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 SECURITIESEXCHANGE
      ACT OF 1934




For
      the quarterly period ended
              June 30,
2010




OR




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





For the
transition period
from             _____________________
to ________________________




Commission
      File Number  029276FIRST 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
             ̈
            Accelerated
      Filer
             ̈Non-Accelerated Filer
             ̈
      (Do not check if a smaller reporting
              company)
            Smaller
      Reporting
              Company
            x




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





The
number of shares outstanding of each of the issuer’s classes of common stock, as
of the latest practicable date:  428,704 shares of common stock, par
value $.01 per share, as of August 12, 2010.









FIRST
ROBINSON FINANCIAL CORPORATION


Index to
Form 10-Q





PAGEPART
      1. FINANCIAL INFORMATIONItem
      1.
                      Financial
      StatementsCondensed
      Consolidated Balance Sheets as of June 30, 2010 and March 31,
      2010
                      
                      3Condensed
      Consolidated Statements of Income for the Three-Month Periods Ended June
      30, 2010 and 2009
                      
                      4Condensed
      Consolidated Statements of Changes in Stockholders’ Equity For the
      Three-Month Periods ended June 30, 2010 and 2009
                      
                      5Condensed
      Consolidated Statements of Cash Flows for the Three-Month Periods Ended
      June 30, 2010 and  2009
                      
                      6Notes
      to Condensed Consolidated Financial Statements
                      
                      8Item
      2.
                      Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
                      
                      17Item
      3.
                      Quantitative
      and Qualitative Disclosures about Market Risk
                      
                      29Item
      4T.
                      Controls
      and Procedures
                      
                      29PART
      II. OTHER INFORMATIONItem
      1.
                      Legal
      Proceedings
                      
                      30Item
      1A.
                      Risk
      Factors
                      
                      30Item
      2.
                      Unregistered
      Sales of Equity Securities and Use of Proceeds
                      
                      30Item
      3.
                      Defaults
      Upon Senior Executives
                      
                      30Item
      4.
                      Submission
      of Matters to a Vote of Security Holders
                      
                      30Item
      5.
                      Other
      Information
                      
                      31Item
      6.
                      Exhibits
                      
                      31SIGNATURES
                      
                      32CERTIFICATIONS
                      
                      34




2




Item 1:


FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED BALANCE SHEETS


(In
thousands, except share data)





(Unaudited)June 30, 2010
                                  
                                  
                                  March 31, 2010ASSETSCash
      and cash equivalents
                                  
                                  $
                                  7,733
                                  
                                  
                                  $
                                  6,562Interest-bearing
      deposits
                                  
                                  
                                  3,304
                                  
                                  
                                  
                                  3,475Federal
      funds sold
                                  
                                  
                                  6,585
                                  
                                  
                                  
                                  7,852Cash
      and cash equivalents
                                  
                                  
                                  17,622
                                  
                                  
                                  
                                  17,889Available-for-sale
      securities
                                  
                                  
                                  53,227
                                  
                                  
                                  
                                  55,399Loans,
      held for sale
                                  
                                  
                                  456
                                  
                                  
                                  
                                  88Loans,
      net of allowance for loan losses of $1,044 and $973 at June 30, 2010 and
      March 31, 2010, respectively
                                  
                                  
                                  108,010
                                  
                                  
                                  
                                  100,063Federal
      Reserve and Federal Home Loan Bank stock
                                  
                                  
                                  1,051
                                  
                                  
                                  
                                  1,008Premises
      and equipment, net
                                  
                                  
                                  3,925
                                  
                                  
                                  
                                  4,018Foreclosed
      assets held for sale, net
                                  
                                  
                                  28
                                  
                                  
                                  
                                  52Interest
      receivable
                                  
                                  
                                  852
                                  
                                  
                                  
                                  906Prepaid
      income taxes
                                  
                                  
                                  166
                                  
                                  
                                  
                                  380Cash
      surrender value of life insurance
                                  
                                  
                                  1,517
                                  
                                  
                                  
                                  1,504Other
      assets
                                  
                                  
                                  1,641
                                  
                                  
                                  
                                  1,682Total
      Assets
                                  
                                  $
                                  188,495
                                  
                                  
                                  $
                                  182,989LIABILITIES
      AND STOCKHOLDERS’ EQUITYLiabilitiesDeposits
                                  
                                  $
                                  151,221
                                  
                                  
                                  $
                                  149,312Other
      borrowings
                                  
                                  
                                  20,388
                                  
                                  
                                  
                                  17,621Short-term
      borrowings
                                  
                                  
                                  2,300
                                  
                                  
                                  
                                  1,700Advances
      from borrowers for taxes and insurance
                                  
                                  
                                  275
                                  
                                  
                                  
                                  196Deferred
      income taxes
                                  
                                  
                                  881
                                  
                                  
                                  
                                  779Interest
      payable
                                  
                                  
                                  204
                                  
                                  
                                  
                                  251Other
      liabilities
                                  
                                  
                                  1,092
                                  
                                  
                                  
                                  1,085Total
      Liabilities
                                  
                                  
                                  176,361
                                  
                                  
                                  
                                  170,944Commitments
      and Contingencies
                                  
                                  
                                  —
                                  
                                  
                                  
                                  —Stockholders’
      EquityPreferred
      stock, $.01 par value; authorized 500,000 shares, no shares issued and
      outstanding
                                  
                                  
                                  —
                                  
                                  
                                  
                                  —Common
      stock, $ .01 par value; authorized 2,000,000 shares; 859,625 shares
      issued; outstanding June 30, 2010– 428,794 shares; March 31, 2010 –
      433,198 shares
                                  
                                  
                                  9
                                  
                                  
                                  
                                  9Additional
      paid-in capital
                                  
                                  
                                  8,783
                                  
                                  
                                  
                                  8,783Retained
      earnings
                                  
                                  
                                  10,233
                                  
                                  
                                  
                                  10,182Accumulated
      other comprehensive income
                                  
                                  
                                  1,154
                                  
                                  
                                  
                                  976Treasury
      stock, at costCommon:
      June 30, 2010 – 430,831 shares; March 31, 2010 – 426,427
      shares
                                  
                                  
                                  (8,045
                                  )
                                  
                                  
                                  (7,905
                                  )Total
      Stockholders’ Equity
                                  
                                  
                                  12,134
                                  
                                  
                                  
                                  12,045Total
      Liabilities and Stockholders’ Equity
                                  
                                  $
                                  188,495
                                  
                                  
                                  $
                                  182,989





See Notes
to Condensed Consolidated Financial Statements




3




FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF INCOME


For the
Three-Month Periods Ended June 30, 2010 and 2009


(In
thousands, except per share data)


(Unaudited)





2010
                                        
                                        
                                        2009Interest
      and Dividend Income:Loans
                                        
                                        $
                                        1,537
                                        
                                        
                                        $
                                        1,347Securities:Taxable
                                        
                                        
                                        450
                                        
                                        
                                        
                                        567Tax-exempt
                                        
                                        
                                        29
                                        
                                        
                                        
                                        38Other
      interest income
                                        
                                        
                                        5
                                        
                                        
                                        
                                        4Dividends
      on Federal Reserve Bank stock
                                        
                                        
                                        3
                                        
                                        
                                        
                                        3Total
      Interest and Dividend Income
                                        
                                        
                                        2,024
                                        
                                        
                                        
                                        1,959Interest
      Expense:Deposits
                                        
                                        
                                        621
                                        
                                        
                                        
                                        922Other
      and short-term borrowings
                                        
                                        
                                        24
                                        
                                        
                                        
                                        10Total
      Interest Expense
                                        
                                        
                                        645
                                        
                                        
                                        
                                        932Net
      Interest Income
                                        
                                        
                                        1,379
                                        
                                        
                                        
                                        1,027Provision
      for Loan Losses
                                        
                                        
                                        45
                                        
                                        
                                        
                                        45Net
      Interest Income After Provision for Loan Losses
                                        
                                        
                                        1,334
                                        
                                        
                                        
                                        982Non-Interest
      Income:Charges
      and fees on deposit accounts
                                        
                                        
                                        249
                                        
                                        
                                        
                                        220Charges
      and other fees on loans
                                        
                                        
                                        90
                                        
                                        
                                        
                                        100Net
      gain on sale of loans
                                        
                                        
                                        135
                                        
                                        
                                        
                                        127Net
      gain on sale of foreclosed assets
                                        
                                        
                                        17
                                        
                                        
                                        
                                        —Net
      gain on sale of equipment
                                        
                                        
                                        4
                                        
                                        
                                        
                                        —Net
      realized gain on sale of investments
                                        
                                        
                                        —
                                        
                                        
                                        
                                        101Other
                                        
                                        
                                        137
                                        
                                        
                                        
                                        118Total
      Non-Interest Income
                                        
                                        
                                        632
                                        
                                        
                                        
                                        666Non-Interest
      Expense:Compensation
      and employee benefits
                                        
                                        
                                        739
                                        
                                        
                                        
                                        650Occupancy
      and equipment
                                        
                                        
                                        168
                                        
                                        
                                        
                                        184Data
      processing
                                        
                                        
                                        70
                                        
                                        
                                        
                                        60Audit,
      legal and other professional
                                        
                                        
                                        65
                                        
                                        
                                        
                                        85Advertising
                                        
                                        
                                        62
                                        
                                        
                                        
                                        102Telephone
      and postage
                                        
                                        
                                        43
                                        
                                        
                                        
                                        54FDIC
      insurance
                                        
                                        
                                        52
                                        
                                        
                                        
                                        131Other
                                        
                                        
                                        148
                                        
                                        
                                        
                                        158Total
      Non-Interest Expense
                                        
                                        
                                        1,347
                                        
                                        
                                        
                                        1,424Income
      Before Income Taxes
                                        
                                        
                                        619
                                        
                                        
                                        
                                        224Provision
      For Income Taxes
                                        
                                        
                                        203
                                        
                                        
                                        
                                        60Net
      Income
                                        
                                        $
                                        416
                                        
                                        
                                        $
                                        164Basic
      Earnings Per Share
                                        
                                        $
                                        1.01
                                        
                                        
                                        $
                                        0.39Diluted
      Earnings Per Share
                                        
                                        $
                                        0.97
                                        
                                        
                                        $
                                        0.38





See Notes
to Condensed Consolidated Financial Statements.




4




FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY


For the
Three-Months Ended June 30, 2010 and 2009


(In
thousands, except share data)


(Unaudited)





AccumulatedAdditional
                                  
                                  
                                  
                                  
                                  
                                  Other
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  ComprehensiveCommon Stock
                                  
                                  
                                  Paid-in
                                  
                                  
                                  Retained
                                  
                                  
                                  Comprehensive
                                  
                                  
                                  Treasury
                                  
                                  
                                  
                                  
                                  
                                  IncomeShares
                                  
                                  
                                  Amount
                                  
                                  
                                  Capital
                                  
                                  
                                  Earnings
                                  
                                  
                                  Income
                                  
                                  
                                  Stock
                                  
                                  
                                  Total
                                  
                                  
                                  (Loss)Balance,
      April 1, 2009
                                  
                                  
                                  435,232
                                  
                                  
                                  $
                                  9
                                  
                                  
                                  $
                                  8,791
                                  
                                  
                                  $
                                  10,560
                                  
                                  
                                  $
                                  782
                                  
                                  
                                  $
                                  (7,835
                                  )
                                  
                                  $
                                  12,307Comprehensive
      incomeNet
      income
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  164
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  164
                                  
                                  
                                  
                                  164Unrealized
      depreciation on available-for-sale securities, net of taxes of
      $(135)
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (242
                                  )Less
      reclassification adjustment for realized gains included in income net of
      taxes $34
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  67Total
      unrealized depreciation on available-for-sale securities, net of taxes of
      $(169)
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (309
                                  )
                                  
                                  
                                  
                                  
                                  
                                  
                                  (309
                                  )
                                  
                                  
                                  (309
                                  )Total
      comprehensive loss
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (145
                                  )Treasury
      shares purchased
                                  
                                  
                                  (84
                                  )
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (3
                                  )
                                  
                                  
                                  (3
                                  )Dividends
      on common stock, $0.80 per share
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (348
                                  )
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (348
                                  )Incentive
      compensation
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (5
                                  )
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (5
                                  )Balance,
      June 30, 2009
                                  
                                  
                                  435,148
                                  
                                  
                                  $
                                  9
                                  
                                  
                                  $
                                  8,786
                                  
                                  
                                  $
                                  10,376
                                  
                                  
                                  $
                                  473
                                  
                                  
                                  $
                                  (7,838
                                  )
                                  
                                  $
                                  11,806Balance,
      April 1, 2010
                                  
                                  
                                  433,198
                                  
                                  
                                  $
                                  9
                                  
                                  
                                  $
                                  8,783
                                  
                                  
                                  $
                                  10,182
                                  
                                  
                                  $
                                  976
                                  
                                  
                                  $
                                  (7,905
                                  )
                                  
                                  $
                                  12,045Comprehensive
      lossNet
      income
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  416
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  416
                                  
                                  
                                  
                                  416Change
      in  unrealized appreciation on available-for-sale securities,
      net of taxes of $113
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  178
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  178
                                  
                                  
                                  
                                  178Total
      comprehensive income
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  594Treasury
      shares purchased
                                  
                                  
                                  (4,404
                                  )
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (140
                                  )
                                  
                                  
                                  (140
                                  )Dividends
      on common stock, $0.85 per share
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (365
                                  )
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  (365
                                  )Balance,
      June 30, 2010
                                  
                                  
                                  428,794
                                  
                                  
                                  $
                                  9
                                  
                                  
                                  $
                                  8,783
                                  
                                  
                                  $
                                  10,233
                                  
                                  
                                  $
                                  1,154
                                  
                                  
                                  $
                                  (8,045
                                  )
                                  
                                  $
                                  12,134





See Notes
to Condensed Consolidated Financial Statements




5




FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS


For the
Three-Months Ended June 30, 2010 and 2009


(In
thousands)


(Unaudited)





2010
                  
                  
                  2009Cash
      flows from operating activities:Net
      income
                  
                  $
                  416
                  
                  
                  $
                  164Items
      not requiring (providing) cashDepreciation
      and amortization
                  
                  
                  77
                  
                  
                  
                  75Provision
      for loan losses
                  
                  
                  45
                  
                  
                  
                  45Amortization
      of premiums and discounts on securities
                  
                  
                  66
                  
                  
                  
                  24Amortization
      of loan servicing rights
                  
                  
                  28
                  
                  
                  
                  115Deferred
      income taxes
                  
                  
                  (11
                  )
                  
                  
                  (8
                  )Originations
      of mortgage loans held for sale
                  
                  
                  (6,697
                  )
                  
                  
                  (13,632
                  )Proceeds
      from the sale of mortgage loans
                  
                  
                  6,464
                  
                  
                  
                  13,622Net
      gain on loans sold
                  
                  
                  (135
                  )
                  
                  
                  (127
                  )Net
      gain on sale of foreclosed property
                  
                  
                  (17
                  )
                  
                  
                  —Net
      gain on sale of equipment
                  
                  
                  (4
                  )
                  
                  
                  —Net
      realized gain on sale of securities
                  
                  
                  —
                  
                  
                  
                  (101
                  )Cash
      surrender value of life insurance
                  
                  
                  (13
                  )
                  
                  
                  (13
                  )Changes
      in:Interest
      receivable
                  
                  
                  54
                  
                  
                  
                  (6
                  )Other
      assets
                  
                  
                  10
                  
                  
                  
                  (249
                  )Interest
      payable
                  
                  
                  (47
                  )
                  
                  
                  26Other
      liabilities
                  
                  
                  7
                  
                  
                  
                  123Income
      taxes, prepaid
                  
                  
                  214
                  
                  
                  
                  68Net
      cash provided by operating activities
                  
                  
                  457
                  
                  
                  
                  126Cash
      flows from investing activities:Purchase
      of available-for-sale securities
                  
                  
                  (1,007
                  )
                  
                  
                  (26,983
                  )Proceeds
      from maturities of available-for-sale securities
                  
                  
                  1,150
                  
                  
                  
                  330Proceeds
      from sales of available-for-sale securities
                  
                  
                  —
                  
                  
                  
                  10,440Repayment
      of principal on mortgage-backed securities
                  
                  
                  2,254
                  
                  
                  
                  3,285Purchase
      of Federal Home Loan Bank stock
                  
                  
                  (43
                  )
                  
                  
                  (195
                  )Net
      change in loans
                  
                  
                  (7,992
                  )
                  
                  
                  (4,367
                  )Purchase
      of premises and equipment
                  
                  
                  (1
                  )
                  
                  
                  (82
                  )Proceeds
      from sale of equipment
                  
                  
                  24
                  
                  
                  
                  —Proceeds
      from sale of foreclosed assets
                  
                  
                  41
                  
                  
                  
                  —Net
      cash used in investing activities
                  
                  
                  (5,574
                  )
                  
                  
                  (17,572
                  )





See Notes
to Condensed Consolidated Financial Statements.




6




FIRST
ROBINSON FINANCIAL CORPORATION


CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)


For The
Three-Months Ended June 30, 2010 and 2009


(In
thousands)


(Unaudited)





2010
                  
                  
                  2009Cash
      flows from financing activities:Net
      increase in deposits
                  
                  $
                  1,909
                  
                  
                  $
                  4,034Proceeds
      from other borrowings
                  
                  
                  28,385
                  
                  
                  
                  26,172Repayment
      of other borrowings
                  
                  
                  (25,618
                  )
                  
                  
                  (19,762
                  )Net
      change in from short-term borrowings
                  
                  
                  600
                  
                  
                  
                  400Purchase
      of incentive plan shares
                  
                  
                  —
                  
                  
                  
                  (5
                  )Purchase
      of treasury stock
                  
                  
                  (140
                  )
                  
                  
                  (3
                  )Dividends
      paid
                  
                  
                  (365
                  )
                  
                  
                  (348
                  )Net
      increase in advances from borrowers for taxes and
insurance
                  
                  
                  79
                  
                  
                  
                  61Net
      cash  provided by financing activities
                  
                  
                  4,850
                  
                  
                  
                  10,549Decrease
      in cash and cash equivalents
                  
                  
                  (267
                  )
                  
                  
                  (6,897
                  )Cash
      and cash equivalents at beginning of period
                  
                  
                  17,889
                  
                  
                  
                  13,709Cash
      and cash equivalents at end of period
                  
                  $
                  17,622
                  
                  
                  $
                  6,812Supplemental
      Cash Flows Information:Interest
      paid
                  
                  $
                  692
                  
                  
                  $
                  906





See Notes
to Condensed Consolidated Financial Statements.




7




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





1.
            Basis of
      Presentation





The
condensed consolidated financial statements include the accounts of First
Robinson Financial Corporation (the “Company”) and its wholly owned subsidiary,
First Robinson Savings Bank, National Association (the “Bank”).  All
significant intercompany accounts and transactions have been eliminated in
consolidation.  The accompanying condensed consolidated financial
statements are unaudited and should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company’s Form 10-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 June 30, 2010, the results of
its operations for the three month periods ended June 30, 2010 and 2009, the
changes in stockholders’ equity for the three month periods ended June 30, 2010
and 2009, and cash flows for the three month periods ended June 30, 2010 and
2009.  The results of operations for those months ended June 30, 2010
are not necessarily indicative of the results to be expected for the full
year.





The
Condensed Consolidated Balance Sheet of the Company, as of March 31, 2010, has
been derived from the audited Consolidated Balance Sheet for the Company as of
that date.





2.
            Newly Adopted and
      Recent Accounting
Pronouncements





In July
2010, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Update (ASU) No. 2010-20, “Receivables (Topic 310) –
Disclosures about the Credit Quality of Financing Receivables and the Allowance
for Credit Losses,”  which requires significant new disclosures
about the allowance for credit losses and the credit quality of financing
receivables.  The requirements are intended to enhance transparency
regarding credit losses and the credit quality of loan losses
receivables.  Under this statement, allowance for credit losses and
fair value are to be disclosed by portfolio segment, while credit quality
information, impaired financing receivables and nonaccrual status are to be
presented by class of financing receivable.  Disclosure of the nature
and extent, the financial impact and segment information of troubled debt
restructurings will also be required.  The dislcosures are to be
presented at the level of disaggregation that management uses when assessing and
monitoring the portfolio’s risk and performance.  ASU 2010-20 is
effective for interim and annual reporting periods after December 31,
2010.  Adoption of this update should not have a material effect on
the Company’s financial statements.





In
January 2010, the FASB issued ASU No. Topic 2010-06, “Fair Value Measurements and
Disclosures (Topic 820) – Improving Disclosures about Fair Value
Measurements.”  ASU 2010-06 amends the fair value disclosure
guidance.  The amendments include new disclosures and changes to
clarify existing disclosure requirements. ASU 2010-06 was effective for interim
and annual reporting periods beginning after December 15, 2009, except for the
disclosures about purchases, sales, issuances and settlements of Level 3 fair
value measurements. Those disclosures are effective for fiscal years beginning
after December 15, 2010, and for interim periods within those fiscal
years.  Adoption of this update did not have a material impact on the
Company’s financial statements.




8




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





3.
            Fair Value
      Measurements




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





Level
      1
            Quoted
      prices in active markets for identical assets or
    liabilities.





Level
      2
            Observable
      inputs other than Level 1 prices, such as quoted prices for similar assets
      or liabilities; quoted prices in markets that are not active; or other
      inputs that are observable or can be corroborated by observable market
      data for substantially the full term of the assets or
      liabilities.





Level
      3
            Unobservable
      inputs that are supported by little or no market activity and that are
      significant to the fair value of the assets or
  liabilities.




Following
is a description of the valuation methodologies used for instruments measured at
fair value on a recurring basis and recognized in the accompanying condensed
consolidated balance sheet at June 30, 2010 and March 31, 2010.




Available-for-Sale
Securities




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




9




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




The
following table presents the Company’s assets that are measured at fair value on
a recurring basis and the level within the FASB  ASC No. 820 hierarchy
in which the fair value measurements fall as of June 30, 2010 and March 31, 2010
(in thousands):





Carrying value at June 30, 2010Description
                      
                      Fair Value
                      
                      
                      Quoted Prices in
                        Active Markets
                        for Identical
                        Assets
                        (Level 1)
                      
                      
                      Significant
                        Other
                        Observable
                        Inputs
                        (Level 2)
                      
                      
                      Significant
                        Unobservable
                        Inputs
                        (Level 3)U.S.
      government sponsored enterprises (GSE)
                      
                      $
                      14,042
                      
                      
                      $
                      —
                      
                      
                      $
                      14,042
                      
                      
                      $
                      —Mortgage-backed,
      GSE residential
                      
                      
                      34,457
                      
                      
                      
                      —
                      
                      
                      
                      34,457
                      
                      
                      
                      —State
      and political subdivisions
                      
                      
                      4,728
                      
                      
                      
                      —
                      
                      
                      
                      4,728
                      
                      
                      
                      —Total
      available-for-sale securities
                      
                      $
                      53,227
                      
                      
                      $
                      —
                      
                      
                      $
                      53,227
                      
                      
                      $
                      —







Carrying value at March 31, 2010Description
                    
                    Fair Value
                    
                    
                    Quoted Prices in
                      Active Markets
                      for Identical
                      Assets
                      (Level 1)
                    
                    
                    Significant
                      Other
                      Observable
                      Inputs
                      (Level 2)
                    
                    
                    Significant
                      Unobservable
                      Inputs
                      (Level 3)U.S.
      government sponsored enterprises (GSE)
                    
                    $
                    15,191
                    
                    
                    $
                    —
                    
                    
                    $
                    15,191
                    
                    
                    $
                    —Mortgage-backed,
      GSE residential
                    
                    
                    36,472
                    
                    
                    
                    —
                    
                    
                    
                    36,472
                    
                    
                    
                    —State
      and political subdivisions
                    
                    
                    3,736
                    
                    
                    
                    —
                    
                    
                    
                    3,736
                    
                    
                    
                    —Total
      available-for-sale securities
                    
                    $
                    55,399
                    
                    
                    $
                    —
                    
                    
                    $
                    55,399
                    
                    
                    $
                    —




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




Impaired
Loans (Collateral
Dependent)




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




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





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





Mortgage
Servicing Rights





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




10




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




Foreclosed
Assets Held for Sale





Fair
value of foreclsoed assets held for sale is based on market prices determined by
appraisals less discounts for costs to sell.  Foreclosed assets held
for sale are classified within Level 2 of the valuation hierarchy.





The
following table presents the fair value measurement of assets measured at fair
value on a nonrecurring basis and the level within the FASB ASC No. 820 fair
value hierarchy in which the fair value measurements fall at June 30, 2010
and  March 31, 2010:





Carrying value at June 30, 2010Quoted Prices in
                    
                    
                    SignificantActive Markets
                    
                    
                    Other
                    
                    
                    Significantfor Identical
                    
                    
                    Observable
                    
                    
                    UnobservableAssets
                    
                    
                    Inputs
                    
                    
                    InputsDescription
                    
                    Fair
      Value
                    
                    
                    (Level
      1)
                    
                    
                    (Level
      2)
                    
                    
                    (Level
      3)Impaired
      loans (collateral dependent)
                    
                    $
                    194
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    194








Carrying value at March 31, 2010Quoted Prices in
                    
                    
                    SignificantActive Markets
                    
                    
                    Other
                    
                    
                    Significantfor Identical
                    
                    
                    Observable
                    
                    
                    UnobservableAssets
                    
                    
                    Inputs
                    
                    
                    InputsDescription
                    
                    Fair
      Value
                    
                    
                    (Level
      1)
                    
                    
                    (Level
      2)
                    
                    
                    (Level
      3)Impaired
      loans (collateral dependent)
                    
                    $
                    66
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    66Motgage
      servicing rights
                    
                    
                    422
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    422Foreclosed
      assets held for sale, net
                    
                    
                    52
                    
                    
                    
                    —
                    
                    
                    
                    52
                    
                    
                    
                    —








The
following methods were used to estimate fair values of the Company’s financial
instruments.  The fair values of certain of these instruments were
calculated by discounting expected cash flows, which involves significant
judgments by management and uncertainties.  Fair value is the
estimated amount at which financial assets or liabilities could be exchanged in
a current transaction between willing parties, other than in a forced or
liquidation sale.  Because no market exists for certain of these
financial instruments


and
because management does not intend to sell these financial instruments, the
Company does not know whether the fair values shown below represent values at
which the respective financial instruments could be sold individually or in the
aggregate.





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




11




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





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.





June 30, 2010
                    
                    
                    March 31, 2010Carrying
                    
                    
                    
                    
                    
                    
                    CarryingAmount
                    
                    
                    Fair Value
                    
                    
                    Amount
                    
                    
                    Fair Value(In thousands)Financial
      assetsCash
      and cash equivalents
                    
                    $
                    7,733
                    
                    
                    $
                    7,733
                    
                    
                    $
                    6,562
                    
                    
                    $
                    6,562Interest-bearing
      deposits
                    
                    
                    3,304
                    
                    
                    
                    3,304
                    
                    
                    
                    3,475
                    
                    
                    
                    3,475Federal
      funds sold
                    
                    
                    6,585
                    
                    
                    
                    6,585
                    
                    
                    
                    7,852
                    
                    
                    
                    7,852Available-for-sale
      securities
                    
                    
                    53,227
                    
                    
                    
                    53,227
                    
                    
                    
                    55,399
                    
                    
                    
                    55,399Loans
      held for sale
                    
                    
                    456
                    
                    
                    
                    456
                    
                    
                    
                    88
                    
                    
                    
                    88Loans,
      net of allowance for loan losses
                    
                    
                    108,010
                    
                    
                    
                    109,327
                    
                    
                    
                    100,063
                    
                    
                    
                    101,214Federal
      Reserve and Federal Home Loan Bank stock
                    
                    
                    1,051
                    
                    
                    
                    1,051
                    
                    
                    
                    1,008
                    
                    
                    
                    1,008Interest
      receivable
                    
                    
                    852
                    
                    
                    
                    852
                    
                    
                    
                    906
                    
                    
                    
                    906Financial
      liabilitiesDeposits
                    
                    
                    151,221
                    
                    
                    
                    144,441
                    
                    
                    
                    149,312
                    
                    
                    
                    139,318Other
      borrowings
                    
                    
                    20,388
                    
                    
                    
                    20,399
                    
                    
                    
                    17,621
                    
                    
                    
                    17,630Short-term
      borrowings
                    
                    
                    2,300
                    
                    
                    
                    2,300
                    
                    
                    
                    1,700
                    
                    
                    
                    1,700Advances
      from borrowers for taxes and insurance
                    
                    
                    275
                    
                    
                    
                    275
                    
                    
                    
                    196
                    
                    
                    
                    196Interest
      payable
                    
                    
                    204
                    
                    
                    
                    204
                    
                    
                    
                    251
                    
                    
                    
                    251Unrecognized
      financial instruments (net of contract amount)Commitments
      to originate loans
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —Letters
      of credit
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —Lines
      of credit
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —





4.
            Federal Home Loan Bank
      Stock





The
Company owns approximately $879,000 of Federal Home Loan Bank of Chicago
(“FHLB”) stock.  During the third quarter of 2007, the FHLB of Chicago
received a Cease and Desist Order from its regulator, the Federal Housing
Finance Board.  The order generally prohibits capital stock
repurchases and redemptions until a time to be determined by the Federal Housing
Finance Board.  The FHLB will continue to provide liquidity and
funding through advances.  With regard to dividends, which have not
been declared since July 24, 2007, the FHLB will continue to assess its dividend
capacity each quarter and make appropriate requests for
approval.  Management performed an analysis and deemed the Company’s
cost method investment in FHLB stock to be recoverable as of June 30,
2010.





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 could 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 represented 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 was
authorized to repurchase 14,110 shares of common stock.  The program
was extended to August 2, 2010 or  the earlier of the completion of
the repurchase of the 14,110 shares.  The program expired August 2,
2010 after purchasing 6,444 of the authorized 14,110 shares.




12




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)June
      30, 2010U.S.
      government sponsored enterprises (GSE)
                      
                      $
                      13,669
                      
                      
                      $
                      373
                      
                      
                      $
                      —
                      
                      
                      $
                      14,042Mortgage-backed
      securities, GSE, residential
                      
                      
                      33,028
                      
                      
                      
                      1,430
                      
                      
                      
                      1
                      
                      
                      
                      34,457State
      and political subdivisions
                      
                      
                      4,644
                      
                      
                      
                      90
                      
                      
                      
                      6
                      
                      
                      
                      4,728$
                      51,341
                      
                      
                      $
                      1,893
                      
                      
                      $
                      7
                      
                      
                      $
                      53,227March
      31, 2010U.S.
      government sponsored enterprises (GSE)
                      
                      $
                      14,852
                      
                      
                      $
                      339
                      
                      
                      $
                      —
                      
                      
                      $
                      15,191Mortgage-backed
      securities, GSE residential
                      
                      
                      35,308
                      
                      
                      
                      1,186
                      
                      
                      
                      22
                      
                      
                      
                      36,472State
      and political subdivisions
                      
                      
                      3,644
                      
                      
                      
                      96
                      
                      
                      
                      4
                      
                      
                      
                      3,736$
                      53,804
                      
                      
                      $
                      1,621
                      
                      
                      $
                      26
                      
                      
                      $
                      55,399





The
amortized cost and fair value of available-for-sale securities at June 30, 2010,
by contractual maturity, are shown below.  Expected maturities will
differ from contractual maturities because issuers may have the right to call or
prepay obligations with or without call or prepayment penalties.





Amortized
                    Cost
                  
                  
                  Fair
                    Value(In
    thousands)Within
      one year
                  
                  $
                  6,327
                  
                  
                  $
                  6,430One
      to five years
                  
                  
                  10,823
                  
                  
                  
                  11,156Five
      to ten years
                  
                  
                  1,163
                  
                  
                  
                  1,18418,313
                  
                  
                  
                  18,770Mortgage-backed
      securities
                  
                  
                  33,028
                  
                  
                  
                  34,457Totals
                  
                  $
                  51,341
                  
                  
                  $
                  53,227





There
were no sales of investment securities during the three months ended June 30,
2010. Proceeds from the sale of investment securities available-for-sale during
the three-months ended June 30, 2009 were $10,440,000.  Gross gains of
$107,000 and gross losses of $6,000 were realized on the sales for the
three-months ended June 30, 2009.




13




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 June
30, 2010 and March 31, 2010.  At June 30, 2010, the Company does not
hold any security that it considers other-than-temporarily
impaired.




Description of Securities
                                              
                                              Less than 12 Months
                                              
                                              
                                              More than 12 Months
                                              
                                              
                                              TotalFair Value
                                              
                                              
                                              Unrealized
                                                Losses
                                              
                                              
                                              Fair Value
                                              
                                              
                                              Unrealized
                                                Losses
                                              
                                              
                                              Fair Value
                                              
                                              
                                              Unrealized
                                                LossesAs
      of June 30, 2010Mortgage-backed
      securities, GSE, residential
                                              
                                              $
                                              555
                                              
                                              
                                              $
                                              1
                                              
                                              
                                              $
                                              —
                                              
                                              
                                              $
                                              —
                                              
                                              
                                              $
                                              555
                                              
                                              
                                              $
                                              1State
      and political subdivisions
                                              
                                              
                                              300
                                              
                                              
                                              
                                              4
                                              
                                              
                                              
                                              227
                                              
                                              
                                              
                                              2
                                              
                                              
                                              
                                              527
                                              
                                              
                                              
                                              6Total
      temporarily impaired securities
                                              
                                              $
                                              855
                                              
                                              
                                              $
                                              5
                                              
                                              
                                              $
                                              227
                                              
                                              
                                              $
                                              2
                                              
                                              
                                              $
                                              1,082
                                              
                                              
                                              $
                                              7As
      of March 31, 2010Mortgage-backed
      securities, GSE, residential
                                              
                                              $
                                              2,712
                                              
                                              
                                              $
                                              22
                                              
                                              
                                              $
                                              —
                                              
                                              
                                              $
                                              —
                                              
                                              
                                              $
                                              2,712
                                              
                                              
                                              $
                                              22State
      and political subdivisions
                                              
                                              
                                              303
                                              
                                              
                                              
                                              2
                                              
                                              
                                              
                                              227
                                              
                                              
                                              
                                              2
                                              
                                              
                                              
                                              530
                                              
                                              
                                              
                                              4Total
      temporarily impaired securities
                                              
                                              $
                                              3,015
                                              
                                              
                                              $
                                              24
                                              
                                              
                                              $
                                              227
                                              
                                              
                                              $
                                              2
                                              
                                              
                                              $
                                              3,242
                                              
                                              
                                              $
                                              26





There are
4 securities in an unrealized loss position in the investment portfolio at June
30, 2010, 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.
            Accumulated Other
      Comprehensive Income





Other
comprehensive income components and related taxes were as follows  at
June 30:




2010
                    
                    
                    2009(In
    thousands)Unrealized
      gains (losses) on available-for-sale securities
                    
                    $
                    291
                    
                    
                    $
                    (377
                    )Less
      reclassification adjustment for realized gains included in
      income
                    
                    
                    —
                    
                    
                    
                    101Other
      comprehensive income (loss), before tax effect
                    
                    
                    291
                    
                    
                    
                    (276
                    )Less
      tax expense
                    
                    
                    113
                    
                    
                    
                    169Other
      comprehensive income (loss) related to available-for-sale
      securities
                    
                    $
                    178
                    
                    
                    $
                    (309
                    )







The
components of accumulated other comprehensive income, included in stockholders’
equity, are as follows  at June 30:




2010
                  
                  
                  2009(In
    thousands)Net
      unrealized gain on securities available for sale
                  
                  $
                  1,886
                  
                  
                  $
                  774Tax
      effect
                  
                  
                  (732
                  )
                  
                  
                  (301
                  )Net-of-tax
      amount
                  
                  $
                  1,154
                  
                  
                  $
                  473




14




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





8.
            Lines of
      Credit





The
Company’s $2.5 million revolving line of credit note payable matures September
30, 2010.  The balance of the revolving line of credit was $2,300,000
and $1,700,000 as of June 30, 2010 and March 31, 2010,
respectively.  The note bears interest at the prime commercial rate
with a floor of 3.50% which was the rate on June 30, 2010 and is secured by 100%
of the stock of the Bank.  When the note matures, the Company intends
to renew the line of credit and reduce the debt by at least 10% of the
outstanding  balance.





The Bank
maintains a $5,000,000 revolving line of credit, of which none was outstanding
at June 30, 2010 and March 31, 2010, with an unaffiliated financial institution.
The line bears interest at the federal funds rate of the financial institution
(1.15% at June 30, 2010), has an open-end maturity and is unsecured if used for
less than thirty (30) consecutive days.





The Bank
has also established borrowing capabilities at the Federal Reserve Bank of St.
Louis discount window. Investment securities of $3,000,000 have been pledged as
collateral.  As of  June 30, 2010 and March 31, 2010 no
amounts were outstanding.   The primary credit borrowing rate at
June 30, 2010 was 0.50%, has a term of up to 90 days, and has no restrictions on
use of the funds borrowed.





9.
            Other
      Borrowings





Other
borrowings included the following at June 30:




2010
                  
                  
                  2009(In
    thousands)Securities
      sold under repurchase agreements
                  
                  $
                  20,388
                  
                  
                  $
                  16,324




Securities
sold under agreements to repurchase consist of obligations of the Company to
other parties.  The obligations are secured by investments and such
collateral is held by the Company in safekeeping at a correspondent
bank.  The maximum amount of outstanding agreements at any month end
during the three months ending June 30, 2010 and 2009 totaled $20,388,000 and
$16,324,000, respectively, and the monthly average of such agreements totaled
$19,212,000 and $15,859,000 for the three months ending June 30, 2010 and 2009,
respectively. The average rates on the agreements during the three months ending
June 30, 2010 and 2009 were 0.15% and 0.27%, respectively.  The
agreements at June 30, 2010, mature periodically within 24 months.




The
Company has a repurchase agreement with one customer with an outstanding balance
of $13.8 million at June 30, 2010.  The repurchase agreement matures
daily.




15




FIRST
ROBINSON FINANCIAL CORPORATION


NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





10.
            Earnings Per Share for
      the Three-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 resulting from the exercise of dilutive stock options and the effect
of the incentive plan shares.  As of June 30, 2010 and 2009, all
outstanding options had been exercised.  Therefore, there is no
dilutive effect with regards to options for the earnings per share calculation
for the three month periods ended June 30, 2010 or 2009.  The
components of basic and diluted earnings per share for the three months ended
June 30, 2010 and 2009 were computed as follows (dollar amounts in thousands
except share data):





WeightedAverage
                        
                        
                        Per
      ShareIncome
                        
                        
                        Shares
                        
                        
                        AmountFor
      the Three-Months Ended June 30, 2010:Basic
      Earnings per Share:Income
      available to common stockholders
                        
                        $
                        416
                        
                        
                        
                        414,071
                        
                        
                        $
                        1.01Effect
      of Dilutive Securities:Incentive
      plan shares
                        
                        
                        
                        
                        
                        
                        15,870Diluted
      Earnings per Share:Income
      available to common stockholders
                        
                        $
                        416
                        
                        
                        
                        429,941
                        
                        
                        $
                        0.97For
      the Three-Months Ended June 30, 2009:Basic
      Earnings per Share:Income
      available to common stockholders
                        
                        $
                        164
                        
                        
                        
                        419,264
                        
                        
                        $
                        0.39Effect
      of Dilutive Securities:Incentive
      plan shares
                        
                        
                        
                        
                        
                        
                        15,897Diluted Earnings per
      Share:Income
      available for common stockholders
                        
                        $
                        164
                        
                        
                        
                        435,161
                        
                        
                        $
                        0.38





16




Item  2:


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Management’s
discussion and analysis of financial condition and results of operations is
intended to assist in understanding the financial condition and results of the
Company.  The information contained in this section should be read in
conjunction with the unaudited condensed consolidated financial statements and
accompanying notes thereto.





Forward-Looking
Statements





When used
in this filing and in future filings by First Robinson Financial Corporation
(the “Company”) with the Securities and Exchange Commission, in the Company’s
press releases or other public or shareholder communications, or in oral
statements made with the approval of an authorized executive officer, the words
or phrases “believe,” “expect,” “should,” “would be,” “will allow,” “intends
to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,”
“estimate,” “project” or similar expressions are intended to identify
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Examples of forward-looking statements include,
but are not limited to, estimates with respect to our financial condition,
results of operations and business that are subject to various factors that
could cause actual results to differ materially from these estimates and most
other statements that are not historical in nature. 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.




17




FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





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





Overview
and Recent Developments





The
Company is the holding company for First Robinson Savings Bank, National
Association (the “Bank”). The Company is headquartered in Robinson, Illinois and
operates three full service banking offices and one drive-up facility in
Crawford County, Illinois and one full service banking office in Knox County,
Indiana.  Assets grew $5.5 million, or 3.0%, from $183.0 million at
March 31, 2010 to $188.5 million at June 30, 2010.  See “Financial
Condition” for more information. The Company is reporting net income of $416,000
for the three month period ending June 30, 2010, versus net income of $164,000
in the same period of 2009.  See “Results of Operations” for further
information. Basic and diluted earnings per share for the three month period
were $1.01 and $0.97, respectively, per share for the three-months ended June
30, 2010 compared to basic earnings per share of $0.39 and diluted earnings per
share of $0.38 for the three-months ended June 30, 2009. Diluted earnings per
share reflect incentive plan shares and the potential dilutive impact of stock
options granted under the stock option plan and the effect of the incentive plan
shares.  We continue to maintain a strong presence in the community
and are one of the few independent community banks in our primary market
area.  To visit First Robinson Savings Bank on the web, go
to  www.frsb.net.





In
response to the current national and international economic recession and to
strengthen supervision of financial institutions and systemically important
nonbank financial companies, Congress and the U.S. government have taken a
variety of actions including the passage of legislation and the implementation
of certain programs.  By far, the most significant of these was the
passage, on July 21, 2010, into law, the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the “Act”).  The Act represents the most
comprehensive change to banking laws since the Great Depression of the 1930’s,
and mandates change in several key areas: regulation and compliance (both with
respect to financial institutions and systemically important nonbank financial
companies), securities regulation, executive compensation, regulation of
derivatives, corporate governance, and consumer protection.  While
these changes in the law will have a major impact on large institutions, even
relatively smaller institutions such as ours will be affected.





In this
respect, it is noteworthy that preemptive rights heretofore granted to national
banking associations by the OCC under the National Bank Act, and to federal
savings banks by the Office of Thrift Supervision (which will be merged into the
OCC) under the Home Owners Loan Act, will be diminished with repsect to consumer
financial laws and regulations.  Thus, Congress has authorized states
to enact their own substantive protections and to allow state attorneys general
to initiate civil actions to enforce federal consumer protections.  In
this respect the Company will be subject to regulation by a new consumer
protection bureau housed within the Federal Reserve, known as the Bureau of
Consumer Financial Protection.  The Bureau will consolidate
enforcement currently undertaken by myriad financial regulatory agencies, and
will have substantial power to define the rights of consumers and
responsibilities of providers, including the Company.  In addition,
and among many other legislative changes that the Company will assess, the
Company will (1) experience a new assessment model from the FDIC based on
assets, not deposits, (2) be required to retain some credit risk for certain
mortgages it sells into secondary markets via asset backed securities, (3) be
subject to enhanced executive compensation and corporate governance
requirements, and (4) be able, for the first time (and perhaps competitively
compelled) to offer interest on business transaction and other
accounts.





The
extent to which the new legislation and existing and planned governmental
initiatives hereunder will succeed in ameliorating tight credit conditions or
otherwise result in an improvement in the national economy is
uncertain.  In addition, because most of the component parts of the
new legislation will be subject to intensive agency rulemaking and subsequent
public comment over the next six to 18 months prior to eventual implementation,
it will be difficult to predict the ultimate effect of the Act on the Company at
this time.  It is not unlikely, however, that the Company’s expenses
will increase as a result of new compliance requirements.




18






FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Asset
Quality




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




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




The
following table sets forth the Company’s loan delinquencies by type, by amount
and by percentage of type at June 30, 2010.





Loans Delinquent For:30-89 Days(1)
                
                
                90 Days and Over(1)
                
                Nonaccrual
                
                
                Total Delinquent LoansNumber
                
                Amount
                
                Percent
                    of Loan
                    Category
                
                
                Number
                
                Amount
                
                Percent
                    of Loan
                    Category
                
                Number
                
                
                Amount
                
                Percent of
                    Loan
                    Category
                
                
                Number
                
                
                Amount
                
                Percent of
                    Loan
                    Category(Dollars
      in thousands)Real
      Estate:One-
      to four-family
                
                
                5
                
                $
                88
                
                
                0.18
                %
                
                
                —
                
                
                —
                
                
                —
                
                
                5
                
                
                $
                145
                
                
                0.31
                %
                
                
                10
                
                
                $
                233
                
                
                0.49
                %Commercial
      and agriculture
                
                
                —
                
                
                —
                
                
                —
                
                
                
                —
                
                
                —
                
                
                —
                
                
                1
                
                
                
                32
                
                
                0.15
                
                
                
                1
                
                
                
                32
                
                
                0.15State
      and Municipal Government
                
                
                2
                
                
                92
                
                
                5.26
                
                
                
                —
                
                
                —
                
                
                —
                
                
                —
                
                
                
                —
                
                
                —
                
                
                
                2
                
                
                
                92
                
                
                5.26Consumer
      and other loans
                
                
                11
                
                
                46
                
                
                0.38
                
                
                
                1
                
                
                2
                
                
                0.02
                
                
                1
                
                
                
                18
                
                
                0.15
                
                
                
                13
                
                
                
                66
                
                
                0.55
                %Commercial
      business and agriculturalfinance
                
                
                4
                
                
                575
                
                
                3.01
                
                
                
                —
                
                
                —
                
                
                —
                
                
                2
                
                
                
                13
                
                
                0.07
                
                
                
                6
                
                
                
                588
                
                
                3.08
                %Total
                
                
                22
                
                $
                801
                
                
                0.72
                %
                
                
                1
                
                
                2
                
                
                0.02
                
                
                9
                
                
                $
                208
                
                
                0.19
                %
                
                
                32
                
                
                $
                1,011
                
                
                0.93
                %





(1)
            Loans
      are still accruing.


19


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Non-Performing
Assets.  The table below sets forth the amounts and categories
of non-performing assets in the Company’s loan portfolio.  Loans are
placed on non-accrual status when the collection of principal and/or interest
become doubtful.  Foreclosed assets include assets acquired in
settlement of loans.




June 30,
                    
                    
                    March 31,
                    
                    
                    June 30,2010
                    
                    
                    2010
                    
                    
                    2009(In thousands)Non-accruing
      loans:One-
      to four-family
                    
                    $
                    145
                    
                    
                    $
                    85
                    
                    
                    $
                    182Commercial
      and agriculture real estate
                    
                    
                    32
                    
                    
                    
                    32
                    
                    
                    
                    —Consumer
      and other loans
                    
                    
                    18
                    
                    
                    
                    5
                    
                    
                    
                    7Commercial
      business and agricultural finance
                    
                    
                    13
                    
                    
                    
                    13
                    
                    
                    
                    27Total
                    
                    
                    208
                    
                    
                    
                    135
                    
                    
                    
                    216Foreclosed/Repossessed
      assets:One-
      to four-family
                    
                    
                    28
                    
                    
                    
                    52
                    
                    
                    
                    46Consumer
      vehicle
                    
                    
                    4
                    
                    
                    
                    —
                    
                    
                    
                    —Total
                    
                    
                    32
                    
                    
                    
                    52
                    
                    
                    
                    46Total
      non-performing assets
                    
                    $
                    240
                    
                    
                    $
                    187
                    
                    
                    $
                    262Total
      as a percentage of total assets
                    
                    
                    0.13
                    %
                    
                    
                    0.10
                    %
                    
                    
                    0.15
                    %





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 ended June 30, 2010 and $3,000 for the three months ended
June 30, 2009.





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





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





In
connection with the filing of its periodic reports with the OCC and in
accordance with its classification of assets policy, the Company regularly
reviews loans in its portfolio to determine whether such assets require
classification in accordance with applicable regulations.  On the
basis of management’s review of its assets, at June 30, 2010, the Company had
classified a total of $1,592,000 of its assets as substandard and $210,000 as
doubtful.  At June 30, 2010, total classified assets comprised
$1,802,000, or 14.8% of the Company’s capital, and 1.0% of the Company’s total
assets.


20


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Other Loans of
Concern.  As of June 30,
2010, there were $3.2 million in loans identified, but not classified, by the
Company with respect to which known information about the possible credit
problems of the borrowers or the cash flows of the business have caused
management to have some doubts as to the ability of the borrowers to comply with
present loan repayment terms and which may result in the future inclusion of
such items in the non-performing asset categories.





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





Real
estate properties acquired through foreclosure are recorded at the fair value
minus 20% of the fair value if the property is appraised at $50,000 or
less.  If the property is appraised at greater than $50,000, then the
property is recorded at the fair value less 10% of the fair value.  If
fair value at the date of foreclosure is lower than the balance of the related
loan, the difference will be charged-off to the allowance for loan losses at the
time of transfer.  Valuations are periodically updated by management
and if the value declines, a specific provision for losses on such property is
established by a charge to operations.  At June 30, 2010, the Bank had
one real estate property acquired through foreclosure.  The property
is listed for sale.





Although
management believes that it uses the best information available to determine the
allowance, unforeseen market conditions could result in adjustments and net
earnings could be significantly affected if circumstances differ substantially
from the assumptions used in making the final determination.  Future
additions to the Company’s allowance for loan losses will be the result of
periodic loan, property and collateral reviews and thus cannot be predicted in
advance.  In addition, federal regulatory agencies, as an integral
part of the examination process, periodically review the Bank’s
operations.  Such agencies may require the Bank to increase the Bank’s
allowance for loan losses, increase classified assets, or take other actions
that could significantly affect the Company’s earnings based upon their judgment
of the information available to them at the time of their
examination.  At June 30, 2010, the Company had a total allowance for
loan losses of $1,044,000, representing 0.96% of the Company’s loans,
net.   At March 31, 2010, the Company’s total allowance for loan
losses to the Company’s loans, net was at 0.97%.


21


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:




June 30, 2010
                    
                    
                    March 31, 2010Amount of
                        Loan Loss
                        Allowance
                    
                    
                    Loan
                        Amounts by
                        Category
                    
                    
                    Percent of
                        Loans in Each
                        Category to
                        Total Loans
                    
                    
                    Amount of
                        Loan Loss
                        Allowance
                    
                    
                    Loan
                        Amounts by
                        Category
                    
                    
                    Percent of
                        Loans in
                        Each
                        Category to
                        Total Loans(Dollars
      in thousands)One-
      to four-family including loans held for sale
                    
                    $
                    93
                    
                    
                    $
                    47,345
                    
                    
                    
                    42.54
                    %
                    
                    $
                    72
                    
                    
                    $
                    46,554
                    
                    
                    
                    45.10
                    %Multi-family
                    
                    
                    —
                    
                    
                    
                    3,496
                    
                    
                    
                    3.14
                    
                    
                    
                    —
                    
                    
                    
                    2,780
                    
                    
                    
                    2.69Commercial
      and agricultural real estate
                    
                    
                    620
                    
                    
                    
                    21,619
                    
                    
                    
                    19.42
                    
                    
                    
                    593
                    
                    
                    
                    18,155
                    
                    
                    
                    17.59Construction
      or development
                    
                    
                    —
                    
                    
                    
                    5,911
                    
                    
                    
                    5.31
                    
                    
                    
                    —
                    
                    
                    
                    5,130
                    
                    
                    
                    4.97Consumer
      and other loans.
                    
                    
                    34
                    
                    
                    
                    12,061
                    
                    
                    
                    10.84
                    
                    
                    
                    29
                    
                    
                    
                    9,834
                    
                    
                    
                    9.53State
      and municipal governments
                    
                    
                    —
                    
                    
                    
                    1,750
                    
                    
                    
                    1.57
                    
                    
                    
                    —
                    
                    
                    
                    1,885
                    
                    
                    
                    1.83Commercial
      business and agricultural finance
                    
                    
                    297
                    
                    
                    
                    19,126
                    
                    
                    
                    17.18
                    
                    
                    
                    279
                    
                    
                    
                    18,883
                    
                    
                    
                    18.29Gross
      Loans
                    
                    
                    
                    
                    
                    
                    111,308
                    
                    
                    
                    100.00
                    %
                    
                    
                    
                    
                    
                    
                    103,221
                    
                    
                    
                    100.00
                    %Unallocated
                    
                    
                    —
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    —Deferred
      loan fees
                    
                    
                    
                    
                    
                    
                    (6
                    )
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    (4
                    )Prepaid
      loan fees
                    
                    
                    
                    
                    
                    
                    23
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    —Undisbursed
      portion of loans
                    
                    
                    
                    
                    
                    
                    (1,815
                    )
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    
                    (2,093
                    )Total
                    
                    $
                    1,044
                    
                    
                    $
                    109,510
                    
                    
                    
                    
                    
                    
                    $
                    973
                    
                    
                    $
                    101,124





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





Three Months Ended
                                  June 30,2010
                                
                                
                                2009(Inthousands)Balance
      at beginning of period
                                
                                $
                                973
                                
                                
                                $
                                780Charge-offs:Consumer
      and other loans
                                
                                
                                10
                                
                                
                                
                                6Total
                                
                                
                                10
                                
                                
                                
                                6Recoveries:Commercial
      real estate
                                
                                
                                24
                                
                                
                                
                                —Consumer
      and other loans
                                
                                
                                12
                                
                                
                                
                                6Total
                                
                                
                                36
                                
                                
                                
                                6Net
      charge-offs (recoveries)
                                
                                
                                (26
                                )
                                
                                
                                —Additions
      charged to operations
                                
                                
                                45
                                
                                
                                
                                45Balance
      at end of period
                                
                                $
                                1,044
                                
                                
                                $
                                825Ratio
      of net charge-offs (recoveries) during the period to average loans
      outstanding during the period
                                
                                
                                (0.02
                                )%
                                
                                
                                0.00
                                %Ratio
      of net charge-offs (recoveries) during the period to average
      non-performing assets
                                
                                
                                (11.86
                                )%
                                
                                
                                0.00
                                %


22


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Financial
Condition


June
30, 2010 Compared to March 31, 2010





Total
assets of the Company increased by $5.5 million, or 3.0%, to $188.5 million at
June 30, 2010 from $183.0 million at March 31, 2010. The increase in assets was
primarily due to an increase of $8.3 million, or 8.3%, loans receivable, net,
offset by a decrease of $2.2 million, or 3.9%, in available for sale
securities.





Available-for-sale
securities decreased to $53.2 million at June 30, 2010 compared to $55.4 million
at March 31, 2010, a $2.2 million decrease. The decrease resulted from the
maturity of $1.1 million in available-for-sale securities, the repayment of $2.3
million in mortgage-backed securities and the amortization of $66,000 of
premiums and discounts on investments, offset by, the purchase of $1.0 million
of available-for-sale securities, and the increase of $291,000 in the market
valuation of the available-for-sale portfolio. The investment portfolio is
managed to limit the Company's exposure to risk by investing primarily in
mortgage-backed securities and other  securities  which are
either  directly or indirectly backed by the federal government or a
local municipal government.





The
Company's net loan portfolio including loans held for sale increased by $8.3
million to $108.5 million at June 30, 2010 from $100.2 million at March 31,
2010. Loans on one- to four-family real estate, including one- to four-family
loans held for sale, increased by $791,000, or 1.7%; commercial nonresidential
real estate and farmland loans increased by $3.5 million, or 19.1%; construction
and development loans increased by $781,000, or 15.2%; consumer and other loans
increased by $2.2 million, or 22.6%; loans on multi-family properties increased
by $716,000, or 25.8%, and  loans in commercial business and
agricultural finance  increase by $243,000, or 1.3%.  These
increases were offset, in part, by the decrease in loans to state and municpal
governments by $135,000, or 7.2%.  The increase in commercial real
estate can be contributed to the Vincennes area where there are more
opportunities for this type of lending.





At June
30, 2010, the allowance for loan losses was $1,044,000, or 0.96% of the net loan
portfolio, an increase of $71,000 from the allowance for loan losses at March
31, 2010 of $973,000, or 0.97% of the net loan portfolio. During the
three-months ended June 30, 2010, the Company charged off $10,000 of loan
losses, all from consumer and other loans.  The charge offs were more
than offset by recoveries of $24,000 in non-residential commercial property and
$12,000 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 June 30, 2010.
Foreclosed assets are carried at lower of cost or fair value.  When
foreclosed assets are acquired, any required adjustment is charged to allowance
for loan losses.  All subsequent activity is included in current
operations.





Total
deposits increased by $1.9 million, or 1.3%, to $151.2 million at June 30, 2010
from $149.3 million at March 31, 2010. The increase in total deposits was due to
an increase of  $2.5 million in savings, NOW, and money market
accounts, offset by the decrease of $277,000 in certificates of deposit and the
decrease of $266,000 in non-interest bearing demand deposits.





Other
borrowings, consisting entirely of repurchase agreements, increased $2.8
million, or 15.7% from $17.6 million at March 31, 2010 to $20.4 million at June
30, 2010. The obligations are secured by mortgage-backed securities and US
Government agency obligations.  At
June 30, 2010, the average rate on the repurchase agreements was 0.18% compared
to 0.14% at March 31, 2010.  The rate on approximately $19.9 million
of the repurchase agreements reprice daily.  All
agreements  mature periodically within 24 months.





The
short-term borrowing consists of the Company’s revolving line of credit note
payable with an unaffiliated financial institution that matures September 30,
2010.  The balance of the revolving line of credit was $2.3 million
and $1.7 million as of June 30, 2010 and March 31, 2010,
respectively.  The note bears interest at the prime commercial rate
with a floor of 3.50% which was the rate on June 30, 2010 and is secured by
stock in the Bank.





Stockholders'
equity at June 30, 2010 was $12.1 million compared to $12.0 million at March 31,
2010, an increase of $89,000, or 0.7%.  Factors relating to the
increase in stockholders’ equity can be attributed primarily to the addition of
$416,000 of net income, offset by the payment of $365,000 in dividends and the
increase of $178,000 in accumulated other comprehensive income due to the
increase in the fair value of securities available for sale. These increases
were offset by the addition of $140,000 in treasury stock relating to the
purchase of 4,404 shares.


23


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Results
of Operations


Comparison
of Operating Results for the Three Months Ended June 30, 2010 and
2009





Net
Income





The
Company earned $416,000 for the three month period ending June 30, 2010, versus
$164,000 in the same period of 2009, an increase of 153.7%. Earnings for the
three months ended June 30, 2010 were positively impacted by a $352,000, or
35.8%, increase in net-interest income after provision and the decrease of
$77,000, or 5.4%, in non-interest expense which were offset by a decrease of
$34,000, or 5.1%, in non-interest income and an increase of $143,000, or 238.3%,
in income tax provision when compared to the prior year. Basic earnings per
share for the June 30, 2010 three month period were $1.01 per share versus $0.39
per share for the same period of 2009.  Diluted earnings per share
reflect incentive plan shares and the potential dilutive impact of stock options
granted under the stock option plan.  Diluted earnings per share for
the three months ending June 30, 2010 and June 30, 2009 were $0.97 and $0.38 per
share, respectively.





Net
Interest Income





For the
three-month period ended June 30, 2010, net interest income totaled $1,379,000,
an increase of 34.3%, or $352,000, compared to the same period of 2009. The
increase in the three-month period ended June 30, 2010 versus the comparable
period of 2009 was due to a decrease of $287,000, or 31.0%, in total interest
expense and the increase of $65,000, or 3.3%, in total interest
income.  The increase of $190,000, or 14.1%, in interest income from
loans receivable was offset by the decrease of $117,000, or 20.6%, in interest
income on taxable securities and the decrease of $9,000, or 23.7%, from
tax-exempt securities. The decrease in total interest expense is due to the
decrease of  $301,000, or 32.6%, in interest expense on deposits,
offset by the increase of $14,000, or 140.0%, in interest expense on other
borrowings for the three months ended June 30, 2010 compared to the three months
ended June 30, 2009.





For
the three-months ended June 30, 2010 total average interest earning assets
increased by $10.6 million, or 6.7%, to $168.6 million as of June 30, 2010 from
$158.0 million as of June 30, 2009.  The yield on the earning assets
decreased by 16 basis points when comparing the three months ended June 30, 2010
to the same period in 2009.  Total average interest bearing
liabilities for the three months ended June 30, 2010 were $156.9 million
compared to $108.9 million as of June 30, 2009, an increase of $48.0 million, or
44.0%.   The cost on the average interest bearing liabilities
decreased by 92 basis points.  For the three-month period ended June
30, 2010, the net interest spread increased 76 basis points to 3.16% versus
2.40% in the comparable period of 2009.  The increase in the net
interest spread can be partially attributed to the 100 basis point decrease, in
August 2009, on the interest rate paid on our special NOW account
product.





Interest
income on loans receivable increased $190,000 to $1,537,000 for the quarter
ended June 30, 2010 from $1,347,000 for the quarter ended June 30, 2009 due to
the average balance on loans for the quarter ended June 30, 2010 increasing
$18.2 million, or 21.0%, to $104.9 million, versus $86.6 million for the same
period of 2009.  During the same period, the yield on loans decreased
36 basis points to 5.86% from 6.22% for the June 30, 2010 quarter compared to
the June 30, 2009 quarter.  The 36 point basis decrease primarily
reflected the low interest rate environment.





Interest
income on taxable securities decreased $117,000 to $450,000 for the quarter
ended June 30, 2010 from $567,000 for the quarter ended June 30,
2009.  The decrease was derived from a decrease of $125,000 in
interest income from mortgage-backed securities offset by an increase of $8,000
in interest income from investment securities.  The increase in
investment security interest income was due to the average balance of investment
securities increasing $1.2 million from $13.4 million as of June 30, 2009 to
$14.6 million at June 30, 2010 and a 3 basis point increase in the average yield
from 2.57% as of June 30, 2009 to 2.60% as of June 30, 2010.  The
decrease in interest income from mortgage-backed securities can be attributed to
the decrease of $5.9 million in the average balance of mortgage-backed
securities from $40.3 million as of June 30, 2009 to $34.4 million as of June
30, 2010 and the decrease of 64 basis points in the average yield from 4.78% as
of June 30, 2009 to 4.14% as of June 30, 2010.  The average yield has
been affected by accelerated premium amortization resulting from higher national
prepayment speeds on mortgage-backed securities.  During the quarter
ended June 30, 2009, $20,000 in premiums were amortized as compared to $45,000
in premium amortization for the three months ended June 30,
2010.


24


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Interest
income on tax-exempt securities decreased $9,000 when comparing the three months
ended June 30, 2010 to the same period in the prior year.  The average
balance on tax-exempt securities decreased by $500,000 from $4.8 million as of
June 30, 2009 compared to $4.3 million as of June 30, 2010.  The
average yield on tax-exempt securities decreased 13 basis points from 3.22% as
of June 30,
2009 to 3.09% as of June 30, 2010.  The average yield does not reflect
the benefit of the higher tax-equivalent yield attributed to municipal
securities, which is reflected in income tax expense.





Total
interest expense on deposits decreased $301,000 from $922,000 for the
three-months ended June 30, 2009 to $621,000 for the three months ended June 30,
2010.  The decrease can be attributed to a 99 basis point decrease in
the average rate paid on total deposits from 2.82% as of June 30, 2009 to 1.81%
as of June 30, 2010, offset by the increase of $42.6 million in the average
balance of deposits from $93.1 million as of June 30, 2009 to $135.7 million as
of June 30, 2010.  The decrease in the average rate paid on deposits
is a reflection of the low short-term market interest rates.





Interest
expense on other and short-term borrowings increased $14,000 from $10,000 for
the three months ended June 30, 2009 to $24,000 for the same period of
2010.  The increase is due to the increase of $5.3 million, or 33.4%,
from $15.8 million as of the quarter ended June 30, 2009 to $21.2 million for
the three-months ended June 30, 2010 in the average daily balance of other and
short-term borrowings.  The average rate paid increased for the June
2010 quarter by 17 basis points to 0.45% from 0.28% for the June 2009
quarter.





Provision
for Loan Losses





The
provision for loan losses for the quarters ended June 30, 2010 and June 30, 2009
was $45,000. 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 June 30, 2010, its allowance for loan losses was
adequate.  See “Asset Quality” for additional
information.





Non-Interest
Income





Non-interest
income categories for the three-month periods ended June 30, 2010 and 2009 are
shown in the following table:





Three Months EndedJune 30,2010
                      
                      
                      2009
                      
                      
                      % Change(In
      thousands)Non-interest
      income:Charges
      and fees on deposit accounts
                      
                      $
                      249
                      
                      
                      $
                      220
                      
                      
                      
                      13.2
                      %Charges
      and other fees on loans
                      
                      
                      90
                      
                      
                      
                      100
                      
                      
                      
                      (10.0
                      )Net
      gain on sale of loans
                      
                      
                      135
                      
                      
                      
                      127
                      
                      
                      
                      6.3Net
      gain on sale of foreclosed assets
                      
                      
                      17
                      
                      
                      
                      —
                      
                      
                      
                      —Net
      gain on sale of fixed assets
                      
                      
                      4
                      
                      
                      
                      —
                      
                      
                      
                      —Net
      realized gain on sale of available-for-sale securities
                      
                      
                      —
                      
                      
                      
                      101
                      
                      
                      
                      (100.0
                      )Other
                      
                      
                      137
                      
                      
                      
                      118
                      
                      
                      
                      16.1Total
      non-interest income
                      
                      $
                      632
                      
                      
                      $
                      666
                      
                      
                      
                      (5.1
                      )%





Non-interest income
decreased $34,000 when comparing the three-months ended June 30, 2010 to June
30, 2009 as a result of the decrease in the realized gain on sale of securities
of $101,000 offset, in part, by the increase in charges and fees on deposit
accounts of $29,000, the increase of $8,000 in net gain on sale of loans, and
the increase of $19,000 in other non-interest income. The increase in charges
and fees on deposit accounts came from fees received on insufficient and
overdraft charges.  With the implementation of Regulation E, which
will not allow assessing an overdraft charge for ATM or one-time debit card
transactions without the customer opting in
to an overdraft program sponsored by the Company, future income from overdraft
charges could decrease.   The $19,000 increase in other
non-interest income is primarily from interchange income from debit card usage
by customers. The Company promotes a checking account product that rewards
customers for debit card usage.


25


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Non-Interest
Expense





Non-interest
expense categories for the three-month periods ended June 30, 2010 and 2009 are
shown in the following table:





Three
      Months EndedJune 30,2010
                  
                  
                  2009
                  
                  
                  % Change(In
      thousands)Non-interest
      expense:Compensation
      and employee benefits
                  
                  $
                  739
                  
                  
                  $
                  650
                  
                  
                  
                  13.7
                  %Occupancy
      and equipment
                  
                  
                  168
                  
                  
                  
                  184
                  
                  
                  
                  (8.7
                  )Data
      processing
                  
                  
                  70
                  
                  
                  
                  60
                  
                  
                  
                  16.7Audit,
      legal and other professional
                  
                  
                  65
                  
                  
                  
                  85
                  
                  
                  
                  (23.5
                  )Advertising
                  
                  
                  62
                  
                  
                  
                  102
                  
                  
                  
                  (39.2
                  )Telephone
      and postage
                  
                  
                  43
                  
                  
                  
                  54
                  
                  
                  
                  (20.4
                  )FDIC
      Insurance
                  
                  
                  52
                  
                  
                  
                  131
                  
                  
                  
                  (60.3
                  )Other
                  
                  
                  148
                  
                  
                  
                  158
                  
                  
                  
                  (6.3
                  )Total
      non-interest expense
                  
                  $
                  1,347
                  
                  
                  $
                  1,424
                  
                  
                  
                  (5.4
                  )%





Compensation
and employee benefits increased by $89,000 when comparing the June 2010 and 2009
quarters primarily due to the $51,000 increase in market value of the shares
held in the Directors Retirement Plan, a $23,000 net increase in salaries and
accrued paid time off days and an $11,000 increase in health insurance
costs.





Advertising
expense decreased $40,000 for the three months ended June 30, 2010 when compared
to the same period of the prior year due to a decreased budget being allocated
for marketing expense.





Telephone
and postage expense decreased by $11,000 for the three-months ended June 30,
2010 when compared to the same period in 2009.  The reduction can be
attributed, in part, to the use of electronic statements for
customers.





For the
quarter ended June 30, 2009 the Federal Deposit Insurance Corporation (“FDIC”)
implemented a 5 basis point special assessment on each insured depository
institution's assets minus Tier 1 capital as of June 30, 2009 which amounted to
approximately $82,000.  There was no special FDIC assessment for the
quarter ended June 30, 2010.





Income
Tax Expense





The
provision in income tax expense increased $143,000, or 238.3%, for the
three-months ending June 30, 2010, compared to the same period in 2009. The
increase can be attributed, in part, to increased
profitability.   The effective tax rate was 32.8% for the quarter
ended June 30, 2010 and 26.8% for the quarter ended June 30,
2009.


26


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





Off-Balance
Sheet Arrangements





The
Company has entered into performance standby and financial standby letters of
credit with various local commercial businesses in the aggregate amount of
$369,000. 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 June 30, 2010,
outstanding commitments to extend credit amounted to $22.1 million (including
$14.4 million, in available revolving and closed-ended commercial and
agricultural lines of credit).Management believes that
loan repayments and other sources of funds will be adequate to meet any
foreseeable liquidity needs.





The Bank
maintains a $25.4 million line of credit with the FHLB, which can be accessed
immediately.  As of June 30, 2010 and 2009, there were no advances
outstanding for either period.  However, the $25.4 million line of
credit with the FHLB is reduced by $944,000 for the credit enhancement reserve
established as a result of the participation in the FHLB Mortgage Partnership
Finance (“MPF”) program.  The Bank also maintains a $5.0 million
revolving federal funds line of credit with The Independent BankersBank (“TIB”)
of which no amounts were outstanding at June 30, 2010 or 2009.  The
Company also has a $2.5 million revolving line of credit with an unaffiliated
financial institution of which $2.3 million was outstanding at June 30, 2010 and
$400,000 outstanding at June 30, 2009.  The Bank has also established
borrowing capabilities at the discount window with the Federal Reserve Bank of
St. Louis.Investment
securities of $3,000,000 have been pledged as collateral.  As of June
30, 2010 and 2009, no amounts were outstanding at the Federal Reserve discount
window.





Liquidity
management is both a daily and long-term responsibility of
management.  We adjust our investments in liquid assets based upon
management's assessment of (i) expected loan demand, (ii) expected deposit
flows, (iii) yields available on interest-bearing investments,
and (iv) the objectives of its asset/liability management
program.  Excess liquidity generally is invested in interest-earning
overnight deposits and other short-term government and agency
obligations.


27


FIRST
ROBINSON FINANCIAL CORPORATION


Management’s
Discussion and Analysis of Financial Condition


And
Results of Operations





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





At June
30, 2010, the Bank’s compliance with all of the aforementioned capital
requirements is summarized below:





To be Well CapitalizedUnder the PromptFor Capital
                
                
                Corrective ActionActual
                
                
                Adequacy Purposes
                
                
                ProvisionsAmount
                
                
                Ratio
                
                
                Amount
                
                
                Ratio
                
                
                Amount
                
                
                RatioTotal
      Risk-Based Capital (to
      Risk-Weighted Assets)
                
                $
                14,048
                
                
                
                12.85
                %
                
                $
                8,743
                
                
                
                8.00
                %
                
                $
                10,929
                
                
                
                10.00
                %Tier
      I Capital (to Risk-Weighted Assets)
                
                
                12,989
                
                
                
                11.88
                
                
                
                4,372
                
                
                
                4.00
                
                
                
                6,557
                
                
                
                6.00Tier
      I Capital (to Average Assets)
                
                
                12,989
                
                
                
                7.08
                
                
                
                7,344
                
                
                
                4.00
                
                
                
                9,180
                
                
                
                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.


28


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 June
30, 2010 the Company’s disclosure controls and procedures were effective to
provide reasonable assurance that (i) the information required to be disclosed
in this Report was  recorded, processed, summarized and reported
within the time periods specified in the SEC’s rules and forms, and (ii)
information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is accumulated and communicated to Company’s
management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely
decisions regarding disclosure.





Internal Control Over
Financial Reporting





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


29


PART II
OTHER INFORMATION





Item
1.                
    Legal
Proceedings


None





Item  1A.             
   Risk
Factors


Various
risks and uncertainties, some of which are difficult to predict and beyond the
Company’s control, could negatively impact the Company.  As a
financial institution, the Company is exposed to interest rate risk, liquidity
risk, credit risk, operational risk, risks from economic or maket conditions,
and general business risks among others.  Adverse experience with
these and other risks could have a material impact on the Company’s financial
condition and results of operations, as well as the value of its common
stock.  See the risk factors described in the Company’s Annual Report
on Form 10-K for the year ended March 31, 2010.  Additionally, see the
following risk factor.





·
            The
      recently enacted Dodd-Frank Act may adversly impact the Company’s results
      of operations, financial condition or
liquidity.





On July
21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
(the “Act”) was signed into law.  The Act represents a comprehensive
overhaul of the financial services industry within the United States,
establishes the new federal Bureau of Consumer Financial Protection, and
requires the bureau and other federal agencies to implement many new and
significant rules and regulations.  At this time, it is difficult to
predict the extent to which the Act or the resulting rules and regulations will
impact the Company’s business.  Compliance with these new laws and
regulations will likely result in additional costs, which could be significant,
and may adversly impact the Company’s results of operations, financial condition
and liquidity.





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 June 30, 2010 regarding the Company’s common stock.





PURCHASES
OF EQUITY SECURITIES BY COMPANY (1)


Period
                                    
                                    Total Number of
                                      Shares Purchased
                                    
                                    
                                    Average Price Paid
                                      per Share
                                    
                                    
                                    Total Number of
                                      Shares Purchased as
                                      Part of Publicly
                                      Announced Plans or
                                      Programs
                                    
                                    
                                    Maximum Number of
                                      Shares that May Yet
                                      Be Purchased Under
                                      the Plans or Programs4/1/2010 – 4/30/2010
                                    
                                    
                                    
                                    4,004
                                    
                                    
                                    $
                                    31.78
                                    
                                    
                                    
                                    4,004
                                    
                                    
                                    
                                    8,1565/1/2010 – 5/31/2010
                                    
                                    
                                    
                                    —
                                    
                                    
                                    
                                    —
                                    
                                    
                                    
                                    —
                                    
                                    
                                    
                                    8,1566/1/2010– 6/30/2010
                                    
                                    
                                    
                                    400
                                    
                                    
                                    
                                    31.13
                                    
                                    
                                    
                                    400
                                    
                                    
                                    
                                    7,756Total
                                    
                                    
                                    
                                    4,404
                                    
                                    
                                    $
                                    31.72
                                    
                                    
                                    
                                    4,404
                                    
                                    
                                    
                                    7,756





(1)  See
Note 5 of Notes to Condensed Consolidated  Financial Statements for
more information regarding stock purchases.





Item
3.                     Defaults Upon Senior
Executives


None





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


None


30


PART II
OTHER INFORMATION





Item
      5.
            Other
      Information


None





Item
      6.
            Exhibits





1.
            Exhibit
      31: Section 302 Certifications





2.
            Exhibit
      32: Section 906 Certifications


31


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:
      August 13,
      2010
                  
                  /s/ Rick L. CattRick
      L. CattPresident
      and Chief Executive OfficerDate:
      August 13,
      2010
                  
                  /s/ Jamie E. McReynoldsJamie
      E. McReynoldsChiefFinancial Officer
      and Vice
President


32


EXHIBIT
INDEX





Exhibit
No.





31.1          Certification
by the CEO pursuant to Section 302 of the Sarbanes-Oxley Act of
2002





31.2          Certification
by the CFO pursuant to Section 302 of the Sarbanes-Oxley Act of
2002





32             Certifications
of the CEO and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of
2002


33