UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C.  20549





FORM
10-Q


(Mark
One)


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




For
      the quarterly period ended
              September
      30, 2009




OR




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





For the
transition period from      _____________________
to ________________________




Commission
File Number  029276




FIRST
ROBINSON FINANCIAL CORPORATION





(Exact
name of registrant as specified in its charter)





DELAWARE
                  
                  36-4145294(State
      or other jurisdiction of
                  
                  (I.R.S.
      Employerincorporation
      or organization)
                  
                  Identification
      Number)501 East Main Street, Robinson,
      Illinois
                  
                  62454(Address
      of principal executive offices)
                  
                  (Zip
      Code)




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




None(Former
      name, former address and former fiscal year, if changed since last
      report)





Indicate
by check markwhether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90
days.  Yes  x   No o




Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File requested to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that
registrant was required to submit and post such
files).   Yes  o   No o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company.  See the definitions of “large accelerated filer,”
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.




Larger
      Accelerated Filer
            o
            Accelerated
      Filer
            oNon-Accelerated
      Filer
            o
      (Do not check if a smaller reporting company)
            Smaller
      Reporting Company
            x




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act.)   Yes o  No x




The
number of shares outstanding of each of the issuer’s classes of common stock, as
of the latest practicable date:  433,198 shares of common stock, par
value $.01 per share, as of November 12, 2009.








FIRST
ROBINSON FINANCIAL CORPORATION


Index to
Form 10-Q





PAGEPART
      1. FINANCIAL INFORMATIONItem
      1.
                                                Financial
      StatementsCondensed
      Consolidated Balance Sheets as of September 30, 2009 And March 31,
      2009
                                                3Condensed
      Consolidated Statements of Operations for the Three-Month and Six-Month
      Periods Ended September 30, 2009 and 2008
                                                4Condensed
      Consolidated Statements of Changes in Stockholders’ Equity For the
      Six-Month Periods ended September 30, 2009 and 2008
                                                6Condensed
      Consolidated Statements of Cash Flows for the Six-Month Periods Ended
      September 30, 2009 and  2008
                                                7Notes
      to Condensed Consolidated Financial Statements
                                                9Item
      2.
                                                Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
                                                19Item
      3.
                                                Quantitative
      and Qualitative Disclosures about Market Risk
                                                33Item
      4T.
                                                Controls
      and Procedures
                                                33PART
      II. OTHER INFORMATIONItem
      1.
                                                Legal
      Proceedings
                                                34Item
      1A.
                                                Risk
      Factors
                                                34Item
      2.
                                                Unregistered
      Sales of Equity Securities and Use of Proceeds
                                                34Item
      3.
                                                Defaults
      Upon Senior Executives
                                                34Item
      4.
                                                Submission
      of Matters to a Vote of Security Holders
                                                34Item
      5.
                                                Other
      Information
                                                35Item
      6.
                                                Exhibits
                                                35SIGNATURES
                                                36CERTIFICATIONS


2





Item 1:


FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED BALANCE SHEETS


(In
thousands, except share data)





(Unaudited)September 30, 2009
                    
                    
                    March 31, 2009ASSETSCash
      and cash equivalents
                    
                    $
                    6,186
                    
                    
                    $
                    5,424Interest-bearing
      deposits
                    
                    
                    3,156
                    
                    
                    
                    713Federal
      funds sold
                    
                    
                    3,872
                    
                    
                    
                    7,572Available-for-sale
      securities
                    
                    
                    60,774
                    
                    
                    
                    55,925Loans,
      held for sale
                    
                    
                    419
                    
                    
                    
                    392Loans,
      net of allowance for loan losses of $893 and $780 at September 30, 2009
      and March 31, 2009, respectively
                    
                    
                    94,759
                    
                    
                    
                    86,365Federal
      Reserve and Federal Home Loan Bank stock
                    
                    
                    1,006
                    
                    
                    
                    811Premises
      and equipment, net
                    
                    
                    3,903
                    
                    
                    
                    3,940Foreclosed
      assets held for sale, net
                    
                    
                    30
                    
                    
                    
                    46Interest
      receivable
                    
                    
                    999
                    
                    
                    
                    824Prepaid
      income taxes
                    
                    
                    —
                    
                    
                    
                    81Cash
      surrender value of life insurance
                    
                    
                    1,477
                    
                    
                    
                    1,453Other
      assets
                    
                    
                    880
                    
                    
                    
                    873Total
      Assets
                    
                    $
                    177,461
                    
                    
                    $
                    164,419LIABILITIES
      AND STOCKHOLDERS’ EQUITYLiabilitiesDeposits
                    
                    $
                    148,263
                    
                    
                    $
                    140,088Other
      borrowings
                    
                    
                    12,387
                    
                    
                    
                    9,914Short-term
      borrowings
                    
                    
                    2,500
                    
                    
                    
                    —Advances
      from borrowers for taxes and insurance
                    
                    
                    66
                    
                    
                    
                    166Deferred
      income taxes
                    
                    
                    525
                    
                    
                    
                    452Accrued
      income taxes
                    
                    
                    28
                    
                    
                    
                    —Interest
      payable
                    
                    
                    300
                    
                    
                    
                    330Other
      liabilities
                    
                    
                    1,256
                    
                    
                    
                    1,162Total
      Liabilities
                    
                    
                    165,325
                    
                    
                    
                    152,112Commitments
      and Contingencies
                    
                    
                    —
                    
                    
                    
                    —Stockholders’
      EquityPreferred
      stock, $.01 par value; authorized 500,000 shares, no shares issued and
      outstanding
                    
                    
                    —
                    
                    
                    
                    —Common
      stock, $ .01 par value; authorized 2,000,000 shares; 859,625 shares
      issued; outstanding September 30, 2009– 433,198 shares; March 31, 2009 –
      435,232 shares
                    
                    
                    9
                    
                    
                    
                    9Additional
      paid-in capital
                    
                    
                    8,777
                    
                    
                    
                    8,791Retained
      earnings
                    
                    
                    10,341
                    
                    
                    
                    10,560Accumulated
      other comprehensive income
                    
                    
                    914
                    
                    
                    
                    782Treasury
      stock, at costCommon:
      September 30, 2009 – 426,427 shares; March 31, 2009 – 424,393
      shares
                    
                    
                    (7,905
                    )
                    
                    
                    (7,835
                    )Total
      Stockholders’ Equity
                    
                    
                    12,136
                    
                    
                    
                    12,307Total
      Liabilities and Stockholders’ Equity
                    
                    $
                    177,461
                    
                    
                    $
                    164,419





See Notes
to Condensed Consolidated Financial Statements


3





FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS


For the
Three and Six-Month Periods Ended September 30, 2009 and 2008


(In
thousands, except per share data)


(Unaudited)





Three-Month Period
                      
                      
                      Six-Month Period2009
                      
                      
                      2008
                      
                      
                      2009
                      
                      
                      2008Interest
      and Dividend Income:Loans
                      
                      $
                      1,414
                      
                      
                      $
                      1,343
                      
                      
                      $
                      2,761
                      
                      
                      $
                      2,656Securities:Taxable
                      
                      
                      518
                      
                      
                      
                      519
                      
                      
                      
                      1,085
                      
                      
                      
                      929Tax-exempt
                      
                      
                      37
                      
                      
                      
                      21
                      
                      
                      
                      75
                      
                      
                      
                      42Other
      interest income
                      
                      
                      1
                      
                      
                      
                      32
                      
                      
                      
                      5
                      
                      
                      
                      109Dividends
      on Federal Reserve Bank stock
                      
                      
                      2
                      
                      
                      
                      3
                      
                      
                      
                      5
                      
                      
                      
                      5Total
      Interest and Dividend Income
                      
                      
                      1,972
                      
                      
                      
                      1,918
                      
                      
                      
                      3,931
                      
                      
                      
                      3,741Interest
      Expense:Deposits
                      
                      
                      823
                      
                      
                      
                      710
                      
                      
                      
                      1,745
                      
                      
                      
                      1,394Other
      borrowings
                      
                      
                      18
                      
                      
                      
                      57
                      
                      
                      
                      28
                      
                      
                      
                      106Total
      Interest Expense
                      
                      
                      841
                      
                      
                      
                      767
                      
                      
                      
                      1,773
                      
                      
                      
                      1,500Net
      Interest Income
                      
                      
                      1,131
                      
                      
                      
                      1,151
                      
                      
                      
                      2,158
                      
                      
                      
                      2,241Provision
      for Loan Losses
                      
                      
                      135
                      
                      
                      
                      130
                      
                      
                      
                      180
                      
                      
                      
                      160Net
      Interest Income After Provision for Loan Losses
                      
                      
                      996
                      
                      
                      
                      1,021
                      
                      
                      
                      1,978
                      
                      
                      
                      2,081Non-interest
      income:Charges
      and fees on deposit accounts
                      
                      
                      256
                      
                      
                      
                      231
                      
                      
                      
                      476
                      
                      
                      
                      448Charges
      and other fees on loans
                      
                      
                      78
                      
                      
                      
                      40
                      
                      
                      
                      178
                      
                      
                      
                      84Net
      gain on sale of loans
                      
                      
                      55
                      
                      
                      
                      30
                      
                      
                      
                      182
                      
                      
                      
                      72Net
      realized gain on sale of available-for-sale investments
                      
                      
                      5
                      
                      
                      
                      2
                      
                      
                      
                      106
                      
                      
                      
                      2Other
                      
                      
                      121
                      
                      
                      
                      105
                      
                      
                      
                      239
                      
                      
                      
                      234Total
      Non-Interest Income
                      
                      
                      515
                      
                      
                      
                      408
                      
                      
                      
                      1,181
                      
                      
                      
                      840Non-interest
      expense:Compensation
      and employee benefits
                      
                      
                      690
                      
                      
                      
                      569
                      
                      
                      
                      1,340
                      
                      
                      
                      1,301Occupancy
      and equipment
                      
                      
                      176
                      
                      
                      
                      158
                      
                      
                      
                      360
                      
                      
                      
                      333Data
      processing
                      
                      
                      66
                      
                      
                      
                      60
                      
                      
                      
                      126
                      
                      
                      
                      119Audit,
      legal and other professional
                      
                      
                      107
                      
                      
                      
                      49
                      
                      
                      
                      192
                      
                      
                      
                      99Advertising
                      
                      
                      75
                      
                      
                      
                      52
                      
                      
                      
                      177
                      
                      
                      
                      97Telephone
      and postage
                      
                      
                      50
                      
                      
                      
                      33
                      
                      
                      
                      104
                      
                      
                      
                      59Net
      loss on sale of foreclosed property
                      
                      
                      —
                      
                      
                      
                      —
                      
                      
                      
                      —
                      
                      
                      
                      4FDIC
      insurance
                      
                      
                      50
                      
                      
                      
                      4
                      
                      
                      
                      181
                      
                      
                      
                      10Loss
      on cost basis equity investment
                      
                      
                      137
                      
                      
                      
                      —
                      
                      
                      
                      137
                      
                      
                      
                      —Other
                      
                      
                      183
                      
                      
                      
                      137
                      
                      
                      
                      341
                      
                      
                      
                      273Total
      Non-Interest Expense
                      
                      
                      1,534
                      
                      
                      
                      1,062
                      
                      
                      
                      2,958
                      
                      
                      
                      2,295





See Notes
to Condensed Consolidated Financial Statements.


4





FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)


For the
Three and Six-Month Periods Ended September 30, 2009 and 2008


(In
thousands, except per share data)


(Unaudited)





Three-Month Period
                    
                    
                    Six-Month Period2009
                    
                    
                    2008
                    
                    
                    2009
                    
                    
                    2008Income
      (loss) before income taxes
                    
                    
                    (23
                    )
                    
                    
                    367
                    
                    
                    
                    201
                    
                    
                    
                    626Provision  for
      income taxes
                    
                    
                    11
                    
                    
                    
                    123
                    
                    
                    
                    72
                    
                    
                    
                    208Net
      Income (Loss)
                    
                    $
                    (34
                    )
                    
                    $
                    244
                    
                    
                    $
                    129
                    
                    
                    $
                    418Earnings
      (Loss) Per Share-Basic
                    
                    $
                    (0.08
                    )
                    
                    $
                    0.56
                    
                    
                    $
                    0.31
                    
                    
                    $
                    0.95Earnings
      (Loss) Per Share-Diluted
                    
                    $
                    (0.08
                    )
                    
                    $
                    0.54
                    
                    
                    $
                    0.30
                    
                    
                    $
                    0.92





See Notes
to Condensed Consolidated Financial Statements


5





FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY


For the
Six-Months Ended September 30, 2009 and 2008


(In
thousands, except share data)


(Unaudited)





AccumulatedAdditional
                                
                                
                                
                                
                                
                                OtherCommon
      Stock
                                
                                
                                Paid-in
                                
                                
                                Retained
                                
                                
                                Comprehensive
                                
                                
                                Treasury
                                
                                
                                
                                
                                
                                ComprehensiveShares
                                
                                
                                Amount
                                
                                
                                Capital
                                
                                
                                Earnings
                                
                                
                                Income
                                
                                
                                Stock
                                
                                
                                Total
                                
                                
                                LossBalance,
      April 1, 2008
                                
                                
                                451,464
                                
                                
                                $
                                9
                                
                                
                                $
                                8,491
                                
                                
                                $
                                10,114
                                
                                
                                $
                                247
                                
                                
                                $
                                (6,985
                                )
                                
                                $
                                11,876Comprehensive
      lossNet
      income
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                418
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                418
                                
                                
                                
                                418Change
      in unrealized (depreciation) on available-for-sale securities, net of
      taxes of $(7)
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (13
                                )
                                
                                
                                
                                
                                
                                
                                (13
                                )
                                
                                
                                (13
                                )Total
      comprehensive income
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                405Treasury
      shares purchased
                                
                                
                                (7,936
                                )
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (282
                                )
                                
                                
                                (282
                                )Transfer
      of Unallocated Recognition and Retention Shares to Treasury
      Shares
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                125
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (125
                                )
                                
                                
                                —Dividends
      on common stock, $0.75 per share
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (345
                                )
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (345
                                )Incentive
      compensation
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (12
                                )
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (12
                                )Stock
      options exercised
                                
                                
                                9,452
                                
                                
                                
                                
                                
                                
                                
                                168
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                164
                                
                                
                                
                                332Balance,
      September 30, 2008
                                
                                
                                452,980
                                
                                
                                $
                                9
                                
                                
                                $
                                8,772
                                
                                
                                $
                                10,187
                                
                                
                                $
                                234
                                
                                
                                $
                                (7,228
                                )
                                
                                $
                                11,974Balance,
      April 1, 2009
                                
                                
                                435,232
                                
                                
                                $
                                9
                                
                                
                                $
                                8,791
                                
                                
                                $
                                10,560
                                
                                
                                $
                                782
                                
                                
                                $
                                (7,835
                                )
                                
                                $
                                12,307Comprehensive
      lossNet
      income
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                129
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                129
                                
                                
                                
                                129Unrealized
      appreciation (depreciation) on available-for-sale
    securities:Unrealized
      appreciation (depreciation) on available-for-sale securities, net of taxes
      of $146
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                203Less
      reclassification adjustment for realized gains included in income net of
      taxes $35
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                71Total
      unrealized depreciation on available-for-sale securities, net of taxes of
      $111
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                132
                                
                                
                                
                                
                                
                                
                                
                                132
                                
                                
                                
                                132Total
      comprehensive income
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                261Treasury
      shares purchased
                                
                                
                                (2,034
                                )
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (70
                                )
                                
                                
                                (70
                                )Dividends
      on common stock, $0.80 per share
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (348
                                )
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (348
                                )Incentive
      compensation
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (14
                                )
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                (14
                                )Balance,
      September 30, 2009
                                
                                
                                433,198
                                
                                
                                $
                                9
                                
                                
                                $
                                8,777
                                
                                
                                $
                                10,341
                                
                                
                                $
                                914
                                
                                
                                $
                                (7,905
                                )
                                
                                $
                                12,136





See Notes
to Condensed Consolidated Financial Statements


6





FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS


For the
Six-Months Ended September 30, 2009 and 2008


(In
thousands)


(Unaudited)





2009
                
                
                2008Cash
      flows from operating activities:Net
      income
                
                $
                129
                
                
                $
                418Items
      not requiring (providing) cashDepreciation
      and amortization
                
                
                150
                
                
                
                147Provision
      for loan losses
                
                
                180
                
                
                
                160Amortization
      of premiums and discounts on securities
                
                
                126
                
                
                
                (16
                )Amortization
      of loan servicing rights
                
                
                57
                
                
                
                25Compensation
      related to options exercised
                
                
                —
                
                
                
                182Deferred
      income taxes
                
                
                (38
                )
                
                
                (39
                )Originations
      of mortgage loans held for sale
                
                
                (18,555
                )
                
                
                (4,531
                )Proceeds
      from the sale of mortgage loans
                
                
                18,710
                
                
                
                4,704Net
      gain on loans sold
                
                
                (182
                )
                
                
                (72
                )Net
      loss on sale of foreclosed property
                
                
                —
                
                
                
                4Loss
      on cost basis equity investment
                
                
                137
                
                
                
                —Net
      realized gain on sale of securities
                
                
                (106
                )
                
                
                (2
                )Cash
      surrender value of life insurance
                
                
                (24
                )
                
                
                (31
                )Changes
      in:Interest
      receivable
                
                
                (175
                )
                
                
                (151
                )Other
      assets
                
                
                (211
                )
                
                
                (76
                )Interest
      payable
                
                
                (30
                )
                
                
                (10
                )Other
      liabilities
                
                
                94
                
                
                
                (98
                )Income
      taxes, prepaid/accrued
                
                
                109
                
                
                
                (134
                )Net
      cash provided by operating activities
                
                
                371
                
                
                
                480Cash
      flows from investing activities:Purchase
      of available-for-sale securities
                
                
                (26,983
                )
                
                
                (21,062
                )Proceeds
      from maturities of available-for-sale securities
                
                
                330
                
                
                
                1,000Proceeds
      from sales of available-for-sale securities
                
                
                15,448
                
                
                
                953Repayment
      of principal on mortgage-backed securities
                
                
                6,579
                
                
                
                3,790Purchase
      of Federal Home Loan Bank stock
                
                
                (195
                )
                
                
                —Net
      change in loans
                
                
                (8,574
                )
                
                
                (3,991
                )Purchase
      of premises and equipment
                
                
                (103
                )
                
                
                (585
                )Proceeds
      from sale of foreclosed assets
                
                
                16
                
                
                
                12Net
      cash used in investing activities
                
                
                (13,482
                )
                
                
                (19,883
                )





See Notes
to Condensed Consolidated Financial Statements.


7





FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)


For The
Six-Months Ended September 30, 2009 and 2008


(In
thousands)


(Unaudited)





2009
                
                
                2008Cash
      flows from financing activities:Net
      increase in deposits
                
                $
                8,175
                
                
                $
                11,661Proceeds
      from other borrowings
                
                
                54,591
                
                
                
                79,294Repayment
      of other borrowings
                
                
                (52,118
                )
                
                
                (77,960
                )Advances
      from Federal Home Loan Bank
                
                
                5,500
                
                
                
                —Repayment
      of advances from Federal Home Loan Bank
                
                
                (5,500
                )
                
                
                —Proceeds
      from short-term borrowings
                
                
                3,100
                
                
                
                —Repayment
      of short-term borrowings
                
                
                (600
                )Purchase
      of incentive plan shares
                
                
                (14
                )
                
                
                (12
                )Proceeds
      received from exercise of stock options
                
                
                —
                
                
                
                150Purchase
      of treasury stock
                
                
                (70
                )
                
                
                (282
                )Dividends
      paid
                
                
                (348
                )
                
                
                (345
                )Net
      increase in advances from borrowers for taxes and
insurance
                
                
                (100
                )
                
                
                (72
                )Net
      cash  provided by financing activities
                
                
                12,616
                
                
                
                12,434Decrease
      in cash and cash equivalents
                
                
                (495
                )
                
                
                (6,969
                )Cash
      and cash equivalents at beginning of period
                
                
                13,709
                
                
                
                19,528Cash
      and cash equivalents at end of period
                
                $
                13,214
                
                
                $
                12,559Supplemental
      Cash Flows Information:Interest
      paid
                
                $
                1,803
                
                
                $
                1,510Income
      taxes paid (net of refunds)
                
                
                —
                
                
                
                380Real
      estate acquired in settlement of loans
                
                
                —
                
                
                
                90





See Notes
to Condensed Consolidated Financial Statements.


8





FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





1.
            Basis of
      Presentation





The
condensed consolidated financial statements include the accounts of First
Robinson Financial Corporation (the “Company”) and its wholly owned subsidiary,
First Robinson Savings Bank, National Association (the “Bank”).  All
significant intercompany accounts and transactions have been eliminated in
consolidation.  The accompanying condensed consolidated financial
statements are unaudited and should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company’s Form 10-K filed
with the Securities and Exchange Commission.  The accompanying
unaudited interim condensed consolidated financial statements have been prepared
in accordance with the rules and regulations for reporting on  Form
10-Q and Article 8-03 of Regulation of S-X.  Accordingly, they do not
include information or footnotes necessary for a complete presentation of
financial condition, results of operations, changes in stockholders’ equity, and
cash flows in conformity with accounting principles generally accepted in the
United States of America.  In the opinion of management of the
Company, the unaudited condensed consolidated financial statements reflect all
adjustments (consisting of normal recurring adjustments) necessary to present
fairly the financial position of the Company at September 30, 2009, the results
of its operations for the three and six month periods ended September 30, 2009
and 2008, the changes in stockholders’ equity for the six month periods ended
September 30, 2009 and 2008, and cash flows for the six month periods ended
September 30, 2009 and 2008.  The results of operations for those
months ended September 30, 2009 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, 2009, has
been derived from the audited Consolidated Balance Sheet for the Company as of
that date.





2.
            Newly Adopted and
      Recent Accounting
Pronouncements





Effective
September 15, 2009, Financial Accounting Standards Board (FASB) Accounting
Standards Codification (ASC) No. 815-10-65-1, formerly Statement No. 161,
“Disclosures about Derivative
Instruments and Hedging Activities—An Amendment of FASB Statement
No. 133”, which was orignally issued in March 2008, requires
enhanced qualitative disclosures about objectives and strategies for using
derivatives, quantitative disclosures about fair value amounts of and gains and
losses on derivative instruments, and disclosures about credit-risk-related
contingent features in derivative agreements. FASB ASC No. 815-10-65-1 was
effective for the Company for the interim period beginning April 1, 2009, and
did not have an effect on the Company’s condensed consolidated financial
statements.





In April
2009, the FASB issued  FASB ASC No. 820, formerly FASB Staff Position
FAS 157-4,“Determining Fair
Value When the Volume and Level of Activity For the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not
Orderly”. FASB ASC No. 820 provides additional guidance for estimating
fair value when the volume and level of activity for the asset or liability have
decreased significantly.  FASB ASC No. 820 also provides guidance on
identifying circumstances that indicate a transaction is not
orderly.  The provisions of FASB ASC No. 820 were effective for the
Company’s interim period ended June 30, 2009 and did not have a material effect
on the Company’s condensed consolidated financial statements.





In April
2009, FASB ASC No. 320-10 and FASB ASC No. 958-320, formerly FASB Staff
Positions FAS 115-2 and FAS 124-2, “Recognition and Presentation
of Other-Than-Temporary Impairments”were issued.  FASB ASC No.
320-10 and FASB ASC No. 958-320 establish methodologies of determining and
recording other-than-temporary impairments of debt securities and expands
disclosures about fair value measurements.  The provisions were
effective for the Company’s interim period ended June 30, 2009 and are reflected
in the Company’s condensed consolidated financial statements.





In April
2009, the FASB issued FASB ASC No. 825-10-50 and FASB ASC No. 270-10, formerly
FASB Staff Position on FAS 107-1 and APB 28-1, “Interim Disclosures About Fair
Value of Financial Instruments”.  FASB ASC No. 825-10-50 and
FASB ASC No. 270-10 require disclosures about fair value of financial
instruments in interim reporting periods of publicly-traded companies that were
previously only required to be disclosed in annual financial
statements.  The provisions of the ASC’s were effective for the
Company for the interim period ended June 30, 2009. The disclosure provisions of
these ASC’s are reflected in the Company’s condensed consolidated financial
statements.





In May
2009, the FASB issued FASB ASC No. 855-10, (the ASC),  formerly
Statement No. 165, “Subsequent
Events”.  FASB ASC No. 855-10 establishes general standards of
accounting for and disclosure of events that occur after the balance sheet date
but before financial statements are issued or available to be
issued.  The ASC does not apply to subsequent events or transactions
that are within the scope of other generally accepted accounting principles
(GAAP) that provide different guidance on the accounting treatment for subsequent
events or transactions.  FASB ASC No. 855-10 was effective for interim
or annual financial periods after June 15, 2009.  The Company
adopted  the provisions of FASB ASC No 855-10 for the quarter ended
June 30, 2009, as required, and adoption did not have a material impact on the
Company’s condensed consolidated financial statements.


9





FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





On June
12, 2009, the FASB issued SFAS No. 166, “Accounting for Transfers
of  Financial Assets”, (“SFAS 166”). SFAS 166 is
a  revision to FAS 140, “Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities”, and
will require more information about transfers of financial assets, including
securitization transactions, and where companies have continuing exposure to the
risks related to transferred financial assets.  SFAS 166 also
eliminates the concept of a “qualifying special-purpose entity”, changes the
requirements for derecognizing financial assets and requires additional
disclosures.  SFAS 166 will be effective as of the beginning of the
Company’s first annual reporting period that begins after November 15, 2009, for
interim periods within that first annual reporting period and for interim and
annual reporting periods thereafter.  Earlier application is
prohibited.  The recognition and measurement provisions of SFAS 166
shall be applied to transfers that occur on or after the effective
date.  The Company will adopt SFAS 166 on April 1, 2010, as
required.  Management has not determined the impact adoption may have
on the Company’s consolidated financial statements.





On June
12, 2009, the FASB issued Statement of Financial Accounting Standards No. 167,
“Amendments to FASB
Interpretation No. 46(R)” (“SFAS167”).  SFAS 167 is a revision
to FASB Interpretation No. 46(R), “Consolidation of Variable Interest
Entities,” and changes how a company determines when an entity that is
insufficiently capitalized or is not controlled through voting (or similar
rights) should be consolidated.  The determination of whether a
company is required to consolidate an entity is based on, among other things, an
entity’s purpose and design and a company’s ability to direct the activities of
the entity that most significantly impact the entity’s economic
performance.  SFAS 167 will be effective as of the Company’s first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter.  Earlier adoption is prohibited.  The
Company will adopt SFAS 167 on April 1, 2010, as required.  Management
has not determined the impact adoption may have on the Company’s consolidated
financial statements.





On June
29, 2009, the FASB issued FASB ASC No. 105, formerly Statement of Financial
Accounting Standards No. 168 (“SFAS 168”) “Accounting Standards
CodificationTMand the Hierarchy of Generally
Accepted Accounting Principles” – a replacement of FASB Statement No.
162.  FASB ASC No. 105 establishes the FASB Accounting Standards
CodificationTMas
a source of authoritative accounting principles recognized by the FASB to be
applied by nongovernmental entities in the preparation of financial statements
in conformity with US GAAP.  FASB ASC No. 105 was effective for
financial statements issued for interim and annual reporting periods ending
after September 15, 2009, for most entities.  On the effective date,
all non-SEC accounting and reporting standards will be
superceded.  The Company adopted FASB ASC No. 105 for the quarterly
period ended September 30, 2009, as required, and adoption did not have a
material impact on the Company’s consolidated financial statements.





3.
            Fair Value
      Measurements




In
accordance with FASB ASC No. 820, formerly Statement of Financial Standards
No. 157, Fair Value
Measurements (“FAS 157”), which was effective April 1, 2008, the
Company adopted FASB ASC No. 820. FASB ASC No. 820 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements and has been applied prospectively as of the beginning
of the year.




FASB ASC
No. 820 defines fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. FASB ASC No. 820 also establishes a fair
value hierarchy which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value.
The standard describes three levels of inputs that may be used to measure fair
value:


10




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





Level 1
                
                Quoted
      prices in active markets for identical assets or
    liabilities.Level 2
                
                Observable
      inputs other than Level 1 prices, such as quoted prices for similar assets
      or liabilities; quoted prices in markets that are not active; or other
      inputs that are observable or can be corroborated by observable market
      data for substantially the full term of the assets or
      liabilities.Level 3
                
                Unobservable
      inputs that are supported by little or no market activity and that are
      significant to the fair value of the assets or
  liabilities.




Following
is a description of the valuation methodologies used for instruments measured at
fair value on a recurring basis and recognized in the accompanying condensed
consolidated balance sheet at September 30, 2009 and March 31,
2009.




Available-for-Sale
Securities




The fair
value of available-for-sale securities are determined by various valuation
methodologies. Where quoted market prices are available in an active market,
securities are classified within Level 1. The Company has no Level 1 securities.
If quoted market prices are not available, then fair values are estimated using
pricing models or quoted prices of securities with similar characteristics.
Level 2 securities include obligations of U.S. government corporations and
agencies, obligations of states and political subdivisions, and mortgage-backed
securities.  The value of the Company’s Level 2 securities is set
forth below.  In certain cases where Level 1 or Level 2 inputs are not
available, securities are classified within Level 3 of the
hierarchy.  The Company has no Level 3 available-for-sale
securities.




The
following table presents the Company’s assets that are measured at fair value on
a recurring basis and the level within the FASB  ASC No. 820 hierarchy
in which the fair value measurements fall as of September 30, 2009 and March 31,
2009 (in thousands):





Carrying value at September 30, 2009Description
                  
                  Fair Value
                  
                  
                  Quoted Prices
                    in
                    Active Markets
                    for Identical
                    Assets
                    (Level 1)
                  
                  
                  Significant
                    Other
                    Observable
                    Inputs
                    (Level 2)
                  
                  
                  Significant
                    Unobservable
                    Inputs
                    (Level 3)Available-for-sale
      securities
                  
                  $
                  60,774
                  
                  
                  $
                  —
                  
                  
                  $
                  60,774
                  
                  
                  $
                  —




Carrying value at March 31, 2009Description
                  
                  Fair Value
                  
                  
                  Quoted Prices
                    in
                    Active Markets
                    for Identical
                    Assets
                    (Level 1)
                  
                  
                  Significant
                    Other
                    Observable
                    Inputs
                    (Level 2)
                  
                  
                  Significant
                    Unobservable
                    Inputs
                    (Level 3)Available-for-sale
      securities
                  
                  $
                  55,925
                  
                  
                  $
                  —
                  
                  
                  $
                  55,925
                  
                  
                  $
                  —




The
Company may be required, from time to time, to measure certain other financial
assets and liabilities on a nonrecurring basis. These adjustments to fair value
usually result from application of lower-of-cost-or-market accounting or
write-downs of individual assets.   Following is a description of
the valuation methodologies for assets and liabilities measured at fair value on
a non-recurring basis and recognized in the accompanying balance sheets, as well
as the general classification of such assets and liabilities pursuant to the
valuation hierarchy.


11




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




Impaired
Loans




Loans for
which it is probable that the Company will not collect all principal and
interest due according to contractual terms are measured for impairment in
accordance with the provisions of FASB ASC No. 310-10-45 (“ASC 310-45”)
“Accounting by Creditors for Impairment of a Loan.” Allowable methods for
estimating fair value include using the fair value of the collateral or
collateral dependent loans or, where a loan is determined not to be collateral
dependent, using the discounted cash flow method.




If the
impaired loan is identified as collateral dependent, then the fair value method
of measuring the amount of the impairment is utilized. This method requires
reviewing an independent appraisal of the collateral and applying a discount
factor to the value based on management’s estimation process.





Impaired
loans are classified within Level 3 of the fair value hierarchy.





Mortgage
Servicing Rights





The fair
value used to determine the valuation allowance is estimated using discounted
cash flow models.  Due to the nature of the valuation inputs, mortgage
servicing rights are classified within Level 3 of the hierarchy.





Cost
Method Investments





Cost
method investments do not trade in an active, open market with readibly
observable prices.  The cost method invesments are peridoically
reviewed for impairment based on each investee’s earning performance, asset
quality, changes in the economic environment, and current and projected future
cash flows.  Due to the nature of the valuation inputs, cost method
investments are classified within Level 3 of the hierarchy.





The
following table presents the fair value measurement of assets measured at fair
value on a nonrecurring basis and the level within the FASB ASC No. 820 fair
value hierarchy in which the fair value measurements fall at September 30, 2009
and  March 31, 2009:





Carrying value at September 30, 2009Quoted Prices in
                
                
                SignificantActive Markets
                
                
                Other
                
                
                Significantfor Identical
                
                
                Observable
                
                
                UnobservableAssets
                
                
                Inputs
                
                
                InputsDescription
                
                Fair Value
                
                
                (Level 1)
                
                
                (Level 2)
                
                
                (Level 3)Impaired
      loans
                
                $
                121
                
                
                $
                —
                
                
                $
                —
                
                
                $
                121Cost
      method investments
                
                
                60
                
                
                
                —
                
                
                
                —
                
                
                
                60





Carrying value at March 31, 2009Quoted Prices in
                
                
                SignificantActive Markets
                
                
                Other
                
                
                Significantfor Identical
                
                
                Observable
                
                
                UnobservableAssets
                
                
                Inputs
                
                
                InputsDescription
                
                Fair Value
                
                
                (Level 1)
                
                
                (Level 2)
                
                
                (Level 3)Impaired
      loans
                
                $
                154
                
                
                $
                —
                
                
                $
                —
                
                
                $
                154Motgage
      servicing rights
                
                
                243
                
                
                
                —
                
                
                
                —
                
                
                $
                243




12





FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





The
following methods were used to estimate fair values of the Company’s financial
instruments.  The fair values of certain of these instruments were
calculated by discounting expected cash flows, which involves significant
judgments by management and uncertainties.  Fair value is the
estimated amount at which financial assets or liabilities could be exchanged in
a current transaction between willing parties, other than in a forced or
liquidation sale.  Because no market exists for certain of these
financial instruments and
because management does not intend to sell these financial instruments, the
Company does not know whether the fair values shown below represent values at
which the respective financial instruments could be sold individually or in the
aggregate.





Carrying
amount is the estimated fair value for cash and cash equivalents,
interest-bearing deposits, loans held for sale, federal funds sold, Federal
Reserve and Federal Home Loan Bank stocks, accrued interest receivable and
payable, and advances from borrowers for taxes and
insurance.  Security fair values equal quoted market prices, if
available.  If quoted market prices are not available, fair value is
estimated based on quoted market prices of similar securities.  The
fair value of loans is estimated by discounting the future cash flows using the
current rates at which similar loans would be made to borrowers with similar
credit ratings and for the same remaining maturities.  Loans with
similar characteristics were aggregated for purposes of the
calculations.  On demand deposits, savings accounts, NOW accounts, and
certain money market deposits the carrying amount approximates fair
value.  The fair value of fixed-maturity time deposits is estimated
using a discounted cash flow calculation that applies the rates currently
offered for deposits of similar remaining maturities. On other borrowings and
short-term borrowings, rates currently available to the Company for debt with
similar terms and remaining maturities are used to estimate the fair value of
existing debt.





The fair
value of commitments to originate loans is estimated using the fees currently
charged to enter into similar agreements, taking into account the remaining
terms of the agreements and the present creditworthiness of the
counterparties.  For fixed-rate loan commitments, fair value also
considers the difference between current levels of interest rates and the
committed rates.  The fair value of forward sale commitments is
estimated based on current market prices for loans of similar terms and credit
quality.  The fair values of letters of credit and lines of credit are
based on fees currently charged for similar agreements or on the estimated cost
to terminate or otherwise settle the obligations with the counterparties at the
reporting date.


13


FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





September 30, 2009
                
                
                March 31, 2009Carrying
                
                
                
                
                
                
                CarryingAmount
                
                
                Fair Value
                
                
                Amount
                
                
                Fair Value(In thousands)Financial
      assetsCash
      and cash equivalents
                
                $
                6,186
                
                
                $
                6,186
                
                
                $
                5,424
                
                
                $
                5,424Interest-bearing
      deposits
                
                
                3,156
                
                
                
                3,156
                
                
                
                713
                
                
                
                713Federal
      funds sold
                
                
                3,872
                
                
                
                3,872
                
                
                
                7,572
                
                
                
                7,572Available-for-sale
      securities
                
                
                60,774
                
                
                
                60,774
                
                
                
                55,925
                
                
                
                55,925Loans
      held for sale
                
                
                419
                
                
                
                419
                
                
                
                392
                
                
                
                392Loans,
      net of allowance for loan losses
                
                
                94,759
                
                
                
                95,757
                
                
                
                86,365
                
                
                
                87,092Federal
      Reserve and Federal Home Loan Bank stock
                
                
                1,006
                
                
                
                1,006
                
                
                
                811
                
                
                
                811Interest
      receivable
                
                
                999
                
                
                
                999
                
                
                
                824
                
                
                
                824Financial
      liabilitiesDeposits
                
                
                148,263
                
                
                
                140,887
                
                
                
                140,088
                
                
                
                135,883Other
      borrowings
                
                
                12,387
                
                
                
                12,387
                
                
                
                9,914
                
                
                
                9,927Short-term
      borrowings
                
                
                2,500
                
                
                
                2,500
                
                
                
                —
                
                
                
                —Advances
      from borrowers for taxes and insurance
                
                
                66
                
                
                
                66
                
                
                
                166
                
                
                
                166Interest
      payable
                
                
                300
                
                
                
                300
                
                
                
                330
                
                
                
                330Unrecognized
      financial instruments(net
      of contract amount)Commitments
      to originate loans
                
                
                —
                
                
                
                —
                
                
                
                —
                
                
                
                —Letters
      of credit
                
                
                —
                
                
                
                —
                
                
                
                —
                
                
                
                —Lines
      of credit
                
                
                —
                
                
                
                —
                
                
                
                —
                
                
                
                —





4.
            Federal Home Loan Bank
      Stock





The
Company owns approximately $836,000 of Federal Home Loan Bank of Chicago
(“FHLB”) stock.  During the third quarter of 2007, the FHLB of Chicago
received a Cease and Desist Order from its regulator, the Federal Housing
Finance Board.  The order generally prohibits capital stock
repurchases and redemptions until a time to be determined by the Federal Housing
Finance Board.  The FHLB will continue to provide liquidity and
funding through advances.  With regard to dividends, which have not
been declared since July 24, 2007, the FHLB will continue to assess its dividend
capacity each quarter and make appropriate requests for
approval.  Management performed an analysis and deemed the Company’s
investment in FHLB stock to be not impaired as of September 30,
2009.





5.
            Authorized Share
      Repurchase Program





On July
23, 2009, the Board of Directors of the Company voted to approve the extension
and expansion of the repurchase program of its equity stock approved on July 24,
2008.  The Company may repurchase up to 10,000 additional shares of
the Company’s outstanding common stock in the open market or in negotiated
private transactions from time to time when deemed appropriate by management.
The increase represents approximately 2.5% of the Company’s issued and
outstanding shares.  As of July 22, 2009, the Company had repurchased
22,782 shares of its common stock out of the 26,892 shares that had been
previously authorized for repurchase leaving 4,110 remaining to be
purchased.  As a result of these combined actions, the Company is
currently authorized to repurchase 14,110 shares of common stock.  The
program has been extended to August 2, 2010 or  the earlier of the
completion of the repurchase of the 14,110 shares.   As of
November 10, 2009, 1,950 shares of the 14,110 have been purchased in the
expanded program leaving 12,160 remaining to be purchased pursuant to this share
repurchase program.


14


FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




6.
            Investment
      Securities





The
amortized cost and approximate fair values of available-for-sale securities are
as follows:




Amortized
                    Cost
                  
                  
                  Gross
                    Unrealized
                    Gains
                  
                  
                  Gross
                    Unrealized
                    Losses
                  
                  
                  Approximate
                    Fair Value(In
      thousands)September
      30, 2009U.S.
      government agencies
                  
                  $
                  17,416
                  
                  
                  $
                  339
                  
                  
                  $
                  —
                  
                  
                  $
                  17,755Mortgage-backed
      securities
                  
                  
                  37,216
                  
                  
                  
                  1,092
                  
                  
                  
                  33
                  
                  
                  
                  38,275State
      and political subdivisions
                  
                  
                  4,647
                  
                  
                  
                  98
                  
                  
                  
                  1
                  
                  
                  
                  4,744$
                  59,279
                  
                  
                  $
                  1,529
                  
                  
                  $
                  34
                  
                  
                  $
                  60,774March
      31, 2009U.S.
      government agencies
                  
                  $
                  9,793
                  
                  
                  $
                  199
                  
                  
                  $
                  —
                  
                  
                  $
                  9,992Mortgage-backed
      securities
                  
                  
                  39,878
                  
                  
                  
                  1,045
                  
                  
                  
                  22
                  
                  
                  
                  40,901State
      and political subdivisions
                  
                  
                  5,002
                  
                  
                  
                  52
                  
                  
                  
                  22
                  
                  
                  
                  5,032$
                  54,673
                  
                  
                  $
                  1,296
                  
                  
                  $
                  44
                  
                  
                  $
                  55,925





The
amortized cost and fair value of available-for-sale securities at September 30,
2009, by contractual maturity, are shown below.  Expected maturities
will differ from contractual maturities because issuers may have the right to
call or prepay obligations with or without call or prepayment
penalties.





Amortized
                    Cost
                  
                  
                  Fair
                    Value(In
      thousands)Within
      one year
                  
                  $
                  4,641
                  
                  
                  $
                  4,698One
      to five years
                  
                  
                  16,255
                  
                  
                  
                  16,606Five
      to ten years
                  
                  
                  1,167
                  
                  
                  
                  1,195Investment
      securities
                  
                  
                  22,063
                  
                  
                  
                  22,499Mortgage-backed
      securities
                  
                  
                  37,216
                  
                  
                  
                  38,275Totals
                  
                  $
                  59,279
                  
                  
                  $
                  60,774





Proceeds
from the sale of investment securities available-for-sale during the three
months and six-months ended September 30, 2009 were $2,508,000 and $15,408,000,
respectively.  Gross gains from the sale of investment securities
available-for-sale for the three months ended September 30, 2009 were $5,000
with no gross losses.  Gross gains of $113,000 and gross losses of
$7,000 were realized on the sales for the six-months ended September 30,
2009.


15





FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




The
following table shows our investments’ gross unrealized losses and fair value
(in thousands), aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position at
September 30, 2009 and March 31, 2009.  At September 30, 2009, the
Company does not hold any security that it considers other-than-temporarily
impaired.





Description of Securities
                    
                    Less than 12 Months
                    
                    
                    More than 12 Months
                    
                    
                    TotalFair Value
                    
                    
                    Unrealized
                      Losses
                    
                    
                    Fair Value
                    
                    
                    Unrealized
                      Losses
                    
                    
                    Fair Value
                    
                    
                    Unrealized
                      LossesAs
      of September 30, 2009Mortgage-backed
      securities
                    
                    $
                    3,505
                    
                    
                    $
                    32
                    
                    
                    $
                    78
                    
                    
                    $
                    1
                    
                    
                    $
                    3,583
                    
                    
                    $
                    33State
      and political subdivisions
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    228
                    
                    
                    
                    1
                    
                    
                    
                    228
                    
                    
                    
                    1Total
      temporarily impaired securities
                    
                    $
                    3,505
                    
                    
                    $
                    32
                    
                    
                    $
                    306
                    
                    
                    $
                    2
                    
                    
                    $
                    3,811
                    
                    
                    $
                    34As
      of March 31, 2009Mortgage-backed
      securities
                    
                    $
                    6,307
                    
                    
                    $
                    20
                    
                    
                    $
                    125
                    
                    
                    $
                    2
                    
                    
                    $
                    6,432
                    
                    
                    $
                    22State
      and political subdivisions
                    
                    
                    290
                    
                    
                    
                    16
                    
                    
                    
                    225
                    
                    
                    
                    6
                    
                    
                    
                    515
                    
                    
                    
                    22Total
      temporarily impaired securities
                    
                    $
                    6,597
                    
                    
                    $
                    36
                    
                    
                    $
                    350
                    
                    
                    $
                    8
                    
                    
                    $
                    6,947
                    
                    
                    $
                    44





There are
8 securities in an unrealized loss position in the investment portfolio at
September 30, 2009, all due to interest rate changes and not credit
events.  These unrealized losses are considered temporary and,
therefore, have not been recognized into income, because the issuers are of high
credit quality and management has the ability and intent to hold for the
foreseeable future.  The fair value is expected to recover as the
investments approach their maturity date or there is a downward shift in
interest rates.  All mortgage-backed securities in the portfolio are
residential properties.





7.
            Lines of
      Credit





The
Company’s revolving line of credit note payable matured on July 31, 2009 but was
extended to September 30, 2009.  The revoloving line of credit renewed
on September 17, 2009 and increased from $600,000 to $2,500,000 with the
renewal.  The balance of the revolving line of credit was $2,500,000
and $0 as of September 30, 2009 and March 31, 2009, respectively.  The
note bears interest at the prime commercial rate with a floor of 3.50% which was
the rate on September 30, 2009, matures on September 16, 2010, and is secured by
100% stock of the Bank.





The Bank
maintains a $5,000,000 revolving line of credit, of which none was outstanding
at September 30, 2009 and March 31, 2009, with an unaffiliated financial
institution. The line bears interest at the federal funds rate of the financial
institution (1.0% at September 30, 2009), has an open-end maturity and is
unsecured if used for less than fifteen (15) consecutive business
days.





The Bank
has also established borrowing capabilities at the Federal Reserve Bank of St.
Louis discount window. Investment securities of $3,000,000 have been pledged as
collateral.  As of  September 30, 2009 and March 31, 2009 no
amounts were outstanding.   The primary credit borrowing rate at
September 30, 2009 was 0.50%, has a term of up to 90 days, and has no
restrictions on use of the funds borrowed.


16


FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





8.
            Earnings (Loss) Per
      Share for the Three-Month
Periods





Basic
earnings (loss) per share is calculated by dividing net income (loss) by the
weighted average number of common shares outstanding during the
period.  Diluted earnings (loss) per share gives effect to the
increase in the average shares outstanding resulting from the exercise of
dilutive stock options and the effect of the incentive plan
shares.  As of September 30, 2009 and 2008, all outstanding options
had been exercised.  Therefore, there is no dilutive effect with
regards to options for the earnings per share calculation for the three month
periods ended September 30, 2009 or 2008.  The components of basic and
diluted earnings (loss) per share for the three months ended September 30, 2009
and 2008 were computed as follows (dollar amounts in thousands except share
data):





WeightedAverage
                          
                          
                          Per
      ShareIncome
      (Loss)
                          
                          
                          Shares
                          
                          
                          AmountFor
      the Three-Months Ended September 30, 2009:Basic
      Earnings (Loss) per Share:Income
      (loss) available to common stockholders
                          
                          $
                          (34
                          )
                          
                          
                          417,916
                          
                          
                          $
                          (0.08
                          )Effect
      of Dilutive Securities:Incentive
      plan shares
                          
                          
                          
                          
                          
                          
                          15,996Diluted
      Earnings (Loss) per Share:Income
      (loss) available to common stockholders
                          
                          $
                          (34
                          )
                          
                          
                          433,912
                          
                          
                          $
                          (0.08
                          )For
      the Three-Months Ended September 30, 2008:Basic
      Earnings per Share:Income
      available to common stockholders
                          
                          $
                          244
                          
                          
                          
                          439,170
                          
                          
                          $
                          0.56Effect
      of Dilutive Securities:Incentive
      plan shares
                          
                          
                          
                          
                          
                          
                          16,148Diluted
      Earnings per Share:Income
      available for common stockholders
                          
                          $
                          244
                          
                          
                          
                          455,318
                          
                          
                          $
                          0.54


17


FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


8.  Earnings Per Share for the
Six-Month Periods





Basic
earnings per share is calculated by dividing net income by the weighted average
number of common shares outstanding during the period.  Diluted
earnings per share gives effect to the increase in the average shares
outstanding which would have resulted from the exercise of dilutive stock
options.  As of September 30, 2008, all outstanding options had been
exercised.  Therefore, there is no dilutive effect with regards to
options for the earnings per share calculation for the six month periods ended
September 30, 2009 and 2008.   The components of basic and
diluted earnings per share for the six months ended September 30, 2009 and 2008
were computed as follows (dollar amounts in thousands except share
data):





WeightedAverage
                              
                              
                              Per
      ShareIncome
                              
                              
                              Shares
                              
                              
                              AmountFor
      the Six-Months Ended September 30, 2009:Basic
      Earnings per Share:Income
      available to common stockholders
                              
                              $
                              129
                              
                              
                              
                              418,586
                              
                              
                              $
                              0.31Effect
      of Dilutive Securities:Unearned
      incentive plan shares
                              
                              
                              
                              
                              
                              
                              15,947Diluted
      Earnings per Share:Income
      available to common stockholders
                              
                              $
                              129
                              
                              
                              
                              434,533
                              
                              
                              $
                              0.30For
      the Six-Months Ended September 30, 2008:Basic
      Earnings per Share:Income
      available to common stockholders
                              
                              $
                              418
                              
                              
                              
                              439,386
                              
                              
                              $
                              0.95Effect
      of Dilutive Securities:Unearned
      incentive plan shares
                              
                              
                              
                              
                              
                              
                              16,058Diluted
      Earnings per Share:Income
      available for common stockholders
                              
                              $
                              418
                              
                              
                              
                              455,444
                              
                              
                              $
                              0.92





9.
            Subsequent
      Events




Subsequent
events have been evaluated through November 13, 2009, which is the date the
financial statements were issued.


18




Item  2:


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results 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 “believe,” “expect,” “should,” “would be,” “will allow,” “intends
to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,”
“estimate,” “project” or similar expressions are intended to identify
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Examples of forward-looking statements include,
but are not limited to, estimates with respect to our financial condition,
results of operations and business that are subject to various factors that
could cause actual results to differ materially from these estimates and most
other statements that are not historical in nature. Such statements are subject
to risks and uncertainties, including but not limited to changes in economic
conditions nationally and in the Company’s market area; legislative/regulatory
provisions; monetary and fiscal policies of the U.S. Government, including
policies of the U.S. Treasury and the Federal Reserve Board; the quality of
composition of the loan or investment portfolios; changes in accounting
principles, policies, or guidelines; fluctuations in interest rates; deposit
flows; demand for loans in the Company’s market area; real estate values; credit
quality and adequacy of reserves; competition; customer growth and retention;
earnings growth and expectations; new products and services; technological
factors affecting operations, pricing of products and services; employees;
unforseen difficulties and higher than expected costs associated with the
implementation of our Strategic Plan; or failure to improve operating
efficiencies through expense controls; all or some of which could cause actual
results to differ materially from historical earnings and those presently
anticipated or projected.   References in this filing to “we,”
“us,” and “our” refer to the Company and/or the Bank, as the content
requires.  The Company does not undertake, and specifically disclaims
any obligation, to update any forward-looking statements to reflect occurrences
or unanticipated events or circumstances after the date of such
statements.





Critical
Accounting Policies





The
accounting and reporting policies of the Company are in accordance with
accounting principles generally accepted in the United States and conform to
general practices within the banking industry. The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions.
The financial position and results of operations can be affected by these
estimates and assumptions and are integral to the understanding of reported
results. Critical accounting policies are those policies that management
believes are the most important to the portrayal of the Company's financial
condition and results, and they require management to make estimates that are
difficult, subjective, or complex.





Allowance for Loan Losses -
The allowance for loan losses provides coverage for probable losses inherent in
the Company's loan portfolio. Management evaluates the adequacy of the allowance
for credit losses each quarter based on changes, if any, in underwriting
activities, the loan portfolio composition (including product mix and
geographic, industry or customer-specific concentrations), trends in loan
performance, regulatory guidance and economic factors. This evaluation is
inherently subjective, as it requires the use of significant management
estimates. Many factors can affect management's estimates of specific and
expected losses, including volatility of default probabilities, rating
migrations, loss severity and economic and political conditions. The allowance
is increased through provisions charged to operating earnings and reduced by net
charge-offs.





The
Company determines the amount of the allowance based on relative risk
characteristics of the loan portfolio. The allowance recorded for commercial
loans is based on reviews of individual credit relationships and an analysis of
the migration of commercial loans and actual loss experience. The allowance
recorded for homogeneous consumer loans is based on an analysis of loan mix,
risk characteristics of the portfolio, fraud loss and bankruptcy experiences,
and historical losses, adjusted for current trends, for each homogenous category
or group of loans. The allowance for credit losses relating to impaired loans is
based on the loan's observable market price, the collateral for certain
collateral-dependent loans, or the discounted cash flows using the loan's
effective interest rate.





Regardless
of the extent of the Company's analysis of customer performance, portfolio
trends or risk management processes, certain inherent but undetected losses are
probable within the loan portfolio. This is due to several factors including
inherent delays in obtaining information regarding a customer's financial
condition or changes in their unique business conditions, the judgmental nature
of individual loan evaluations, regulatory input, collateral assessments and the
interpretation of economic trends. Volatility of economic or customer-specific
conditions affecting the identification and estimation of losses for larger
non-homogeneous credits and the sensitivity of assumptions utilized to establish
allowances for homogeneous groups of loans are among other factors. The Company
estimates a range of inherent losses related to the existence of the exposures.
The estimates are based upon the Company's evaluation of risk associated with
the commercial and consumer allowance levels and the estimated impact of the
current economic environment.


19





FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results 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, Illinois and one full service office
in Knox County, Indiana.  Assets grew $13.1 million from $164.4
million at March 31, 2009 to $177.5 million at September 30,
2009.  See “Financial Condition” for more information. The Company had
a net loss of $34,000 for the three month period ending September 30, 2009,
versus net income of $244,000 in the same period of 2008, a decrease of 113.9%.
For the six months ended September 30, 2009, the Company earned $129,000
compared to $418,000 for the same period of 2008, a decrease of $289,000, or
69.1%.  The primary reason for the decrease in earnings can be
attributed to the increase in the FDIC insurance assessment in both the
three-month and six-month periods and the recognized loss on a cost basis equity
security investment owned by the Company.  See “Results of Operations”
for further information. Basic earnings (loss) per share for the three month
period were $(0.08) per share and $0.31 for the six month period ended September
30, 2009  versus $0.56 per share for the three month period and $0.95
for the six month period ended September 30, 2008.  Diluted earnings
(loss) per share reflect incentive plan shares and the potential dilutive impact
of stock options granted under the stock option plan and the effect of the
incentive plan shares.  Diluted earnings (loss) per share for the
three months and six months ending September 30, 2009 were $(0.08) and $0.30
respectively.  For the three months and six months ending September
30, 2008, diluted earnings per share were $0.54 per share and $0.92 per share,
repsectively .





The
Company’s principal business, through its operating subsidiary, the Bank,
consists of accepting deposits from the general public in our market area 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.  With the addition of a branch in Vincennes,
Indiana, our market area has expanded to include Knox and surrounding counties
in Indiana along with Crawford and contiguous counties in Illinois.





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
exposure to changes in interest rates.





In
response to the current national and international economic recession, however,
the U.S. government has taken a variety of actions intended to stimulate the
national economy, including the passage of legislation, such as the Emergency
Economic Stabilization Act of 2008 (the “EESA”), and the implementation of
certain programs by federal agencies.





The first
program put forth by the U.S. Treasury pursuant to its authority under the EESA
was the Troubled Asset Relief Program’s Capital Purchase Program (the
“CPP”).  Pursuant to the CPP, the US Treasury, on behalf of the US
government, intends to purchase up to $250 billion of preferred stock, along
with warrants to purchase common stock, from certain financial institutions that
applied to receive funds.  The CPP is intended to shore up bank
capital and to stimulate lending.  Neither the Company nor the Bank
has participated in the CPP.


20





FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Another
recently implemented program intended to stabilize the nation’s banking system
is the Term Asset-Backed Securities Loan Facility (the “TALF”) promulgated by
the Board of Governors of the Federal Reserve System (the “Federal
Reserve”).  The program, which became operational in March, 2009, is
intended to increase credit availability and support economic activity by
facilitating renewed issuance of consumer and small business asset-backed
securities (“ABS”) and commercial mortgage-backed securities
(“CMBS”).  Under TALF, the Federal Reserve Bank of New York will
finance the purchase of eligible ABS and CMBS by investors that own eligible
collateral so long as such investor maintains an account relationship with a
primary dealer.  Generally, eligible ABS must be newly issued, highly
rated ABS collateralized by student loans, auto loans, credit card loans, and
loans guaranteed by the Small Business Administration.  Eligible CMBS
must also meet certain requirements, including:  (i) it must entitle
its holders to payments of principal and interest throughout its remaining term,
(ii) it must bear interest at a fixed pass-through rate or at a rate based on
the weighted average of the underlying fixed mortgage rates, and (iii) the CMBS
must not be junior to other securities with claims on the same pool of
loans.  Minimum loan sizes under the TALF will be $10 million and TALF
loans will generally have a three year maturity.  The Federal Reserve
has also determined that certain high-quality commercial mortgage-backed
securities issued before January 1, 2009 will become eligible collateral under
the TALF.  Starting in June 2009, however, TALF loans secured by SBA
Pool Certificates, SBA Development Company Participation Certificates, or ABS
secured by student loans or commercial mortgages will have a five-year maturity
if the borrower so elects.  The facility will cease making TALF loans
collateralized by newly issued CMBS on June 30, 2010, and TALF loans
collateralized by other TALF-eligible newly issued and legacy ABS on March 31,
2010, unless the Board of Governors extends the facility.





In
response to the current reserve ratios of the Deposit Insurance Fund, and the
need to restore it to its statutory minimum, the Federal Deposit Insurance
Corporation (the “FDIC”) announced on May 22, 2009, a final rule imposing a 5
basis point special assessment on each insured depository institution’s assets
minus Tier 1 capital as of June 30, 2009 (although no institution’s special
assessment exceeded 10 basis points times the institution’s assessment base for
the second quarter of 2009).  The Company’s special assessment of
$81,000 was paid on September 30, 2009.





The FDIC
has announced that a three year prepaid assessment will be collected December
30, 2009 from insured institutions.   Under the rule, the prepaid
amount will be based on an institution’s assessment rate and assessment base for
the third quarter of 2009, assuming a 5% annual growth in deposits each
year.  While the FDIC plan will maintain current assessment rates
through 2010, effective January 1, 2011, the rates will increase by three basis
points across the board (e.g., Risk Catagory I banks paying 12-16 basis points
for 2010 would pay 15-19 basis points).  Additionally, the FDIC voted
to extend the DIF restoration plan from seven to eight years, with a target of
returning the fund to a 1.15% reserve ratio (the minimum required by law) by the
first quarter of 2014.  The total prepayment will be booked as a
“prepaid expense” asset and will qualify as a zero risk weight under the
risk-based capital requirements.   Any prepayment amounts not
exhausted after collection of the amount due on June 30, 2013, will be refunded
to the institution, rather than on December 30, 2014, as originally
proposed.





Finally,
the FDIC promulgated a temporary liquidity guarantee program that had both a
debt guarantee component, whereby the FDIC agreed to guarantee certain senior
unsecured debt issued by eligible financial institutions between October 14,
2008 and October 31, 2009, and a transaction account guarantee component (TAG),
whereby the FDIC agreed to insure 100% of non-interest bearing deposit
transaction accounts held at eligible financial institutions, such as lawyers’
trust accounts, payment processing accounts, payroll accounts and working
capital accounts through June 30, 2010.  The FDIC has granted an
extension of the transaction account guarantee component of this
program.  Institutions have until November 2, 2009 to opt-out of
the  TAG. The Bank opted out of participation in the debt guarantee
program but does participate in the TAG program.





On May
22, 2009, President Obama signed into law the Credit Card Accountability,
Responsibility and Disclosure Act of 2009 (the “Credit Card
Act”).  The law made significant changes to the Truth in Lending Act
as implemented by the Federal Reserve’s Regulation Z.  The Credit Card
Act imposes a number of changes upon credit card issuers by February 2010,
although a limited number of changes went into effect in August
2009.  This has no impact on the Company as the Company does not issue
credit cards.





The
extent to which these programs and others like them will succeed in ameliorating
tight credit conditions or otherwise result in an improvement in the national
economy is uncertain.  It is also likely, but not certain, that
additional legislation affecting financial institutions (such as the Bank) and
their holding companies (such as the Company) will be enacted.





Legislative
and regulatory changes continue to be proposed with respect to consumer
financial products and services.  The most significant of these
proposals was released by the U.S. Treasury in June 2009 and involves the
creation of a new, independent federal agency to be called the Consumer
Financial Protection Agency.  The proposed agency would regulate
consumer financial products and services and provide minimum, uniform rules with
respect to such products, including products currently offered by the
Bank.  The proposal also includes a rollback of preemption for
federally chartered banks (like the Bank) such that a broad category of state
consumer law not currently applicable to the Bank would be applicable to the
operations and product offerings of the Bank, its subsidiaries and its
affiliates.  In addition, the proposed agency would have sole
rulemaking and interpretive authority.  Debate continues with respect
to the creation and powers of the proposed agency and there is no way to predict
whether it will be created and, if it is, the authority it will
possess.


21


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





We
continue to maintain a strong presence in the community and are pleased to be
one of the few independent community banks in our primary market
area.  To visit First Robinson Savings Bank on the web, go
to  www.frsb.net.





Asset
Quality




Delinquencies.  When
a borrower fails to make a required payment on a loan, the Bank attempts to
cause the delinquency to be cured by contacting the borrower.  In the
case of loans secured by real estate, reminder notices are sent to
borrowers.  If payment is late, appropriate late charges are assessed
and a notice of late charges is sent to the borrower.  If the loan is
between 60-90 days delinquent, the loan will generally be referred to the
Company’s legal counsel for collection.




When a
loan becomes more than 90 days delinquent and collection of principal and
interest is considered doubtful, or is otherwise impaired, the Company will
generally place the loan on non-accrual status and previously accrued interest
income on the loan is charged against current income. Delinquent consumer loans
are handled in a similar manner as to those described above.  The
Bank’s procedures for repossession and sale of consumer collateral are subject
to various requirements under applicable consumer protection laws.




The
following table sets forth the Company’s loan delinquencies by type, by amount
and by percentage of type at September 30, 2009.




Loans Delinquent
      For:30-89 Days(1)
                    
                    
                    90 Days and Over(1)
                    
                    
                    Nonaccrual
                    
                    
                    Total
      Delinquent LoansNumber
                    
                    
                    Amount
                    
                    
                    Percent
                        of
      Loan
                        Category
                    
                    
                    Number
                    
                    
                    Amount
                    
                    
                    Percent
                        of
      Loan
                        Category
                    
                    
                    Number
                    
                    
                    Amount
                    
                    
                    Percent
                        of
      Loan
                        Category
                    
                    
                    Number
                    
                    
                    Amount
                    
                    
                    Percent
      of
                        Loan
                        Category(Dollars
      in thousands)Real
      Estate:One-
      to four-family
                    
                    
                    7
                    
                    
                    $
                    158
                    
                    
                    
                    0.35
                    %
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    7
                    
                    
                    $
                    170
                    
                    
                    
                    0.37
                    %
                    
                    
                    14
                    
                    
                    $
                    328
                    
                    
                    
                    0.72
                    %Construction
      or development
                    
                    
                    2
                    
                    
                    
                    160
                    
                    
                    
                    4.01
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    2
                    
                    
                    
                    160
                    
                    
                    
                    4.01Commercial
      and agriculture
                    
                    
                    1
                    
                    
                    
                    38
                    
                    
                    
                    0.23
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    1
                    
                    
                    
                    38
                    
                    
                    
                    0.23State
      and municipal government
                    
                    
                    2
                    
                    
                    
                    96
                    
                    
                    
                    2.14
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    2
                    
                    
                    
                    96
                    
                    
                    
                    2.14
                    %Consumer
      and other loans
                    
                    
                    5
                    
                    
                    
                    15
                    
                    
                    
                    0.15
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    1
                    
                    
                    
                    7
                    
                    
                    
                    0.07
                    
                    
                    
                    6
                    
                    
                    
                    22
                    
                    
                    
                    0.22
                    %Commercial
      business and agriculturalfinance
                    
                    
                    3
                    
                    
                    
                    33
                    
                    
                    
                    0.20
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    4
                    
                    
                    
                    43
                    
                    
                    
                    0.25
                    
                    
                    
                    7
                    
                    
                    
                    76
                    
                    
                    
                    0.45
                    %Total
                    
                    
                    20
                    
                    
                    $
                    500
                    
                    
                    
                    0.51
                    %
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    12
                    
                    
                    $
                    220
                    
                    
                    
                    0.22
                    %
                    
                    
                    32
                    
                    
                    $
                    720
                    
                    
                    
                    0.73
                    %


(1)
              Loans
      are still accruing.


22


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





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




September 30,
                              
                              
                              March 31,
                              
                              
                              September 30,2009
                              
                              
                              2009
                              
                              
                              2008(In
      thousands)Non-accruing
      loans:One-
      to four-family
                              
                              $
                              170
                              
                              
                              $
                              192
                              
                              
                              $
                              157Consumer
      and other loans
                              
                              
                              7
                              
                              
                              
                              14
                              
                              
                              
                              —Commercial
      business and agricultural finance
                              
                              
                              43
                              
                              
                              
                              29
                              
                              
                              
                              21Total
                              
                              
                              220
                              
                              
                              
                              235
                              
                              
                              
                              178Foreclosed/Repossessed
      assets:One-
      to four-family
                              
                              
                              30
                              
                              
                              
                              46
                              
                              
                              
                              90Total
                              
                              
                              30
                              
                              
                              
                              46
                              
                              
                              
                              90Total
      non-performing assets
                              
                              $
                              250
                              
                              
                              $
                              281
                              
                              
                              $
                              268Total
      as a percentage of total assets
                              
                              
                              0.14
                              %
                              
                              
                              0.17
                              %
                              
                              
                              0.18
                              %





Gross
interest income which would have been recorded had the non-accruing loans been
current in accordance with their original terms amounted to approximately $4,000
for the three months and $6,000 for the six months ended September 30, 2009 and
$6,000 for the three months and $10,000 for the six months ended September 30,
2008.





Classified
Assets.  Federal regulations provide for the classification of
loans and other assets, such as debt and equity securities, considered by the
Office of the Comptroller of the Currency (“OCC”) to be of lesser quality, as
“substandard,” “doubtful” or “loss.”  An asset is considered
“substandard” if it is inadequately protected by the current net worth and
paying capacity of the obligor or the collateral pledged, if
any.  “Substandard” assets include those characterized by the
“distinct possibility” that the insured institution will sustain “some loss” if
the deficiencies are not corrected.  Assets classified as “doubtful”
have all of the weaknesses inherent in those classified “substandard” with the
added characteristic that the weaknesses present make “collection or liquidation
in full” on the basis of currently existing facts, conditions and values,
“highly questionable and improbable.”  Assets classified as “loss” are
those considered “uncollectible” and of such little value that their continuance
as assets without the establishment of a specific loss reserve is not
warranted.





When an
insured institution classifies problem assets as either substandard or doubtful,
it  may establish general allowances for losses in an amount deemed
prudent by management.  General allowances represent loss allowances
which have been established to recognize the inherent risk associated with
lending activities, but which, unlike specific allowances, have not been
allocated to particular problem assets.  When an insured institution
classifies problem assets as “loss,” it is required either to establish a
specific allowance for losses equal to 100% of that portion of the asset so
classified or to charge-off such amount.  An institution’s
determination as to the classification of its assets and the amount of its
valuation allowances is subject to review by the regulatory authorities, who may
order the establishment of additional general or specific loss
allowances.





In
connection with the filing of its periodic reports with the OCC and in
accordance with its classification of assets policy, the Company regularly
reviews loans in its portfolio to determine whether such assets require
classification in accordance with applicable regulations.  On the
basis of management’s review of its assets, at September 30, 2009, the Company
had classified a total of $400,000 of its assets as substandard and $195,000 as
doubtful.  At September 30, 2009, total classified assets comprised
$595,000, or 4.9% of the Company’s capital, and 0.3% of the Company’s total
assets.


23





FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Other Loans of
Concern.  As of September
30, 2009, there were $4.8 million in loans identified, but not classified, by
the Company with respect to which known information about the possible credit
problems of the borrowers or the cash flows of the business have caused
management to have some doubts as to the ability of the borrowers to comply with
present loan repayment terms and which may result in the future inclusion of
such items in the non-performing asset categories.





At
September 30, 2009, the Company had a commercial loan in the amount of $1.0
million, secured by the common stock of a financial institution.  The
borrower is under formal enforcement action by its regulator with respect to its
capital position due to the borrower’s deteriorating investment
portfolio.  The borrower is attempting to raise additional capital or
negotiate a merger with another financial institution to address the regulatory
concerns.  The Company will continue to monitor and evaluate this loan
as information and progress reports are received from the
borrower.  Due to the nature of the collateral and the economic stress
on the financial industry, the Company could incur losses on this commercial
loan.





Allowance for
Loan Losses.  The allowance
for loan losses is maintained at a level which, in management’s judgment, is
adequate to absorb credit losses inherent in the loan portfolio.  The
amount of the allowance is based on management’s evaluation of the
collectibility of the loan portfolio, including the nature of the portfolio,
credit concentrations, trends in historical loss experience, specific impaired
loans and economic conditions.  Allowances for impaired loans are
generally determined based on collateral values.  The allowance is
increased by a provision for loan losses, which is charged to expense and
reduced by charge-offs, net of recoveries.





Real
estate properties acquired through foreclosure are recorded at the fair value
minus 20% of the fair value if the property is appraised at $50,000 or
less.  If the property is appraised at greater than $50,000, then the
property is recorded at the fair value less 10% of the fair value.  If
fair value at the date of foreclosure is lower than the balance of the related
loan, the difference will be charged-off to the allowance for loan losses at the
time of transfer.  Valuations are periodically updated by management
and if the value declines, a specific provision for losses on such property is
established by a charge to operations.  At September 30, 2009, the
Bank had one real estate property acquired through foreclosure.  An
offer has been accepted and the property will be sold in the coming
quarter.





Although
management believes that it uses the best information available to determine the
allowance, unforeseen market conditions could result in adjustments and net
earnings could be significantly affected if circumstances differ substantially
from the assumptions used in making the final determination.  Future
additions to the Company’s allowance for loan losses will be the result of
periodic loan, property and collateral reviews and thus cannot be predicted in
advance.  In addition, federal regulatory agencies, as an integral
part of the examination process, periodically review the Bank’s
operations.  Such agencies may require the Bank to increase the Bank’s
allowance for loan losses, increase classified assets, or take other actions
that could significantly affect the Company’s earnings based upon their judgment
of the information available to them at the time of their
examination.  At September 30, 2009, the Company had a total allowance
for loan losses of $893,000, representing 0.94% of the Company’s loans,
net.   At March 31, 2009, the Company’s total allowance for loan
losses to the Company’s loans, net was at 0.90%.


24


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





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




September 30, 2009
                  
                  
                  March 31, 2009Amount
      of
                      Loan
      Loss
                      Allowance
                  
                  
                  Loan
                      Amounts
      by
                      Category
                  
                  
                  Percent
      of
                      Loans
      in Each
                      Category
      to
                      Total
      Loans
                  
                  
                  Amount
      of
                      Loan
      Loss
                      Allowance
                  
                  
                  Loan
                      Amounts
      by
                      Category
                  
                  
                  Percent
      of
                      Loans
      in
                      Each
                      Category
      to
                      Total
      Loans(Dollars
      in thousands)One-
      to four-family including loans held for sale
                  
                  $
                  115
                  
                  
                  $
                  45,374
                  
                  
                  
                  46.26
                  %
                  
                  $
                  66
                  
                  
                  $
                  43,903
                  
                  
                  
                  48.59
                  %Multi-family
                  
                  
                  —
                  
                  
                  
                  1,257
                  
                  
                  
                  1.28
                  
                  
                  
                  —
                  
                  
                  
                  1,242
                  
                  
                  
                  1.38Commercial
      and agricultural real estate
                  
                  
                  505
                  
                  
                  
                  16,200
                  
                  
                  
                  16.52
                  
                  
                  
                  458
                  
                  
                  
                  14,793
                  
                  
                  
                  16.37Construction
      or development
                  
                  
                  —
                  
                  
                  
                  3,989
                  
                  
                  
                  4.07
                  
                  
                  
                  —
                  
                  
                  
                  2,624
                  
                  
                  
                  2.90Consumer
      and other loans
                  
                  
                  34
                  
                  
                  
                  9,806
                  
                  
                  
                  10.00
                  
                  
                  
                  34
                  
                  
                  
                  7,783
                  
                  
                  
                  8.62State
      and municipal governments
                  
                  
                  —
                  
                  
                  
                  4,486
                  
                  
                  
                  4.57
                  
                  
                  
                  —
                  
                  
                  
                  2,172
                  
                  
                  
                  2.40Commercial
      business and agricultural finance
                  
                  
                  239
                  
                  
                  
                  16,964
                  
                  
                  
                  17.30
                  
                  
                  
                  222
                  
                  
                  
                  17,835
                  
                  
                  
                  19.74Gross
      Loans
                  
                  
                  
                  
                  
                  
                  98,076
                  
                  
                  
                  100.00
                  %
                  
                  
                  
                  
                  
                  
                  90,352
                  
                  
                  
                  100.00
                  %Unallocated
                  
                  
                  —
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  —Deferred
      loan fees
                  
                  
                  
                  
                  
                  
                  (3
                  )
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  (4
                  )Undisbursed
      portion of loans
                  
                  
                  
                  
                  
                  
                  (2,002
                  )
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  (2,811
                  )Total
                  
                  $
                  893
                  
                  
                  $
                  96,071
                  
                  
                  
                  
                  
                  
                  $
                  780
                  
                  
                  $
                  87,537





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




Three Months Ended
                      September 30,
                    
                    
                    Six Months Ended
                      September 30,2009
                    
                    
                    2008
                    
                    
                    2009
                    
                    
                    2008(Dollars
      in thousands)Balance
      at beginning of period
                    
                    $
                    825
                    
                    
                    $
                    757
                    
                    
                    $
                    780
                    
                    
                    $
                    727Charge-offs:One-
      to four-family
                    
                    
                    68
                    
                    
                    
                    —
                    
                    
                    
                    68
                    
                    
                    
                    —Commercial
      non-residential real estate
                    
                    
                    —
                    
                    
                    
                    123
                    
                    
                    
                    —
                    
                    
                    
                    123Consumer
      and other loans
                    
                    
                    6
                    
                    
                    
                    20
                    
                    
                    
                    12
                    
                    
                    
                    24Total
      charge-offs
                    
                    
                    74
                    
                    
                    
                    143
                    
                    
                    
                    80
                    
                    
                    
                    147Recoveries:One-
      to four-family
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    1Consumer
      and other loans
                    
                    
                    7
                    
                    
                    
                    8
                    
                    
                    
                    13
                    
                    
                    
                    11Total
      recoveries
                    
                    
                    7
                    
                    
                    
                    8
                    
                    
                    
                    13
                    
                    
                    
                    12Net
      charge-offs .
                    
                    
                    67
                    
                    
                    
                    135
                    
                    
                    
                    67
                    
                    
                    
                    135Additions
      charged to operations
                    
                    
                    135
                    
                    
                    
                    130
                    
                    
                    
                    180
                    
                    
                    
                    160Balance
      at end of period
                    
                    $
                    893
                    
                    
                    $
                    752
                    
                    
                    $
                    893
                    
                    
                    $
                    752Ratio
      of net charge-offs during the period to average loans outstanding during
      the period
                    
                    
                    0.07
                    %
                    
                    
                    0.17
                    %
                    
                    
                    0.07
                    %
                    
                    
                    0.18
                    %Ratio
      of net charge-offs during the period to average non-performing
      assets
                    
                    
                    22.64
                    %
                    
                    
                    39.06
                    %
                    
                    
                    23.45
                    %
                    
                    
                    41.73
                    %


25





FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Financial
Condition





Total
assets of the Company increased by $13.1 million, or 7.9%, to $177.5 million at
September 30, 2009 from $164.4 million at March 31, 2009. The increase in assets
was primarily due to an increase of $8.4 million, or 9.7%, loans receivable,
net, and an increase of $4.8 million, or 8.7%, in available for sale
securities.





Cash and
cash equivalents decreased by $495,000 from $13.7 million at March 31, 2009 to
$13.2 million at September 30, 2009. The decrease resulted from the funds being
used to purchase additional available-for-sale securities and to fund loan
growth.  The Company’s non-interest earning deposits are with
Independent Bankers Bank (“IBB”) located in Springfield, Illinois.  As
IBB is a participant in the Transaction Account Guarantee Program, the Company’s
deposits are insured.





Available-for-sale
investment securities increased to $60.8 million at September 30, 2009 compared
to $55.9 million at March 31, 2009, a $4.8 million increase. The increase
resulted from the purchase of $27.0 million in available-for-sale securities and
the realized net gain on sale of available-for-sale securities of $106,000, and
the increase of $243,000 in the market valuation of the available-for-sale
portfolio, offset by $6.6 million in repayments on mortgage-backed securities,
by $330,000 in proceeds from the maturity of available-for-sale securities, and
by $15.4 million in proceeds from the sale of available-for-sale securities, and
the amortization of $126,000 of premiums and discounts on investments. The
investment portfolio is managed to limit the Company's exposure to risk by
investing primarily in mortgage-backed securities and
other  securities  which are either  directly or
indirectly backed by the federal government or a local municipal
government.





During
April 2009, the Company was required to purchase $195,000 in additional Federal
Home Loan Bank (“FHLB”) stock which increased our holdings to
$836,000.  The amount of required investment in FHLB stock is
calculated based on a formula which includes the amount of  one- to-
four family dwelling loans held in the Company’s loan portfolio and the amount
of mortgage-backed securities held in the Company’s investment
portfolio.  Due to the increase in both of these factors on the
balance sheet, we were required to purchase the additional shares.





The
Company's net loan portfolio including loans held for sale increased by $8.4
million to $95.2 million at September 30, 2009 from $86.8 million at March 31,
2009. Loans on one- to four-family real estate, including one- to four-family
loans held for sale, increased by $1.4 million, or 3.3%; commercial
nonresidential real estate and farmland loans increased by $1.4 million, or
9.5%; construction and development loans increased by $1.4 million, or 52.0%;
consumer and other loans increased by $2.0 million, or 26.0%; loans to state and
municpal governments increased by $2.3 million, or 106.5%; and loans on
multi-family properties increased $15,000, or 1.2%.  These increases
were offset, in part, by the decrease of $871,000, or 4.9%, in commercial
business and agricultural finance loans.  The total amount of
undisbursed closed-ended lines of credit decreased by $809,000, or 28.8% from
$2.8 million at March 31, 2009 to $2.0 million at September 30,
2009.





At
September 30, 2009, the allowance for loan losses was $893,000, or 0.94% of the
net loan portfolio, an increase of $113,000 from the allowance for loan losses
at March 31, 2009 of $780,000, or 0.90% of the net loan portfolio. During the
first six-months of fiscal 2010, the Company charged off $80,000 of loan losses,
$68,000 on a one- to four- family property and the remaining $12,000 in consumer
and other loans. The chargeoffs of $80,000 were offset by $13,000 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.





The
Company had one foreclosed real estate property held for sale at September 30,
2009 with no change from March 31, 2009.  Foreclosed assets are
carried at lower of cost or fair value.  When foreclosed assets are
acquired, any required adjustment is charged to allowance for loan
losses.  All subsequent activity is included in current
operations.





Total
deposits increased by $8.2 million, or 5.8%, to $148.3 million at September 30,
2009 from $140.1 million at March 31, 2009. The increase in total deposits was
due to an increase of $1.1 million in certificates of deposit, an increase
of  $6.2 million in savings, NOW, and money market accounts, and an
increase of $918,000 in non-interest bearing demand deposits.





Other
borrowings, consisting entirely of repurchase agreements, increased $2.5
million, or 24.9% from $9.9 million at March 31, 2009 to $12.4 million at
September 30, 2009. The obligations are secured by mortgage-backed securities
and US Government agency obligations.  At September 30, 2009, the
average rate on the repurchase agreements was 0.32% compared to 0.30% at March
31, 2009.  The rate on approximately $10.7 million of the repurchase
agreements reprice daily.  All agreements mature periodically within
24 months.


26


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





The
short-term borrowing consists of the Company’s revolving line of credit note
payable that matured on July 31, 2009 but was extended to September 30,
2009.  The revoloving line of credit renewed on September 17, 2009 and
increased from $600,000 to $2,500,000 with the renewal.  The balance
of the revolving line of credit was $2,500,000 and $0 as of September 30, 2009
and March 31, 2009, respectively.  The note bears interest at the
prime commercial rate with a floor of 3.50% which was the rate on September 30,
2009, matures on September 16, 2010, and is secured by the Bank.





Stockholders'
equity at September 30, 2009 was $12.1 million compared to $12.3 million at
March 31, 2009, a decrease of $171,000, or 1.4%.  Factors relating to
the decrease in stockholders’ equity can be attributed to the addition of
$129,000 in net income offset by $348,000 in dividends declared and paid, the
decrease in additional paid-in-capital of $14,000 due to the purchase of
incentive plan shares related to the Directors Retirment Plan and the repurchase
of $70,000 in treasury shares offset, in part, to the increase of $132,000 in
accumulated other comprehensive income due to the increase in the fair value of
securities available for sale.





Results
of Operations





Net
Income





The
Company recorded a net loss of $34,000 for the three month period ending
September 30, 2009, versus net income of $244,000 in the same period of 2008, a
decrease of 113.9%. Earnings for the three months ended September 30, 2009 were
positively impacted by a $107,000, or 26.2%, increase in non-interest income
which was offset by an increase of $472,000, or 44.4%, in non-interest expense
and a decrease of $25,000, or 2.4%, in net interest income after provision when
compared to the prior year. Basic earnings (loss) per share for the September
30, 2009 three month period were $(0.08) per share versus $0.56 per share for
the same period of 2008.  Diluted earnings (loss) per share reflect
incentive plan shares and the potential dilutive impact of stock options granted
under the stock option plan.  Diluted earnings (loss) per share for
the three months ending September 30, 2009 were $(0.08) compared to $0.54 at
September 30, 2008.  For the six month period ended September 30,
2009, the Company earned $129,000, a decrease of $289,000, or 69.1%, from
$418,000 for the six months ending September 30, 2008.  Earnings for
the six months ended September 30, 2009 were positively impacted by a $341,000,
or 40.6%, increase in non-interest income which was offset by an increase of
$663,000, or 28.9%, in non-interest expense and a decrease of $103,000, or 2.4%,
in net interest income after provision when compared to the prior
year.  Basic earnings per share for the September 30, 2009 six month
period were $0.31 per share versus $0.95 per share for the same period of
2008.  Diluted earnings per share reflect incentive plan shares and
the potential dilutive impact of stock options granted under the stock option
plan.  Diluted earnings per share for the six months ending September
30, 2009  were $0.30 compared to $0.92 at September 30,
2008.





Net
Interest Income





For the
three-month period ended September 30, 2009, net interest income totaled
$1,131,000, a decrease of 1.7%, or $20,000, compared to the same period of 2008.
The decrease in net interest income can be attributed due to an increase of
$74,000, or 9.6%, in total interest expense, offset by the increase of $54,000,
or 2.8%, in total interest income. The increase in total interest expense is due
to the increase of  $113,000, or 15.9%, in interest expense on
deposits, a $6,000 increase in interest expense on the short-term borrowing, a
$1,000 increase on interest expense related to federal funds purchased and a
$1,000 increase on advances from the Federal Home Loan Bank of Chicago, offset
by the decrease of $47,000, or 82.5%, in interest expense on other borrowings
for the three months ended September 30, 2009 compared to the three months ended
September 30, 2008. The increase of $71,000, or 5.3%, from loans receivable and
the increase of $16,000, or 76.2%, from tax-exempt securities offset by the
decrease of $31,000, or 96.8%, in interest income on deposits and federal funds
sold are the contributing factors to the increase of $54,000 in interest
income.





For the
six-month period ended September 30, 2009, net interest income totaled
$2,158,000, a decrease of $83,000, or 3.7%, from the same period in the prior
year.  Contributing to the decrease was the increase of $273,000, or
18.2%, in total interest expense, offset by the increase of $190,000, or 5.1% in
total interest income.  The increase in total interest expense is due
to interest expense on deposits increasing $351,000, or 25.2%, a $7,000 increase
in interest expense on the short-term borrowing, a $1,000 increase on interest
expense related to federal funds purchased and a $1,000 increase on advances
from the Federal Home Loan Bank of Chicago,  for the six months ended
September 30, 2009 when compared to the same period in the prior
year.  These increases are offset, in part, by other borrowings
decreasing by $87,000, or 82.1%.  The increase in total interest
income can be attributed to a $156,000, or 16.8%, increase in interest income
from taxable securities, the increase of $105,000, or 4.0%, in interest income
from loans receivable and a $33,000, or 78.6%, increase in tax-exempt securities
interest income offset, in part, by the decrease of $104,000, or 95.4%, in other
interest income.


27





FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





For the
three-months ended September 30, 2009 total average interest earning assets
increased by $31.8 million, or 24.5%, to $161.9 million as of September 30, 2009
from $130.1 million as of September 30, 2008.  However, the yield on
the earning assets decreased by 103 basis points when comparing the three months
ended September 30, 2009 to the same period in 2008.  Total average
interest bearing liabilities for the three months ended September 30, 2009 were
$149.1 million compared to $114.1 million as of September 30, 2008, an increase
of $35.0 million, or 30.7%.   The cost on the average interest
bearing liabilities decreased by 43 basis points.  For the three-month
period ended September 30, 2009, the net interest spread decreased 60 basis
points to 2.61% versus 3.21% in the comparable period of 2008.  The
decrease in the net interest spread can be partially attributed to market
pressures pushing loan and investment rates down while still requiring the Bank
to pay mid-market deposit rates.  The six-month period ending
September 30, 2009 is a copy of the three-months ended September 30, 2009, as
far as the increase in both interest-earning assets and interest-bearing
liabilities and the decrease in the yield earned and paid.  Like the
three-month period, the net interest rate spread for the six-months ended
September 30, 2009 decreased 63 basis points to 2.51%  from 3.14% for
the six-months ended September 30, 2008.





The
average daily loan balances for the quarter ended September 30, 2009 increased
$15.6 million, or 20.0%, to $93.5 million, versus $77.9 million for the same
period of 2008.  During the same period, the yield on loans decreased
84 basis points to 6.05% from 6.89% for the September 30, 2009 quarter compared
to the September 30, 2008 quarter.  The average daily loan balances
for the six-month period ending September 30, 2009 increased 17.5% to $90.1
million, versus the average daily loan balances of $76.7 million for the same
period of 2008.  The yield on loans, for the six-months ended
September 30, 2009, declined by 80 basis points to 6.13% from 6.93% in the same
six-month period of 2008.





The
average daily securities balances, the Company’s interest-earning deposits and
the federal funds sold balances for the second quarter of fiscal year 2010
increased $16.0 million, or 31.2%, to $67.4 million, versus $51.3 million for
the same period of fiscal year 2009. However, the yield on available-for-sale
securities, interest-earning deposits and federal funds sold decreased by 115
basis points to 3.31% for the three months ended September 30, 2009 compared to
4.46% for the three months ended September 30, 2008. The average daily balances
of securities, interest-earning deposits and federal funds sold for the first
six months of fiscal 2010 increased $18.1 million, or 35.7%, to $68.8
million,  versus $50.7 million for the same period of fiscal year
2009.  The yield on available-for-sale securities, interest-earning
deposits and federal funds sold deceased 87 basis points for the six months
ending September 30, 2009 to 3.39% from 4.26% as of September 30,
2008.





On an
average daily basis, total interest-bearing deposits increased $37.6 million, or
39.3%, to $133.2 million for the three-month period ended September 30, 2009,
versus $95.6 million in the same period in 2008. The average cost of funds on
deposits decreased by 50 basis points to 2.47% for the September 2009 quarter
versus the September 2008 quarter at 2.97%.  The average daily balance
of interest-bearing deposits for the six-month period ended September 2009 also
increased by $37.6 million, or 39.7%, to $132.1 million from $94.5
million.  When comparing the average cost of funds on deposits for the
September 2009 six-month period to the same period ending September 30, 2008
there was a decrease of 31 basis points, from 2.95% to 2.64%.





For the
three-months ended September 30, 2009 versus the same period of 2008, the
average daily balance of short-term borrowings, federal funds purchased, Federal
Home Loan Bank advances, and other borrowings decreased $2.5 million, or 13.6%,
from $18.4 million to $15.9 million.  The average cost of funds
decreased for the September 2009 quarter by 78 basis points from 1.23% to 0.45%.
The average daily balance of short-term borrowings, federal funds purchased,
Federal Home Loan Bank advances, and other borrowings for the six-months ended
September 30, 2009 decreased by $2.0 million, or 11.4%, to $15.2 million from
$17.2 million for the six-month period ending September 30, 2008 while the
average cost of funds decreased by 87 basis points to 0.37% from 1.24% when
comparing the six-months of fiscal year 2010 to fiscal year 2009.





Provision
for Loan Losses





The
provision for loan losses for the quarter ended September 30, 2009 was $135,000
with a 3.8% increase over the provision of $130,000 for the September 30, 2008
quarter.  The provision for both periods reflects management's
analysis of the Company's loan portfolio based on the information which was
available to the Company. Management meets on a quarterly basis to review the
adequacy of the allowance for loan losses based on Company guidelines.
Classified loans are reviewed by the loan officers to arrive at specific reserve
levels for those loans. Once the specific reserve for each loan is calculated,
management calculates general reserves for each loan category based on a
combination of loss history adjusted for current national and local economic
conditions, trends in delinquencies and charge-offs, trends in volume and term
of loans, changes in underwriting standards, and industry conditions. While the
Company cannot assure that future chargeoffs and/or provisions will not be
necessary, the Company's management believes that, as of September 30, 2009, its
allowance for loan losses was adequate.


28





N FIRST ROBINSON FINANCIAL
CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Non-Interest
Income


Non-interest
income categories for the three-month and six-month periods ended September 30,
2009 and 2008 are shown in the following table:





Three
      Months EndedSeptember
      30,2009
                      
                      
                      2008
                      
                      
                      %Change(In
      thousands)Non-interest
      income:Charges
      and fees on deposit accounts
                      
                      $
                      256
                      
                      
                      $
                      231
                      
                      
                      
                      10.8
                      %Charges
      and other fees on loans
                      
                      
                      78
                      
                      
                      
                      40
                      
                      
                      
                      95.0Net
      gain on sale of loans
                      
                      
                      55
                      
                      
                      
                      30
                      
                      
                      
                      83.3Net
      realized gain on sale of available-for-sale securities
                      
                      
                      5
                      
                      
                      
                      2
                      
                      
                      
                      150.0Other
                      
                      
                      121
                      
                      
                      
                      105
                      
                      
                      
                      15.2Total
      non-interest income
                      
                      $
                      515
                      
                      
                      $
                      408
                      
                      
                      
                      26.2
                      %





Six
      Months EndedSeptember
      30,2009
                        
                        
                        2008
                        
                        
                        %Change(In
      thousands)Non-interest
      income:Charges
      and fees on deposit accounts
                        
                        $
                        476
                        
                        
                        $
                        448
                        
                        
                        
                        6.3
                        %Charges
      and other fees on loans
                        
                        
                        178
                        
                        
                        
                        84
                        
                        
                        
                        111.9Net
      gain on sale of loans
                        
                        
                        182
                        
                        
                        
                        72
                        
                        
                        
                        152.8Net
      realized gain on sale of available for sale securities
                        
                        
                        106
                        
                        
                        
                        2
                        
                        
                        
                        5,200.0Other
                        
                        
                        239
                        
                        
                        
                        234
                        
                        
                        
                        2.1Total
      Non-Interest Income
                        
                        $
                        1,181
                        
                        
                        $
                        840
                        
                        
                        
                        40.6
                        %





Non-interest
income increased $107,000 when comparing the three-months ended September 30,
2009 to September 30, 2008.  The largest contributing factors to the
increase were the increase in gain on sale of loans and the fees related to the
servicing of loans.  The gain on sale of loans is due to the sale of
$4.9 million in loans for the three-months ended September 30, 2009 compared to
$1.9 million in loans sold during the three months ended September 30,
2008.  For the six-months ended September 30, 2009, non-interest
income increased $341,000 over the six-months ended September 30,
2008.  The increase can be primarily attributed to the net realized
gain on the sale of available for sale securities due to the sale of $15.4
million in mortgage-backed and agency securities; and the net gain from the sale
of loans.  During the six-months ended September 30, 2009, the Company
sold $18.7 million in loans into the secondary market compared to $4.7 million
during the six-months ended September 30, 2008.


29


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Non-Interest
Expense





Non-interest
expense categories for the three-month and six-month periods ended September 30,
2009 and 2008 are shown in the following table:





Three
      Months EndedSeptember
      30,2009
                  
                  
                  2008
                  
                  
                  %Change(In
      thousands)Non-interest
      expense:Compensation
      and employee benefits
                  
                  $
                  690
                  
                  
                  $
                  569
                  
                  
                  
                  21.3
                  %Occupancy
      and equipment
                  
                  
                  176
                  
                  
                  
                  158
                  
                  
                  
                  11.4Data
      processing
                  
                  
                  66
                  
                  
                  
                  60
                  
                  
                  
                  10.0Audit,
      legal and other professional
                  
                  
                  107
                  
                  
                  
                  49
                  
                  
                  
                  118.4Advertising
                  
                  
                  75
                  
                  
                  
                  52
                  
                  
                  
                  44.2Telephone
      and postage
                  
                  
                  50
                  
                  
                  
                  33
                  
                  
                  
                  51.5FDIC
      Insurance
                  
                  
                  50
                  
                  
                  
                  4
                  
                  
                  
                  1,150.0Loss
      on cost basis equity security
                  
                  
                  137
                  
                  
                  
                  —
                  
                  
                  
                  —Other
                  
                  
                  183
                  
                  
                  
                  137
                  
                  
                  
                  33.6Total
      non-interest expense
                  
                  $
                  1,534
                  
                  
                  $
                  1,062
                  
                  
                  
                  44.4
                  %





Six
      Months EndedSeptember
      30,2009
                  
                  
                  2008
                  
                  
                  %Change(In
      thousands)Non-interest
      expense:Compensation
      and employee benefits
                  
                  $
                  1,340
                  
                  
                  $
                  1,301
                  
                  
                  
                  3.0
                  %Occupancy
      and equipment
                  
                  
                  360
                  
                  
                  
                  333
                  
                  
                  
                  8.1Data
      processing
                  
                  
                  126
                  
                  
                  
                  119
                  
                  
                  
                  5.9Audit,
      legal and other professional
                  
                  
                  192
                  
                  
                  
                  99
                  
                  
                  
                  93.9Advertising
                  
                  
                  177
                  
                  
                  
                  97
                  
                  
                  
                  82.5Telephone
      and postage
                  
                  
                  104
                  
                  
                  
                  59
                  
                  
                  
                  76.3Net
      loss on sale of foreclosed property
                  
                  
                  —
                  
                  
                  
                  4
                  
                  
                  
                  (100.0
                  )FDIC
      insurance
                  
                  
                  181
                  
                  
                  
                  10
                  
                  
                  
                  1,710.0Loss
      on cost basis equity security
                  
                  
                  137
                  
                  
                  
                  —
                  
                  
                  
                  —Other
                  
                  
                  341
                  
                  
                  
                  273
                  
                  
                  
                  24.9Total
      Non-Interest Expense
                  
                  $
                  2,958
                  
                  
                  $
                  2,295
                  
                  
                  
                  28.9
                  %




Compensation
and employee benefits increased by $121,000 when comparing the September 2009
and 2008 quarters primarily due to the $90,000 increase in salaries and the
increase of $8,000 in payroll taxes. The increase in salaries and payroll taxes
can be attributed to the hiring of a trust officer in July 2008 and the hiring,
during the second quarter of fiscal 2009, of full-time employees for the
Vincennes, Indiana branch.  Another factor contributing the the
increase is due to the $20,000 increase associated with the market value of the
shares held in the Directors Retirement Plan.  For the six-months
ended September 30, 2009, compensation expense increased $39,000 over the
six-months ended September 30, 2008.  Salaries and payroll taxes
increased by $225,000 due to the additional employees but this increase was
offset, in part, by the decrease of $182,000 in expense related to options
exercised and the decrease of $13,000 in the market value of the shares held in
the Directors Retirement Plan.





Advertising
expense increased $23,000 and $80,000 for the three- and six- months ended
September 30, 2009, respectively, when compared to the same period of the prior
year due to increased advertising in a new market area: Vincennes, Indiana. On
May 1st, 2009,
in response to a marketing program to promote branding, our deposit product
called “Reward Checking” was renamed Kasasa TM
Cash.   This promotion has also led to the increase in
advertising.


30


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Telephone
and postage expense increased by $17,000 for the three-months ended September
30, 2009 when compared to the same period in 2008 and $45,000 for the six-months
ended September 30, 2009 over the six-months ended September 30,
2008.  During August 2008, the Company signed with a company that
would supply all lines necessary for integrated technologies, secure networking,
and communicating with branches and ATMs.  The addition of phones and
lines at the new branch in Vincennes also contributed to the
increases.





The
Company recognized a loss of $137,000 during the three-months ended September
30, 2009 related to a cost basis equity security investment in a financial
institution.  The investment was written down to approximately $60,000
and additional losses on this investment may be required to be recognized in
future periods.  No loss was recognized on this investment in prior
year periods.





The
increase of $171,000 in Federal Deposit Insurance Corporation (“FDIC”) insurance
when comparing the six-months ended September 30, 2009 to the same period in the
prior year was due to the increase in the assessment from 5 basis points to 12
basis points paid on deposits and the additional 5 basis point special
assessment on each insured depository institution's assets minus Tier 1 capital
as of June 30, 2009. The amount of the special assessment for any institution
was not to exceed 10 basis points times the institution's assessment base for
the second quarter 2009. The special assessment was collected on September 30,
2009. An additional special assessment of up to 5 basis points later in 2009 is
probable, but the amount is uncertain. The additional amount  imposed
on the Company, as a result of the June 30, 2009 final rule, was
$81,359.  During the three-months and six-months ended September 30,
2008, the Company still had a credit balance from the one-time assessment credit
which decreased the expense associated with FDIC insurance.





Income
Tax Expense





The
provision in income tax expense decreased $112,000, or 91.1%, for the
three-months ending September 30, 2009, compared to the same period in 2008. The
decreases can be attributed in part to decreased
profitability.   For the six-months ended September 30, 2009, the
provision for income tax expense decreased $136,000, or 65.4%, from the
six-months ended September 30, 2008 due to decreased profitability and the
increase in non-taxable income.





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
$395,000. The letters of credit are collateralized and underwritten, as
currently required by our loan policy, in the same manner as any commercial
loan.  The advancement of any funds on these letters of credit is not
anticipated.





Liquidity
and Capital Resources





The
Company’s principal sources of funds are deposits and principal and interest
payments collected on loans, investments and related
securities.  While scheduled loan repayments and maturing investments
are relatively predictable, deposit flows and early loan prepayments are more
influenced by interest rates, general economic conditions and
competition.





Liquidity
resources are used principally to meet outstanding commitments on loans, to fund
maturing certificates of deposit and deposit withdrawals
and to meet operating expenses.  The Company anticipates no
foreseeable problems in meeting current loan commitments.At September 30,
2009, outstanding commitments to extend credit amounted to $20.7 million
(including $12.6 million, in available revolving and closed-ended commercial and
agricultural lines of credit).Management believes that
loan repayments and other sources of funds will be adequate to meet any
foreseeable liquidity needs.





The
Company maintains a $24.5 million line of credit with the FHLB, which can be
accessed immediately.  As of September 30, 2009 and 2008, there were
no advances outstanding for either period.  However, the available
line of credit with the FHLB was reduced by $1.2 million for the credit
enhancement reserve established as a result of the participation in the FHLB
Mortgage Partnership Finance (“MPF”) program.  At September 30, 2009,
the Company also maintained a $5.0 million revolving line of credit and a $2.5
million revolving line of credit with Independent Banker’s Bank located in
Springfield, Illinois.  The Company borrowed $2.5 million of the $2.5
million revolving line in September 2009. The Company has also established
borrowing capabilities at the discount window with the Federal Reserve Bank of
St. Louis.Investment
securities of $3,000,000 have been pledged as collateral.  As of
September 30, 2009 and 2008, no amounts were outstanding at the Federal Reserve
discount window.


31





FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





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
Company and the Bank are subject to capital requirements of the federal bank
regulatory agencies which require the Bank to maintain minimum ratios of Tier I
capital to total adjusted assets and to risk-weighted assets of 4%, and total
capital to risk-weighted assets of 8% respectively.  Generally, Tier I
capital consists of total stockholders’ equity calculated in accordance with
generally accepted accounting principals less intangible assets, and total
capital is comprised of Tier I capital plus certain adjustments, the only one of
which is applicable to the Bank is the allowance for loan
losses.  Risk-weighted assets refer to the on- and off-balance sheet
exposures of the Bank adjusted for relative risk levels using formulas set forth
by OCC regulations.  The Bank is also subject to an OCC leverage
capital requirement, which calls for a minimum ratio of Tier I capital to
quarterly average total assets of 3% to 5%, depending on the institution’s
composite ratings as determined by its regulators.  Both the Bank and
the Company are considered well-capitalized under federal
regulations.





At
September 30, 2009, the Bank’s compliance with all of the aforementioned capital
requirements is summarized below:





To
      be Well CapitalizedUnder
      the PromptFor
      Capital
                          
                          
                          Corrective
      ActionActual
                          
                          
                          Adequacy Purposes
                          
                          
                          ProvisionsAmount
                          
                          
                          Ratio
                          
                          
                          Amount
                          
                          
                          Ratio
                          
                          
                          Amount
                          
                          
                          RatioTotal
      Risk-Based Capital(to
      Risk-Weighted Assets)
                          
                          $
                          12,983
                          
                          
                          
                          13.35
                          %
                          
                          $
                          7,778
                          
                          
                          
                          8.00
                          %
                          
                          $
                          9,723
                          
                          
                          
                          10.00
                          %Tier
      I Capital(to
      Risk-Weighted Assets)
                          
                          
                          12,075
                          
                          
                          
                          12.42
                          
                          
                          
                          3,889
                          
                          
                          
                          4.00
                          
                          
                          
                          5,834
                          
                          
                          
                          6.00Tier
      I Capital(to
      Average Assets)
                          
                          
                          12,075
                          
                          
                          
                          6.95
                          
                          
                          
                          6,951
                          
                          
                          
                          4.00
                          
                          
                          
                          8,689
                          
                          
                          
                          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.


32


FIRST
ROBINSON FINANCIAL CORPORATION





Item:  3    Quantitative and Qualitative
Disclosures about Market Risk





Not
applicable.





Item:  4T    Controls and
Procedures





Any
control system, no matter how well designed and operated, can provide only
reasonable (not absolute) assurance that its objectives will be
met.  Furthermore, no evaluation of controls can provide absolute
assurance that all control issues and instances of fraud, if any, have been
detected.





Disclosure Controls and
Procedures





The
Company’s management, with the participation of the Company’s Chief Executive
Officer and Chief Financial Officer, has evaluated the effectiveness of the
Company’s disclosure controls and procedures (as such term is defined in Rules
13a-15(e) and 15d-15(e)) under the Exchange Act as of the end of the period
covered by this report. Based upon that evaluation, the Company’s Chief
Executive Officer and Chief Financial Officer have concluded that, as of
September 30, 2009 the Company’s disclosure controls and procedures were
effective to provide reasonable assurance that (i) the information required to
be disclosed in this Report was  recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and forms, and
(ii) information required to be disclosed by the Company in the reports that it
files or submits under the Exchange Act is accumulated and communicated to
Company’s management, including its principal executive and principal financial
officers, or persons performing similar functions, as appropriate to allow
timely decisions regarding disclosure.





Internal Control Over
Financial Reporting





There
have been no changes in the Company’s internal control over financial reporting
(as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) during the fiscal quarter to which this report relates that have materially
affected, or are reasonably likely to materially affect, the Company’s internal
control over financial reporting.


33





PART II
OTHER INFORMATION




Item
1.                    Legal
Proceedings


None





Item  1A. 
              Risk
Factors


None





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


The following table provides
information about purchases by the Company for the quarter ended September
30, 2009 regarding the Company’s common stock.





PURCHASES
OF EQUITY SECURITIES BY COMPANY (1)


Period
                    
                    Total Number of
                      Shares
                      Purchased
                    
                    
                    Average Price Paid
                      per Share
                    
                    
                    Total Number of
                      Shares Purchased as
                      Part of Publicly
                      Announced Plans or
                      Programs
                    
                    
                    Maximum Number of
                      Shares that May Yet
                      Be Purchased Under
                      the Plans or Programs7/1/2009
      – 7/30/2009
                    
                    
                    950
                    
                    
                    $
                    34.50
                    
                    
                    
                    950
                    
                    
                    
                    13,1608/1/2009
      – 8/31/2009
                    
                    
                    1,177
                    
                    
                    
                    34.34
                    
                    
                    
                    1,000
                    
                    
                    
                    12,1609/1/2009–
      9/30/2009
                    
                    
                    70
                    
                    
                    
                    35.00
                    
                    
                    
                    —
                    
                    
                    
                    12,160Total
                    
                    
                    2,197
                    
                    
                    $
                    34.43
                    
                    
                    
                    1,950
                    
                    
                    
                    12,160


(1)  On
July 23, 2009, the Board of Directors of the Company voted to approve the
extension and expansion of the repurchase program of its equity stock approved
on July 24, 2008.  The Company may repurchase up to 10,000 additional
shares of the Company’s outstanding common stock in the open market or in
negotiated private transactions from time to time when deemed appropriate by
management. The increase represents approximately 2.5% of the Company’s issued
and outstanding shares.  As of July 22, 2009, the Company had
repurchased 22,782 shares of its common stock out of the 26,892 shares that had
been previously authorized for repurchase leaving 4,110 remaining to be
purchased.  As a result of these actions, the Company is currently
authorized to repurchase 14,110 shares of common stock.  The program
has been extended to August 2, 2010 or  the earlier of the completion
of the repurchase of the 14,110 shares.   As of November 10,
2009, 1,950 shares of the 14,110 have been purchased in the expanded program
leaving 12,160 remaining to be purchased pursuant to this share repurchase
program.





Item
3.          
        Defaults Upon Senior
Executives


None





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


On July 23, 2009, the Company held its
Annual Meeting of Stockholders.





(a)
            At
      the meeting, J. Douglas Goodwine and Robin E. Guyer were elected as
      directors for terms to expire in 2012.   Those directors
      continuing in office are Rick L. Catt, Steven E. Neeley, Scott F. Pulliam,
      and William K. Thomas.





(b)
            Stockholders
      voted on the following matters:


(i)     The
election of the following two directors of the
Corporation:


BROKERVOTES:
                  
                  FOR
                  
                  WITHHELD
                  
                  ABSTAIN
                  
                  NON-VOTESJ.
      Douglas Goodwine
                  
                  330,447
                  
                  400
                  
                  —
                  
                  —Robin
      E. Guyer
                  
                  328,892
                  
                  1,955
                  
                  —
                  
                  —


34





PART II
OTHER INFORMATION





(ii)    The
      ratification of the appointment of BKD, LLP as auditors for the Company
      for the fiscal year ending March 31,
2010:


BROKERVOTES:
              
              FOR
              
              WITHHELD
              
              ABSTAIN
              
              NON-VOTES329,851
              
              796
              
              200
              
              —





Item
      5.
            Other
      Information


None





Item
      6.
            Exhibits





1.
              Exhibit
      31: Section 302 Certifications2.
              Exhibit
      32: Section 906
Certifications


35


SIGNATURES





Pursuant
to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.





FIRST
      ROBINSON FINANCIALCORPORATIONDate:    November 13,
      2009
                /s/ Rick L. CattRick
      L. CattPresident
      and Chief Executive OfficerDate:    November 13,
      2009
                /s/ Jamie E. McReynoldsJamie
      E. McReynoldsChiefFinancial Officer
      and Vice President


36




EXHIBIT
INDEX





Exhibit
No.





31.1
              Certification
      by the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of
      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




37