| ý                                        | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d)  |   |
|-----------------------------------------------|------------------------------------------------------------------|--------|
|                                          | OF                THE SECURITIES EXCHANGE ACT OF 1934            |   |
|                                          |                                                             |   |
| For                the quarterly period ended | December                31, 2007                                 |   |
|                                          |                                                             |   |
|                                          | OR                                                               |   |
|                                          |                                                             |   |
| o                                             | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) |   |
|                                          | OF                THE SECURITIES EXCHANGE ACT OF 1934            |   |

|   | WAYNE                SAVINGS BANCSHARES, INC.                         |   |
|--------|-----------------------------------------------------------------------|--------|
|   | (Exact                name of registrant as specified in its charter) |   |

|                         Delaware |   | 31-1557791                            |
|--------------------------------------------------------------------------|--------|---------------------------------------|
| (State                or other jurisdiction of                           |   | (I.R.S.                Employer       |
| incorporation                or organization)                            |   | Identification                Number) |
|                                                                     |   |                                  |
| 151                North Market Street                                   |   |                                  |
| Wooster,                Ohio                    |   | 44691                                 |
| (Address                of principal                                     |   | (Zip                Code)             |
| executive                office)                                         |   |                                  |

| Yes                 ý | No                o  |
|---------------------------------|---------------------------|

| Large                accelerated filer o | Accelerated                filer o | Non-accelerated                filer  ý |
|------------------------------------------|------------------------------------|---------------------------------------------------|

|                                                                       |                 |
|----------------------------------------------------------------------------|----------------------|
| Yes                o          | No  ý |

----

d

|                                          |                                                                                                                                          | Page   |
|-----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                          |                                                                                                                                          |   |
| PART                I - FINANCIAL INFORMATION |                                                                                                                                          |
|                                          |                                                                                                                                          |   |
| Item                1                         | Consolidated                Balance Sheets                                                                                                    | 3      |
|                                          | Consolidated                Statements of Income                                                                                              | 4      |
|                                          | Consolidated                Statements of Comprehensive                Income                                                                 | 5      |
|                                          | Consolidated                Statements of Cash Flows                                                                                          | 6      |
|                                          | Notes                to Consolidated Financial Statements                                                                                     | 8      |
|                                          |                                                                                                                                          |   |
| Item                2                         | Management’s                Discussion and Analysis of Financial                Condition and                Results of Operations | 12     |
|                                          |                                                                                                                                          |   |
| Item                3                         | Quantitative                and Qualitative Disclosures About Market                Risk                                                      | 23     |
|                                          |                                                                                                                                          |   |
| Item                4                         | Controls                and Procedures                                                                                                        | 23     |
|                                          |                                                                                                                                          |   |
|                                          |                                                                                                                                          |   |
| PART                II - OTHER INFORMATION    |                                                                                                                                          |
|                                          |                                                                                                                                          |   |
| Item                1                         | Legal                Proceedings                                                                                                              | 24     |
|                                          |                                                                                                                                          |   |
| Item                1A                        | Risk                Factors                                                                                                                   | 24     |
|                                          |                                                                                                                                          |   |
| Item                2                         | Unregistered                Sales of Equity Securities and Use of                Proceeds                                                     | 24     |
|                                          |                                                                                                                                          |   |
| Item                3                         | Defaults                Upon Senior Securities                                                                                                | 24     |
|                                          |                                                                                                                                          |   |
| Item                4                         | Submission                of Matters to a Vote of Security                Holders                                                             | 24     |
|                                          |                                                                                                                                          |   |
| Item                5                         |  Other                Information                                                                                                        | 25     |
|                                          |                                                                                                                                          |   |
| Item                6                         | Exhibits                                                                                                                                      | 25     |
|                                          |                                                                                                                                          |   |
| SIGNATURES                                    | 26                                                                                                                                            |

----

Index

s

D

|                                                                                                                                                                                                                         |   | December                31, 2007 |           | March                31, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------------|-------------------------------|--------|
|                                                                                                                                                                                                                         |   | (Unaudited)                      |           |                          |   |   |
| ASSETS                                                                                                                                                                                                                       |   |                             |           |                          |   |   |
| Cash                and due from banks                                                                                                                                                                                       |   | $                                | 2,390          |                          |   | $ | 2,194 |   |
| Federal                funds sold                                                                                                                                                                                            |   |                             | –– |                          |   |   | 9,000 |   |
| Interest-earning                deposits in other financial institutions                                                                                                                                                     |   |                             | 6,015          |                          |   |   | 6,021 |   |
| Cash                and cash equivalents                                                                                                                                                                                     |   |                             | 8,405          |                          |   |   | 17,215 |   |
| Investment                securities available for sale - at fair value                                                                                                                                                      |   |                             | 35,787         |                          |   |   | 54,128 |   |
| Investment                securities held to maturity - at amortized cost, approximate fair                value of                $494 and $573 at December 31, 2007 and March 31, 2007,                respectively        |   |                             | 489            |                          |   |   | 565 |   |
| Mortgage-backed                securities available for sale - at fair value                                                                                                                                                 |   |                             | 82,949         |                          |   |   | 67,856 |   |
| Mortgage-backed                securities held to maturity - at amortized cost, approximate fair                value of                $916 and $1,219 at December 31, 2007 and March 31, 2007,                respectively |   |                             | 912            |                          |   |   | 1,209 |   |
| Loans                receivable - net of allowance for loan losses of $1,735 and $1,523                atDecember                31, 2007 and March 31, 2007, respectively                                                   |   |                             | 248,389        |                          |   |   | 240,049 |   |
| Office                premises and equipment - net                                                                                                                                                                           |   |                             | 8,025          |                          |   |   | 8,179 |   |
| Real                estate acquired through foreclosure                                                                                                                                                                      |   |                             | 48             |                          |   |   | –– |   |
| Federal                Home Loan Bank stock - at cost                                                                                                                                                                        |   |                             | 4,829          |                          |   |   | 4,829 |   |
| Cash                surrender value of life insurance                                                                                                                                                                        |   |                             | 6,209          |                          |   |   | 6,034 |   |
| Accrued                interest receivable on loans                                                                                                                                                                          |   |                             | 1,101          |                          |   |   | 1,100 |   |
| Accrued                interest receivable on mortgage-backed securities                                                                                                                                                     |   |                             | 375            |                          |   |   | 314 |   |
| Accrued                interest receivable on investments and interest-bearing                deposits                                                                                                                       |   |                             | 304            |                          |   |   | 667 |   |
| Prepaid                expenses and other assets                                                                                                                                                                             |   |                             | 794            |                          |   |   | 1,065 |   |
| Goodwill                and other intangible assets                                                                                                                                                                          |   |                             | 2,322          |                          |   |   | 2,402 |   |
| Prepaid                federal income taxes                                                                                                                                                                                  |   |                             | 22             |                          |   |   | 125 |   |
| Total                assets                                                                                                                                                                                                  |   | $                                | 400,960        |                          |   | $ | 405,737 |   |
|                                                                                                                                                                                                                         |   |                             |           |                          |   |   |   |   |
|                                                                                                                                                                                                                         |   |                             |           |                          |   |   |   |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY                                                                                                                                                                    |   |                             |           |                          |   |   |   |   |
| Deposits                                                                                                                                                                                                                     |   | $                                | 323,919        |                          |   | $ | 333,540 |   |
| Advances                from the Federal Home Loan Bank                                                                                                                                                                      |   |                             | 38,500         |                          |   |   | 34,500 |   |
| Advances                by borrowers for taxes and insurance                                                                                                                                                                 |   |                             | 1,050          |                          |   |   | 616 |   |
| Accrued                interest payable                                                                                                                                                                                      |   |                             | 348            |                          |   |   | 383 |   |
| Accounts                payable on mortgage loans serviced for others                                                                                                                                                        |   |                             | 283            |                          |   |   | 197 |   |
| Other                liabilities                                                                                                                                                                                             |   |                             | 1,115          |                          |   |   | 1,071 |   |
| Deferred                federal income taxes                                                                                                                                                                                 |   |                             | 1,094          |                          |   |   | 997 |   |
| Total                liabilities                                                                                                                                                                                             |   |                             | 366,309        |                          |   |   | 371,304 |   |
|                                                                                                                                                                                                                         |   |                             |           |                          |   |   |   |   |
| Commitments                                                                                                                                                                                                                  |   |                             | –– |                          |   |   | –– |   |
|                                                                                                                                                                                                                         |   |                             |           |                          |   |   |   |   |
| Stockholders’                equity                                                                                                                                                                                    |   |                             |           |                          |   |   |   |   |
| Preferred                stock (500,000 shares of $.10 par value authorized; no shares                issued)                                                                                                                |   |                             | –– |                          |   |   | –– |   |
| Common                stock (9,000,000 shares of $.10 par value authorized; 3,978,731 shares                issued)                                                                                                          |   |                             | 398            |                          |   |   | 398 |   |
| Additional                paid-in capital                                                                                                                                                                                    |   |                             | 36,136         |                          |   |   | 36,106 |   |
| Retained                earnings - substantially restricted                                                                                                                                                                  |   |                             | 12,363         |                          |   |   | 11,982 |   |
| Less                required contributions for shares acquired by Employee Stock Ownership                Plan                                                                                                               |   |                             | (1,097         | )                             |   |   | (1,158 | ) |
| Less                853,725 and 784,622 shares of treasury stock at December 31, 2007                and                March 31, 2007, respectively - at cost                                                               |   |                             | (13,273        | )                             |   |   | (12,419 | ) |
| Accumulated                comprehensive income (loss), net of tax effects                                                                                                                                                   |   |                             | 124            |                          |   |   | (476 | ) |
| Total                stockholders’ equity                                                                                                                                                                              |   |                             | 34,651         |                          |   |   | 34,433 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                              |   | $                                | 400,960        |                          |   | $ | 405,737 |   |

----

Index

a

|                                                                                  |   | Nine                months endedDecember                31, |   |   | Three                months endedDecember                31, |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                                                  |   | 2007                                                        |   |   | 2006                                                         |   |   | 2007 |   |   | 2006 |   |
|                                                                                  |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |
| Interest                income                                                        |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |
| Loans                                                                                 |   | $                                                           | 12,518 |   |                                                         | $      | 11,924 |   |   | $ | 4,204 |   |   | $ | 4,048 |   |
| Mortgage-backed                securities                                             |   |                                                        | 2,969  |   |                                                         |   | 2,327 |   |   |   | 1,062 |   |   |   | 846 |   |
| Investment                securities                                                  |   |                                                        | 1,457  |   |                                                         |   | 2,082 |   |   |   | 452 |   |   |   | 627 |   |
| Interest-bearing                deposits and other                                    |   |                                                        | 374    |   |                                                         |   | 360 |   |   |   | 108 |   |   |   | 158 |   |
| Total                interest income                                                  |   |                                                        | 17,318 |   |                                                         |   | 16,693 |   |   |   | 5,826 |   |   |   | 5,679 |   |
|                                                                                  |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                       |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                              |   |                                                        | 7,624  |   |                                                         |   | 7,194 |   |   |   | 2,555 |   |   |   | 2,545 |   |
| Borrowings                                                                            |   |                                                        | 1,298  |   |                                                         |   | 1,038 |   |   |   | 475 |   |   |   | 410 |   |
| Total                interest expense                                                 |   |                                                        | 8,922  |   |                                                         |   | 8,232 |   |   |   | 3,030 |   |   |   | 2,955 |   |
|                                                                                  |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                    |   |                                                        | 8,396  |   |                                                         |   | 8,461 |   |   |   | 2,796 |   |   |   | 2,724 |   |
| Provision                for losses on loans                                          |   |                                                        | 195    |   |                                                         |   | 70 |   |   |   | 140 |   |   |   | 10 |   |
| Net                interest income after                provision for losses on loans |   |                                                        | 8,201  |   |                                                         |   | 8,391 |   |   |   | 2,656 |   |   |   | 2,714 |   |
| Other                income                                                           |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in cash surrender value of life insurance                     |   |                                                        | 175    |   |                                                         |   | 167 |   |   |   | 59 |   |   |   | 57 |   |
| Trust                income                                                           |   |                                                        | 141    |   |                                                         |   | 88 |   |   |   | 45 |   |   |   | 35 |   |
| Gain                on disposal of real estate acquired through foreclosure           |   |                                                        | 31     |   |                                                         |   | – |   |   |   | – |   |   |   | – |   |
| Service                fees, charges and other operating                              |   |                                                        | 1,028  |   |                                                         |   | 1,035 |   |   |   | 354 |   |   |   | 341 |   |
| Total                other                income                                      |   |                                                        | 1,375  |   |                                                         |   | 1,290 |   |   |   | 458 |   |   |   | 433 |   |
|                                                                                  |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| General,                administrative and other expense                              |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Employee                compensation and benefits                                     |   |                                                        | 4,177  |   |                                                         |   | 4,179 |   |   |   | 1,394 |   |   |   | 1,332 |   |
| Occupancy                and equipment                                                |   |                                                        | 1,483  |   |                                                         |   | 1,438 |   |   |   | 500 |   |   |   | 503 |   |
| Federal                deposit insurance premiums                                     |   |                                                        | 28     |   |                                                         |   | 31 |   |   |   | 9 |   |   |   | 11 |   |
| Franchise                taxes                                                        |   |                                                        | 291    |   |                                                         |   | 177 |   |   |   | 97 |   |   |   | (21 | ) |
| Amortization                of intangible assets                                      |   |                                                        | 80     |   |                                                         |   | 80 |   |   |   | 27 |   |   |   | 27 |   |
| Other                operating                                                        |   |                                                        | 1,508  |   |                                                         |   | 1,475 |   |   |   | 516 |   |   |   | 503 |   |
| Total                general, administrative and other expense                        |   |                                                        | 7,567  |   |                                                         |   | 7,380 |   |   |   | 2,543 |   |   |   | 2,355 |   |
| Income                before income taxes                                             |   |                                                        | 2,009  |   |                                                         |   | 2,301 |   |   |   | 571 |   |   |   | 792 |   |
| Federal                incomes                taxes                                   |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                                               |   |                                                        | 706    |   |                                                         |   | 608 |   |   |   | 247 |   |   |   | 310 |   |
| Deferred                                                                              |   |                                                        | (213   | )      |                                                         |   | 53 |   |   |   | (122 | ) |   |   | (81 | ) |
| Total                federal income                taxes                              |   |                                                        | 493    |   |                                                         |   | 661 |   |   |   | 125 |   |   |   | 229 |   |
| NET                INCOME                                                             |   | $                                                           | 1,516  |   |                                                         | $      | 1,640 |   |   | $ | 446 |   |   | $ | 563 |   |
| EARNINGS                PER SHARE                                                     |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                 |   | $                                                           | 0.49   |   |                                                         | $      | 0.51 |   |   | $ | 0.14 |   |   | $ | 0.18 |   |
| Diluted                                                                               |   | $                                                           | 0.49   |   |                                                         | $      | 0.51 |   |   | $ | 0.14 |   |   | $ | 0.18 |   |
| DIVIDENDS                PER SHARE                                                    |   | $                                                           | 0.36   |   |                                                         | $      | 0.36 |   |   | $ | 0.12 |   |   | $ | 0.12 |   |

----

Index

O

|                                                                                                                                                                |   | Nine                Months EndedDecember                31, |   |   | Three                Months EndedDecember                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                                                                                                                                |   | 2007                                                        |   |   | 2006                                                         |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |
| Net                income                                                                                                                                           |   | $                                                           | 1,516  |   |                                                         | $      | 1,640 |   |   | $ | 446 |   |   | $ | 563 |   |
| Other                comprehensive income:                                                                                                                          |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains on securities, net of related taxes of $309, $307,                $326 and                $83 during the respective periods |   |                                                        | 600    |   |                                                         |   | 598 |   |   |   | 632 |   |   |   | 162 |   |
|                                                                                                                                                                |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                                                 |   | $                                                           | 2,116  |   |                                                         | $      | 2,238 |   |   | $ | 1,078 |   |   | $ | 725 |   |
|                                                                                                                                                                |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated                comprehensive income (loss)                                                                                                              |   | $                                                           | 124    |   |                                                         | $      | (413 | ) |   | $ | 124 |   |   | $ | (413 | ) |
|                                                                                                                                                                |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                |   |                                                        |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |

----

Index

M

|                                                                                                                                             |   | 2007   |    |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                                             |   |   |    |   |   |   |
| Cash                flows from operating activities:                                                                                             |   |   |    |   |   |   |
| Net                income for the period                                                                                                         |   | $      | 1,516   |   |   | $      | 1,640 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                                  |   |   |    |   |   |   |   |   |
| Amortization                of discounts and premiums on loans,  investments and                mortgage-backed securities – net |   |   | (64     | )      |   |   | (66 | ) |
| Amortization                of deferred loan origination fees                                                                                    |   |   | (39     | )      |   |   | (39 | ) |
| Depreciation                and amortization                                                                                                     |   |   | 488     |   |   |   | 528 |   |
| Amortization                of expense related to ESOP                                                                                           |   |   | 91      |   |   |   | 109 |   |
| Provision                for losses on loans                                                                                                     |   |   | 195     |   |   |   | 70 |   |
| Gain                on disposal of real estate acquired through foreclosure                                                                      |   |   | (31     | )      |   |   | – |   |
| Federal                Home Loan Bank stock dividends                                                                                            |   |   | – |   |   |   | (206 | ) |
| Increase                in cash surrender value of life insurance                                                                                |   |   | (175    | )      |   |   | (167 | ) |
| Increase                (decrease) in cash due to changes in:                                                                                    |   |   |    |   |   |   |   |   |
| Accrued                interest receivable on loans                                                                                              |   |   | (1      | )      |   |   | (109 | ) |
| Accrued                interest receivable on mortgage-backed securities                                                                         |   |   | (61     | )      |   |   | (38 | ) |
| Accrued                interest receivable on investments and interest-bearing                deposits                                           |   |   | 363     |   |   |   | 236 |   |
| Prepaid                expenses and other assets                                                                                                 |   |   | 272     |   |   |   | 374 |   |
| Amortization                of expense related to intangibles                                                                                    |   |   | 80      |   |   |   | 80 |   |
| Accrued                interest payable                                                                                                          |   |   | (35     | )      |   |   | 91 |   |
| Accounts                payable on mortgage loans serviced for others                                                                            |   |   | 86      |   |   |   | 66 |   |
| Other                liabilities                                                                                                                 |   |   | 44      |   |   |   | (36 | ) |
| Federal                income taxes                                                                                                              |   |   |    |   |   |   |   |   |
| Current                                                                                                                                          |   |   | 103     |   |   |   | (279 | ) |
| Deferred                                                                                                                                         |   |   | (213    | )      |   |   | 53 |   |
| Net                cash provided by operating activities                                                                                         |   |   | 2,619   |   |   |   | 2,307 |   |
|                                                                                                                                             |   |   |    |   |   |   |   |   |
| Cash                flows provided by (used in) investing activities:                                                                            |   |   |    |   |   |   |   |   |
| Purchase                of investment securities designated as available for sale                                                                |   |   | (6,569  | )      |   |   | (1,101 | ) |
| Proceeds                from maturity of investment securities designated as held to                maturity                                     |   |   | 76      |   |   |   | 2,708 |   |
| Proceeds                from sale of investment securities designated as held to                maturity                                         |   |   | – |   |   |   | 2,512 |   |
| Proceeds                from maturity of investment securities designated as available for                sale                                   |   |   | 25,223  |   |   |   | 11,091 |   |
| Purchase                of mortgage-backed securities designated as available for                sale                                            |   |   | (29,644 | )      |   |   | (15,584 | ) |
| Principal                repayments on mortgage-backed securities designated as held to                maturity                                  |   |   | 294     |   |   |   | 500 |   |
| Principal                repayments and sales of mortgage-backed securities designated as                available                for sale       |   |   | 15,215  |   |   |   | 7,380 |   |
| Loan                principal repayments                                                                                                         |   |   | 28,831  |   |   |   | 38,643 |   |
| Loan                disbursements                                                                                                                |   |   | (37,453 | )      |   |   | (44,114 | ) |
| Purchase                of office premises and equipment - net                                                                                   |   |   | (334    | )      |   |   | (234 | ) |
| Proceeds                from sale of real estate acquired through foreclosure                                                                    |   |   | 108     |   |   |   | 156 |   |
| Net                cash provided by (used in) investing activities                                                                               |   |   | (4,253  | )      |   |   | 1,957 |   |
|                                                                                                                                             |   |   |    |   |   |   |   |   |
| Net                cash provided by (used in) operating and investing activities (balance                carried forward)                        |   |   | (1,634  | )      |   |   | 4,264 |   |

----

Index

|                                                                                            |   | 2007   |    |   | 2006   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                            |   |   |    |
| Net                cash provided by (used in) operating and investing                activities |   |   |    |   |   |   |
|   (balance                brought forward)                                            |   | $      | (1,634  | )      |   | $      | 4,264 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Cash                flows provided by (used in) financing activities:                           |   |   |    |   |   |   |   |   |
| Net                increase (decrease)  in deposit accounts                           |   |   | (9,621  | )      |   |   | 2,855 |   |
| Proceeds                from Federal Home Loan Bank advances                                    |   |   | 44,450  |   |   |   | 78,400 |   |
| Repayments                of Federal Home Loan Bank advances                                    |   |   | (40,450 | )      |   |   | (76,650 | ) |
| Advances                by borrowers for taxes and insurance                                    |   |   | 434     |   |   |   | 479 |   |
| Dividends                paid on common stock                                                   |   |   | (1,135  | )      |   |   | (1,190 | ) |
| Proceeds                from exercise of stock options                                          |   |   | – |   |   |   | 602 |   |
| Purchase                of treasury shares                                                      |   |   | (854    | )      |   |   | (1,993 | ) |
| Net                cash provided by (used in) financing activities                              |   |   | (7,176  | )      |   |   | 2,503 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                             |   |   | (8,810  | )      |   |   | 6,767 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period                                 |   |   | 17,215  |   |   |   | 14,123 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                       |   | $      | 8,405   |   |   | $      | 20,890 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Supplemental                disclosure of cash flow information:                                |   |   |    |   |   |   |   |   |
| Cash                paid during the period for:                                                 |   |   |    |   |   |   |   |   |
| Federal                income taxes                                                             |   | $      | 710     |   |   | $      | 830 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Interest                on deposits and borrowings                                              |   | $      | 8,957   |   |   | $      | 8,141 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Supplemental                disclosure of noncash investing activities:                         |   |   |    |   |   |   |   |   |
| Transfers                from loans to real estate acquired through foreclosure                 |   | $      | 149     |   |   | $      | – |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Unrealized                gains on securities designated as available for sale,                 |   |   |    |   |   |   |   |   |
|     net                of related tax effects                               |   | $      | 600     |   |   | $      | 598 |   |
|                                                                                            |   |   |    |   |   |   |   |   |
| Dividends                payable                                                                |   | $      | 375     |   |   | $      | 390 |   |

----

Index

t

| Note                1: | Basis                of Presentation |
|------------------------|--------------------------------------|

| Note                2: | Principles                of Consolidation |
|------------------------|--------------------------------------------|

----

Index

| Note                3: | Earnings                Per Share |
|------------------------|-----------------------------------|

|                                                                  |   |                                       |      |   |                                        |   |
|-----------------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|---------------------------------------------|--------|
|                                                                  |   | For                  the nine months ended |      |   | For                  the three months ended |   |
|                                                                  |   | December                  31,              |      |   | December                  31,               |   |
|                                                                  |   | 2007                                       |      |   | 2006                                        |   |   | 2007 |   |   | 2006 |   |
|                                                                  |   |                                       |      |   |                                        |   |   |   |   |   |   |   |
| Weighted-average                  common shares outstanding (basic)   |   |                                       | 3,061,671 |   |                                        |   | 3,209,885 |   |   |   | 3,027,848 |   |   |   | 3,239,078 |   |
|                                                                  |   |                                       |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive                  effect of assumed exercise of stock options |   |                                       | –   |   |                                        |   | 7,315 |   |   |   | – |   |   |   | 5,010 |   |
|                                                                  |   |                                       |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                  common shares outstanding (diluted) |   |                                       | 3,061,671 |   |                                        |   | 3,217,200 |   |   |   | 3,027,848 |   |   |   | 3,244,088 |   |

| Note                4: | Stock                Option Plan |
|------------------------|----------------------------------|

----

Index

|                                              |   | Nine                months endedDecember                31, |           |   | Year                endedMarch                31, |   |
|---------------------------------------------------|--------|-------------------------------------------------------------|----------------|--------|---------------------------------------------------|--------|
|                                              |   | 2007                                                        |           |   | 2007                                              |   |   | 2006 |   |
|                                              |   | Shares                                                      |           |   | WeightedAverageexerciseprice                      |   |   | Shares |   |   | Weighted Averageexerciseprice |   |   | Shares |   |   | WeightedAverageexerciseprice |   |
| Outstanding                at beginning of period |   |                                                        | 114,224        |   |                                              | $      | 13.95 |   |   |   | 179,148 |   |   | $ | 13.92 |   |   |   | 214,204 |   |   | $ | 13.84 |   |
| Granted                                           |   |                                                        | –– |   |                                              |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |   |   | –– |   |
| Exercised                                         |   |                                                        | –– |   |                                              |   | –– |   |   |   | (60,924 | ) |   |   | 13.86 |   |   |   | (27,556 | ) |   |   | 13.32 |   |
| Forfeited                                         |   |                                                        | –– |   |                                              |   | –– |   |   |   | (4,000 | ) |   |   | 13.95 |   |   |   | (7,500 | ) |   |   | 13.95 |   |
|                                              |   |                                                        |           |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding                at end of period       |   |                                                        | 114,224        |   |                                              | $      | 13.95 |   |   |   | 114,224 |   |   | $ | 13.95 |   |   |   | 179,148 |   |   | $ | 13.92 |   |
|                                              |   |                                                        |           |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options                exercisable at period-end  |   |                                                        | 114,224        |   |                                              | $      | 13.95 |   |   |   | 114,224 |   |   | $ | 13.95 |   |   |   | 179,148 |   |   | $ | 13.92 |   |

| Number                outstanding                                  |   |                      | 114,224 |   |
|--------------------------------------------------------------------|--------|---------------------------|---------|--------|
| Exercise                price on all remaining options outstanding |   | $                         | 13.95   |   |
| Weighted-average                remaining contractual life         |   | 6.25                years |    |

| Note                5: | Recent                Accounting Developments |
|------------------------|-----------------------------------------------|

|   | ● | Separately                recognize financial assets as servicing assets or servicing liabilities,                each time it undertakes an obligation to service a financial asset                by                entering into certain kinds of servicing contracts; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Initially                measure all separately recognized servicing assets and liabilities                at fair                value, if practicable; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Separately                present servicing assets and liabilities subsequently measured at                fair                value in the statement of financial condition and additional disclosures                for all separately recognized servicing assets and servicing liabilities. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

u

|                                                                                                                       |   | For                the nine months ended December 31, |    |
|----------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|
|                                                                                                                       |   | 2007                                                  |    |   | 2006 |   |
|                                                                                                                       |   | AverageBalance                                        |    |   | Interest |   |   | AverageRate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
|                                                                                                                       |   | (Dollars                in thousands)                 |    |
| Interest-earning                assets:                                                                                    |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable, net1                                                                                      |   | $                                                     | 244,546 |   |   | $ | 12,518 |   |   |   | 6.83 | % |   | $ | 236,917 |   |   | $ | 11,924 |   |   |   | 6.71 | % |
| Mortgage-backed                securities2                                                                                 |   |                                                  | 74,785  |   |   |   | 2,969 |   |   |   | 5.29 |   |   |   | 62,637 |   |   |   | 2,327 |   |   |   | 4.95 |   |
| Investment                securities                                                                                       |   |                                                  | 45,281  |   |   |   | 1,457 |   |   |   | 4.29 |   |   |   | 66,724 |   |   |   | 2,082 |   |   |   | 4.16 |   |
| Interest-bearing                deposits3                                                                                  |   |                                                  | 11,148  |   |   |   | 374 |   |   |   | 4.47 |   |   |   | 11,705 |   |   |   | 360 |   |   |   | 4.10 |   |
| Total                interest-earning assets                                                                               |   |                                                  | 375,760 |   |   |   | 17,318 |   |   |   | 6.15 |   |   |   | 377,983 |   |   |   | 16,693 |   |   |   | 5.89 |   |
| Non-interest-earning                assets                                                                                 |   |                                                  | 21,768  |   |   |   |   |   |   |   |   |   |   |   | 22,781 |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                                                |   | $                                                     | 397,528 |   |   |   |   |   |   |   |   |   |   | $ | 400,764 |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                               |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                   |   | $                                                     | 324,018 |   |   |   | 7,624 |   |   |   | 3.14 |   |   | $ | 331,637 |   |   |   | 7,194 |   |   |   | 2.89 |   |
| Borrowings                                                                                                                 |   |                                                  | 35,530  |   |   |   | 1,298 |   |   |   | 4.87 |   |   |   | 30,247 |   |   |   | 1,038 |   |   |   | 4.58 |   |
| Total                interest-bearing liabilities                                                                          |   |                                                  | 359,548 |   |   |   | 8,922 |   |   |   | 3.31 |   |   |   | 361,884 |   |   |   | 8,232 |   |   |   | 3.03 |   |
|                                                                                                                       |   |                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                bearing  liabilities                                                                 |   |                                                  | 3,651   |   |   |   |   |   |   |   |   |   |   |   | 3,221 |   |   |   |   |   |   |   |   |   |
| Total                liabilities                                                                                           |   |                                                  | 363,199 |   |   |   |   |   |   |   |   |   |   |   | 365,105 |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                                                  |   |                                                  | 34,329  |   |   |   |   |   |   |   |   |   |   |   | 35,659 |   |   |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                                            |   | $                                                     | 397,528 |   |   |   |   |   |   |   |   |   |   | $ | 400,764 |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                                         |   |                                                  |    |   |   | $ | 8,396 |   |   |   |   |   |   |   |   |   |   | $ | 8,461 |   |   |   |   |   |
| Interest                rate spread4                                                                                       |   |                                                  |    |   |   |   |   |   |   |   | 2.84 | % |   |   |   |   |   |   |   |   |   |   | 2.86 | % |
| Net                yield on interest- earning                assets5                                                       |   |                                                  |    |   |   |   |   |   |   |   | 2.98 | % |   |   |   |   |   |   |   |   |   |   | 2.98 | % |
| Ratio                of average interest- earning assets to average  interest-bearing                liabilities |   |                                                  |    |   |   |   |   |   |   |   | 104.51 | % |   |   |   |   |   |   |   |   |   |   | 104.45 | % |

----

Index

|                                                                                                           |   | ForthethreemonthsendedDecember31,     |    |
|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                                           |   | 2007                                  |    |   | 2006 |   |
|                                                                                                           |   | AverageBalance                        |    |   | Interest |   |   | Average Rate |   |   | AverageBalance |   |   | Interest |   |   | AverageRate |   |
|                                                                                                           |   | (Dollars                in thousands) |    |
| Interest-earning                assets:                                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                receivable, net1                                                                          |   | $                                     | 247,985 |   |   | $ | 4,204 |   |   |   | 6.78 | % |   | $ | 238,683 |   |   | $ | 4,048 |   |   |   | 6.78 | % |
| Mortgage-backed                securities2                                                                     |   |                                  | 79,520  |   |   |   | 1,062 |   |   |   | 5.34 |   |   |   | 66,485 |   |   |   | 846 |   |   |   | 5.09 |   |
| Investment                securities                                                                           |   |                                  | 41,846  |   |   |   | 452 |   |   |   | 4.32 |   |   |   | 61,419 |   |   |   | 627 |   |   |   | 4.08 |   |
| Interest-bearing                deposits3                                                                      |   |                                  | 9,931   |   |   |   | 108 |   |   |   | 4.35 |   |   |   | 14,261 |   |   |   | 158 |   |   |   | 4.43 |   |
| Total                interest-earning assets                                                                   |   |                                  | 379,282 |   |   |   | 5,826 |   |   |   | 6.14 |   |   |   | 380,848 |   |   |   | 5,679 |   |   |   | 5.96 |   |
|                                                                                                           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning                assets                                                                     |   |                                  | 21,650  |   |   |   |   |   |   |   |   |   |   |   | 22,782 |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                                    |   | $                                     | 400,932 |   |   |   |   |   |   |   |   |   |   | $ | 403,630 |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                       |   | $                                     | 323,925 |   |   |   | 2,555 |   |   |   | 3.16 |   |   | $ | 329,691 |   |   |   | 2,545 |   |   |   | 3.09 |   |
| Borrowings                                                                                                     |   |                                  | 38,426  |   |   |   | 475 |   |   |   | 4.94 |   |   |   | 34,586 |   |   |   | 410 |   |   |   | 4.74 |   |
| Total                interest-bearing liabilities                                                              |   |                                  | 362,351 |   |   |   | 3,030 |   |   |   | 3.34 |   |   |   | 364,277 |   |   |   | 2,955 |   |   |   | 3.24 |   |
|                                                                                                           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                bearing liabilities                                                                |   |                                  | 3,864   |   |   |   |   |   |   |   |   |   |   |   | 3,838 |   |   |   |   |   |   |   |   |   |
| Total                liabilities                                                                               |   |                                  | 366,215 |   |   |   |   |   |   |   |   |   |   |   | 368,115 |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                                                                      |   |                                  | 34,717  |   |   |   |   |   |   |   |   |   |   |   | 35,515 |   |   |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity                                                |   | $                                     | 400,932 |   |   |   |   |   |   |   |   |   |   | $ | 403,630 |   |   |   |   |   |   |   |   |   |
| Net                interest income                                                                             |   |                                  |    |   |   | $ | 2,796 |   |   |   |   |   |   |   |   |   |   | $ | 2,724 |   |   |   |   |   |
| Interest                rate spread4                                                                           |   |                                  |    |   |   |   |   |   |   |   | 2.80 | % |   |   |   |   |   |   |   |   |   |   | 2.72 | % |
|                                                                                                           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                yield on interest-earning assets5                                                           |   |                                  |    |   |   |   |   |   |   |   | 2.95 | % |   |   |   |   |   |   |   |   |   |   | 2.86 | % |
| Ratio                of average interest-earning assets to average interest-bearing                liabilities |   |                                  |    |   |   |   |   |   |   |   | 104.67 | % |   |   |   |   |   |   |   |   |   |   | 104.55 | % |

----

Index

|                                               |   | December                31, 2007      |    |   | March                31, 2007 |   |
|----------------------------------------------------|--------|---------------------------------------|---------|--------|-------------------------------|--------|
|                                               |   | (Dollars                in thousands) |    |
| Mortgage                loans:                     |   |                                  |    |   |                          |   |   |   |   |   |   |   |
| One-                to four-family residential(1)  |   | $                                     | 142,507 |   |                          |   | 56.17 | % |   | $ | 144,311 |   |   |   | 57.87 | % |
| Residential                construction loans      |   |                                  | 1,973   |   |                          |   | .78 |   |   |   | 2,019 |   |   |   | .81 |   |
| Multi-family                residential            |   |                                  | 8,994   |   |                          |   | 3.54 |   |   |   | 8,938 |   |   |   | 3.59 |   |
| Non-residential                real estate/land(2) |   |                                  | 67,046  |   |                          |   | 26.42 |   |   |   | 61,873 |   |   |   | 24.82 |   |
| Total                mortgage loans                |   |                                  | 220,520 |   |                          |   | 86.91 |   |   |   | 217,141 |   |   |   | 87.09 |   |
| Other                loans:                        |   |                                  |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                loans(3)                   |   |                                  | 6,097   |   |                          |   | 2.40 |   |   |   | 5,460 |   |   |   | 2.19 |   |
| Commercial                business loans           |   |                                  | 27,130  |   |                          |   | 10.69 |   |   |   | 26,730 |   |   |   | 10.72 |   |
| Total                other loans                   |   |                                  | 33,227  |   |                          |   | 13.09 |   |   |   | 32,190 |   |   |   | 12.91 |   |
| Total                loans before net items        |   |                                  | 253,747 |   |                          |   | 100.00 | % |   |   | 249,331 |   |   |   | 100.00 | % |
| Less:                                              |   |                                  |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Loans                in process                    |   |                                  | 3,214   |   |                          |   |   |   |   |   | 7,334 |   |   |   |   |   |
| Deferred                loan origination fees      |   |                                  | 409     |   |                          |   |   |   |   |   | 425 |   |   |   |   |   |
| Allowance                for loan losses           |   |                                  | 1,735   |   |                          |   |   |   |   |   | 1,523 |   |   |   |   |   |
| Total                loans receivable, net         |   | $                                     | 248,389 |   |                          |   |   |   |   | $ | 240,049 |   |   |   |   |   |
| Mortgage-backed                securities, net(4)  |   | $                                     | 83,438  |   |                          |   |   |   |   | $ | 69,065 |   |   |   |   |   |

| (1) | Includes                equity loans collateralized by second mortgages in the aggregate                amount of                $17.9 million and $19.2 million as of December 31, 2007 and March                31,                2007, respectively. Such loans have been underwritten on substantially                the                same basis as the Company’s first mortgage loans. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                land loans of $196,000 and $204,000 as of December 31, 2007 and March                31,                2007, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes                second mortgage loans of $1.3 million and $605,000 as of December                31, 2007                and March 31, 2007, respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes                mortgage-backed                securities designated as available for sale. |
|-----|-----------------------------------------------------------------------------------------------------|

----

Index

|                                                              |   | December                3,2007        |           |   | March                31,2007 |   |
|-------------------------------------------------------------------|--------|---------------------------------------|----------------|--------|------------------------------|--------|
|                                                              |   | (Dollars                in thousands) |           |
| Past                due loans 30-89 days:                         |   |                                  |           |   |                         |   |
| Mortgage                loans:                                    |   |                                  |           |   |                         |   |
| One-                to four-family residential                    |   | $                                     | 1,014          |   |                         | $      | 270 |   |
| Nonresidential                                                    |   |                                  | –– |   |                         |   | –– |   |
| Land                                                              |   |                                  | –– |   |                         |   | –– |   |
| Non-mortgage                loans:                                |   |                                  |           |   |                         |   |   |   |
| Commercial                business loans                          |   |                                  | 47             |   |                         |   | –– |   |
| Consumer                loans                                     |   |                                  | 4              |   |                         |   | 11 |   |
|                                                              |   | $                                     | 1,065          |   |                         | $      | 281 |   |
|                                                              |   |                                  |           |   |                         |   |   |   |
| Non-performing                loans:                              |   |                                  |           |   |                         |   |   |   |
| Mortgage                loans:                                    |   |                                  |           |   |                         |   |   |   |
| One-                to four-family residential                    |   | $                                     | 743            |   |                         | $      | 683 |   |
| All                other mortgage loans                           |   |                                  | 139            |   |                         |   | –– |   |
| Non-mortgage                loans:                                |   |                                  |           |   |                         |   |   |   |
| Commercial                business loans                          |   |                                  | 1,142          |   |                         |   | 267 |   |
| Consumer                                                          |   |                                  | 2              |   |                         |   | –– |   |
| Total                non-performing loans                         |   |                                  | 2,026          |   |                         |   | 950 |   |
| Total                real estate acquired through foreclosure     |   |                                  | 48             |   |                         |   | –– |   |
| Total                non-performing assets                        |   | $                                     | 2,074          |   |                         | $      | 950 |   |
|                                                              |   |                                  |           |   |                         |   |   |   |
|                                                              |   |                                  |           |   |                         |   |   |   |
| Total                non-performing loans to net loans receivable |   |                                  | 0.82           | %      |                         |   | 0.40 | % |
| Total                non-performing loans to total assets         |   |                                  | 0.51           | %      |                         |   | 0.23 | % |
| Total                non-performing assets to total assets        |   |                                  | 0.52           | %      |                         |   | 0.23 | % |

----

Index

|                                                                                                               |   | For                  the ninemonths                  endedDecember                  31, 2007 |           |   | For                  theyear                  endedMarch                  31, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|----------------|--------|------------------------------------------------------------------------------------|--------|
|                                                                                                               |   | (Dollars                  in thousands)                                                      |           |
|                                                                                                               |   |                                                                                         |           |   |                                                                               |   |
| Loans                  receivable, net                                                                             |   | $                                                                                            | 248,389        |   |                                                                               | $      | 240,049 |   |
| Average                  loans receivable, net                                                                     |   | $                                                                                            | 244,546        |   |                                                                               | $      | 237,429 |   |
| Allowance                  balance (at beginning of period)                                                        |   | $                                                                                            | 1,523          |   |                                                                               | $      | 1,484 |   |
| Charge-offs:                                                                                                       |   |                                                                                         |           |   |                                                                               |   |   |   |
| Mortgage                  loans:                                                                                   |   |                                                                                         |           |   |                                                                               |   |   |   |
| One-                  to four-family                                                                               |   |                                                                                         | (15            | )      |                                                                               |   | (31 | ) |
| Residential                  construction                                                                          |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Multi-family                  residential                                                                          |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Non-residential                  real estate and land                                                              |   |                                                                                         | –– |   |                                                                               |   | (31 | ) |
| Other                  loans:                                                                                      |   |                                                                                         |           |   |                                                                               |   |   |   |
| Consumer                                                                                                           |   |                                                                                         | (2             | )      |                                                                               |   | (21 | ) |
| Commercial                                                                                                         |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Gross                  charge-offs                                                                                 |   |                                                                                         | (17            | )      |                                                                               |   | (83 | ) |
| Recoveries:                                                                                                        |   |                                                                                         |           |   |                                                                               |   |   |   |
| Mortgage                  loans:                                                                                   |   |                                                                                         |           |   |                                                                               |   |   |   |
| One-                  to four-family                                                                               |   |                                                                                         | 13             |   |                                                                               |   | 1 |   |
| Residential                  construction                                                                          |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Multi-family                  residential                                                                          |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Non-residential                  real estate and land                                                              |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Other                  loans:                                                                                      |   |                                                                                         |           |   |                                                                               |   |   |   |
| Consumer                                                                                                           |   |                                                                                         | 21             |   |                                                                               |   | 21 |   |
| Commercial                                                                                                         |   |                                                                                         | –– |   |                                                                               |   | –– |   |
| Gross                  recoveries                                                                                  |   |                                                                                         | 34             |   |                                                                               |   | 22 |   |
| Net                  (charge-offs) recoveries                                                                      |   |                                                                                         | 17             |   |                                                                               |   | (61 | ) |
| Provision                  charged to operations                                                                   |   |                                                                                         | 195            |   |                                                                               |   | 100 |   |
| Allowance                  for loans losses balance (at end of period)                                             |   | $                                                                                            | 1,735          |   |                                                                               | $      | 1,523 |   |
| Allowance                  for loan losses as a percent of loans receivable, net at end of                  period |   |                                                                                         | 0.70           | %      |                                                                               |   | 0.63 | % |
| Net                  loans charged off as a percent of average loans receivable,                  net              |   |                                                                                         | 0.00           | %      |                                                                               |   | 0.03 | % |
| Ratio                  of allowance for loan losses to non-                                                        |   |                                                                                         |           |   |                                                                               |   |   |   |
|   performing                  loans at end of period                                                     |   |                                                                                         | 85.64          | %      |                                                                               |   | 160.32 | % |

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

M

M

|   | (a) | Evaluation                of disclosure controls and procedures. |
|--------|-----|------------------------------------------------------------------|

|   | (b) | Changes                in internal controls. |
|--------|-----|----------------------------------------------|

----

Index

T

M      

M

M

|   | (c) | The                following table sets forth certain information regarding repurchases                by                the Company for the quarter ended December 31, 2007. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Total                      |   |   | Average                   |   |   | Total                # ofshares                purchased |   |   | Maximum                # of shareswhich                may still be |   |
|-----------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|
|                                          |   | #                of shares |   |   | price                paid |   |   | as                part of the                            |   |   | purchased                as part                                    |   |
| Period                                        |   | purchased                  |   |   | per                share  |   |   | announced                plan                            |   |   | of                the announced plan                                |   |
|                                          |   |                       |   |   |                      |   |   |                                                     |   |   |                                                                |   |
| October                1-31, 2007             |   |                       | -      |   |                      | $      | -      |                                                     |   |   | -                                                                   |   |   |   | 62,180 |   |
| November  1-30,                2007 |   |                       | -      |   |                      | $      | -      |                                                     |   |   | -                                                                   |   |   |   | 62,180 |   |
| December                1-31, 2007            |   |                       | 18,316 |   |                      | $      | 11.55  |                                                     |   |   | 118,360                                                             |   |   |   | 120,893 |   |

M

M

----

Index

E

E

|   |   | EX-31.1 | Certification                of Chief Executive Officer pursuant                      |   |
|--------|--------|---------|---------------------------------------------------------------------------------------|--------|
|   |   |    |   to                Section 302 of the Sarbanes-Oxley Act of                |   |
|   |   |    |   2002,                18 U.S.C. Section 1350                               |   |
|   |   |    |                                                                                  |   |
|   |   | EX-31.2 | Certification                of Chief Financial Officer pursuant                      |   |
|   |   |    |   to                Section 302 of the Sarbanes-Oxley Act of                |   |
|   |   |    |   2002,                18 U.S.C. Section 1350                               |   |
|   |   |    |                                                                                  |   |
|   |   | EX-32   | Written                Statement of Chief Executive Officer and Chief                 |   |
|   |   |    |   Financial                Officer furnished pursuant to Section 906 of the |   |
|   |   |    |   Sarbanes-Oxley                Act of 2002, 18 U.S.C. Section 1350         |   |

----

Index

N

| Date:  |   February                5, 2008 |   | By:    | /s/Phillip                E. Becker                             |
|--------|---------------------------------------------|--------|--------|-----------------------------------------------------------------|
|   |                                        |   |   | Phillip                E. Becker                                |
|   |                                        |   |   | President                and Chief  Executive Officer |
|   |                                        |   |   |                                                            |
|   |                                        |   |   |                                                            |
|   |                                        |   |   |                                                            |
| Date:  |   February                5, 2008 |   | By:    | /s/H.                Stewart Fitz Gibbon III                    |
|   |                                        |   |   | H.                Stewart Fitz Gibbon III                       |
|   |                                        |   |   | Executive                Vice President and                     |
|   |                                        |   |   | Chief                Financial Officer                          |