent and collection of principal and
interest is considered doubtful, or is otherwise impaired, the Company will
generally place the loan on non-accrual status and previously accrued interest
income on the loan is charged against current income. Delinquent consumer loans
are handled in a similar manner as to those described above. The Company’s
procedures for repossession and sale of consumer collateral are subject to
various requirements under applicable consumer protection laws.
  The
following table sets forth the Company’s loan delinquencies by type, by amount
and by percentage of type at September 30, 2010.
 
 Loans
      Delinquent For:30-89 Days(1)
                  
                  
                  90 Days and Over(1)
                  
                  
                  Nonaccrual
                  
                  
                  Total Delinquent LoansNumber
                  
                  
                  Amount
                  
                  
                  Percent
                      of Loan
                      Category
                  
                  
                  Number
                  
                  
                  Amount
                  
                  
                  Percent
                      of Loan
                      Category
                  
                  
                  Number
                  
                  
                  Amount
                  
                  
                  Percent of
                      Loan
                      Category
                  
                  
                  Number
                  
                  
                  Amount
                  
                  
                  Percent of
                      Loan
                      Category(Dollars
      in thousands)Real
      Estate:One-
      to four-family
                  
                  
                  5
                  
                  
                  $
                  153
                  
                  
                  
                  0.32
                  %
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  5
                  
                  
                  $
                  240
                  
                  
                  
                  0.49
                  %
                  
                  
                  10
                  
                  
                  $
                  393
                  
                  
                  
                  0.81
                  %Commercial
      and agriculture
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  1
                  
                  
                  
                  32
                  
                  
                  
                  0.14
                  
                  
                  
                  1
                  
                  
                  
                  32
                  
                  
                  
                  0.14State
      and Municipal Government
                  
                  
                  1
                  
                  
                  
                  8
                  
                  
                  
                  0.52
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  1
                  
                  
                  
                  8
                  
                  
                  
                  0.52Consumer
      and other loans
                  
                  
                  10
                  
                  
                  
                  51
                  
                  
                  
                  0.36
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  1
                  
                  
                  
                  4
                  
                  
                  
                  0.03
                  
                  
                  
                  11
                  
                  
                  
                  55
                  
                  
                  
                  0.39Commercial
      business and agriculturalfinance
                  
                  
                  4
                  
                  
                  
                  177
                  
                  
                  
                  0.84
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  4
                  
                  
                  
                  80
                  
                  
                  
                  0.38
                  
                  
                  
                  8
                  
                  
                  
                  257
                  
                  
                  
                  1.22Total
                  
                  
                  20
                  
                  
                  $
                  389
                  
                  
                  
                  0.33
                  %
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  —
                  
                  
                  
                  11
                  
                  
                  $
                  356
                  
                  
                  
                  0.30
                  %
                  
                  
                  31
                  
                  
                  $
                  745
                  
                  
                  
                  0.63
                  %
 
 (1)
              Loans
      are still accruing.
  21
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Non-Performing
Assets. The table below sets forth the amounts and categories of
non-performing assets in the Company’s loan portfolio. Loans are placed on
non-accrual status when the collection of principal and/or interest become
doubtful. Foreclosed assets include assets acquired in settlement of
loans.
  September 30,
                      
                      
                      March 31,
                      
                      
                      September 30,2010
                      
                      
                      2010
                      
                      
                      2009(In
      thousands)Non-accruing
      loans:One-
      to four-family
                      
                      $
                      240
                      
                      
                      $
                      85
                      
                      
                      $
                      170Commercial
      and agriculture real estate
                      
                      
                      32
                      
                      
                      
                      32
                      
                      
                      
                      —Consumer
      and other loans
                      
                      
                      4
                      
                      
                      
                      5
                      
                      
                      
                      7Commercial
      business and agricultural finance
                      
                      
                      80
                      
                      
                      
                      13
                      
                      
                      
                      43Total
                      
                      
                      356
                      
                      
                      
                      135
                      
                      
                      
                      220Foreclosed/Repossessed
      assets:One-
      to four-family
                      
                      
                      55
                      
                      
                      
                      52
                      
                      
                      
                      30Consumer
      vehicle
                      
                      
                      5
                      
                      
                      
                      —
                      
                      
                      
                      —Total
                      
                      
                      60
                      
                      
                      
                      52
                      
                      
                      
                      30Total
      non-performing assets
                      
                      $
                      416
                      
                      
                      $
                      187
                      
                      
                      $
                      250Total
      as a percentage of total assets
                      
                      
                      0.22
                      %
                      
                      
                      0.10
                      %
                      
                      
                      0.14
                      %
 
 Gross
interest income which would have been recorded had the non-accruing loans been
current in accordance with their original terms amounted to approximately $7,000
for the three months and $11,000 for the six months ended September 30, 2010 and
$4,000 for the three months and $6,000 for the six months ended September 30,
2009.
 
 Classified
Assets. Federal regulations provide for the classification of loans and
other assets, such as debt and equity securities, considered by the Office of
the Comptroller of the Currency (“OCC”) to be of lesser quality, as
“substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it
is inadequately protected by the current net worth and paying capacity of the
obligor or the collateral pledged, if any. “Substandard” assets include those
characterized by the “distinct possibility” that the insured institution will
sustain “some loss” if the deficiencies are not corrected. Assets classified as
“doubtful” have all of the weaknesses inherent in those classified “substandard”
with the added characteristic that the weaknesses present make “collection or
liquidation in full” on the basis of currently existing facts, conditions and
values, “highly questionable and improbable.” Assets classified as “loss” are
those considered “uncollectible” and of such little value that their continuance
as assets without the establishment of a specific loss reserve is not
warranted.
 
 When an
insured institution classifies problem assets as either substandard or doubtful,
it may establish general allowances for losses in an amount deemed prudent by
management. General allowances represent loss allowances which have been
established to recognize the inherent risk associated with lending activities,
but which, unlike specific allowances, have not been allocated to particular
problem assets. When an insured institution classifies problem assets as “loss,”
it is required either to establish a specific allowance for losses equal to 100%
of that portion of the asset so classified or to charge-off such amount. An
institution’s determination as to the classification of its assets and the
amount of its valuation allowances is subject to review by the regulatory
authorities, who may order the establishment of additional general or specific
loss allowances.
 
 In
connection with the filing of its periodic reports with the OCC and in
accordance with its classification of assets policy, the Company regularly
reviews loans in its portfolio to determine whether such assets require
classification in accordance with applicable regulations. On the basis of
management’s review of its assets, at September 30, 2010, the Company had
classified a total of $1,528,000 of its assets as substandard and $423,000 as
doubtful. At September 30, 2010, total classified assets comprised $1,951,000,
or 15.7% of the Company’s capital, and 1.0% of the Company’s total assets. Total
classified assets have increased by approximately $1.4 million, or 286.0% from
March 31, 2010. The increase can be partially attributed to two large commercial
credits whose earnings declined due to the economic downturn. Both commercial
businesses have seen an increase in earnings during calendar 2010 and the
credits will be reevaluated within the next six months. The Company does not
expect any losses associated with these credits.
  22
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Other Loans of
Concern. As of
September 30, 2010, there were $3.5 million in loans identified, but not
classified, by the Company with respect to which known information about the
possible credit problems of the borrowers or the cash flows of the business have
caused management to have some doubts as to the ability of the borrowers to
comply with present loan repayment terms and which may result in the future
inclusion of such items in the non-performing asset categories.
 
 Allowance for
Loan Losses. The
allowance for loan losses is maintained at a level which, in management’s
judgment, is adequate to absorb credit losses inherent in the loan portfolio.
The amount of the allowance is based on management’s evaluation of the
collectibility of the loan portfolio, including the nature of the portfolio,
credit concentrations, trends in historical loss experience, specific impaired
loans and economic conditions. Allowances for impaired loans are generally
determined based on collateral values. The allowance is increased by a provision
for loan losses, which is charged to expense and reduced by charge-offs, net of
recoveries.
 
 Real
estate properties acquired through foreclosure are recorded at the fair value
minus 20% of the fair value if the property is appraised at $50,000 or less. If
the property is appraised at greater than $50,000, then the property is recorded
at the fair value less 10% of the fair value. If fair value at the date of
foreclosure is lower than the balance of the related loan, the difference will
be charged-off to the allowance for loan losses at the time of transfer.
Valuations are periodically updated by management and if the value declines, a
specific provision for losses on such property is established by a charge to
operations. At September 30, 2010, the Bank had one real estate property
acquired through foreclosure. The property is listed for sale.
 
 Although
management believes that it uses the best information available to determine the
allowance, unforeseen market conditions could result in adjustments and net
earnings could be significantly affected if circumstances differ substantially
from the assumptions used in making the final determination. Future additions to
the Company’s allowance for loan losses will be the result of periodic loan,
property and collateral reviews and thus cannot be predicted in advance. In
addition, federal regulatory agencies, as an integral part of the examination
process, periodically review the Bank’s operations. Such agencies may require
the Bank to increase the Bank’s allowance for loan losses, increase classified
assets, or take other actions that could significantly affect the Company’s
earnings based upon their judgment of the information available to them at the
time of their examination. At September 30, 2010, the Company had a total
allowance for loan losses of $1,060,000, representing 0.91% of the Company’s
loans, net. At March 31, 2010, the Company’s total allowance for loan losses to
the Company’s loans, net was at 0.97%.
  23
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 The
distribution of the Company’s allowance for losses on loans at the dates
indicated is summarized as follows:
  September 30, 2010
                    
                    
                    March 31, 2010Amount of
                        Loan Loss
                        Allowance
                    
                    
                    Loan
                        Amounts by
                        Category
                    
                    
                    Percent of
                        Loans in Each
                        Category to
                        Total Loans
                    
                    
                    Amount of
                        Loan Loss
                        Allowance
                    
                    
                    Loan
                        Amounts by
                        Category
                    
                    
                    Percent of
                        Loans in Each
                        Category to
                        Total Loans(Dollars
      in thousands)One-
      to four-family including loans held for sale
                    
                    $
                    143
                    
                    
                    $
                    48,520
                    
                    
                    
                    40.92
                    %
                    
                    $
                    72
                    
                    
                    $
                    46,554
                    
                    
                    
                    45.10
                    %Multi-family
                    
                    
                    —
                    
                    
                    
                    4,106
                    
                    
                    
                    3.47
                    
                    
                    
                    —
                    
                    
                    
                    2,780
                    
                    
                    
                    2.69Commercial
      and agricultural real estate...
                    
                    
                    548
                    
                    
                    
                    22,680
                    
                    
                    
                    19.13
                    
                    
                    
                    593
                    
                    
                    
                    18,155
                    
                    
                    
                    17.59Construction
      or development
                    
                    
                    —
                    
                    
                    
                    6,406
                    
                    
                    
                    5.40
                    
                    
                    
                    —
                    
                    
                    
                    5,130
                    
                    
                    
                    4.97Consumer
      and other loans.
                    
                    
                    38
                    
                    
                    
                    14,054
                    
                    
                    
                    11.85
                    
                    
                    
                    29
                    
                    
                    
                    9,834
                    
                    
                    
                    9.53State
      and municipal governments
                    
                    
                    —
                    
                    
                    
                    1,625
                    
                    
                    
                    1.37
                    
                    
                    
                    —
                    
                    
                    
                    1,885
                    
                    
                    
                    1.83Commercial
      business and agricultural finance
                    
                    
                    331
                    
                    
                    
                    21,179
                    
                    
                    
                    17.86
                    
                    
                    
                    279
                    
                    
                    
                    18,883
                    
                    
                    
                    18.29Gross
      Loans
                    
                    
                    
                    
                    
                    
                    118,570
                    
                    
                    
                    100.00
                    %
                    
                    
                    
                    
                    
                    
                    103,221
                    
                    
                    
                    100.00
                    %Unallocated
                    
                    
                    —
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    —Deferred
      loan fees
                    
                    
                    
                    
                    
                    
                    (7
                    )
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    (4
                    )Prepaid
      loan fees
                    
                    
                    
                    
                    
                    
                    40
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    —Undisbursed
      portion of loans
                    
                    
                    
                    
                    
                    
                    (910
                    )
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    (2,093
                    )Total
                    
                    $
                    1,060
                    
                    
                    $
                    117,693
                    
                    
                    
                    
                    
                    
                    $
                    973
                    
                    
                    $
                    101,124
 
 The
following table sets forth an analysis of the Company’s allowance for loan
losses.
 Three Months Ended
                          September 30,
                        
                        
                        Six Months Ended
                          September 30,2010
                        
                        
                        2009
                        
                        
                        2010
                        
                        
                        2009(Dollars in thousands)Balance
      at beginning of period
                        
                        $
                        1,044
                        
                        
                        $
                        825
                        
                        
                        $
                        973
                        
                        
                        $
                        780Charge-offs:One-
      to four-family
                        
                        
                        31
                        
                        
                        
                        68
                        
                        
                        
                        31
                        
                        
                        
                        68Commercial
      non-residential real estate
                        
                        
                        —
                        
                        
                        
                        —
                        
                        
                        
                        —
                        
                        
                        
                        —Consumer
      and other loans
                        
                        
                        11
                        
                        
                        
                        6
                        
                        
                        
                        21
                        
                        
                        
                        12Total
      charge-offs
                        
                        
                        42
                        
                        
                        
                        74
                        
                        
                        
                        52
                        
                        
                        
                        80Recoveries:Commercial
      non-residential real estate
                        
                        
                        —
                        
                        
                        
                        —
                        
                        
                        
                        24
                        
                        
                        
                        —Consumer
      and other loans
                        
                        
                        13
                        
                        
                        
                        7
                        
                        
                        
                        25
                        
                        
                        
                        13Total
      recoveries
                        
                        
                        13
                        
                        
                        
                        7
                        
                        
                        
                        49
                        
                        
                        
                        13Net
      charge-offs .
                        
                        
                        29
                        
                        
                        
                        67
                        
                        
                        
                        3
                        
                        
                        
                        67Additions
      charged to operations
                        
                        
                        45
                        
                        
                        
                        135
                        
                        
                        
                        90
                        
                        
                        
                        180Balance
      at end of period
                        
                        $
                        1,060
                        
                        
                        $
                        893
                        
                        
                        $
                        1,060
                        
                        
                        $
                        893Ratio
      of net charge-offs during the period to average loans outstanding during
      the period
                        
                        
                        0.03
                        %
                        
                        
                        0.07
                        %
                        
                        
                        0.00
                        %
                        
                        
                        0.07
                        %Ratio
      of net charge-offs during the period to average non-performing
      assets
                        
                        
                        10.91
                        %
                        
                        
                        22.64
                        %
                        
                        
                        1.63
                        %
                        
                        
                        23.45
                        %
  24
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Financial
Condition
 September
30, 2010 Compared to March 31, 2010
 
 Total
assets of the Company increased by $5.2 million, or 2.9%, to $188.2 million at
September 30, 2010 from $183.0 million at March 31, 2010. The increase in assets
was primarily due to an increase of $16.5 million, or 16.5%, loans receivable,
net, offset by a decrease of $7.5 million, or 41.9% in cash and cash equivalents
and a decrease of $3.4 million, or 6.2%, in available for sale
securities.
 
 Available-for-sale
securities decreased to $52.0 million at September 30, 2010 compared to $55.4
million at March 31, 2010, a $3.4 million decrease. The decrease resulted from
the maturity of $1.4 million in available-for-sale securities, the repayment of
$4.7 million in mortgage-backed securities and the amortization of $132,000 of
premiums and discounts on investments, offset by, the purchase of $2.6 million
of available-for-sale securities, and the increase of $156,000 in the market
valuation of the available-for-sale portfolio. The investment portfolio is
managed to limit the Company's exposure to risk by investing primarily in
mortgage-backed securities and other securities which are either directly or
indirectly backed by the federal government or a local municipal
government.
 
 The
decrease of $7.5 million in cash and cash equivalents was mainly derived from
the decrease of $7.8 million in federal funds sold. At September 30, 2010, the
Company was in federal funds purchased positon of $35,000. The decrease in cash
and the decrease in available-for-sale securities funded the growth in
loans.
 
 The
Company's net loan portfolio including loans held for sale increased by $16.5
million to $116.6 million at September 30, 2010 from $100.1 million at March 31,
2010. Loans on one- to four-family real estate, including one- to four-family
loans held for sale, increased by $2.0 million, or 4.2%; commercial
nonresidential real estate and farmland loans increased by $4.5 million, or
24.9%; construction and development loans increased by $1.3 million, or 24.9%;
consumer and other loans increased by $4.2 million, or 42.9%; loans on
multi-family properties increased by $1.3 million, or 47.7%, commercial business
and agricultural finance loans increased by $2.3 million, or 12.2% and the
reduction of $1.2 million in undisbursed loan funds. These increases were
offset, in part, by the decrease in loans to state and municpal governments by
$260,000, or 14.0%. The increase in commercial real estate can be attributed to
the Vincennes area where there are more opportunities for this type of lending.
The increase in consumer and other loans reflects our more aggressive policy in
writing indirect loans for vehicles.
 
 At
September 30, 2010, the allowance for loan losses was $1,060,000, or 0.91% of
the net loan portfolio, an increase of $87,000 from the allowance for loan
losses at March 31, 2010 of $973,000, or 0.97% of the net loan portfolio. During
the six-months ended September 30, 2010, the Company charged off $52,000 in loan
losses; $21,000 from consumer and other loans and $31,000 in loans secured by
one- to- four family properties. The charge offs were offset by recoveries of
$49,000 derived from $25,000 in consumer and other loans and $24,000 in
non-residential commercial loans. Management reviews the adequacy of the
allowance for loan losses quarterly, and believes that its allowance is
adequate; however, the Company cannot assure that future chargeoffs and/or
provisions will not be necessary. See “Asset Quality” for further information on
delinquencies.
 
 The
Company had one foreclosed real estate property held for sale at September 30,
2010. Foreclosed assets are carried at lower of cost or fair value. When
foreclosed assets are acquired, any required adjustment is charged to allowance
for loan losses. All subsequent activity is included in current
operations.
 
 Total
deposits increased by $7.5 million, or 5.0%, to $156.8 million at September 30,
2010 from $149.3 million at March 31, 2010. The increase in total deposits was
due to an increase of $5.5 million in savings, NOW, and money market accounts,
the increase of $1.1 million in certificates of deposit and the increase of
$833,000 in non-interest bearing demand deposits.
 
 Other
borrowings, consisting of repurchase agreements, decreased $2.8 million, or
15.8% from $17.6 million at March 31, 2010 to $14.8 million at September 30,
2010. The obligations are secured by mortgage-backed securities and US
Government agency obligations.
At September 30, 2010, the average rate on the repurchase agreements was 0.20%
compared to 0.14% at March 31, 2010. The rate on approximately $14.3 million of
the repurchase agreements reprice daily. All agreements mature periodically
within 24 months.
 
 The
short-term borrowing consists of the Company’s revolving line of credit note
payable with an unaffiliated financial institution that matured September 30,
2010 and was renewed for an additional year. The balance of the revolving line
of credit was $1.8 million and $1.7 million as of September 30, 2010 and March
31, 2010, respectively. The note bears interest at the prime commercial rate
with a floor of 3.50% which was the rate on September 30, 2010 and is secured by
stock in the Bank.
  25
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Stockholders'
equity at September 30, 2010 was $12.4 million compared to $12.0 million at
March 31, 2010, an increase of $393,000, or 3.3%. Factors relating to the
increase in stockholders’ equity can be attributed primarily to the addition of
$820,000 of net income, offset by the payment of $365,000 in dividends and the
increase of $95,000 in accumulated other comprehensive income due to the
increase in the fair value of securities available for sale. These increases
were offset by the addition of $143,000 in treasury stock relating to the
purchase of 4,494 shares and the purchase of $14,000 in shares related to an
incentive plan.
 
 Results
of Operations
 Comparison
of Operating Results for the Three Months Ended September 30, 2010 and
2009
 
 Net
Income
 
 The
Company earned $404,000 for the three month period ending September 30, 2010,
versus a net loss of $34,000 in the same period of 2009, an increase of
$438,000. Earnings for the three months ended September 30, 2010 were positively
impacted by a $425,000, or 42.7%, increase in net-interest income after
provision for loan losses, the increase of $127,000, or 24.7%, in non-interest
income, and the decrease of $78,000, or 5.1%, in non-interest expense offset by
an increase of $192,000 in income tax provision when compared to the prior year.
Basic earnings per share for the September 30, 2010 three month period were
$0.98 per share versus net loss per share of $(0.08) for the same period of
2009. Diluted earnings per share reflect incentive plan shares and the potential
dilutive impact of stock options granted under the stock option plan and the
effect of the incentive plan shares, however, if there is a net loss, dilutive
shares are not included in the calculation as they become anti-dilutive. Diluted
earnings per share for the three months ending September 30, 2010 were $0.94 per
share.
 
 Net
Interest Income
 
 For the
three-month period ended September 30, 2010, net interest income totaled
$1,466,000, an increase of 29.6%, or $335,000, compared to the same period of
2009. The increase in the three-month period ended September 30, 2010 versus the
comparable period of 2009 was due to a decrease of $221,000, or 26.3%, in total
interest expense and the increase of $114,000, or 5.8%, in total interest
income. The increase of $213,000, or 15.1%, in interest income from loans
receivable was offset by the decrease of $97,000, or 18.7%, in interest income
on taxable securities and the decrease of $7,000, or 18.9%, from tax-exempt
securities. The decrease in total interest expense is due to the decrease of
$232,000, or 28.2%, in interest expense on deposits, offset by the increase of
$11,000, or 64.7%, in interest expense on other and short-term borrowings for
the three months ended September 30, 2010 compared to the three months ended
September 30, 2009.
 
 For
the three-months ended September 30, 2010 total average interest earning assets
increased by $10.6 million, or 6.6%, to $172.5 million as of September 30, 2010
from $161.9 million as of September 30, 2009. The yield on the earning assets
decreased by 3 basis points when comparing the three months ended September 30,
2010 to the same period in 2009. Total average interest bearing liabilities for
the three months ended September 30, 2010 were $159.2 million compared to $149.1
million as of September 30, 2009, an increase of $10.1 million, or 6.8%. The
cost on the average interest bearing liabilities decreased by 70 basis points.
For the three-month period ended September 30, 2010, the net interest spread
increased 67 basis points to 3.28% versus 2.61% in the comparable period of
2009.
 
 Interest
income on loans receivable increased $213,000 to $1,627,000 for the quarter
ended September 30, 2010 from $1,414,000 for the quarter ended September 30,
2009 due to the average balance on loans for the quarter ended September 30,
2010 increasing $18.8 million, or 20.1%, to $112.3 million, versus $93.5 million
for the same period of 2009. During the same period, the yield on loans
decreased 25 basis points to 5.80% from 6.05% for the September 30, 2010 quarter
compared to the September 30, 2009 quarter. The 25 point basis decrease
primarily reflected the low interest rate environment.
 
 Interest
income on taxable securities decreased $97,000 to $421,000 for the quarter ended
September 30, 2010 from $518,000 for the quarter ended September 30, 2009. The
decrease was derived from a decrease of $61,000 in interest income from
mortgage-backed securities and a decrease of $36,000 in interest income from
investment securities. The decrease in interest income from mortgage-backed
securities can be attributed to the decrease of $6.3 million in the average
balance of mortgage-backed securities from $39.4 million as of September 30,
2009 to $33.1 million as of September 30, 2010, offset, by the slight increase
of 4 basis points in the average yield from 4.05% as of September 30, 2009 to
4.09% as of September 30, 2010. The decrease in interest income from investment
securities can be attributed to the decrease of $6.9 million in the average
balance of investment securities from $20.6 million as of September 30, 2009 to
$13.7 million as of September 30, 2010, offset, by the increase of 11 basis
points in the average yield from 2.32% as of September 30, 2009 to 2.43% as of
September 30, 2010.
  26
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Interest
income on tax-exempt securities decreased $7,000 when comparing the three months
ended September 30, 2010 to the same period in the prior year. The average
balance on tax-exempt securities decreased by $14,000 from $4.6 million as of
September 30, 2009 compared to $4.6 million as of September 30, 2010. The
average yield on tax-exempt securities decreased 55 basis points from 3.16% as
of September 30, 2009 to 2.61% as of September 30, 2010. The average yield does
not reflect the benefit of the higher tax-equivalent yield attributed to
municipal securities, which is reflected in income tax expense.
 
 Total
interest expense on deposits decreased $232,000 from $823,000 for the
three-months ended September 30, 2009 to $591,000 for the three months ended
September 30, 2010. The decrease can be attributed to a 76 basis point decrease
in the average rate paid on total deposits from 2.47% as of September 30, 2009
to 1.71% as of September 30, 2010, offset by the increase of $5.2 million in the
average balance of deposits from $133.2 million as of September 30, 2009 to
$138.4 million as of September 30, 2010. The decrease in the average rate paid
on deposits is a reflection of the low short-term market interest
rates.
 
 Interest
expense on other and short-term borrowings increased $11,000 from $18,000 for
the three months ended September 30, 2009 to $29,000 for the same period of
2010. The increase is due to the increase of $4.9 million, or 31.0%, from $15.9
million as of the quarter ended September 30, 2009 to $20.8 million for the
three-months ended September 30, 2010 in the average daily balance of other and
short-term borrowings. The average rate paid increased for the September 2010
quarter by 11 basis points to 0.56% from 0.45% for the September 2009
quarter.
 
 Provision
for Loan Losses
 
 The
provision for loan losses for the quarter ended September 30, 2010 was $45,000,
a $90,000, or 66.7%, decrease over the provision of $135,000 for the September
30, 2009 quarter. The provision for both periods reflects management's analysis
of the Company's loan portfolio based on the information which was available to
the Company. Management meets on a quarterly basis to review the adequacy of the
allowance for loan losses based on Company guidelines. Classified loans are
reviewed by the loan officers to arrive at specific reserve levels for those
loans. Once the specific reserve for each loan is calculated, management
calculates general reserves for each loan category based on a combination of
loss history adjusted for current national and local economic conditions, trends
in delinquencies and charge-offs, trends in volume and term of loans, changes in
underwriting standards, and industry conditions. While the Company cannot assure
that future chargeoffs and/or provisions will not be necessary, the Company's
management believes that, as September 30, 2010, its allowance for loan losses
was adequate. See “Asset Quality” for additional information.
 
 Non-Interest
Income
 
 Non-interest
income categories for the three-month periods ended September 30, 2010 and 2009
are shown in the following table:
 
 Three Months Ended
                            September 30,2010
                          
                          
                          2009
                          
                          
                          %Change(In thousands)Non-interest income:Charges
      and fees on deposit accounts
                          
                          $
                          240
                          
                          
                          $
                          256
                          
                          
                          
                          (6.3
                          )%Charges
      and other fees on loans
                          
                          
                          68
                          
                          
                          
                          78
                          
                          
                          
                          (12.8
                          )Net
      gain on sale of loans
                          
                          
                          206
                          
                          
                          
                          55
                          
                          
                          
                          274.5Net
      gain (loss) on sale of foreclosed property
                          
                          
                          (2
                          )
                          
                          
                          —
                          
                          
                          
                          (100.0
                          )Net
      realized gain on sale of available-for-sale securities
                          
                          
                          —
                          
                          
                          
                          5
                          
                          
                          
                          (100.0
                          )Other
                          
                          
                          130
                          
                          
                          
                          121
                          
                          
                          
                          7.4Total
      non-interest income
                          
                          $
                          642
                          
                          
                          $
                          515
                          
                          
                          
                          24.7
                          %
 
 Non-interest
income increased $127,000 when comparing the three-months ended September 30,
2010 to September 30, 2009 as a result of the the increase of $151,000 in net
gain on sale of loans and the increase of $9,000 in other non-interest income,
offset, in part, by the decrease in the realized gain on sale of securities of
$5,000, the decrease in charges and fees on deposit accounts of $16,000, and the
decrease of $10,000 in charges and fees on loans. The decrease in charges and
fees on deposit accounts is a result in part to the implementation of Regulation
E, which does not allow assessing an overdraft charge for ATM or one-time debit
card transactions without the customer opting in to an overdraft program
sponsored by the Company.
  27
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Non-Interest
Expense
 
 Non-interest
expense categories for the three-month periods ended September 30, 2010 and 2009
are shown in the following table:
 
 Three Months Ended
                        September 30,2010
                      
                      
                      2009
                      
                      
                      %Change(In thousands)Non-interest
      expense:Compensation
      and employee benefits
                      
                      $
                      799
                      
                      
                      $
                      690
                      
                      
                      
                      15.8
                      %Occupancy
      and equipment
                      
                      
                      184
                      
                      
                      
                      176
                      
                      
                      
                      4.5Data
      processing
                      
                      
                      70
                      
                      
                      
                      66
                      
                      
                      
                      6.1Audit,
      legal and other professional
                      
                      
                      77
                      
                      
                      
                      107
                      
                      
                      
                      (28.0
                      )Advertising
                      
                      
                      72
                      
                      
                      
                      75
                      
                      
                      
                      (4.0
                      )Telephone
      and postage
                      
                      
                      53
                      
                      
                      
                      50
                      
                      
                      
                      6.0FDIC
      Insurance
                      
                      
                      52
                      
                      
                      
                      50
                      
                      
                      
                      4.0Loss
      on cost basis equity security
                      
                      
                      —
                      
                      
                      
                      137
                      
                      
                      
                      (100.0
                      )Other
                      
                      
                      149
                      
                      
                      
                      183
                      
                      
                      
                      (18.6
                      )Total
      non-interest expense
                      
                      $
                      1,456
                      
                      
                      $
                      1,534
                      
                      
                      
                      (5.1
                      )%
 
 Compensation
and employee benefits increased by $109,000 when comparing the September 2010
and 2009 quarters primarily due to the $56,000 increase in market value of the
shares held in the Directors Retirement Plan, a $38,000 net increase in salaries
and accrued paid time off days and a $12,000 increase in health insurance
costs.
 
 Audit,
legal and other professional services decreased $30,000 when comparing the
September 2010 and 2009 quarters due to decreased costs related to Sox-404
compliance.
 
 The
Company recognized a loss of $137,000 during the three-months ended September
30, 2009 related to a cost basis equity security investment in a financial
institution. During the three months ended September 30, 2010, the Company did
not record any losses associated with cost basis equity securities.
 
 Income
Tax Expense
 
 The
provision in income tax expense increased $192,000, or 1,745.4%, for the
three-months ending Septbmer 30, 2010, compared to the same period in 2009. The
increase can be attributed, in part, to increased profitability. The effective
tax rate was 33.4% for the quarter ended September 30, 2010.
 
 Comparison
of Operating Results for the Six Months Ended September 30, 2010 and
2009
 
 Net
Income
 
 For the
six month period ended September 30, 2010, the Company earned $820,000, an
increase of $691,000, or 535.6%, from $129,000 for the six months ending
September 30, 2009. Earnings for the six months ended September 30, 2010 were
positively impacted by an increase of $777,000, or 39.3%, in net interest income
after provision for loan losses, an increase of $93,000, or 7.9%, in
non-interest income, and the decrease of $155,000, or 5.2%, in non-interest
expense which were offset by an increase of $334,000, or 463.9%, in provision
for income taxes when compared to the six months ended September 30, 2009. Basic
earnings per share for the September 30, 2010 six month period were $1.98 per
share versus $0.31 per share for the same period of 2009. Diluted earnings per
share reflect incentive plan shares and the potential dilutive impact of stock
options granted under the stock option plan. Diluted earnings per share for the
six months ending September 30, 2010 were $1.91 compared to $0.30 at September
30, 2009.
  28
 
 FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Net
Interest Income
 
 For the
six-month period ended September 30, 2010, net interest income totaled
$2,845,000, an increase of $687,000, or 31.8%, from the same period in the prior
year. Contributing to the increase was the increase of $179,000, or 4.6%, in
total interest income and the decrease of $508,000, or 28.6%, in total interest
expense. The increase in total interest income can be attributed to a $403,000,
or 14.6%, increase in interest income from loans receivable, and the increase of
$6,000 in other interest income and dividends received from Federal Reserve Bank
stock offset, in part, by the decrease of $214,000, or 19.7%, in interest income
from taxable securities and a $16,000, or 21.3%, decrease in tax-exempt
securities. The major factor contributing to the decrease in total interest
expense is due to the decrease of $533,000, or 30.5%, interest expense on
deposits. This decrease was offset, in part, by the increase of $25,000, or
89.3%, in interest expense on the short-term borrowing.
 
 For the
six-months ended September 30, 2010 total average interest earning assets
increased by $10.6 million, or 6.6%, to $170.5 million as of September 30, 2010
from $159.9 million as of September 30, 2009. The yield on the earning assets
decreased by 10 basis points when comparing the six months ended September 30,
2010 to the same period in 2009. Total average interest bearing liabilities for
the six months ended September 30, 2010 were $158.0 million compared to $147.3
million as of September 30, 2009, an increase of $10.7 million, or 7.3%. The
cost on the average interest bearing liabilities decreased by 81 basis points.
For the six-month period ended September 30, 2010, the net interest spread
increased 71 basis points to 3.22% versus 2.51% in the comparable period of
2009.
 
 Interest
income on loans receivable increased $403,000 to $3,164,000 for the six-months
ended September 30, 2010 from $2,761,000 for the six-months ended September 30,
2009 due to the average balance on loans for the six-months ended September 30,
2010 increasing $18.5 million, or 20.5%, to $108.6 million, versus $90.1 million
for the same period of 2009. During the same period, the yield on loans
decreased 30 basis points to 5.83% from 6.13% for the September 30, 2010
six-month period compared to the September 30, 2009 six-month
period.
 
 Interest
income on taxable securities decreased $214,000 to $871,000 for the six-months
ended September 30, 2010 from $1,085,000 for the six-months ended September 30,
2009. The decrease was derived from a decrease of $186,000 in interest income
from mortgage-backed securities and a decrease of $28,000 in interest income
from investment securities. The decrease in interest income from mortgage-backed
securities can be attributed to the decrease of $6.1 million in the average
balance of mortgage-backed securities from $39.8 million as of September 30,
2009 to $33.7 million as of September 30, 2010 and the decrease of 31 basis
points in the average yield from 4.42% as of September 30, 2009 to 4.11% as of
September 30, 2010. The decrease in interest income from investment securities
can be attributed to the decrease of $2.9 million in the average balance of
investment securities from $17.0 million as of September 30, 2009 to $14.1
million as of September 30, 2010, offset, by the increase of 11 basis points in
the average yield from 2.41% as of September 30, 2009 to 2.52% as of September
30, 2010.
 
 Interest
income on tax-exempt securities decreased $16,000 when comparing the six months
ended September 30, 2010 to the same period in the prior year. The average
balance on tax-exempt securities decreased by $255,000 from $4.7 million as of
September 30, 2009 compared to $4.5 million as of September 30, 2010. The
average yield on tax-exempt securities decreased 51 basis points from 3.19% as
of September 30, 2009 to 2.68% as of September 30, 2010. The average yield does
not reflect the benefit of the higher tax-equivalent yield attributed to
municipal securities, which is reflected in income tax expense.
 
 Total
interest expense on deposits decreased $533,000 from $1,745,000 for the six
months ended September 30, 2009 to $1,212,000 for the six months ended September
30, 2010. The decrease can be attributed to a 87 basis point decrease in the
average rate paid on total deposits from 2.47% as of September 30, 2009 to 1.71%
as of September 30, 2010, offset by the increase of $5.2 million in the average
balance of deposits from $133.2 million as of September 30, 2009 to $138.4
million as of September 30, 2010. The decrease in the average rate paid on
deposits is a reflection of the low short-term market interest
rates.
 
 Interest
expense on other and short-term borrowings increased $25,000 from $28,000 for
the six months ended September 30, 2009 to $53,000 for the same period of 2010.
The increase is due to the increase of $5.8 million, or 37.9%, from $15.2
million for the six- months ended September 30, 2009 to $21.0 million for the
six-months ended September 30, 2010 in the average daily balance of other and
short-term borrowings. The average rate paid increased for the September 2010
six-month period by 14 basis points to 0.51% from 0.37% for the same period in
September 2009.
  29
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Provision
for Loan Losses
 
 The
provision for loan losses for the six-months ended September 30, 2010 was
$90,000 with a 50.0% decrease over the provision of $180,000 for the September
30, 2009 six-month period. The provision for both periods reflects management's
analysis of the Company's loan portfolio based on the information which was
available to the Company. Management meets on a quarterly basis to review the
adequacy of the allowance for loan losses based on Company guidelines.
Classified loans are reviewed by the loan officers to arrive at specific reserve
levels for those loans. Once the specific reserve for each loan is calculated,
management calculates general reserves for each loan category based on a
combination of loss history adjusted for current national and local economic
conditions, trends in delinquencies and charge-offs, trends in volume and term
of loans, changes in underwriting standards, and industry conditions. While the
Company cannot assure that future chargeoffs and/or provisions will not be
necessary, the Company's management believes that, as of September 30, 2010, its
allowance for loan losses was adequate.
 
 Non-Interest
Income
 
 Non-interest
income categories for the six-month periods ended September 30, 2010 and 2009
are shown in the following table:
 
 Six
      Months Ended
                          September
      30,2010
                        
                        
                        2009
                        
                        
                        %Change(In
      thousands)Non-interest
      income:Charges
      and fees on deposit accounts
                        
                        $
                        489
                        
                        
                        $
                        476
                        
                        
                        
                        2.7
                        %Charges
      and other fees on loans
                        
                        
                        158
                        
                        
                        
                        178
                        
                        
                        
                        (11.2
                        )Net
      gain on sale of loans
                        
                        
                        341
                        
                        
                        
                        182
                        
                        
                        
                        87.4Net
      gain on sale of foreclosed property
                        
                        
                        15
                        
                        
                        
                        —
                        
                        
                        
                        —Net
      realized gain on sale of available for sale securities
                        
                        
                        —
                        
                        
                        
                        106
                        
                        
                        
                        (100.0
                        )Net
      gain on sale of equipment
                        
                        
                        4
                        
                        
                        
                        —
                        
                        
                        
                        —Other
                        
                        
                        267
                        
                        
                        
                        239
                        
                        
                        
                        11.7Total
      Non-Interest Income
                        
                        $
                        1,274
                        
                        
                        $
                        1,181
                        
                        
                        
                        7.9
                        %
 
 Non-interest
income increased $93,000 when comparing the six-months ended September 30, 2010
to September 30, 2009 as a result of the increase in charges and fees on deposit
accounts of $13,000, the increase of $159,000 in net gain on sale of loans, the
$15,000 increase on net gain on sale of foreclosed assets, and the increase of
$28,000 in other non-interest income offset, in part by the decrease in the
realized gain on sale of securities of $106,000, and the $20,000 decrease in
charges and other fees on loans. The increase in charges and fees on deposit
accounts came from fees received on insufficient and overdraft charges. With the
implementation of Regulation E, which will not allow assessing an overdraft
charge for ATM or one-time debit card transactions without the customer opting
in to an overdraft program sponsored by the Company, future income from
overdraft charges could decrease. The $28,000 increase in other non-interest
income is primarily from interchange income from debit card usage by customers.
The Company promotes a checking account product that rewards customers for debit
card usage.
  30
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Non-Interest
Expense
 
 Non-interest
expense categories for the six-month periods ended September 30, 2010 and 2009
are shown in the following table:
 
 Six Months Ended
                        September 30,2010
                      
                      
                      2009
                      
                      
                      %Change(In thousands)Non-interest
      expense:Compensation
      and employee benefits
                      
                      $
                      1,538
                      
                      
                      $
                      1,340
                      
                      
                      
                      14.8
                      %Occupancy
      and equipment
                      
                      
                      352
                      
                      
                      
                      360
                      
                      
                      
                      (2.2
                      )Data
      processing
                      
                      
                      140
                      
                      
                      
                      126
                      
                      
                      
                      11.1Audit,
      legal and other professional
                      
                      
                      142
                      
                      
                      
                      192
                      
                      
                      
                      (26.0
                      )Advertising
                      
                      
                      134
                      
                      
                      
                      177
                      
                      
                      
                      (24.3
                      )Telephone
      and postage
                      
                      
                      96
                      
                      
                      
                      104
                      
                      
                      
                      (7.7
                      )FDIC
      insurance
                      
                      
                      103
                      
                      
                      
                      181
                      
                      
                      
                      (43.1
                      )Loss
      on cost basis equity security
                      
                      
                      —
                      
                      
                      
                      137
                      
                      
                      
                      (100.0
                      )Other
                      
                      
                      298
                      
                      
                      
                      341
                      
                      
                      
                      (12.6
                      )Total
      Non-Interest Expense
                      
                      $
                      2,803
                      
                      
                      $
                      2,958
                      
                      
                      
                      (5.2
                      )%
 
 For the
six-months ended September 30, 2010, compensation expense increased $198,000
over the six-months ended September 30, 2009 primarily due to the $107,000
increase in market value of the shares held in the Directors Retirement Plan, a
$59,000 net increase in salaries and accrued paid time off days and a $24,000
increase in health insurance costs.
 
 Audit,
legal and other professional services decreased $50,000 when comparing the
September 2010 and 2009 six-month periods due to decreased costs related to
Sox-404 compliance.
 
 Advertising
expense decreased $43,000 for the six-months ended September 30, 2010 when
compared to the same period of the prior year due to a decreased budget being
allocated for marketing expense.
 
 Telephone
and postage expense decreased by $8,000 for the six-months ended September 30,
2010 when compared to the same period in 2009. The reduction can be attributed,
in part, to the use of electronic statements for customers.
 
 The
decrease of $78,000 in Federal Deposit Insurance Corporation (“FDIC”) insurance
when comparing the six-months ended September 30, 2010 to the same period in the
prior year was due the additional 5 basis point special assessment on each
insured depository institution's assets minus Tier 1 capital that was calculated
as of June 30, 2009 and collected on September 30, 2009. The additional amount
imposed on the Company, as a result of the June 30, 2009 final rule, was
approximately $81,000. There was no special assessment for the six-months ended
September 30, 2010.
 
 The
Company recognized a loss of $137,000 during the six-months ended September 30,
2009 related to a cost basis equity security investment in a financial
institution. During the six-months ended September 30, 2010, the Company did not
record any losses associated with cost basis equity securities.
 
 Income
Tax Expense
 
 The
provision in income tax expense increased $334,000, or 463.9%, for the
six-months ending September 30, 2010, compared to the same period in 2009. The
increases can be attributed to increased profitability. The effective tax rate
for the six-months ended September 30, 2010 and 2009 were 33.1% and 35.8%,
respectively.
  31
  FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 Off-Balance
Sheet Arrangements
 
 The
Company has entered into performance standby and financial standby letters of
credit with various local commercial businesses in the aggregate amount of
$356,000. The letters of credit are collateralized and underwritten, as
currently required by our loan policy, in the same manner as any commercial
loan. The advancement of any funds on these letters of credit is not
anticipated.
 
 Liquidity
and Capital Resources
 
 The
Company’s principal sources of funds are deposits and principal and interest
payments collected on loans, investments and related securities. While scheduled
loan repayments and maturing investments are relatively predictable, deposit
flows and early loan prepayments are more influenced by interest rates, general
economic conditions and competition.
 
 Liquidity
resources are used principally to meet outstanding commitments on loans, to fund
maturing certificates of deposit and deposit withdrawals
and to meet operating expenses. The Company anticipates no foreseeable problems
in meeting current loan commitments.At September 30, 2010,
outstanding commitments to extend credit amounted to $21.0 million (including
$13.7 million, in available revolving and closed-ended commercial and
agricultural lines of credit).Management believes that
loan repayments and other sources of funds will be adequate to meet any
foreseeable liquidity needs.
 
 The Bank
maintains a $25.7 million line of credit with the FHLB, which can be accessed
immediately. As of September 30, 2010 and 2009, there were no advances
outstanding for either period. However, the $24.7 million line of credit with
the FHLB is reduced by $943,000 for the credit enhancement reserve established
as a result of the participation in the FHLB Mortgage Partnership Finance
(“MPF”) program. The Bank also maintains a $5.0 million revolving federal funds
line of credit with The Independent BankersBank (“TIB”) of which $35,000 was
outstanding at September 30, 2010 and no balance outstanding at September 30,
2009. The Company also has a $2.5 million revolving line of credit with an
unaffiliated financial institution of which $1.8 million was outstanding at
September 30, 2010 and $2.5 million outstanding at September 30, 2009. The Bank
has also established borrowing capabilities at the discount window with the
Federal Reserve Bank of St. Louis. Investment securities of $3,000,000 have been
pledged as collateral. As of September 30, 2010 and 2009, no amounts were
outstanding at the Federal Reserve discount window.
 
 Liquidity
management is both a daily and long-term responsibility of management. We adjust
our investments in liquid assets based upon management's assessment of (i)
expected loan demand, (ii) expected deposit flows, (iii) yields available on
interest-bearing investments,
and (iv) the objectives of its asset/liability management program. Excess
liquidity generally is invested in interest-earning overnight deposits and other
short-term government and agency obligations.
  32
 
 FIRST
ROBINSON FINANCIAL CORPORATION
 Management’s
Discussion and Analysis of Financial Condition
 And
Results of Operations
 
 The
Company and the Bank are subject to capital requirements of the federal bank
regulatory agencies which require the Bank to maintain minimum ratios of Tier I
capital to total adjusted assets and to risk-weighted assets of 4%, and total
capital to risk-weighted assets of 8% respectively. Generally, Tier I capital
consists of total stockholders’ equity calculated in accordance with generally
accepted accounting principals less intangible assets, and total capital is
comprised of Tier I capital plus certain adjustments, the only one of which is
applicable to the Bank is the allowance for loan losses. Risk-weighted assets
refer to the on- and off-balance sheet exposures of the Bank adjusted for
relative risk levels using formulas set forth by OCC regulations. The Bank is
also subject to an OCC leverage capital requirement, which calls for a minimum
ratio of Tier I capital to quarterly average total assets of 3% to 5%, depending
on the institution’s composite ratings as determined by its regulators. Both the
Bank and the Company are considered well-capitalized under federal
regulations.
 
 At
September 30, 2010, the Bank’s compliance with all of the aforementioned capital
requirements is summarized below:
 
 To be Well CapitalizedUnder the PromptFor Capital
                              
                              
                              Corrective ActionActual
                              
                              
                              Adequacy Purposes
                              
                              
                              ProvisionsAmount
                              
                              
                              Ratio
                              
                              
                              Amount
                              
                              
                              Ratio
                              
                              
                              Amount
                              
                              
                              RatioTotal
      Risk-Based Capital(to
      Risk-Weighted Assets)
                              
                              $
                              13,896
                              
                              
                              
                              12.12
                              %
                              
                              $
                              9,169
                              
                              
                              
                              8.00
                              %
                              
                              $
                              11,461
                              
                              
                              
                              10.00
                              %Tier
      I Capital(to
      Risk-Weighted Assets)
                              
                              
                              12,821
                              
                              
                              
                              11.19
                              
                              
                              
                              4,584
                              
                              
                              
                              4.00
                              
                              
                              
                              6,877
                              
                              
                              
                              6.00Tier
      I Capital(to
      Average Assets)
                              
                              
                              12,821
                              
                              
                              
                              6.84
                              
                              
                              
                              7,497
                              
                              
                              
                              4.00
                              
                              
                              
                              9,371
                              
                              
                              
                              5.00
 
 At the
time of the conversion of the Bank to a stock organization, a special
liquidation account was established for the benefit of eligible account holders
and the supplemental account holders in an amount equal to the net worth of the
Bank. This special liquidation account will be maintained for the benefit of
eligible account holders and the supplemental account holders who continue to maintain
their accounts in the Bank after June 27, 1997. In the unlikely event of a
complete liquidation, each eligible and the supplemental eligible account
holders will be entitled to receive a liquidation distribution from the
liquidation account in an amount proportionate to the current adjusted
qualifying balances for accounts then held. The Bank may not declare or pay cash
dividends on or repurchase any of its common stock if stockholders’ equity would
be reduced below applicable regulatory capital requirements or below the special
liquidation account.
  33
  FIRST
ROBINSON FINANCIAL CORPORATION
 
 Item:
3  Quantitative and
Qualitative Disclosures about Market Risk
 
 Not
applicable.
 
 Item:
4T  Controls and
Procedures
 
 Any
control system, no matter how well designed and operated, can provide only
reasonable (not absolute) assurance that its objectives will be met.
Furthermore, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, have been detected.
 
 Disclosure Controls and
Procedures
 
 The
Company’s management, with the participation of the Company’s Chief Executive
Officer and Chief Financial Officer, has evaluated the effectiveness of the
Company’s disclosure controls and procedures (as such term is defined in Rules
13a-15(e) and 15d-15(e)) under the Exchange Act as of the end of the period
covered by this report. Based upon that evaluation, the Company’s Chief
Executive Officer and Chief Financial Officer have concluded that, as of
September 30, 2010 the Company’s disclosure controls and procedures were
effective to provide reasonable assurance that (i) the information required to
be disclosed in this Report was recorded, processed, summarized and reported
within the time periods specified in the SEC’s rules and forms, and (ii)
information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is accumulated and communicated to Company’s
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding disclosure.
 
 Internal Control Over
Financial Reporting
 
 There
have been no changes in the Company’s internal control over financial reporting
(as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) during the fiscal quarter to which this report relates that have materially
affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.
  34
  PART II
OTHER INFORMATION
 
 Item 1.
              Legal
      Proceedings
 None
 
 Item 1A.
              Risk
      Factors
 Various
risks and uncertainties, some of which are difficult to predict and beyond the
Company’s control, could negatively impact the Company. As a financial
institution, the Company is exposed to interest rate risk, liquidity risk,
credit risk, operational risk, risks from economic or maket conditions, and
general business risks among others. Adverse experience with these and other
risks could have a material impact on the Company’s financial condition and
results of operations, as well as the value of its common stock. See the risk
factors described in the Company’s Annual Report on Form 10-K for the year ended
March 31, 2010 and Current Report on Form 10-Q for the period ended June 30,
2010
 
 Item 2.
              Unregistered Sales of
      Equity Securities and Use of
Proceeds
 The
following table provides information about purchases by the Company for the
quarter ended September 30, 2010 regarding the Company’s common
stock.
 
 PURCHASES
OF EQUITY SECURITIES BY COMPANY (1)
 Period
                            
                            Total Number of
                              Shares Purchased
                            
                            
                            Average Price Paid
                              per Share
                            
                            
                            Total Number of
                              Shares Purchased as
                              Part of Publicly
                              Announced Plans or
                              Programs
                            
                            
                            Maximum Number of
                              Shares that May Yet
                              Be Purchased Under
                              the Plans or Programs7/1/2010
      – 7/31/2010
                            
                            
                            500
                            
                            
                            $
                            33.25
                            
                            
                            
                            90
                            
                            
                            
                            7,6668/1/2010
      – 8/31/2010
                            
                            
                            —
                            
                            
                            
                            —
                            
                            
                            
                            —
                            
                            
                            
                            5,0009/1/2010–
      9/30/2010
                            
                            
                            —
                            
                            
                            
                            —
                            
                            
                            
                            —
                            
                            
                            
                            5,000Total
                            
                            
                            500
                            
                            
                            $
                            33.25
                            
                            
                            
                            90
                            
                            
                            
                            5,000
 
 (1) See
Note 5 of Notes to Condensed Consolidated Financial Statements for more
information regarding stock purchases.
 
 Item 3.
              Defaults Upon Senior
      Executives
 None
 
 Item 4.
              Removed and
      Reserved
 
 Item
      5.
              Other
      Information
 None
 
 Item
      6.
              Exhibits
 
 1.
              Exhibit
      31: Section 302 Certifications
 
 2.
              Exhibit
      32: Section 906 Certifications
  35
 
 SIGNATURES
 
 Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
 
 FIRST
      ROBINSON FINANCIALCORPORATIONDate:   November 12,
      2010
                        /s/ Rick L. CattRick
      L. CattPresident
      and Chief Executive OfficerDate:   November
      12, 2010
                        /s/ Jamie E. McReynoldsJamie
      E. McReynoldsChiefFinancial Officer
      and Vice
President
  36
 
 EXHIBIT
INDEX
 
 Exhibit
No.
 
 31.1
              Certification
      by the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002
 
 31.2
              Certification
      by the CFO pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002
 
 32
              Certifications
      of the CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002
  37