UNITED
      STATES





SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549


FORM
      10-QSB





QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For
      the
      quarterly period ended June
      30, 2007





Commission
      File Number: 0-29276





FIRST
      ROBINSON FINANCIAL CORPORATION


(Exact
      name of registrant as specified in its charter)





DELAWARE
            36-4145294(State
                or other jurisdiction
            I.R.S.
                Employer ID Numberof
                incorporation or organization)




501
                EAST MAIN STREET, ROBINSON.
            ILLINOIS
                62454(Address
                of principal executive offices)
            (Zip
                Code)





Registrant’s
      telephone number, including area code (618)
      544-8621





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 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 o





Indicate
      by check mark whether Registrant is a shell company (as defined in Rule 12b-2
      of
      the Exchange Act).




YES o  NO
x





As
      of
      August 10, 2007, the Issuer had 477,036 shares of Common Stock, par value $0.01,
      issued and outstanding.





Transitional
      Small Business Disclosure Format (check one):




YES
o  NO
x









FIRST
      ROBINSON FINANCIAL CORPORATION


Index
      to
      Form 10-QSB


PAGEPART
                  1. FINANCIAL INFORMATIONItem
                  1.
              Financial
                  StatementsCondensed
                  Consolidated Balance Sheets as of June 30, 2007And
                  March 31, 2007
              3Condensed
                  Consolidated Statements of Income for the Quarters EndedJune
                  30, 2007 and June 30, 2006
              4Condensed
                  Consolidated Statements of Cash Flows for the QuartersEnded
                  June 30, 2007 and June 30, 2006
              6Notes
                  to Condensed Consolidated Financial Statements
              8Item
                  2.
              Management’s Discussion
                and Analysis or Plan of Operations
              11Item
                  3.
              Controls
                  and Procedures
              22PART
                  II OTHER INFORMATIONItem
                  1.
              Legal
                  Proceedings
              23Item
                  2.
              Unregistered
                  Sales of Equity Securities and Use of Proceeds
              23Item
                  3.
              Defaults
                  Upon Senior Securities
              23Item
                  4.
              Submission
                  of Matters to a Vote of Security-Holders
              23Item
                  5.
              Other
                  Information
              23Item
                  6.
              Exhibits
              23SIGNATURES
              24CERTIFICATIONS
              25









Item
      1:


FIRST
      ROBINSON FINANCIAL CORPORATION


CONDENSED
      CONSOLIDATED BALANCE SHEETS


(In
      thousands, except share data)


(Unaudited)June
                  30, 2007
              
              March
                  31, 2007ASSETSCash
                  and cash equivalents
              
              $
              6,620
              
              $
              4,049Available-for-sale
                  securities
              
              
              29,386
              
              
              31,129Loans,
                  net of allowance for loan losses of $720 and $729at
                  June 30, 2007 and March 31, 2007, respectively
              
              
              74,308
              
              
              71,070Federal
                  Reserve and Federal Home Loan Bank stock
              
              
              805
              
              
              805Premises
                  and equipment, net
              
              
              2,455
              
              
              2,482Foreclosed
                  assets held for sale, net
              
              
              24Interest
                  receivable
              
              
              691
              
              
              737Deferred
                  income taxes
              
              
              382
              
              
              209Cash
                  surrender value of life insurance
              
              
              1,353
              
              
              1,341Other
                  assets
              
              
              512
              
              
              452Total
                  Assets
              
              $
              116,536
              
              $
              112,274LIABILITIES
                  AND STOCKHOLDERS’ EQUITY**Liabilities**Deposits
              
              
              90,167
              
              
              86,773Other
                  borrowings
              
              
              13,600
              
              
              12,088Advances
                  from borrowers for taxes and insurance
              
              
              170
              
              
              129Accrued
                  income taxes
              
              
              111
              
              
              154Interest
                  payable
              
              
              206
              
              
              203Other
                  liabilities
              
              
              986
              
              
              1,037Total
                  Liabilities
              
              
              105,240
              
              
              100,384**Commitments
                  and Contingencies**
              
              
              —
              
              
              —**Stockholders’
                  Equity**Preferred
                  stock, $.01 par value; authorized 500,000 shares,no
                  shares issued and outstandingCommon
                  stock, $ .01 par value; authorized 2,000,000 shares; 859,625 shares
                  issued;outstanding
                  June 30, 2007- 477,196 shares; March 31, 2007 - 484,908
                  shares
              
              
              9
              
              
              9Additional
                  paid-in capital
              
              
              8,446
              
              
              8,406Retained
                  earnings
              
              
              9,416
              
              
              9,459Accumulated
                  other comprehensive loss
              
              
              (492
              )
              
              (199
              )Treasury
                  stock, at costCommon:
                  June 30, 2007 - 375,198 shares; March 31, 2007 - 367,486
                  shares
              
              
              (6,083
              )
              
              (5,785
              )Total
                  Stockholders’ Equity
              
              
              11,296
              
              
              11,890Total
                  Liabilities and Stockholders’ Equity
              
              $
              116,536
              
              $
              112,274


See
      Notes
      to Condensed Consolidated Financial Statements.




3


FIRST
      ROBINSON FINANCIAL CORPORATION


CONDENSED
      CONSOLIDATED STATEMENTS OF INCOME


For
      the
      Quarters Ended June 30, 2007 and 2006


(In
      thousands, except per share data)


(Unaudited)


2007
              
              2006Interest
                  and Dividend Income:Loans
              
              $
              1,372
              
              $
              1,214Securities:Taxable
              
              
              338
              
              
              319Tax-exempt
              
              
              24
              
              
              24Other
                  interest income
              
              
              19
              
              
              44Dividends
                  on Federal Reserve and Federal Home Loan Bank stock
              
              
              7
              
              
              7Total
                  Interest and Dividend Income
              
              
              1,760
              
              
              1,608Interest
                  Expense:Deposits
              
              
              617
              
              
              454Other
                  borrowings
              
              
              117
              
              
              98Total
                  Interest Expense
              
              
              734
              
              
              552Net
                  Interest Income
              
              
              1,026
              
              
              1,056Provision
                  for Loan Losses
              
              
              15
              
              
              15Net
                  Interest Income After Provision for Loan Losses
              
              
              1,011
              
              
              1,041Non-Interest
                  Income:Charges
                  and fees on deposit accounts
              
              
              217
              
              
              188Charges
                  and other fees on loans
              
              
              38
              
              
              6Net
                  gain on sale of loans
              
              
              31
              
              
              27Other
              
              
              98
              
              
              70Total
                  Non-Interest Income
              
              
              384
              
              
              291Non-Interest
                  Expense:Compensation
                  and employee benefits
              
              
              592
              
              
              463Occupancy
                  and equipment
              
              
              150
              
              
              134Data
                  processing
              
              
              51
              
              
              48Audit,
                  legal and other professional
              
              
              38
              
              
              34Advertising
              
              
              33
              
              
              30Telephone
                  and postage
              
              
              25
              
              
              23Net
                  loss on sale of foreclosed assets
              
              
              —
              
              
              2Other
              
              
              123
              
              
              132Total
                  Non-Interest Expenses
              
              
              1,012
              
              
              866





See
      Notes
      to Condensed Consolidated Financial Statements.





4


FIRST
      ROBINSON FINANCIAL CORPORATION


CONDENSED
      CONSOLIDATED STATEMENTS OF INCOME


For
      the
      Quarters Ended June 30, 2007 and 2006


(In
      thousands, except per share data)


(Unaudited)


2007
              
              2006Income
                  before income taxes
              
              
              383
              
              
              466Provision
                  for income taxes
              
              
              110
              
              
              150Net
                  Income
              
              $
              273
              
              $
              316Basic
                  Earnings Per Share
              
              $
              0.58
              
              $
              0.66Diluted
                  Earnings Per Share
              
              $
              0.56
              
              $
              0.63Comprehensive
                  Income (Loss)Net
                  Income
              
              $
              273
              
              $
              316Other
                  Comprehensive Income (Loss):Unrealized
                  gains (losses) on securities
              
              
              (469
              )
              
              (480
              )Related
                  tax effects
              
              
              176
              
              
              180Other
                  Comprehensive Income (Loss)
              
              
              (293
              )
              
              (300
              )Comprehensive
                  Income (Loss)
              
              $
              (20
              )
              $
              16


See
      Notes
      to Condensed Consolidated Financial Statements.





5


FIRST
      ROBINSON FINANCIAL CORPORATION


CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS


For
      the
      Quarters Ended June 30, 2007 and 2006


(In
      thousands)


(Unaudited)


2007
              
              2006Cash
                  flows from operating activities:Net
                  income
              
              $
              273
              
              $
              316Items
                  not requiring (providing) cashDepreciation
                  and amortization
              
              
              72
              
              
              65Provision
                  for loan losses
              
              
              15
              
              
              15Amortization
                  of premiums and discounts on securities
              
              
              (11
              )
              
              (1
              )Amortization
                  of loan servicing rights
              
              
              11
              
              
              9Compensation
                  related to ESOP
              
              
              
              
              
              34Compensation
                  related to the exercise of options
              
              
              69Deferred
                  income taxes
              
              
              3
              
              
              (7
              )Originations
                  of mortgage loans held for sale
              
              
              (2,009
              )
              
              (1,355
              )Proceeds
                  from the sale of mortgage loans
              
              
              1,941
              
              
              1,382Net
                  gain on loans sold
              
              
              (31
              )
              
              (27
              )Net
                  loss on sale of foreclosed property
              
              
              
              
              
              2Changes
                  in:Interest
                  receivable
              
              
              46
              
              
              75Cash
                  surrender value of life insurance
              
              
              (12
              )
              
              (12
              )Other
                  assets
              
              
              (79
              )
              
              (123
              )Accrued
                  income taxes
              
              
              (43
              )
              
              139Interest
                  payable
              
              
              3
              
              
              2Other
                  liabilities
              
              
              (51
              )
              
              8Net
                  cash provided by operating activities
              
              
              197
              
              
              522Cash
                  flows from investing activities:Purchase
                  of securities available for sale
              
              
              
              
              
              (1,858
              )Repayment
                  of principal on mortgage-backed securities
              
              
              1,285
              
              
              1,372Proceeds
                  from sale of FHLB stock
              
              
              
              
              
              22Net
                  change in loans
              
              
              (3,178
              )
              
              (644
              )Proceeds
                  from sale of foreclosed assets
              
              
              
              
              
              9Purchase
                  of premises and equipment
              
              
              (37
              )
              
              (9
              )Net
                  cash used in investing activities
              
              
              (1,930
              )
              
              (1,108
              )




See
      Notes
      to Condensed Consolidated Financial Statements.





6


FIRST
      ROBINSON FINANCIAL CORPORATION


CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS


For
      The
      Quarters Ended June 30, 2007 and 2006


(In
      thousands)


(Unaudited)


2007
              
              2006Cash
                  flows from financing activities:Net
                  increase (decrease) in deposits
              
              $
              3,394
              
              $
              (30
              )Proceeds
                  from other borrowings
              
              
              28,854
              
              
              32,531Repayment
                  of other borrowings
              
              
              (27,342
              )
              
              (29,724
              )Proceeds
                  from federal funds purchased
              
              
              5,381
              
              
              4,200Repayment
                  of federal funds purchased
              
              
              (5,381
              )
              
              (4,200
              )Purchase
                  of incentive plan shares
              
              
              (10
              )
              
              (9
              )Proceeds
                  received from exercise of stock options
              
              
              32
              
              
              25Purchase
                  of treasury stock
              
              
              (349
              )
              
              (71
              )Dividends
                  paid
              
              
              (316
              )
              
              (273
              )Net
                  increase (decrease) in advances from borrowers for taxes and
                  insurance
              
              
              41
              
              
              (87
              )Net
                  cash provided by financing activities
              
              
              4,304
              
              
              2,362Increase
                  in cash and cash equivalents
              
              
              2,571
              
              
              1,776Cash
                  and cash equivalents at beginning of period
              
              
              4,049
              
              
              7,389Cash
                  and cash equivalents at end of period
              
              $
              6,620
              
              $
              9,165Supplemental
                  Cash Flows InformationInterest
                  paid
              
              $
              731
              
              $
              551Income
                  taxes paid (net of refunds)
              
              
              150
              
              
              19Real
                  estate acquired in settlement of loans
              
              
              24




See
      Notes
      to Condensed Consolidated Financial Statements.





7





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-KSB 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-QSB and, therefore, do not
      include information or footnotes necessary for a complete presentation of
      financial condition, results of operations, 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 June 30, 2007 and the results of its operations and cash flows for the three
      months ended June 30, 2007 and 2006. The results of operations for those months
      ended June 30, 2007 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, 2007,
      has
      been derived from the audited Consolidated Balance Sheet for the Company as
      of
      that date.





2.  Newly
      Adopted Accounting Pronouncements





The
      Company adopted the provisions of FASB Interpretation No. 48 ("FIN 48"),
      "Accounting for Uncertainty in Income Taxes," on April 1, 2007. Implementation
      of the new Standard did not have a material impact on the Company’s financial
      statements. The Company files income tax returns in the U.S. federal
      jurisdiction and the state of Illinois jurisdiction. As of August 13, 2007,
      the
      open tax years under FIN 48 are 2005, 2006 and 2007.





On
      April
      1, 2007, the Company adopted the provisions of Statement of Financial Accounting
      Standards No. 156 (“SFAS No. 156”), “Accounting for Servicing of Financial
      Assets”, an amendment of FASB Statement No. 140, “Accounting for Transfers and
      Servicing of Financial Assets and Extinguishments of Liabilities”.
      Implementation of the new standard did not have a material impact on the
      Company’s financial statements.





In
      September 2006, the FASB ratified a consensus opinion by the EITF on EITF Issue
      06-5, “Accounting for Purchases of Life Insurance-Determining the Amount that
      Could be Realized in Accordance with FASB Technical Bulletin No. 85-4.” The
      guidance in EITF 06-5 required policy holders to consider other amounts included
      in the contractual terms of an insurance policy, in addition to cash surrender
      value, for purposes of determining the amount that could be realized under
      the
      terms of the insurance contract. If it is probable that contractual terms would
      limit the amount that could be realized under the insurance contract, those
      contractual limitations should be considered when determining the realizable
      amounts. The amount that could be realized under the insurance contract should
      be determined on an individual policy (or certificate) level and should include
      any amount realized on the assumed surrender of the last individual policy
      or
      certificate in a group policy.





The
      Company holds several life insurance policies, however, the policies do not
      contain any provisions that would restrict or reduce the cash surrender value
      of
      the policies. The consensus in EITF Issue 06-5 is effective for fiscal years
      beginning after December 15, 2006. The application of this guidance did not
      have
      a material adverse effect on the Company’s financial position or results of
      operation.





3.  Employee
      Stock Ownership Plan





In
      connection with the conversion to the stock form of ownership, the Board of
      Directors established an employee stock ownership plan (ESOP) for the exclusive
      benefit of participating employees. Employees age 21 or older who have completed
      one year of service are eligible to participate. Upon the issuance of the common
      stock, the ESOP acquired 68,770 shares of $0.01 par value common stock at the
      subscription price of $10.00 per share. The Bank makes contributions to the
      ESOP
      equal to the ESOP’s debt service less dividends received by the ESOP. Dividends
      on the unallocated shares received by the ESOP are used to pay debt service.
      As
      the debt
      is
      repaid, shares are released from collateral and allocated to active employees.
      Accordingly, the debt of the ESOP is recorded as debt and the shares pledged
      as
      collateral are reported as unearned ESOP shares in the condensed consolidated
      balance sheets. As shares are released from collateral, the Bank reports
      compensation expense equal to the current market price of the shares, and the
      shares become outstanding for earnings-per-share calculations. Dividends on
      allocated shares are recorded as a reduction of retained earnings; dividends
      on
      unallocated ESOP shares are recorded as a reduction of debt or accrued interest.
      Since all shares were allocated in prior periods, there was no ESOP compensation
      expense for the three months ended June 30, 2007. ESOP compensation expense
      for
      the three months ended June 30, 2006 was $34,000.




8


FIRST
      ROBINSON FINANCIAL CORPORATION


NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




4.  Authorized
      Share Repurchase Program





On
      January 16, 2007, the Board of Directors of First Robinson Financial Corporation
      approved a repurchase program of its equity stock. The announcement of the
      program was filed purusant to Form 8-K. The Company may repurchase up to 25,000
      shares of the Company’s common stock from time to time, in the open market, when
      deemed appropriate by management. The program approved January 16, 2007 will
      expire the earlier of December 31, 2007 or when 25,000 of the Company’s
      outstanding shares are re-purchased. A total of 14,372 of the authorized 25,000
      shares have been repurchased in the open market as of July 31,
      2007.




5.  Stock-based
      Compensation





On
      July
      29, 1998, the stockholders of the Company approved a Stock Option Plan (“SOP”)
      and a Recognition and Retention Plan (“RRP”). Options and restricted shares were
      granted to directors, officers and employees at the fair value of the shares
      as
      of that date. The plans were for a period of ten (10) years with a five year
      vesting period for both plans from the date of the grant. Prior to April 1,
      2006
      the Company accounted for the Plan under the recognition and measurement
      provisions of Accounting Principles Board Opinion No. 25, "Accounting for Stock
      Issued to Employees," and related Interpretations.





In
      December 2004, the Financial Accounting Standards Board ("FASB") issued
      Statement of Financial Accounting Standards ("SFAS") No. 123 (revised 2004),
      "Share Based Payment," which established standards for the accounting for
      transactions in which an entity exchanges its equity instruments for goods
      or
      services, and focuses primarily on accounting for transactions in which an
      entity obtains employee services. The SFAS requires a public entity to measure
      the cost of employee services received in exchange for its equity instruments
      based on the fair value at the grant date (with limited exceptions) and
      recognize that cost over the service period. This statement revises SFAS No.
      123, "Accounting for Stock-Based Compensation," and supersedes APB Opinion
      No.
      25, "Accounting for Stock Issued to Employees." Effective April 1, 2006, the
      Company adopted the provisions of SFAS No. 123 (revised 2004). As a result
      of
      adopting SFAS No. 123R on April 1, 2006, the Company did not record any
      additional compensation expense, as no stock options had been granted in recent
      years and options granted were fully vested prior to adoption. However, on
      April
      1, 2006, the Company reclassified $125,000 of unearned compensation related
      to
      previously recognized compensation for restricted share awards that had been
      vested as of that date to additional paid-in capital as these awards represent
      equity awards as defined in SFAS No. 123R.




9


FIRST
      ROBINSON FINANCIAL CORPORATION


NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




6.  Earnings
      Per Share





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. The components of
      basic and diluted earnings per share for the three months ended June 30, 2007
      and 2006 were computed as follows (dollar amounts in thousands except per share
      data):


WeightedAverage
              
              Per
                  ShareIncome
              
              Shares
              
              AmountFor
                  the Quarter Ended June 30, 2007:Basic
                  Earnings per Share:Income
                  available to common stockholders
              
              $
              273
              
              
              468,262
              
              $
              0.58Effect
                  of Dilutive Securities:Unearned
                  incentive plan shares
              
              
              
              
              
              16,004Stock
                  options
              
              
              
              
              
              6,653Diluted
                  Earnings per Share:Income
                  available to common stockholders
              
              $
              273
              
              
              490,919
              
              $
              0.56For
                  the Quarter Ended June 30, 2006:Basic
                  Earnings per Share:Income
                  available to common stockholders
              
              $
              316
              
              
              478,244
              
              $
              0.66Effect
                  of Dilutive Securities:Unearned
                  incentive plan shares
              
              
              
              
              
              15,143Stock
                  options
              
              
              
              
              
              8,897Diluted
                  Earnings per Share:Income
                  available for common stockholders
              
              $
              316
              
              
              502,284
              
              $
              0.63


7.  Recent
      Accounting Pronouncements





In
      September, 2006, the Financial Account Standards Board (FASB) issued SFAS No.
      157 "Fair Value Measurements" which defines value, establishes a framework
      for
      measuring fair value in generally accepted accounting principles, and expands
      disclosures about fair value measurements. SFAS 157 will be effective for the
      Company on April 1, 2008, with earlier adoption permitted, and is not expected
      to have a significant impact on the Company's financial statements.





In
      February, 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
      Financial Assets and Financial Liabilities," which permits companies to choose
      to measure many financial instruments and certain other items at fair value.
      The
      objective of the new pronouncement is to improve financial reporting by
      providing companies with the opportunity to mitigate volatility in reported
      earnings caused by measuring assets and liabilities differently without having
      to apply complex hedge accounting provisions. SFAS 159 will be effective for
      the
      Company in 2008, with earlier adoption permitted. The Company has not yet made
      a
      determination as to when it will elect to apply the options available in SFAS
      159. The Company is currently evaluating the effect SFAS 159 may have on the
      Company’s financial statements.





10





Item
      2:


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operations





**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 “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. Such
      statements are subject to risks and uncertainties, including but not limited
      to
      changes in economic conditions in the Company’s market area, changes in policies
      by regulatory agencies, changes in accounting principles, policies, or
      guidelines, fluctuations in interest rates, demand for loans in the Company’s
      market area and competition, 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 wishes to caution readers not to place undue reliance on any such
      forward-looking statements, which speak only as of the date made, and advises
      readers that various factors, including regional and national economic
      conditions, substantial changes in levels of market interest rates, credit
      and
      other risks of lending and investment activities and competitive and regulatory
      factors, could affect our financial performance and could cause our actual
      results for future periods to differ materially from those anticipated or
      projected.





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.




**General**





The
      Company’s principal business, through its operating subsidiary, First Robinson
      Savings Bank, National Association, (the “Bank”) consists of accepting deposits
      from the general public and investing these funds primarily in loans,
      mortgage-backed securities and other securities. Loans consist primarily of
      loans secured by residential real estate located in our market area, consumer
      loans, commercial loans, and agricultural loans.





The
      Company’s results of operations are dependent primarily on net interest income,
      which is the difference between interest earned on interest-earning assets
      and
      the interest paid on interest-bearing liabilities. Net interest income is a
      function of “interest rate spread,” which is the difference between the average
      yield earned on interest-earning assets and the average rate paid on
      interest-bearing liabilities. The interest rate spread is affected by
      regulatory, economic and competitive factors that influence interest rates,
      loan
      demand and deposit flows. To a lesser extent, the results of operations are
      also
      affected by other income, and general, administrative and other expense, the
      provision for losses on loans and income tax expense. Other income consists
      primarily of service charges and gains (losses) on sales of loans. General,
      administrative and other expense consists primarily of salaries and employee
      benefits, occupancy and office expenses, advertising, data processing expenses
      and the costs associated with being a publicly held company.




Operations
      are significantly affected by prevailing economic conditions, competition and
      the monetary, fiscal and regulatory policies of government agencies. Lending
      activities are influenced by the demand for and supply of housing, competition
      among lenders, the level of interest rates and the availability of funds.
      Deposit flows and costs of funds are influenced by prevailing market rates
      of
      interest, competing investments, account maturities and the levels of personal
      income and savings in the Company’s market area.





Historically,
      the company’s mission has been to originate loans on a profitable basis to the
      communities served. In seeking to accomplish this mission, the Board of
      Directors and management have adopted a business strategy designed (i) to
      maintain the Bank’s capital level in excess of regulatory requirements; (ii) to
      maintain asset quality, (iii) to maintain, and if possible, increase earnings;
      and (iv) to manage our exposure to changes in interest rates.





11


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operations





**Business
      Strategy**





First
      Robinson Savings Bank, National Association (the “Bank”), the Company’s
      operating subsidiary, is a
      community-oriented, locally owned financial institution offering
      community-banking services to residents and businesses of Crawford County,
      Illinois, our primary market area. Periodically, the Board of Directors and
      management meet to strategically plan for the future. We review and discuss
      both
      current and new products and services to determine their effect on our
      profitability and customer service. We also monitor any and all current events
      and economic trends in our local area that could materially impact the Bank’s
      earnings. At the present time, the employment market has remained stable in
      Crawford County and we anticipate no events that could negatively affect the
      Bank. However, one area the Bank is monitoring is the decrease in the net
      interest margin. Since June 2006, the net interest margin has decreased by
      32
      basis points. New business strategies to improve non-interest income and
      decrease future non-interest expenses are being implemented to offset the
      decline in the net interestm margin.





The
      strategic plan identifies the most critical issue to our success as consistent
      earnings. Net earnings have remained relatively consistent. A positive factor
      in
      maintaining consistent earnings is the Bank’s overall asset quality, which is
      strong. The Bank continues to offer fixed rate residential real estate mortgages
      through programs with the Federal Home Loan Bank of Chicago and USDA Rural
      Development. Our Internet banking service, “Netteller” is very popular and the
      number of customers actively using the service is increasing. It has allowed
      us
      to offer bill paying, cash management and also direct deposit and payroll
      services to our business customers. In January 2007, we began offering “Reward
      Checking”. The product offers higher-than-market interest rates, which can be
      earned by customers if they meet specific transaction-based criteria. Our
      criteria promote the use of debit cards and our internet-based services and
      technology which in turn will decrease non-interest expenses associated with
      processing paper checks. We provide investment brokerage services to our
      customers through PrimeVest Financial Services. The service continues to grow
      and is also providing non-interest income. We plan to revisit the viability
      of
      implementing an internal trust department during the fourth quarter of fiscal
      year 2008.





We
      continue to maintain a strong presence in the community and are pleased to
      be
      the only independent community bank in Robinson, Palestine and Oblong, Illinois.
      To visit First Robinson Savings Bank on the web go to www.frsb.net.




**Asset
      Quality**




***Delinquencies*** .
      When a
      borrower fails to make a required payment on a loan, the Bank attempts to cure
      the delinquency 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 in excess of 60 days delinquent, the loan will generally be
      referred to the Bank’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 Bank 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
      Bank’s procedures for repossession and sale of consumer collateral are subject
      to various requirements under applicable consumer protection laws.




12


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operations








The
      following table sets forth the Bank’s loan delinquencies by type, by amount and
      by percentage of type at June 30, 2007.




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-
                tofour-family
            
            
            4
            
            $
            128
            
            
            0.34
            %
            
            —
            
            $
            —
            
            
            —
            
            
            3
            
            $
            87
            
            
            0.23
            %
            
            7
            
            $
            215
            
            
            0.57
            %Commercial
                non-residential
            
            
            1
            
            
            4
            
            
            0.03
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            —
            
            
            1
            
            
            4
            
            
            0.03Consumer
                and other loans
            
            
            4
            
            
            18
            
            
            0.29
            
            
            —
            
            
            —
            
            
            —
            
            
            2
            
            
            4
            
            
            0.06
            
            
            6
            
            
            22
            
            
            0.35Commercialbusiness
                andagriculturalfinance
            
            
            1
            
            
            46
            
            
            0.49
            
            
            —
            
            
            —
            
            
            —
            
            
            3
            
            
            65
            
            
            0.70
            
            
            4
            
            
            111
            
            
            1.19Total
            
            
            10
            
            $
            196
            
            
            0.26
            %
            
            —
            
            $
            —
            
            
            —
            %
            
            8
            
            $
            156
            
            
            0.21
            %
            
            18
            
            $
            352
            
            
            0.47
            %





(1)
            Loans
                are still accruing.




***Non-Performing
      Assets*** .
      The
      table below sets forth the amounts and categories of non-performing assets
      in
      the Bank’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.




June
                  30,2007
            
            March31,2007
            
            June
                  30,2006Non-accruing
                loans:One-
                to four-family
            
            $
            87
            
            $
            119
            
            $
            204Consumer
                and other loans
            
            
            4
            
            
            4
            
            
            33Commercial
                business and agricultural finance
            
            
            65
            
            
            32
            
            
            —Total
            
            
            156
            
            
            155
            
            
            237Foreclosed
                assets:One-
                to four-family
            
            
            24
            
            
            —
            
            
            —Total
            
            
            24
            
            
            —
            
            
            —Total
                non-performing assets
            
            $
            180
            
            $
            155
            
            $
            237Total
                as a percentage of totalassets
            
            
            0.15
            %
            
            0.14
            %
            
            0.21
            %




Gross
      interest income which would have been recorded had the non-accruing loans been
      current in accordance with their original terms amounted to approximately $3,000
      for the three months ended June 30, 2007 and $5,000 for the three months ended
      June 30, 2006.





***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.


13
  FIRST
        ROBINSON FINANCIAL CORPORATION
 Management’s
        Discussion and Analysis or Plan of Operations





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 Bank 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 June 30, 2007, the Bank had classified a total of $549,000
      of
      its assets as substandard and $154,000 as doubtful or loss. At June 30, 2007,
      total classified assets comprised $703,000, or 6.2% of the Bank’s capital, and
      0.6% of the Bank’s total assets.





***Other
      Loans of Concern*** *.* As of
      June 30, 2007, there were $3.2 million in loans identified, but not classified,
      by the Bank 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 market
      value minus 20% of the fair market 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 market value less 10% of the fair market 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 June 30, 2007, the Bank had one real estate property
      acquired through foreclosure.





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 Bank’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 allowance for loan losses. Such agencies
      may require the Bank to increase the allowance based upon their judgment of
      the
      information available to them at the time of their examination. At June 30,
      2007, the Bank had a total allowance for loan losses of $720,000, representing
      0.97% of the Bank’s loans, net. At March 31, 2007, the Bank’s total allowance
      for loan losses to the Bank’s loans, net was at 1.03%.





14


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operations





The
      distribution of the Bank’s allowance for losses on loans at the dates indicated
      is summarized as follows:




June
                30, 2007
            
            March
                31, 2007Amount
                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
            
            $
            120
            
            $
            37,412
            
            
            49.32
            %
            $
            101
            
            $
            36,214
            
            
            49.84
            %Multi-family
            
            
            —
            
            
            697
            
            
            0.92
            
            
            —
            
            
            591
            
            
            0.81Commercial
                and
              agricultural
                real estate
            
            
            350
            
            
            15,649
            
            
            20.63
            
            
            346
            
            
            14,815
            
            
            20.39Construction
                and
              development
            
            
            8
            
            
            2,892
            
            
            3.81
            
            
            8
            
            
            2,556
            
            
            3.52Consumer
                and other loans
            
            
            49
            
            
            6,306
            
            
            8.32
            
            
            41
            
            
            6,168
            
            
            8.49State
                and Municipal
              Governments
            
            
            —
            
            
            3,590
            
            
            4.73
            
            
            —
            
            
            3,265
            
            
            4.50Commercial
                business
              and
                agricultural
              finance
            
            
            193
            
            
            9,308
            
            
            12.27
            
            
            233
            
            
            9,048
            
            
            12.45Loan
                Subtotal
            
            
            
            
            
            75,854
            
            
            100.00
            %
            
            
            
            
            72,657
            
            
            100.00
            %Undisbursed
                portion of loans
            
            
            
            
            
            (826
            )
            
            
            
            
            
            
            
            (858
            )Unallocated
            
            
            —
            
            
            
            
            
            
            
            
            —Total
            
            $
            720
            
            $
            75,028
            
            
            
            
            $
            729
            
            $
            71,799





The
      following table sets forth an analysis of the Bank’s allowance for loan
      losses.





Three
                Months Ended
              June
                30,2007
            
            2006Balance
                at beginning of period
            
            $
            729
            
            $
            753Charge-offs:One-
                to four-family
            
            
            4
            
            
            5Consumer
                and other loans
            
            
            4
            
            
            6Total
            
            
            8
            
            
            11Recoveries:One-
                to four-family
            
            
            —
            
            
            —Consumer
                and other loans
            
            
            4
            
            
            3Total
            
            
            4
            
            
            3Net
                charge-offs
            
            
            4
            
            
            8Additions
                charged to operations
            
            
            15
            
            
            15Transfer
                for off-balance sheet credit exposure
            
            
            (20
            )
            
            —Balance
                at end of period
            
            $
            720
            
            $
            760Ratio
                of net charge-offs during the period toaverage
                loans outstanding during the period
            
            
            0.01
            %
            
            0.01
            %Ratio
                of net charge-offs during the period toaverage
                non-performing assets
            
            
            2.23
            %
            
            0.70
            %





15




FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operations





**Overview**





First
      Robinson Financial Corporation (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 offices
      and
      one drive-up facility in Crawford County. The Company earned $273,000 for the
      three month period ending June 30, 2007, versus $316,000 in the same period
      of
      2006, a decrease of 13.6%. Earnings were positively impacted by a $93,000,
      or
      32.0%, increase in non-interest income offset by a decrease of $30,000 in net
      interest income after provision for loan losses and an increase of $146,000,
      or
      16.9%, in non-interest expense. Basic earnings per share for the June 30, 2007
      three month period were $0.58 per share versus $0.66 per share for the same
      period of 2006. Diluted earnings per share reflect the potential dilutive impact
      of stock options granted under the stock option plan. Diluted earnings per
      share
      for the three months ending June 30, 2007 were $0.56 per share, versus $0.63
      per
      share for the three months ending June 30, 2006.





**Results
      of Operations**





**Net
      Interest Income**





For
      the
      three-month period ended June 30, 2007, net interest income totaled $1.026,000,
      a decrease of 2.8%, or $30,000, from the same period of 2006. Net interest
      income decreased in the three-month period ended June 30, 2007 versus the
      comparable period of 2006 primarily due to an increase of 67 basis points in
      the
      average cost of interest-bearing liabilities. For the three-month period ended
      June 30, 2007, the net interest spread decreased 41 basis points to 3.32% versus
      the comparable period of 2006





During
      the June 2007 quarter, total interest and dividend income increased $152,000,
      or
      9.5%, to $1.8 million, versus $1.6 million during the same quarter of 2006.
      For
      the three-month period ended June 30, 2007, the yield on average
      interest-earning assets increased 26 basis points to 6.63% from a yield of
      6.37%
      for the three-month period ended June 30, 2006.





The
      average daily loan balances for the quarter ended June 30, 2007 increased $7.3
      million, or 11.2%, to $73.0 million versus $65.7 million for the same period
      of
      2006. During the same period, loan interest income increased by $158,000, or
      13.0%, to $1.4 million versus $1.2 million during the quarter ended June 30,
      2006. The yield on loans increased 13 basis points to 7.52% from 7.39% when
      comparing the June 30, 2007 quarter to the June 2006 quarter.





Income
      from investment securities, interest-earning deposits and dividends received
      from Federal Home Loan Bank and Federal Reserve Bank stocks decreased $6,000,
      or
      1.5%, from $394,000 in the first quarter of fiscal year 2006 to $388,000 in
      the
      first quarter of fiscal year 2007. The decrease can be primarily attributed
      to a
      decrease of $2.0 million, or 64.0%, in the average balance of federal funds
      sold.





Total
      interest expense increased $182,000, or 33.0%, to $734,000 for the three-month
      period ended June 30, 2007, from $552,000 for the comparable period in 2006.
      The
      increase was primarily the result of a 67 basis point increase in the Company's
      daily cost of funds to 3.31% versus 2.64% for the same period of 2006, and
      the
      increase in the average daily balance of interest-bearing liabilities.





On
      an
      average daily basis, total interest-bearing deposits increased $3.6 million,
      or
      4.9%, to $77.7 million for the three-month period ended June 30, 2007, versus
      $74.1 million in the same period in 2006. The average cost of funds increased
      73
      basis points to 3.18% for the June 2007 quarter versus the June 2006 quarter
      at
      2.45%. Interest expense on deposit accounts could increase in the future due
      to
      a new product called “Reward Checking”. “Reward” pays an attractive rate of
      interest to customers that meet electronic banking requirements, such as using
      a
      check card for purchases, using the bank’s internet banking and bill pay system
      and agreeing to receive an electronic statement. This account is designed to
      reduce costs associated with maintaining checking accounts. With the
      implementation of electronic statements, the bank will cut postage and printing
      costs. If customers do not meet the requirements, they will still receive a
      minimal rate of interest.





There
      were no long-term nor overnight Federal Home Loan Bank (“FHLB”) borrowings for
      the June 2007 quarter nor the June 2006 quarter. The Company did have an
      increase of $19,000, or 19.4%, in short-term other borrowings interest expense
      from $98,000 during the June 2006 quarter to $117,000 in the June 2007 quarter.
      The short-term other borrowings consist of securities sold under agreements
      to
      repurchase. These agreements mature periodically within 36 months. The average
      daily balance of short-term other borrowings increased $1.4 million, or 14.7%,
      to $10.9 million during the June 2007 quarter from $9.5 million during the
      June
      2006 quarter. The average cost of funds increased by 16 basis points to 4.25%
      for the June 2007 quarter from 4.09% for the June 2006 quarter




16




FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operation




**Provision
      for Loan Losses**





The
      provision for loan losses was $15,000 for both of the quarters ended June 30,
      2007 and 2006. 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 June 30, 2007, its allowance for loan losses
      was
      adequate.





**Non-interest
      Income**





Non-interest
      income categories for the three-month periods ended June 30, 2007 and 2006
      are
      shown in the following table:


Three
                  Months EndedJune
                  30,Non-interest
                  income:
              
              2007
              
              2006
              
              %
                  Change(In
                  thousands)Charges
                  and fees on deposit accounts
              
              $
              217
              
              $
              188
              
              
              15.4
              %Charges
                  and other fees on loans
              
              
              38
              
              
              6
              
              
              533.3Net
                  gain on sale of loans
              
              
              31
              
              
              27
              
              
              14.8Other
              
              
              98
              
              
              70
              
              
              40.0Total
                  Non-Interest Income
              
              $
              384
              
              $
              291
              
              
              32.0
              %


The
      increase in charges and fees on deposit accounts, when comparing the two June
      quarters of 2007 and 2006, is primarily from overdraft and insufficient funds
      fees. Charges and other fees on loans increased during the three-month period
      ending June 2007 when compared to the same period in 2006 due to an increase
      in
      the commissions received on the sale of credit life and accident and health
      insurance.





The
      increase in gains on the sale of mortgages resulted primarily from an increase
      in the dollar volume of mortgages sold during the three-month period ended
      June
      30, 2007 versus the same period in 2006. During the first quarter of fiscal
      year
      2008, the Company sold $2.0 million in mortgages versus $1.4 million in the
      same
      quarter of fiscal year 2007.





Other
      income consists of normal recurring fee income such as commissions from
      PrimeVest Investment Services, our investment brokerage service, the cash value
      of life insurance recognized, ATM/Debit card interchange income and fees, and
      safe deposit box rent, as well as other income that management classifies as
      non-recurring. Other income increased $28,000 in the three-month period ended
      June 30, 2007 versus the same period of 2006. The primary reason for the
      increase can be attributed to the increase in commissions received from the
      investment brokerage service and changing the pay structure of the investment
      brokerage representative to be paid more of a salary and less commission.




17


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operation




**Non-interest
      Expense**





Non-interest
      expense categories for the three-month periods ended June 30, 2007, and 2006
      are
      shown in the following table:


Three
                  Months EndedJune
                  30,2007
              
              2006
              
              %
                  ChangeNon-interest
                  expense:
              
              
              
              (In
                  thousands)Compensation
                  and employee benefits
              
              $
              592
              
              $
              463
              
              
              27.9
              %Occupancy
                  and equipment
              
              
              150
              
              
              134
              
              
              11.9Data
                  processing
              
              
              51
              
              
              48
              
              
              6.3Audit,
                  legal and other professional
              
              
              38
              
              
              34
              
              
              11.8Advertising
              
              
              33
              
              
              30
              
              
              10.0Telephone
                  and postage
              
              
              25
              
              
              23
              
              
              8.7Loss
                  on sale of foreclosed property
              
              
              —
              
              
              2
              
              
              (100.0
              )Other
              
              
              123
              
              
              132
              
              
              (6.8
              )Total
                  Non-Interest Expense
              
              $
              1,012
              
              $
              866
              
              
              16.9
              %


Salaries
      and employee benefits increased $129,000 when comparing the June 2007 and 2006
      quarters primarily due to a $76,000 increase in options exercised, a $34,000
      increase in salaries, and a $33,000 increase in contributions to the 401(k)
      plan
      offset by $34,000 decrease relating to the Employee Stock Ownership Plan
      (“ESOP”). As all shares are now allocated, expense relating to the ESOP will be
      minimal in the future.





The
      increase of $16,000 in occupancy and equipment expense for the three-month
      period reflects an increase in depreciation expense and the costs associated
      with updating the office buildings.





Data
      processing expenses increased $3,000 due to the cost of keeping up with advances
      in technology.





Audit,
      legal and other professional fees increased primarily due to an increase of
      $4,000 in legal expense.





Other
      expense includes miscellaneous operating expenses such as office supplies,
      ATM/Debit card interchange fees, check processing fees, loan expenses, federal
      deposit insurance premiums and assessments by the bank regulators among others.
      The decrease of $9,000 in other expenses can be attributed, in part, to the
      decrease of $6,000 in check processing costs.





**Income
      Tax Expense**





Income
      tax expense decreased $40,000, or 26.7%, for the three-months ending June 30,
      2007, compared to the same period in 2006. The combined state and federal income
      tax expense as a percentage of income before income tax expense decreased to
      28.7% during the three-month period of 2007 compared to 32.2% during the same
      period in 2006. The decrease in the effective tax rate can be associated with
      certain adjustments related to non-taxable income during the June 2007
      quarter.





18


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operation




**Financial
      Condition**





Total
      assets of the Company increased by $4.3 million, or 3.8%, to $116.5 million
      at
      June 30, 2007 from $112.3 million at March 31, 2007. The increase in assets
      was
      primarily due to an increase of $3.2 million, or 4.6%, in loans, net, and an
      increase of $2.6 million, or 63.5%, in total cash and cash equivalents,
      partially offset by a decrease of $1.7 million, or 5.6%, in available-for-sale
      securities.





Available-for-sale
      investment securities amounted to $29.4 million at June 30, 2007 compared to
      $31.1 million at March 31, 2007. The activity in securities amounted to $1.3
      million in repayments on mortgage-backed securities and a $469,000 decrease
      in
      the market valuation of the available-for-sale portfolio. The investment
      portfolio is managed to limit the Company's exposure to risk by containing
      mostly mortgage-backed securities and other securities which are either directly
      or indirectly backed by the federal government or a local municipal
      government.





The
      Company's net loan portfolio increased by $3.2 million to $74.3 million at
      June
      30, 2007 from $71.1 million at March 31, 2007. Loans secured by 1-4 family
      residences increased by $1.2 million, primarily due to an increase in
      conventional home loans. Other increases were in farmland and non-residential
      real estate of $834,000, construction and development property loans of
      $336,000, loans to state and municipalities of $325,000, commercial business
      and
      agriculture finance loans of $260,000, and consumer and other loans of $138,000.





At
      June
      30, 2007, the allowance for loan losses was $720,000 or 0.97% of the net loan
      portfolio which was down from the allowance for loan losses at March 31, 2007
      at
      $729,000 or 1.03% of the net loan portfolio. The Company established a reserve
      for off-balance sheet asset credits of $20,428. This amount is included in
      other
      liabilities and can be included in the Bank’s calculation of its Tier 2 Capital.
      During the first quarter of fiscal year 2008, the Company charged off $8,000
      of
      loan losses, $4,000 of which were in consumer and other loans and $4,000
      pertained to one loan secured by a 1-4 family residential property. The
      chargeoffs of $8,000 were partially offset by $4,000 in recoveries all in
      consumer and other 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.





As
      of
      June 30, 2007, the Company held one other real estate owned property held for
      sale. At March 31, 2007, the Company had no other real estate properties owned
      held for sale. The Company is in the process of evaluating an offer received
      to
      purchase the property. Foreclosed assets are carried at lower of cost or net
      realizable value.





Total
      deposits increased by $3.4 million, or 3.9%, to $90.2 million at June 30, 2007
      from $86.8 million at March 31, 2007. The increase in total deposits was due
      to
      an increase of $2.9 million in savings, NOW, and money market accounts, an
      increase of $363,000 in certificates of deposit and an increase of $141,000
      in
      non-interest bearing demand deposits. The increase in savings, NOW, and money
      markets can be primarily attributed to the popularity of the Company’s new
      checking account product “Reward Checking”. See “Business Strategy” for further
      information on “Reward Checking”.





Other
      borrowings, consisting entirely of repurchase agreements, increased $1.5
      million, or 12.5%. The obligations are secured by mortgage-backed securities
      and
      US Government Agencies held in safekeeping at Independent Bankers Bank. At
      June
      30, 2007, the average rate on the repurchase agreements was 4.30% compared
      to
      4.34% at March 31, 2007. These agreements mature periodically within 24 months.





Stockholders'
      equity at June 30, 2007 was $11.3 million compared to $11.9 million at March
      31,
      2007, a decrease of $594,000, or 5.0%. Accumulated comprehensive income
      decreased by $293,000 due to a decrease in the fair value of securities
      available for sale, net of related tax effect. Other factors in the reduction
      in
      stockholders’ equity was the repurchase of shares of First Robinson Financial
      stock in the amount of $349,000 offset by the issuance of $51,000 in shares
      due
      to the exercise of stock options and the decrease of $43,000 in retained
      earnings relating to the addition of $273,000 in net income, offset by $316,000
      in dividends declared and paid. These decreases were offset, in part, by an
      increase in additional paid-in-capital of $40,000 relating to the options
      exercised during the quarter.




19


FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan 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
      $359,000. The letters of credit are collateralized and underwritten, as required
      by the 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
      June
      30, 2007, outstanding commitments to extend credit, amounted to $15.3 million
      (including $8.4 million, in available revolving 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
      Company maintains a $25.0 **** million
      line of credit with the FHLB, of which there were no borrowings at June 30,
      2007. This line can be accessed immediately. The Company regularly uses FHLB
      Letters of Credit as security for public unit deposits. The available line
      of
      credit with the FHLB is reduced by the amount of these letters of credit. As
      of
      June 30, 2007, $4.0 million in FHLB letters of credit were pledged. In addition
      to the Letters of Credit, the available line of credit with the FHLB is also
      reduced by $1.3 million for the credit enhancement reserve established as a
      result of the participation in the FHLB MPF program. The Company also maintains
      a $5.0 million revolving line of credit and a $600,000 revolving line of credit
      with Independent Banker’s Bank located in Springfield, Illinois. The Company has
      also established borrowing capabilities at the discount window with the Federal
      Reserve Bank of St. Louis.





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.





The
      Bank
      is subject to capital requirements of the federal bank regulatory agencies
      which
      require the Bank to maintain minimum ratios of Tier I capital to total
      risk-weighted assets and total capital to risk-weighted assets of 4% and 8%
      respectively. 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.





20




FIRST
      ROBINSON FINANCIAL CORPORATION


Management’s
      Discussion and Analysis or Plan of Operations




**Regulatory
      Capital**





At
      June
      30, 2007, the Bank was in compliance with all of the aforementioned capital
      requirements as summarized below:


June
                  30, 2007(In
                  thousands)Tier
                  I Capital:Common
                  stockholders’ equity
              
              $
              11,168Unrealized
                  loss on securities available for sale
              
              
              492Disallowed
                  intangible assets
              
              
              (16
              )Total
                  Tier I Capital
              
              
              11,644Tier
                  II Capital:Total
                  Tier I capital
              
              
              11,644Qualifying
                  allowance for loan losses and off-balance sheet credit
                  exposure
              
              
              740Total
                  Risk-Based Capital
              
              
              12,384Risk-weighted
                  assets
              
              
              71,153Quarter
                  average assets
              
              
              114,217




To
                  be Well CapitalizedUnder
                  the PromptFor
                  Capital
              
              Corrective
                  ActionActual
              
              Adequacy
                  Purposes
              
              ProvisionsAmount
              
              Ratio
              
              Amount
              
              Ratio
              
              Amount
              
              RatioAs
                  of June 30, 2007:Total
                  Risk-Based Capital(to
                  Risk-Weighted Assets)
              
              $
              12,384
              
              
              17.40
              %
              $
              5,692
              
              
              8.00
              %
              $
              7,115
              
              
              10.00
              %Tier
                  I Capital(to
                  Risk-Weighted Assets)
              
              
              11,644
              
              
              16.36
              
              
              2,846
              
              
              4.00
              
              
              4,269
              
              
              6.00Tier
                  I Capital(to
                  Average Assets)
              
              
              11,644
              
              
              10.19
              
              
              4,568
              
              
              4.00
              
              
              5,711
              
              
              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.





21




Item
      3. **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 June
      30, 2007, 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 not been any 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.





Section
      404 of the Sarbanes-Oxley Act of 2002 requires that companies evaluate and
      annually report on their systems of internal control over financial reporting.
      The Company will begin the process of evaluating, documenting and testing their
      system of internal control over financial reporting to provide the basis for
      its
      report that is anticipated, for the first time, will be a required part of
      our
      annual report on Form 10-KSB for the fiscal year ending March 31, 2008. Due
      to
      the ongoing evaluation and testing of our internal controls, there can be no
      assurance that if any control deficiencies are identified they will be corrected
      before the end of the 2008 fiscal year, or that there may not be significant
      deficiencies or material weaknesses that would be required to be reported.
      In
      addition, the Company expects the evaluation process and any required
      remediation, if applicable, to increase accounting, legal and other costs and
      divert management resources from core business operations.




22




PART
      II
      OTHER INFORMATION








Item
      1.  Legal
      Proceedings


None





Item
      2.  Unregistered
      Sales of Equity Securities and Use of Prceeds




The
      following table provides information about purchases by the Company for the
      quarter ended June
      30,
      2007 regarding the Company’s common stock.





PURCHASES
      OF EQUITY SECURITIES BY COMPANY (1) (2)




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
                Programs4/1/2007
                - 4/30/2007
            
            —
            
            $
            —
            
            
            —
            
            21,5005/1/2007
                - 5/31/2007
            
            2,200
            
            
            32.25
            
            
            2,200
            
            19,3006/1/2007
                - 6/30/2007
            
            8,821
            
            
            32.75
            
            
            8,512
            
            10,788Total
            
            11,021
            
            $
            32.65
            
            
            10,712
            
            10,788


(1)
        On
        January 16, 2007, the Board of Directors of First Robinson Financial Corporation
        approved a repurchase program of its equity stock. The Company may repurchase
        up
        to 25,000 shares of the Company’s common stock from time to time, in the open
        market, when deemed appropriate by management. The program approved January
        16,
        2007 will expire the earlier of December 31, 2007 or when 25,000 of the
        Company’s outstanding shares are purchased. As of June 30, 2007, the number of
        shares held in Treasury were 375,198.




(2)
        The
        trustees of the First Robinson Savings & Loan Directors’ Retirement Plan
        purchased 309 shares of the Company’s common stock. The stock is allocated to
        the Directors’ accounts and will be distributed upon
        retirement.





Item
      3.  Defaults
      Upon Senior Executives




None.





Item
      4.  Submission
      of Matters to a Vote of Security Holders




None





Item
      5.  Other
      Information




None





Item
          6. Exhibits




1.
            Exhibit
                31: Section 302 Certifications





2.
            Exhibit
                32: Section 906 Certification





23





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 FINANCIAL CORPORATIONDate: August
              14, 2007
            
            /s/
              Rick
              L. CattRick
                L. Catt
              President
                and Chief Executive Officer


Date: August
                14, 2007
              
              /s/
                Jamie E. McReynoldsJamie
                    E. McReynolds
                  Chief****Financial
                    Officer and Vice
                    President




24





EXHIBIT
      INDEX





**Exhibit
      No.**


31.1
              Certification
                  by the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of
                  200231.2
              Certification
                  by the CFO pursuant to Section 302 of the Sarbanes-Oxley Act of
                  200232
              Certifications
                  of the CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley
                  Act of
                  2002





25