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

|   | For      the fiscal year ended September 30,2010 |
|--------|--------------------------------------------------|

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

| Indiana(State      or other jurisdiction ofincorporation      or organization)                             | 37-1567871(I.R.S.      Employer Identification No.) |
|------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                       |                                                |
| 501 East Lewis & Clark Parkway, Clarksville,      Indiana(Address      of principal executive offices) | 47129(Zip      Code)                                |

| Title of each class                          |   | Name of each exchange on which      registered |
|----------------------------------------------|--------|------------------------------------------------|
| Common      Stock, par value $0.01 per share |   | Nasdaq      Stock Market, LLC                  |

| Large      Accelerated Filer  ̈ | Accelerated      Filer  ̈    |
|-------------------------------------|----------------------------------|
|                                |                             |
| Non-accelerated      Filer  ̈   | Smaller      Reporting Company x |

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|          |                                                                                                                         | Page   |
|---------------|------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                         |   |
| Part      I   |
|          |                                                                                                                         |   |
| Item      1.  | Business                                                                                                                     | 1      |
|          |                                                                                                                         |   |
| Item      1A. | Risk      Factors                                                                                                            | 18     |
|          |                                                                                                                         |   |
| Item      1B. | Unresolved      Staff Comments                                                                                               | 22     |
|          |                                                                                                                         |   |
| Item      2.  | Properties                                                                                                                   | 23     |
|          |                                                                                                                         |   |
| Item      3.  | Legal      Proceedings                                                                                                       | 23     |
|          |                                                                                                                         |   |
| Item      4.  | [Removed      and reserved]                                                                                                  | 23     |
|          |                                                                                                                         |   |
| Part      II  |
|          |                                                                                                                         |   |
| Item      5.  | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 24     |
|          |                                                                                                                         |   |
| Item      6.  | Selected      Financial Data                                                                                                 | 25     |
|          |                                                                                                                         |   |
| Item      7.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operation                         | 27     |
|          |                                                                                                                         |   |
| Item      7A. | Quantitative      and Qualitative Disclosures About Market Risk                                                              | 52     |
|          |                                                                                                                         |   |
| Item      8.  | Financial      Statements and Supplementary Data                                                                             | 52     |
|          |                                                                                                                         |   |
| Item      9.  | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure                               | 52     |
|          |                                                                                                                         |   |
| Item      9A. | Controls      and Procedures                                                                                                 | 52     |
|          |                                                                                                                         |   |
| Item      9B. | Other      Information                                                                                                       | 53     |
|          |                                                                                                                         |   |
| Part      III |
|          |                                                                                                                         |   |
| Item      10. | Directors,      Executive Officers and Corporate Governance                                                                  | 54     |
|          |                                                                                                                         |   |
| Item      11. | Executive      Compensation                                                                                                  | 54     |
|          |                                                                                                                         |   |
| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                     | 55     |
|          |                                                                                                                         |   |
| Item      13. | Certain      Relationships and Related Transactions, and Director      Independence                                          | 55     |
|          |                                                                                                                         |   |
| Item      14. | Principal      Accountant Fees and Services                                                                                  | 55     |
|          |                                                                                                                         |   |
| Part      IV  |
|          |                                                                                                                         |   |
| Item      15. | Exhibits      and Financial Statement Schedules                                                                              | 56     |
|          |                                                                                                                         |   |
| SIGNATURES    |                                                                                                                         |

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| Item      1. | BUSINESS |
|--------------|----------|

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|   | · | Truth-In-Lending      Act, governing disclosures of credit terms to consumer      borrowers; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | Home      Mortgage Disclosure Act of 1975, requiring financial institutions to      provide information to enable the public and public officials to determine      whether a financial institution is fulfilling its obligation to help meet      the housing needs of the community itserves; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Equal      Credit Opportunity Act, prohibiting discrimination on the basis of race,      creed or other prohibited factors in extending  credit; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fair      Credit Reporting Act of 1978, governing the use and provision of      information to credit reportingagencies; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | Fair      Debt Collection Act, governing the manner in which consumer debts may be      collected by collection agencies;and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Rules      and regulations of the various federal agencies charged with the      responsibility of implementing such federal  laws. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Right      to Financial Privacy Act, which imposes a duty to maintain confidentiality      of consumer financial records and prescribes procedures for complying with      administrative subpoenas of financialrecords; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Electronic      Funds Transfer Act and Regulation E promulgated thereunder, which governs      automatic deposits to and withdrawals from deposit accounts and customers’      rights and liabilities arising from the use of automated teller machines      and other electronic bankingservices; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Check      Clearing for the 21st Century Act (also known as “Check 21”), which gives      “substitute checks,” such as digital check images and copies made from      that image, the same legal standing as the original paper      check; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Title      III of the Uniting and Strengthening America by Providing Appropriate      Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred      to as the “USA PATRIOT Act”), which significantly expands the      responsibilities of financial institutions, including savings and loan      associations, in preventing the use of the U.S. financial system to fund      terrorist activities.  Among other provisions, it requires financial      institutions operating in the United States to develop new anti-money      laundering compliance programs, due diligence policies and controls to      ensure the detection and reporting of money laundering.  Such      required compliance programs are intended to supplement existing      compliance requirements, also applicable to financial institutions, under      the Bank Secrecy Act and the Office of Foreign Assets Control Regulations;      and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | The      Gramm-Leach-Bliley Act places limitations on the sharing of consumer      financial information with unaffiliated third parties.  Specifically,      the Gramm-Leach-Bliley Act requires all financial institutions offering      financial products or services to retail customers to provide such      customers with the financial institution’s privacy policy and provide such      customers the opportunity to “opt out” of the sharing of personal      financial information with unaffiliated third  parties. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item      1A. | RISK      FACTORS |
|---------------|-------------------|

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| Item      1B. | UNRESOLVED      STAFF COMMENTS |
|---------------|--------------------------------|

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| Item      2. | PROPERTIES |
|--------------|------------|

| Location                                                                                        |   | YearOpened |   | Owned/Leased |
|-------------------------------------------------------------------------------------------------|--------|------------|--------|--------------|
|                                                                                            |   |       |   |         |
| Main      Office:                                                                               |   |       |   |         |
|                                                                                            |   |       |   |         |
| Clarksville      Main Office501      East Lewis & Clark ParkwayClarksville,      Indiana    |   | 1968       |   | Owned        |
|                                                                                            |   |       |   |         |
| Branch      Offices:                                                                            |   |       |   |         |
|                                                                                            |   |       |   |         |
| Jeffersonville      - Allison Lane Office2213      Allison LaneJeffersonville,      Indiana     |   | 1975       |   | Owned        |
|                                                                                            |   |       |   |         |
| Charlestown      Office1100      Market StreetCharlestown,      Indiana                         |   | 1993       |   | Owned        |
|                                                                                            |   |       |   |         |
| Floyd      Knobs Office3711      Paoli PikeFloyd      Knobs, Indiana                            |   | 1999       |   | Owned        |
|                                                                                            |   |       |   |         |
| Georgetown      Office1000      Copperfield DriveGeorgetown,      Indiana                       |   | 2003       |   | Owned        |
|                                                                                            |   |       |   |         |
| Jeffersonville      - Court Avenue Office202      East Court AvenueJeffersonville,      Indiana |   | 1986       |   | Owned        |
|                                                                                            |   |       |   |         |
| Sellersburg      Office125      Hunter Station WaySellersburg,      Indiana                     |   | 1995       |   | Owned        |
|                                                                                            |   |       |   |         |
| Corydon      Office900      Hwy 62 NWCorydon,      Indiana                                      |   | 1996       |   | Owned        |
|                                                                                            |   |       |   |         |
| Salem      Office1336      S Jackson StreetSalem,      Indiana                                  |   | 1995       |   | Owned        |
|                                                                                            |   |       |   |         |
| English      Office200      Indiana AvenueEnglish,      Indiana                                 |   | 1925       |   | Owned        |
|                                                                                            |   |       |   |         |
| Marengo      Office125      W Old Short StreetMarengo,      Indiana                             |   | 1984       |   | Owned        |
|                                                                                            |   |       |   |         |
| Leavenworth      Office510      Hwy 62Leavenworth,      Indiana                                 |   | 1969       |   | Owned        |

| Item      3. | LEGAL      PROCEEDINGS |
|--------------|------------------------|

| Item      4. | [Removed      and reserved] |
|--------------|-----------------------------|

----

| Item      5. | MARKET      FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER      PURCHASES OF EQUITY SECURITIES |
|--------------|------------------------------------------------------------------------------------------------------------------------------|

|                |   | High   |   |   | Low    |   |   |      |   |   | Market price       |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|-------------------------|--------|
|                |   | Sale   |   |   | Sale   |   |   | Dividends |   |   | end of period |   |
| 2010:               |   |   |   |   |   |   |   |      |   |   |                    |   |
|                |   |   |   |   |   |   |   |      |   |   |                    |   |
| Fourth      Quarter |   | $      | 14.22  |   |   | $      | 12.70  |      |   | $      | 0.00                    |   |   | $ | 13.08 |   |
| Third      Quarter  |   |   | 13.75  |   |   |   | 12.14  |      |   |   | 0.00                    |   |   |   | 13.01 |   |
| Second      Quarter |   |   | 12.70  |   |   |   | 10.02  |      |   |   | 0.00                    |   |   |   | 12.49 |   |
| First      Quarter  |   |   | 10.79  |   |   |   | 10.04  |      |   |   | 0.08                    |   |   |   | 10.45 |   |
|                |   |   |   |   |   |   |   |      |   |   |                    |   |   |   |   |   |
| 2009:               |   |   |   |   |   |   |   |      |   |   |                    |   |   |   |   |   |
|                |   |   |   |   |   |   |   |      |   |   |                    |   |   |   |   |   |
| Fourth      Quarter |   | $      | 11.00  |   |   | $      | 9.85   |      |   | $      | 0.00                    |   |   | $ | 10.70 |   |
| Third      Quarter  |   |   | 10.85  |   |   |   | 9.59   |      |   |   | 0.00                    |   |   |   | 9.85 |   |
| Second      Quarter |   |   | 10.05  |   |   |   | 8.99   |      |   |   | 0.00                    |   |   |   | 9.60 |   |
| First      Quarter  |   |   | N/A    |   |   |   | N/A    |      |   |   | N/A                     |   |   |   | N/A |   |

----

| Item      6. | SELECTED      FINANCIAL DATA |
|--------------|------------------------------|

|                                                                     |   | At September 30, |    |
|--------------------------------------------------------------------------|--------|----------------------------|---------|
| (In thousands)                                                      |   | 2010                       |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Financial      Condition Data:                                           |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                        |   | $                          | 508,442 |   |   | $ | 480,811 |   |   | $ | 228,924 |   |   | $ | 203,321 |   |   | $ | 206,399 |   |
| Cash      and cash equivalents                                           |   |                       | 11,278  |   |   |   | 10,404 |   |   |   | 21,379 |   |   |   | 10,395 |   |   |   | 15,223 |   |
| Securities      available-for-sale                                       |   |                       | 109,976 |   |   |   | 72,580 |   |   |   | 10,697 |   |   |   | 8,260 |   |   |   | 5,897 |   |
| Securities      held-to-maturity                                         |   |                       | 3,929   |   |   |   | 6,782 |   |   |   | 8,456 |   |   |   | 7,422 |   |   |   | 8,219 |   |
| Loans      net                                                           |   |                       | 343,615 |   |   |   | 353,823 |   |   |   | 174,807 |   |   |   | 167,371 |   |   |   | 166,695 |   |
| Deposits                                                                 |   |                       | 366,161 |   |   |   | 350,816 |   |   |   | 189,209 |   |   |   | 168,782 |   |   |   | 175,891 |   |
| Borrowings      from Federal Home Loan Bank                              |   |                       | 67,159  |   |   |   | 55,773 |   |   |   | 8,000 |   |   |   | 3,000 |   |   |   | – |   |
| Stockholders’ equity (total equity before      September 30, 2009) |   |                       | 55,151  |   |   |   | 52,877 |   |   |   | 29,720 |   |   |   | 29,662 |   |   |   | 28,850 |   |

|                                                     |   | For the Year Ended September 30, |   |
|----------------------------------------------------------|--------|-----------------------------------------------------------|--------|
| (In thousands)                                      |   | 2010                                                      |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Operating      Data:                                     |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                     |   | $                                                         | 26,262 |   |   | $ | 13,008 |   |   | $ | 12,523 |   |   | $ | 13,078 |   |   | $ | 12,223 |   |
| Interest      expense                                    |   |                                                      | 6,117  |   |   |   | 4,440 |   |   |   | 5,972 |   |   |   | 6,183 |   |   |   | 5,250 |   |
| Net      interest income                                 |   |                                                      | 20,145 |   |   |   | 8,568 |   |   |   | 6,551 |   |   |   | 6,895 |   |   |   | 6,973 |   |
| Provision      for loan losses                           |   |                                                      | 1,604  |   |   |   | 819 |   |   |   | 1,540 |   |   |   | 758 |   |   |   | 813 |   |
| Net      interest income after provision for loan losses |   |                                                      | 18,541 |   |   |   | 7,749 |   |   |   | 5,011 |   |   |   | 6,137 |   |   |   | 6,160 |   |
| Noninterest      income                                  |   |                                                      | 2,916  |   |   |   | 1,263 |   |   |   | 1,054 |   |   |   | 841 |   |   |   | 889 |   |
| Noninterest      expense                                 |   |                                                      | 18,020 |   |   |   | 9,231 |   |   |   | 6,555 |   |   |   | 5,737 |   |   |   | 6,453 |   |
| Income      (loss) before income taxes                   |   |                                                      | 3,437  |   |   |   | (219 | ) |   |   | (490 | ) |   |   | 1,241 |   |   |   | 596 |   |
| Income      tax expense (benefit)                        |   |                                                      | 808    |   |   |   | (252 | ) |   |   | (300 | ) |   |   | 427 |   |   |   | 241 |   |
| Net income (loss)                                        |   | $                                                         | 2,629  |   |   | $ | 33 |   |   | $ | (190 | ) |   | $ | 814 |   |   | $ | 355 |   |

| Per Share Data: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      income - basic   |   | $      | 1.17   |   |   | $      | 0.01   |   |   |   | N/A    |   |   |   | N/A    |   |   |   | N/A |   |
| Net      income - diluted |   |   | 1.17   |   |   |   | 0.01   |   |   |   | N/A    |   |   |   | N/A    |   |   |   | N/A |   |
| Dividends                 |   |   | 0.08   |   |   |   | 0.00   |   |   |   | N/A    |   |   |   | N/A    |   |   |   | N/A |   |

----

|                                                                              |   | At or For the Year Ended September 30, |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|
|                                                                              |   | 2010                                                                      |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Performance      Ratios:                                                          |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average assets                                                     |   |                                                                      | 0.53   | % |   |   | 0.01 | % |   |   | (0.09 | )% |   |   | 0.40 | % |   |   | 0.17 | % |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average equity                                                     |   |                                                                      | 4.93   |   |   |   | 0.06 |   |   |   | (0.64 | ) |   |   | 2.78 |   |   |   | 1.24 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate spread (1)                                                     |   |                                                                      | 4.44   |   |   |   | 3.41 |   |   |   | 2.97 |   |   |   | 3.48 |   |   |   | 3.49 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin (2)                                                      |   |                                                                      | 4.57   |   |   |   | 3.93 |   |   |   | 3.38 |   |   |   | 3.77 |   |   |   | 3.74 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      expenses to average assets                                             |   |                                                                      | 3.66   |   |   |   | 3.90 |   |   |   | 3.11 |   |   |   | 2.79 |   |   |   | 3.13 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Efficiency      ratio (3)                                                         |   |                                                                      | 78.14  |   |   |   | 93.90 |   |   |   | 86.19 |   |   |   | 74.16 |   |   |   | 82.08 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      interest-earning assets to average interest-bearing      liabilities |   |                                                                      | 109.89 |   |   |   | 125.66 |   |   |   | 113.15 |   |   |   | 108.61 |   |   |   | 109.23 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      payout ratio                                                        |   |                                                                      | 7.34   |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      equity to average assets                                             |   |                                                                      | 10.85  |   |   |   | 21.84 |   |   |   | 14.07 |   |   |   | 14.24 |   |   |   | 13.91 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      Ratios:                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible      capital (4)                                                         |   |                                                                      | 7.84   | % |   |   | 7.55 | % |   |   | 12.87 | % |   |   | 14.56 | % |   |   | 13.96 | % |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Core      capital (4)                                                             |   |                                                                      | 7.84   |   |   |   | 7.55 |   |   |   | 12.87 |   |   |   | 14.56 |   |   |   | 13.96 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk-based      capital (4)                                                       |   |                                                                      | 12.77  |   |   |   | 12.32 |   |   |   | 22.09 |   |   |   | 24.70 |   |   |   | 23.36 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      Quality Ratios:                                                        |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses as a percent of total loans                        |   |                                                                      | 1.09   | % |   |   | 1.03 | % |   |   | 0.98 | % |   |   | 0.75 | % |   |   | 0.51 | % |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses as a percent of non-performing loans               |   |                                                                      | 63.88  |   |   |   | 70.06 |   |   |   | 104.72 |   |   |   | 117.16 |   |   |   | 50.61 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      charge-offs to average outstanding loans during the period               |   |                                                                      | 0.42   |   |   |   | 0.38 |   |   |   | 0.64 |   |   |   | 0.21 |   |   |   | 0.51 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing      loans as a percent of total loans                             |   |                                                                      | 1.71   |   |   |   | 1.47 |   |   |   | 0.93 |   |   |   | 0.64 |   |   |   | 1.01 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing      assets as a percent of total assets                           |   |                                                                      | 1.47   |   |   |   | 1.44 |   |   |   | 0.96 |   |   |   | 1.27 |   |   |   | 1.79 |   |
|                                                                              |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                                  |   |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of offices                                                            |   |                                                                      | 12     |   |   |   | 14 |   |   |   | 7 |   |   |   | 7 |   |   |   | 7 |   |
| Number      of deposit accounts (5)                                               |   |                                                                      | 31,100 |   |   |   | 32,689 |   |   |   | 16,831 |   |   |   | 17,525 |   |   |   | 17,962 |   |
| Number of loans (6)                                                               |   |                                                                      | 6,410  |   |   |   | 6,552 |   |   |   | 2,188 |   |   |   | 2,216 |   |   |   | 2,325 |   |

| (1) | Represents      the difference between the weighted average yield on average      interest-earning assets and the weighted average cost on average      interest-bearing liabilities.  Tax exempt income is reported on a tax      equivalent basis using a federal marginal tax rate of  34%. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents      net interest income as a percent of average interest-earning assets.       Tax exempt income is reported on a tax equivalent basis using a federal      marginal tax rate of 34%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents      other expenses divided by the sum of net interest income and other      income. |
|-----|-------------------------------------------------------------------------------------------------|

| (4) | Represents      the capital ratios of only theBank. |
|-----|-----------------------------------------------------|

| (5) | The      significant increase from 2008 to 2009 is due primarily to 16,455 deposit      accounts acquired in the acquisition of Community  First. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The      significant increase from 2008 to 2009 is due primarily to 4,595 loans      acquired in the acquisition of CommunityFirst. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATION |
|--------------|------------------------------------------------------------------------------------------------------|

----

----

|   | · | continuing      our historical focus on residential mortgage lending but de-emphasizing      residential mortgage lending secured by non-owner occupied      properties; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | pursuing      opportunities to increase commercial real estate lending and commercial      business lending; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | continuing      to integrate the Community First offices, customers and product      lines; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | improving      customer service and product offerings as a result of the core operating      system conversion that was completed in August  2010; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | providing      exceptional customer service to attract and retain    customers; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | continuing      to monitor asset quality and credit risk in the loan and investment      portfolios; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | recognizing      improvements in noninterest income with respect to service charges on      deposits as a result of restructuring deposit account types and fees,      commission income related to non-deposit investment products and gains on      sales of mortgage loans sold in the secondary  market; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | recognizing      decreases in noninterest expense as a result of the integration of      Community First and the new core operating  system; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | expanding      our market share and market area by opening new branch offices and      pursuing opportunities to acquire other financial institutions or      branches; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increasing      shareholder value through stock repurchase programs and potential future      dividend plans. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

----

----

----

|                                               |   | At      September 30, |    |
|----------------------------------------------------|--------|-----------------------|---------|
|                                               |   | 2010                  |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| (Dollars      in thousands)                        |   | Amount                |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
| Real      estate mortgage:                         |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                                        |   | $                     | 172,007 |   |   |   | 49.33 | % |   | $ | 185,800 |   |   |   | 51.61 | % |   | $ | 113,518 |   |   |   | 64.20 | % |   | $ | 104,297 |   |   |   | 60.33 | % |   | $ | 101,122 |   |   |   | 59.29 | % |
| Commercial                                         |   |                  | 53,869  |   |   |   | 15.45 |   |   |   | 48,090 |   |   |   | 13.36 |   |   |   | 15,459 |   |   |   | 8.74 |   |   |   | 18,364 |   |   |   | 10.62 |   |   |   | 19,090 |   |   |   | 11.19 |   |
| Multi-family                                       |   |                  | 20,360  |   |   |   | 5.84 |   |   |   | 12,584 |   |   |   | 3.50 |   |   |   | 3,282 |   |   |   | 1.86 |   |   |   | 1,275 |   |   |   | 0.74 |   |   |   | 1,821 |   |   |   | 1.07 |   |
| Residential      construction                      |   |                  | 15,867  |   |   |   | 4.55 |   |   |   | 14,555 |   |   |   | 4.04 |   |   |   | 6,189 |   |   |   | 3.50 |   |   |   | 11,583 |   |   |   | 6.70 |   |   |   | 20,562 |   |   |   | 12.06 |   |
| Commercial      construction                       |   |                  | 9,851   |   |   |   | 2.83 |   |   |   | 7,648 |   |   |   | 2.12 |   |   |   | 1,991 |   |   |   | 1.13 |   |   |   | 3,265 |   |   |   | 1.89 |   |   |   | 29 |   |   |   | 0.02 |   |
| Land      and land development                     |   |                  | 9,076   |   |   |   | 2.60 |   |   |   | 11,189 |   |   |   | 3.11 |   |   |   | 4,748 |   |   |   | 2.69 |   |   |   | 5,022 |   |   |   | 2.91 |   |   |   | 2,524 |   |   |   | 1.48 |   |
| Total                                              |   |                  | 281,030 |   |   |   | 80.60 |   |   |   | 279,866 |   |   |   | 77.74 |   |   |   | 145,187 |   |   |   | 82.12 |   |   |   | 143,806 |   |   |   | 83.19 |   |   |   | 145,148 |   |   |   | 85.11 |   |
|                                               |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business                           |   |                  | 30,905  |   |   |   | 8.86 |   |   |   | 36,901 |   |   |   | 10.25 |   |   |   | 14,411 |   |   |   | 8.15 |   |   |   | 12,645 |   |   |   | 7.31 |   |   |   | 10,232 |   |   |   | 6.00 |   |
|                                               |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                                          |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home      equity lines of credit                   |   |                  | 16,335  |   |   |   | 4.68 |   |   |   | 17,365 |   |   |   | 4.82 |   |   |   | 9,970 |   |   |   | 5.64 |   |   |   | 8,275 |   |   |   | 4.79 |   |   |   | 6,049 |   |   |   | 3.55 |   |
| Auto      loans                                    |   |                  | 13,405  |   |   |   | 3.84 |   |   |   | 18,279 |   |   |   | 5.08 |   |   |   | 1,950 |   |   |   | 1.10 |   |   |   | 1,946 |   |   |   | 1.13 |   |   |   | 1,675 |   |   |   | 0.98 |   |
| Other                                              |   |                  | 7,030   |   |   |   | 2.02 |   |   |   | 7,567 |   |   |   | 2.11 |   |   |   | 5,290 |   |   |   | 2.99 |   |   |   | 6,200 |   |   |   | 3.58 |   |   |   | 7,458 |   |   |   | 4.36 |   |
| Total                                              |   |                  | 36,770  |   |   |   | 10.54 |   |   |   | 43,211 |   |   |   | 12.01 |   |   |   | 17,210 |   |   |   | 9.73 |   |   |   | 16,421 |   |   |   | 9.50 |   |   |   | 15,182 |   |   |   | 8.89 |   |
|                                               |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      loans                                   |   |                  | 348,705 |   |   |   | 100.00 | % |   |   | 359,978 |   |   |   | 100.00 | % |   |   | 176,808 |   |   |   | 100.00 | % |   |   | 172,872 |   |   |   | 100.00 | % |   |   | 170,562 |   |   |   | 100.00 | % |
|                                               |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reserve      for uncollected interest              |   |                  | – |   |   |   |   |   |   |   | – |   |   |   |   |   |   |   | – |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 1 |   |   |   |   |   |
| Deferred      loan origination fees and costs, net |   |                  | (778    | ) |   |   |   |   |   |   | (846 | ) |   |   |   |   |   |   | (795 | ) |   |   |   |   |   |   | (618 | ) |   |   |   |   |   |   | (335 | ) |   |   |   |   |
| Undisbursed      portion of loans in process       |   |                  | 2,057   |   |   |   |   |   |   |   | 3,306 |   |   |   |   |   |   |   | 1,067 |   |   |   |   |   |   |   | 4,822 |   |   |   |   |   |   |   | 3,333 |   |   |   |   |   |
| Allowance      for loan losses                     |   |                  | 3,811   |   |   |   |   |   |   |   | 3,695 |   |   |   |   |   |   |   | 1,729 |   |   |   |   |   |   |   | 1,297 |   |   |   |   |   |   |   | 868 |   |   |   |   |   |
| Loans,      net                                    |   | $                     | 343,615 |   |   |   |   |   |   | $ | 353,823 |   |   |   |   |   |   | $ | 174,807 |   |   |   |   |   |   | $ | 167,371 |   |   |   |   |   |   | $ | 166,695 |   |   |   |   |   |

----

|                                      |   | At      September 30, 2010     |    |
|-------------------------------------------|--------|--------------------------------|---------|
| (Dollars      in thousands)               |   | ResidentialReal      Estate(1) |    |   | CommercialReal      Estate(2) |   |   | Construction(3) |   |   | CommercialBusiness |   |   | Consumer |   |   | TotalLoans |   |
| Amounts      due in:                      |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One      year or less                     |   | $                              | 27,914  |   |   | $ | 25,191 |   |   | $ | 25,718 |   |   | $ | 20,607 |   |   | $ | 12,247 |   |   | $ | 111,677 |   |
| More      than one year to two years      |   |                           | 13,985  |   |   |   | 12,157 |   |   |   | - |   |   |   | 3,219 |   |   |   | 7,340 |   |   |   | 36,701 |   |
| More      than two years to three years   |   |                           | 12,575  |   |   |   | 8,478 |   |   |   | - |   |   |   | 2,435 |   |   |   | 5,182 |   |   |   | 28,670 |   |
| More      than three years to five years  |   |                           | 15,470  |   |   |   | 7,412 |   |   |   | - |   |   |   | 2,506 |   |   |   | 5,260 |   |   |   | 30,648 |   |
| More      than five years to ten years    |   |                           | 36,623  |   |   |   | 5,449 |   |   |   | - |   |   |   | 1,884 |   |   |   | 5,600 |   |   |   | 49,556 |   |
| More      than ten years to fifteen years |   |                           | 28,104  |   |   |   | 2,457 |   |   |   | - |   |   |   | 132 |   |   |   | 1,141 |   |   |   | 31,834 |   |
| More      than fifteen years              |   |                           | 57,696  |   |   |   | 1,801 |   |   |   | - |   |   |   | 122 |   |   |   | - |   |   |   | 59,619 |   |
| Total                                     |   | $                              | 192,367 |   |   | $ | 62,945 |   |   | $ | 25,718 |   |   | $ | 30,905 |   |   | $ | 36,770 |   |   | $ | 348,705 |   |

| (In      thousands)              |   | Fixed Rates |    |   | Adjustable Rates |   |   | Total  |   |
|----------------------------------|--------|------------------|---------|--------|-----------------------|--------|--------|--------|--------|
| Residential      real estate (1) |   | $                | 108,684 |   |                  | $      | 55,769 |   |   | $ | 164,453 |   |
| Commercial      real estate (2)  |   |             | 26,792  |   |                  |   | 10,962 |   |   |   | 37,754 |   |
| Construction                     |   |             | -       |   |                  |   | -      |   |   |   | - |   |
| Commercial      business         |   |             | 7,591   |   |                  |   | 2,707  |   |   |   | 10,298 |   |
| Consumer                         |   |             | 13,758  |   |                  |   | 10,765 |   |   |   | 24,523 |   |
| Total                            |   | $                | 156,825 |   |                  | $      | 80,203 |   |   | $ | 237,028 |   |

----

|                                                |   | Year      Ended September 30, |    |
|-----------------------------------------------------|--------|-------------------------------|---------|
| (In      thousands)                                 |   | 2010                          |    |   | 2009 |   |   | 2008 |   |
| Total      loans at beginning of period             |   | $                             | 359,978 |   |   | $ | 176,808 |   |   | $ | 172,872 |   |
| Loans      originated:                              |   |                          |    |   |   |   |   |   |   |   |   |   |
| Residential      real estate (1)                    |   |                          | 22,980  |   |   |   | 19,630 |   |   |   | 36,986 |   |
| Commercial      real estate (2)                     |   |                          | 7,386   |   |   |   | 8,360 |   |   |   | 7,154 |   |
| Construction                                        |   |                          | 9,762   |   |   |   | 3,258 |   |   |   | 7,918 |   |
| Commercial      business                            |   |                          | 10,050  |   |   |   | 13,883 |   |   |   | 8,648 |   |
| Consumer                                            |   |                          | 6,999   |   |   |   | 14,013 |   |   |   | 15,854 |   |
| Total      loans originated                         |   |                          | 57,177  |   |   |   | 59,144 |   |   |   | 76,560 |   |
| Loans      purchased                                |   |                          | – |   |   |   | – |   |   |   | – |   |
| Increase      due to acquisition of Community First |   |                          | – |   |   |   | 174,940 |   |   |   | – |   |
| Deduct:                                             |   |                          |    |   |   |   |   |   |   |   |   |   |
| Loan      principal repayments                      |   |                          | (68,450 | ) |   |   | (50,914 | ) |   |   | (72,624 | ) |
| Loan      sales                                     |   |                          | – |   |   |   | – |   |   |   | – |   |
| Net      loan activity                              |   |                          | (11,273 | ) |   |   | 183,170 |   |   |   | 3,936 |   |
| Total      loans at end of period                   |   | $                             | 348,705 |   |   | $ | 359,978 |   |   | $ | 176,808 |   |

----

|                                   |   | At      September 30, |    |
|----------------------------------------|--------|-----------------------|---------|
|                                   |   | 2010                  |    |   | 2009 |   |   | 2008 |   |
| (In      thousands)                    |   | AmortizedCost         |    |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |
| Securities      available for sale:    |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency      bonds and notes            |   | $                     | 25,510  |   |   | $ | 25,705 |   |   | $ | 5,825 |   |   | $ | 5,845 |   |   | $ | 4,008 |   |   | $ | 4,059 |   |
| Agency      CMO                        |   |                  | 22,325  |   |   |   | 22,488 |   |   |   | 3,343 |   |   |   | 3,473 |   |   |   | 1,891 |   |   |   | 1,900 |   |
| Privately-issued      CMO              |   |                  | 10,342  |   |   |   | 12,688 |   |   |   | 11,139 |   |   |   | 11,139 |   |   |   | – |   |   |   | – |   |
| Privately-issued      asset-backed     |   |                  | – |   |   |   | – |   |   |   | 52 |   |   |   | 52 |   |   |   | – |   |   |   | – |   |
| Municipal                              |   |                  | 33,109  |   |   |   | 34,877 |   |   |   | 17,081 |   |   |   | 17,512 |   |   |   | 4,669 |   |   |   | 4,642 |   |
| Agency      mortgage-backed securities |   |                  | 13,944  |   |   |   | 14,141 |   |   |   | 34,368 |   |   |   | 34,483 |   |   |   | – |   |   |   | – |   |
| Other      equity securities           |   |                  | – |   |   |   | 77 |   |   |   | – |   |   |   | 76 |   |   |   | – |   |   |   | 96 |   |
| Total                                  |   | $                     | 105,230 |   |   | $ | 109,976 |   |   | $ | 71,808 |   |   | $ | 72,580 |   |   | $ | 10,568 |   |   | $ | 10,697 |   |
|                                   |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      held to maturity:      |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal                              |   | $                     | 304     |   |   | $ | 308 |   |   | $ | 305 |   |   | $ | 308 |   |   | $ | 307 |   |   | $ | 310 |   |
| Agency      mortgage-backed securities |   |                  | 3,625   |   |   |   | 3,836 |   |   |   | 6,477 |   |   |   | 6,746 |   |   |   | 8,149 |   |   |   | 8,181 |   |
| Total                                  |   | $                     | 3,929   |   |   | $ | 4,144 |   |   | $ | 6,782 |   |   | $ | 7,054 |   |   | $ | 8,456 |   |   | $ | 8,491 |   |

|                                                                            |   | At      or For the Year EndedSeptember      30, |    |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
| (In      thousands)                                                             |   | 2010                                            |    |   | 2009 |   |   | 2008 |   |
| Mortgage-backed      securities:                                                |   |                                            |    |   |   |   |   |   |   |
| Mortgage-backed      securities, beginning of period (1)                        |   | $                                               | 41,229  |   |   | $ | 8,181 |   |   | $ | 3,091 |   |
| Purchases                                                                       |   |                                            | 10,020  |   |   |   | 4,005 |   |   |   | 6,040 |   |
| Sales                                                                           |   |                                            | (20,244 | ) |   |   | – |   |   |   | – |   |
| Maturities                                                                      |   |                                            | – |   |   |   | – |   |   |   | – |   |
| Repayments      and prepayments                                                 |   |                                            | (12,356 | ) |   |   | (3,454 | ) |   |   | (992 | ) |
| Net      amortization of premiums and accretion of discounts on      securities |   |                                            | (849    | ) |   |   | (42 | ) |   |   | (13 | ) |
| Gains      on sales                                                             |   |                                            | 153     |   |   |   | – |   |   |   | – |   |
| Increase      in net unrealized gain                                            |   |                                            | 24      |   |   |   | 352 |   |   |   | 55 |   |
| Increase      due to acquisition of Community First                             |   |                                            | – |   |   |   | 32,187 |   |   |   | – |   |
| Net      increase (decrease) in mortgage-backed securities                      |   |                                            | (23,252 | ) |   |   | 33,048 |   |   |   | 5,090 |   |
| Mortgage-backed      securities, end of period (1)                              |   | $                                               | 17,977  |   |   | $ | 41,229 |   |   | $ | 8,181 |   |
|                                                                            |   |                                            |    |   |   |   |   |   |   |   |   |   |
| Investment      securities:                                                     |   |                                            |    |   |   |   |   |   |   |   |   |   |
| Investment      securities, beginning of period (1)                             |   | $                                               | 38,405  |   |   | $ | 11,007 |   |   | $ | 12,564 |   |
| Purchases                                                                       |   |                                            | 92,742  |   |   |   | 44,547 |   |   |   | 7,577 |   |
| Sales                                                                           |   |                                            | (3,666  | ) |   |   | (16,041 | ) |   |   | – |   |
| Maturities                                                                      |   |                                            | (32,605 | ) |   |   | (17,300 | ) |   |   | (9,000 | ) |
| Repayments      and prepayments                                                 |   |                                            | (3,366  | ) |   |   | (985 | ) |   |   | (107 | ) |
| Net      amortization of premiums and accretion of discounts on      securities |   |                                            | 801     |   |   |   | (173 | ) |   |   | (22 | ) |
| Other      than temporary impairment loss                                       |   |                                            | (60     | ) |   |   | – |   |   |   | – |   |
| Gains      on sales                                                             |   |                                            | – |   |   |   | 100 |   |   |   | – |   |
| Increase      (decrease) in net unrealized gain                                 |   |                                            | 3,892   |   |   |   | 529 |   |   |   | (5 | ) |
| Acquired      with Community First                                              |   |                                            | – |   |   |   | 16,721 |   |   |   | – |   |
| Net      increase (decrease) in investment securities                           |   |                                            | 57,738  |   |   |   | 27,398 |   |   |   | (1,557 | ) |
| Investment      securities, end of period (1)                                   |   | $                                               | 96,143  |   |   | $ | 38,405 |   |   | $ | 11,007 |   |

----

|                                   |   | One      Yearor      Less |    |   | More      thanOne      Year toFive      Years |   |    | More      thanFive      Years toTen      Years |   |   | More      thanTen      Years |   |   | Total         |    |
|----------------------------------------|--------|---------------------------|---------|--------|-----------------------------------------------|--------|---------|------------------------------------------------|--------|--------|------------------------------|--------|--------|---------------|---------|
| (Dollars      in thousands)            |   | CarryingValue             |    |   | WeightedAverageYield                          |   |    | CarryingValue                                  |   |   | WeightedAverageYield         |   |   | CarryingValue |    |   | WeightedAverageYield |   |   | CarryingValue |   |   | WeightedAverageYield |   |   | CarryingValue |   |   | WeightedAverageYield |   |
| Securities      available for sale:    |   |                      |    |   |                                          |   |    |                                           |   |   |                         |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                      |    |   |                                          |   |    |                                           |   |   |                         |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency      bonds and notes            |   | $                         | – |   |                                          |   | – | %                                              |   | $      | –                      |   |   |          | – | % |   | $ | 2,025 |   |   |   | 3.50 | % |   | $ | 23,680 |   |   |   | 3.41 | % |   | $ | 25,705 |   |   |   | 3.42 | % |
| Agency      CMO                        |   |                      | – |   |                                          |   | – |                                           |   |   | –                      |   |   |          | – |   |   |   | 3,389 |   |   |   | 1.36 |   |   |   | 19,099 |   |   |   | 2.84 |   |   |   | 22,488 |   |   |   | 2.62 |   |
| Privately-issued      CMO              |   |                      | – |   |                                          |   | – |                                           |   |   | –                      |   |   |          | – |   |   |   | – |   |   |   | – |   |   |   | 12,688 |   |   |   | 12.33 |   |   |   | 12,688 |   |   |   | 12.33 |   |
| Municipal                              |   |                      | 178     |   |                                          |   | 6.18    |                                           |   |   | 965                          |   |   |          | 6.27    |   |   |   | 5,994 |   |   |   | 6.61 |   |   |   | 27,740 |   |   |   | 6.28 |   |   |   | 34,877 |   |   |   | 6.34 |   |
| Agency      mortgage-backed securities |   |                      | – |   |                                          |   | – |                                           |   |   | 194                          |   |   |          | 2.59    |   |   |   | 2,328 |   |   |   | 2.22 |   |   |   | 11,619 |   |   |   | 3.47 |   |   |   | 14,141 |   |   |   | 3.26 |   |
| Total                                  |   | $                         | 178     |   |                                          |   | 6.18    | %                                              |   | $      | 1,159                        |   |   |          | 5.65    | % |   | $ | 13,736 |   |   |   | 4.11 | % |   | $ | 94,826 |   |   |   | 5.34 | % |   | $ | 109,899 |   |   |   | 5.19 | % |
|                                   |   |                      |    |   |                                          |   |    |                                           |   |   |                         |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      held to maturity:      |   |                      |    |   |                                          |   |    |                                           |   |   |                         |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                      |    |   |                                          |   |    |                                           |   |   |                         |   |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal                              |   | $                         | 304     |   |                                          |   | 5.70    | %                                              |   | $      | –                      |   |   |          | – | % |   | $ | – |   |   |   | – | % |   | $ | – |   |   |   | – | % |   | $ | 304 |   |   |   | 5.70 | % |
| Agency      mortgage-backed securities |   |                      | – |   |                                          |   | – |                                           |   |   | 511                          |   |   |          | 4.68    |   |   |   | – |   |   |   | – |   |   |   | 3,114 |   |   |   | 4.71 |   |   |   | 3,625 |   |   |   | 4.71 |   |
| Total                                  |   | $                         | 304     |   |                                          |   | 5.70    | %                                              |   | $      | 511                          |   |   |          | 4.68    | % |   | $ | – |   |   |   | – | % |   | $ | 3,114 |   |   |   | 4.71 | % |   | $ | 3,929 |   |   |   | 4.79 | % |

|                                      |   | At      September 30, |    |
|-------------------------------------------|--------|-----------------------|---------|
| (In      thousands)                       |   | 2010                  |    |   | 2009 |   |   | 2008 |   |
| Non-interest-bearing      demand deposits |   | $                     | 28,853  |   |   | $ | 25,388 |   |   | $ | 6,843 |   |
| NOW      accounts                         |   |                  | 64,831  |   |   |   | 56,398 |   |   |   | 39,340 |   |
| Money      market accounts                |   |                  | 35,950  |   |   |   | 34,715 |   |   |   | 8,565 |   |
| Savings      accounts                     |   |                  | 39,104  |   |   |   | 36,132 |   |   |   | 17,974 |   |
| Certificates      of deposit              |   |                  | 197,423 |   |   |   | 198,183 |   |   |   | 116,487 |   |
| Total                                     |   | $                     | 366,161 |   |   | $ | 350,816 |   |   | $ | 189,209 |   |

----

| Maturity      Period                |   | Amount              |   |
|-------------------------------------|--------|---------------------|--------|
|                                |   | (In      thousands) |   |
| Three      months or less           |   | $                   | 8,792  |   |
| Over      three through six months  |   |                | 12,241 |   |
| Over      six through twelve months |   |                | 8,090  |   |
| Over      twelve months             |   |                | 23,319 |   |
| Total                               |   | $                   | 52,442 |   |

|                  |   | At      September 30, |    |
|-----------------------|--------|-----------------------|---------|
| (In      thousands)   |   | 2010                  |    |   | 2009 |   |   | 2008 |   |
| 0.00      - 1.00%     |   | $                     | 65,409  |   |   | $ | 5,791 |   |   | $ | – |   |
| 1.01      - 2.00%     |   |                  | 42,725  |   |   |   | 49,025 |   |   |   | – |   |
| 2.01      - 3.00% (1) |   |                  | 39,084  |   |   |   | 56,141 |   |   |   | 37,847 |   |
| 3.01      - 4.00%     |   |                  | 19,944  |   |   |   | 40,015 |   |   |   | 22,816 |   |
| 4.01      - 5.00%     |   |                  | 21,445  |   |   |   | 34,204 |   |   |   | 38,666 |   |
| 5.01      - 6.00%     |   |                  | 6,695   |   |   |   | 6,923 |   |   |   | 4,869 |   |
| 6.01      - 7.00%     |   |                  | 581     |   |   |   | 1,186 |   |   |   | 1,153 |   |
| 7.01      - 8.00%     |   |                  | 1,540   |   |   |   | 4,898 |   |   |   | 4,878 |   |
| 8.01      - 9.00% (2) |   |                  | – |   |   |   | – |   |   |   | 6,258 |   |
| Total                 |   | $                     | 197,423 |   |   | $ | 198,183 |   |   | $ | 116,487 |   |

|   | (1) | Includes      $6.4 million of our pension plan assets invested in certificates of      deposit at September 30, 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (2) | Represents      the investment of our pension plan assets in certificates of deposit at      September 30, 2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|                        |   | Amount      Due             |    |   |                                         |   |    |                                            |   |
|-----------------------------|--------|-----------------------------|---------|--------|----------------------------------------------|--------|---------|-------------------------------------------------|--------|
| (Dollars      in thousands) |   | Less      ThanOne      Year |    |   | More      ThanOne      Year toTwo      Years |   |    | More      ThanTwo      Years toThree      Years |   |   | More      ThanThree      Years |   |   | Total |   |   | Percent      of Total Time      DepositAccounts |   |
| 0.00      - 1.00%           |   | $                           | 59,119  |   |                                         | $      | 6,173   |                                            |   | $ | 36 |   |   | $ | 81 |   |   | $ | 65,409 |   |   |   | 33.13 | % |
| 1.01      - 2.00%           |   |                        | 23,911  |   |                                         |   | 13,005  |                                            |   |   | 3,299 |   |   |   | 2,510 |   |   |   | 42,725 |   |   |   | 21.64 |   |
| 2.01      - 3.00%           |   |                        | 13,753  |   |                                         |   | 9,570   |                                            |   |   | 1,228 |   |   |   | 14,533 |   |   |   | 39,084 |   |   |   | 19.80 |   |
| 3.01      - 4.00%           |   |                        | 4,468   |   |                                         |   | 6,829   |                                            |   |   | 2,061 |   |   |   | 6,586 |   |   |   | 19,944 |   |   |   | 10.10 |   |
| 4.01      - 5.00%           |   |                        | 7,381   |   |                                         |   | 9,437   |                                            |   |   | 1,461 |   |   |   | 3,166 |   |   |   | 21,445 |   |   |   | 10.86 |   |
| 5.01      - 6.00%           |   |                        | 4,275   |   |                                         |   | 697     |                                            |   |   | – |   |   |   | 1,723 |   |   |   | 6,695 |   |   |   | 3.39 |   |
| 6.01      - 7.00%           |   |                        | 581     |   |                                         |   | – |                                            |   |   | – |   |   |   | – |   |   |   | 581 |   |   |   | 0.30 |   |
| 7.01      - 8.00%           |   |                        | 1,424   |   |                                         |   | – |                                            |   |   | – |   |   |   | 116 |   |   |   | 1,540 |   |   |   | 0.78 |   |
| Total                       |   | $                           | 114,912 |   |                                         | $      | 45,711  |                                            |   | $ | 8,085 |   |   | $ | 28,715 |   |   | $ | 197,423 |   |   |   | 100.00 | % |

|                                                |   | Year      Ended September 30, |    |
|-----------------------------------------------------|--------|-------------------------------|---------|
| (In      thousands)                                 |   | 2010                          |    |   | 2009 |   |   | 2008 |   |
| Beginning      balance                              |   | $                             | 350,816 |   |   | $ | 189,209 |   |   | $ | 168,782 |   |
| Increase      due to acquisition of Community First |   |                          | – |   |   |   | 179,460 |   |   |   | – |   |
| Increase      (decrease) before interest credited   |   |                          | 12,865  |   |   |   | (21,633 | ) |   |   | 15,241 |   |
| Interest      credited                              |   |                          | 2,480   |   |   |   | 3,780 |   |   |   | 5,186 |   |
| Net      increase in deposits                       |   |                          | 15,345  |   |   |   | 161,607 |   |   |   | 20,427 |   |
| Ending      balance                                 |   | $                             | 366,161 |   |   | $ | 350,816 |   |   | $ | 189,209 |   |

----

|                                                                                   |   | Year      Ended September 30, |   |
|----------------------------------------------------------------------------------------|--------|-------------------------------|--------|
| (Dollars      in thousands)                                                            |   | 2010                          |   |   | 2009 |   |   | 2008 |   |
| Maximum      amount of FHLB borrowings outstanding at any month-end during      period |   | $                             | 67,159 |   |   | $ | 55,773 |   |   | $ | 8,000 |   |
| Average      FHLB  borrowings  outstanding during      period      |   |                          | 59,319 |   |   |   | 14,946 |   |   |   | 6,422 |   |
| Weighted      average interest rate during period                                      |   |                          | 1.70   | % |   |   | 2.11 | % |   |   | 3.60 | % |
| Balance      outstanding at end of period                                              |   | $                             | 67,159 |   |   | $ | 55,773 |   |   | $ | 8,000 |   |
| Weighted      average interest rate at end of period                                   |   |                          | 1.66   | % |   |   | 1.20 | % |   |   | 3.36 | % |

|                                                                                                |   | Year      Ended September 30, |   |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
| (Dollars      in thousands)                                                                         |   | 2010                          |   |   | 2009 |   |   | 2008 |   |
| Maximum      amount of retail repurchase agreements outstanding at any month-end during      period |   | $                             | 1,312  |   |   | $ | 1,304 |   |   | $ | – |   |
| Average      retail repurchase agreements outstanding during period                                 |   |                          | 1,308  |   |   |   | – |   |   |   | – |   |
| Weighted      average interest rate during period                                                   |   |                          | 0.50   | % |   |   | – |   |   |   | – |   |
| Balance      outstanding at end of period                                                           |   | $                             | 1,312  |   |   | $ | 1,304 |   |   | $ | – |   |
| Weighted      average interest rate at end of period                                                |   |                          | 0.63   | % |   |   | 0.63 | % |   |   | – |   |

|                                                                                                |   | Year      Ended September 30, |   |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|
| (Dollars      in thousands)                                                                         |   | 2010                          |   |   | 2009 |   |   | 2008 |   |
| Maximum      amount of broker repurchase agreements outstanding at any month-end during      period |   | $                             | 15,899 |   |   | $ | 15,935 |   |   | $ | – |   |
| Average      broker repurchase agreements outstanding during period                                 |   |                          | 15,722 |   |   |   | – |   |   |   | – |   |
| Weighted      average interest rate during period                                                   |   |                          | 2.10   | % |   |   | – |   |   |   | – |   |
| Balance      outstanding at end of period                                                           |   | $                             | 15,509 |   |   | $ | 15,935 |   |   | $ | – |   |
| Weighted      average interest rate at end of period                                                |   |                          | 1.62   | % |   |   | 1.62 | % |   |   | – |   |

----

----

----

|                                                                              |   | Year      Ended September 30, |    |
|-----------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                              |   | 2010                          |    |   | 2009 |   |   | 2008 |   |
| (Dollars      in thousands)                                                       |   | AverageBalance                |    |   | InterestandDividends |   |   | Yield/Cost |   |   | AverageBalance |   |   | InterestandDividends |   |   | Yield/Cost |   |   | AverageBalance |   |   | InterestandDividends |   |   | Yield/Cost |   |
| Assets:                                                                           |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits with banks                                         |   | $                             | 3,614   |   |   | $ | 16 |   |   |   | 0.44 | % |   | $ | 4,481 |   |   | $ | 34 |   |   |   | 0.76 | % |   | $ | 6,638 |   |   | $ | 163 |   |   |   | 2.46 | % |
| Loans                                                                             |   |                          | 352,208 |   |   |   | 22,295 |   |   |   | 6.33 |   |   |   | 180,864 |   |   |   | 11,393 |   |   |   | 6.30 |   |   |   | 172,272 |   |   |   | 11,611 |   |   |   | 6.74 |   |
| Investment      securities                                                        |   |                          | 58,437  |   |   |   | 3,558 |   |   |   | 6.09 |   |   |   | 24,344 |   |   |   | 1,138 |   |   |   | 4.67 |   |   |   | 9,511 |   |   |   | 451 |   |   |   | 4.74 |   |
| Mortgage-backed      securities                                                   |   |                          | 31,309  |   |   |   | 750 |   |   |   | 2.40 |   |   |   | 10,238 |   |   |   | 516 |   |   |   | 5.04 |   |   |   | 6,144 |   |   |   | 291 |   |   |   | 4.74 |   |
| Federal      Home Loan Bank stock                                                 |   |                          | 4,170   |   |   |   | 69 |   |   |   | 1.65 |   |   |   | 1,353 |   |   |   | 46 |   |   |   | 3.40 |   |   |   | 1,336 |   |   |   | 68 |   |   |   | 5.09 |   |
| Total      interest-earning assets                                                |   |                          | 449,738 |   |   |   | 26,688 |   |   |   | 5.93 |   |   |   | 221,280 |   |   |   | 13,127 |   |   |   | 5.93 |   |   |   | 195,901 |   |   |   | 12,584 |   |   |   | 6.42 |   |
|                                                                              |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning      assets                                                  |   |                          | 42,003  |   |   |   |   |   |   |   |   |   |   |   | 15,384 |   |   |   |   |   |   |   |   |   |   |   | 15,109 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                 |   | $                             | 491,741 |   |   |   |   |   |   |   |   |   |   | $ | 236,664 |   |   |   |   |   |   |   |   |   |   | $ | 211,010 |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and equity:                                                      |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW      accounts                                                                 |   | $                             | 63,389  |   |   | $ | 387 |   |   |   | 0.61 |   |   | $ | 20,013 |   |   | $ | 94 |   |   |   | 0.47 |   |   | $ | 21,391 |   |   | $ | 144 |   |   |   | 0.67 |   |
| Money      market deposit accounts                                                |   |                          | 33,736  |   |   |   | 260 |   |   |   | 0.77 |   |   |   | 7,702 |   |   |   | 109 |   |   |   | 1.42 |   |   |   | 7,134 |   |   |   | 127 |   |   |   | 1.78 |   |
| Passbook      accounts                                                            |   |                          | 37,438  |   |   |   | 99 |   |   |   | 0.26 |   |   |   | 18,528 |   |   |   | 45 |   |   |   | 0.24 |   |   |   | 17,923 |   |   |   | 86 |   |   |   | 0.48 |   |
| Certificates      of deposit                                                      |   |                          | 198,323 |   |   |   | 4,025 |   |   |   | 2.03 |   |   |   | 114,904 |   |   |   | 3,877 |   |   |   | 3.37 |   |   |   | 120,263 |   |   |   | 5,384 |   |   |   | 4.48 |   |
| Total      interest-bearing deposits                                              |   |                          | 332,886 |   |   |   | 4,771 |   |   |   | 1.43 |   |   |   | 161,147 |   |   |   | 4,125 |   |   |   | 2.56 |   |   |   | 166,711 |   |   |   | 5,741 |   |   |   | 3.44 |   |
|                                                                              |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings      (1)                                                               |   |                          | 76,369  |   |   |   | 1,346 |   |   |   | 1.76 |   |   |   | 14,946 |   |   |   | 315 |   |   |   | 2.11 |   |   |   | 6,422 |   |   |   | 231 |   |   |   | 3.60 |   |
| Total      interest-bearing liabilities                                           |   |                          | 409,255 |   |   |   | 6,117 |   |   |   | 1.49 |   |   |   | 176,093 |   |   |   | 4,440 |   |   |   | 2.52 |   |   |   | 173,133 |   |   |   | 5,972 |   |   |   | 3.45 |   |
|                                                                              |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing      deposits                                                |   |                          | 27,024  |   |   |   |   |   |   |   |   |   |   |   | 6,820 |   |   |   |   |   |   |   |   |   |   |   | 5,823 |   |   |   |   |   |   |   |   |   |
| Other      non-interest-bearing liabilities                                       |   |                          | 2,112   |   |   |   |   |   |   |   |   |   |   |   | 2,073 |   |   |   |   |   |   |   |   |   |   |   | 2,363 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                            |   |                          | 438,391 |   |   |   |   |   |   |   |   |   |   |   | 184,986 |   |   |   |   |   |   |   |   |   |   |   | 181,319 |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      equity                                                                 |   |                          | 53,350  |   |   |   |   |   |   |   |   |   |   |   | 51,678 |   |   |   |   |   |   |   |   |   |   |   | 29,691 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and equity                                                 |   | $                             | 491,741 |   |   |   |   |   |   |   |   |   |   | $ | 236,664 |   |   |   |   |   |   |   |   |   |   | $ | 211,010 |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                          |   |                          |    |   |   | $ | 20,571 |   |   |   |   |   |   |   |   |   |   | $ | 8,687 |   |   |   |   |   |   |   |   |   |   | $ | 6,612 |   |   |   |   |   |
| Interest      rate spread                                                         |   |                          |    |   |   |   |   |   |   |   | 4.44 | % |   |   |   |   |   |   |   |   |   |   | 3.41 | % |   |   |   |   |   |   |   |   |   |   | 2.97 | % |
| Net      interest margin                                                          |   |                          |    |   |   |   |   |   |   |   | 4.57 | % |   |   |   |   |   |   |   |   |   |   | 3.93 | % |   |   |   |   |   |   |   |   |   |   | 3.38 | % |
| Average      interest-earning assets to average interest-bearing      liabilities |   |                          |    |   |   |   |   |   |   |   | 109.89 | % |   |   |   |   |   |   |   |   |   |   | 125.66 | % |   |   |   |   |   |   |   |   |   |   | 113.15 | % |

|   | (1) | Includes      Federal Home Loan Bank borrowings and repurchase    agreements. |
|--------|-----|-------------------------------------------------------------------------------|

----

|                                      |   | Year      Ended September 30, 2010Compared      toYear      Ended September 30, 2009 |   |   | Year      Ended September 30, 2009Compared      toYear      Ended September 30, 2008 |   |
|-------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|
|                                      |   | Increase      (Decrease)Due      to                                                  |   |   |                                                                                 |   |   | Increase      (Decrease)Due      to |   |   |   |   |
| (In      thousands)                       |   | Volume                                                                               |   |   | Rate                                                                                 |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
| Interest      income:                     |   |                                                                                 |   |   |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      deposits with banks |   | $                                                                                    | (6     | )      |                                                                                 | $      | (12 | ) |   | $ | (18 | ) |   | $ | (42 | ) |   | $ | (87 | ) |   | $ | (129 | ) |
| Loans      receivable                     |   |                                                                                 | 10,848 |   |                                                                                 |   | 54 |   |   |   | 10,902 |   |   |   | 705 |   |   |   | (923 | ) |   |   | (218 | ) |
| Investment      securities                |   |                                                                                 | 1,988  |   |                                                                                 |   | 432 |   |   |   | 2,420 |   |   |   | 694 |   |   |   | (7 | ) |   |   | 687 |   |
| Mortgage-backed      securities           |   |                                                                                 | 314    |   |                                                                                 |   | (80 | ) |   |   | 234 |   |   |   | 206 |   |   |   | 19 |   |   |   | 225 |   |
| Other      interest-earning assets        |   |                                                                                 | 31     |   |                                                                                 |   | (8 | ) |   |   | 23 |   |   |   | 1 |   |   |   | (23 | ) |   |   | (22 | ) |
| Total      interest-earning assets        |   |                                                                                 | 13,175 |   |                                                                                 |   | 386 |   |   |   | 13,561 |   |   |   | 1,564 |   |   |   | (1,021 | ) |   |   | 543 |   |
|                                      |   |                                                                                 |   |   |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                    |   |                                                                                 |   |   |                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                  |   |                                                                                 | 1,103  |   |                                                                                 |   | (457 | ) |   |   | 646 |   |   |   | (186 | ) |   |   | (1,430 | ) |   |   | (1,616 | ) |
| Federal      Home Loan Bank advances      |   |                                                                                 | 1,074  |   |                                                                                 |   | (43 | ) |   |   | 1,031 |   |   |   | 122 |   |   |   | (38 | ) |   |   | 84 |   |
| Total      interest-bearing liabilities   |   |                                                                                 | 2,177  |   |                                                                                 |   | (500 | ) |   |   | 1,677 |   |   |   | (64 | ) |   |   | (1,468 | ) |   |   | (1,532 | ) |
| Net      increase in net interest income  |   | $                                                                                    | 10,998 |   |                                                                                 | $      | 886 |   |   | $ | 11,884 |   |   | $ | 1,628 |   |   | $ | 447 |   |   | $ | 2,075 |   |

----

----

|                                                                                   |   | At      September 30, |    |
|----------------------------------------------------------------------------------------|--------|-----------------------|---------|
| (Dollars      in thousands)                                                            |   | 2010                  |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Non-accrual      loans:                                                                |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate                                                           |   | $                     | 2,695   |   |   | $ | 1,995 |   |   | $ | 472 |   |   | $ | 99 |   |   | $ | 568 |   |
| Commercial      real estate                                                            |   |                  | 843     |   |   |   | 1,022 |   |   |   | – |   |   |   | 22 |   |   |   | 211 |   |
| Multi-family                                                                           |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Land      and land development                                                         |   |                  | – |   |   |   | 537 |   |   |   | 33 |   |   |   | 33 |   |   |   | – |   |
| Construction                                                                           |   |                  | 526     |   |   |   | 461 |   |   |   | – |   |   |   | – |   |   |   | 418 |   |
| Commercial      business                                                               |   |                  | 207     |   |   |   | 572 |   |   |   | 119 |   |   |   | – |   |   |   | 9 |   |
| Consumer                                                                               |   |                  | 302     |   |   |   | 145 |   |   |   | 174 |   |   |   | 277 |   |   |   | 368 |   |
| Total                                                                                  |   |                  | 4,573   |   |   |   | 4,732 |   |   |   | 798 |   |   |   | 431 |   |   |   | 1,574 |   |
|                                                                                   |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accruing      loans past due 90 days or more:                                          |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate                                                           |   |                  | 594     |   |   |   | 128 |   |   |   | 678 |   |   |   | 572 |   |   |   | – |   |
| Commercial      real estate                                                            |   |                  | 327     |   |   |   | – |   |   |   | – |   |   |   | 104 |   |   |   | – |   |
| Construction                                                                           |   |                  | 272     |   |   |   | 228 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Multi-family                                                                           |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Land      and land development                                                         |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Commercial      business                                                               |   |                  | 137     |   |   |   | 67 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Consumer                                                                               |   |                  | 63      |   |   |   | 119 |   |   |   | 175 |   |   |   | – |   |   |   | 141 |   |
| Total                                                                                  |   |                  | 1,393   |   |   |   | 542 |   |   |   | 853 |   |   |   | 676 |   |   |   | 141 |   |
| Total      of non-accrual and 90 days or more past due loans                           |   |                  | 5,966   |   |   |   | 5,274 |   |   |   | 1,651 |   |   |   | 1,107 |   |   |   | 1,715 |   |
|                                                                                   |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate owned                                                                 |   |                  | 1,331   |   |   |   | 1,589 |   |   |   | 390 |   |   |   | 1,278 |   |   |   | 1,941 |   |
| Other      non-performing assets                                                       |   |                  | 171     |   |   |   | 64 |   |   |   | 146 |   |   |   | 198 |   |   |   | 45 |   |
| Total      non-performing assets                                                       |   | $                     | 7,468   |   |   | $ | 6,927 |   |   | $ | 2,187 |   |   | $ | 2,583 |   |   | $ | 3,701 |   |
|                                                                                   |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      non-performing loans to total loans                                         |   |                  | 1.71    | % |   |   | 1.47 | % |   |   | 0.93 | % |   |   | 0.64 | % |   |   | 1.01 | % |
| Total      non-performing loans to total assets                                        |   |                  | 1.17    | % |   |   | 1.10 | % |   |   | 0.72 | % |   |   | 0.54 | % |   |   | 0.83 | % |
| Total      non-performing assets and troubled debt restructurings to total      assets |   |                  | 1.47    | % |   |   | 1.44 | % |   |   | 0.96 | % |   |   | 1.27 | % |   |   | 1.79 | % |

----

|                         |   | At      September 30, |    |
|------------------------------|--------|-----------------------|---------|
| (In      thousands)          |   | 2010                  |    |   | 2009 |   |   | 2008 |   |
| Special      mention assets  |   | $                     | 7,610   |   |   | $ | 6,559 |   |   | $ | 3,769 |   |
| Substandard      assets      |   |                  | 12,332  |   |   |   | 8,080 |   |   |   | 1,650 |   |
| Doubtful      assets         |   |                  | 3,221   |   |   |   | 1,216 |   |   |   | 618 |   |
| Loss      assets             |   |                  | – |   |   |   | – |   |   |   | – |   |
| Total      classified assets |   | $                     | 23,163  |   |   | $ | 15,855 |   |   | $ | 6,037 |   |

----

|                           |   | At      September 30, |   |   | At      September 30,         |   |
|--------------------------------|--------|-----------------------|--------|--------|-------------------------------|--------|
|                           |   | 2010                  |   |   | 2009                          |   |
|                           |   | 30-89      Days       |   |   | 90      Days or More          |   |   | 30-89      Days |   |   | 90      Days or More |   |
| (Dollars      in thousands)    |   | NumberofLoans         |   |   | PrincipalBalanceof      Loans |   |   | NumberofLoans |   |   | PrincipalBalanceof      Loans |   |   | NumberofLoans |   |   | PrincipalBalanceof      Loans |   |   | NumberofLoans |   |   | PrincipalBalanceof      Loans |   |
| Residential      real estate   |   |                  | 25     |   |                          | $      | 1,926 |   |   |   | 34 |   |   | $ | 2,604 |   |   |   | 34 |   |   | $ | 2,328 |   |   |   | 13 |   |   | $ | 597 |   |
| Commercial      real estate    |   |                  | 5      |   |                          |   | 653 |   |   |   | 6 |   |   |   | 1,159 |   |   |   | 3 |   |   |   | 94 |   |   |   | – |   |   |   | – |   |
| Multi-family                   |   |                  | 1      |   |                          |   | 650 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Construction                   |   |                  | 1      |   |                          |   | 156 |   |   |   | 6 |   |   |   | 749 |   |   |   | 4 |   |   |   | 316 |   |   |   | 3 |   |   |   | 432 |   |
| Commercial      business       |   |                  | 6      |   |                          |   | 483 |   |   |   | 5 |   |   |   | 343 |   |   |   | 6 |   |   |   | 701 |   |   |   | 2 |   |   |   | 80 |   |
| Land      and land development |   |                  | 1      |   |                          |   | 40 |   |   |   | – |   |   |   | – |   |   |   | 1 |   |   |   | 28 |   |   |   | 1 |   |   |   | 33 |   |
| Consumer                       |   |                  | 33     |   |                          |   | 248 |   |   |   | 13 |   |   |   | 211 |   |   |   | 72 |   |   |   | 622 |   |   |   | 27 |   |   |   | 221 |   |
| Total                          |   |                  | 72     |   |                          | $      | 4,156 |   |   |   | 64 |   |   | $ | 5,066 |   |   |   | 120 |   |   | $ | 4,089 |   |   |   | 46 |   |   | $ | 1,363 |   |

|                           |   | At      September 30, |    |
|--------------------------------|--------|-----------------------|---------|
|                           |   | 2008                  |    |
|                           |   | 30-89      Days       |    |   | 90      Days or More |   |
| (Dollars      in thousands)    |   | NumberofLoans         |    |   | PrincipalBalanceof      Loans |   |   | NumberofLoans |   |   | PrincipalBalanceof      Loans |   |
| Residential      real estate   |   |                  | 7       |   |   | $ | 573 |   |   |   | 9 |   |   | $ | 570 |   |
| Commercial      real estate    |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Multi-family                   |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Construction                   |   |                  | 1       |   |   |   | 35 |   |   |   | 1 |   |   |   | 252 |   |
| Commercial      business       |   |                  | 1       |   |   |   | 36 |   |   |   | – |   |   |   | – |   |
| Land      and land development |   |                  | – |   |   |   | – |   |   |   | 1 |   |   |   | 33 |   |
| Consumer                       |   |                  | 17      |   |   |   | 118 |   |   |   | 17 |   |   |   | 316 |   |
| Total                          |   |                  | 26      |   |   | $ | 762 |   |   |   | 28 |   |   | $ | 1,171 |   |

----

|                                 |   | At      September 30, |    |
|--------------------------------------|--------|-----------------------|---------|
|                                 |   | 2010                  |    |   | 2009 |   |   | 2008 |   |
| (Dollars      in thousands)          |   | Amount                |    |   | %      ofAllowanceto      TotalAllowance |   |   | %      ofLoans      inCategoryto      TotalLoans |   |   | Amount |   |   | %      ofAllowanceto      TotalAllowance |   |   | %      ofLoans      inCategoryto      TotalLoans |   |   | Amount |   |   | %      ofAllowanceto      TotalAllowance |   |   | %      ofLoans      inCategoryto      TotalLoans |   |
| Residential      real estate         |   | $                     | 1,242   |   |   |   | 32.59 | % |   |   | 49.33 | % |   | $ | 1,493 |   |   |   | 40.40 | % |   |   | 51.61 | % |   | $ | 622 |   |   |   | 35.97 | % |   |   | 64.20 | % |
| Commercial      real estate          |   |                  | 600     |   |   |   | 15.74 |   |   |   | 15.45 |   |   |   | 271 |   |   |   | 7.33 |   |   |   | 13.36 |   |   |   | 220 |   |   |   | 12.73 |   |   |   | 8.74 |   |
| Multi-family                         |   |                  | 369     |   |   |   | 9.68 |   |   |   | 5.84 |   |   |   | – |   |   |   | – |   |   |   | 3.50 |   |   |   | – |   |   |   | – |   |   |   | 1.86 |   |
| Construction                         |   |                  | 218     |   |   |   | 5.72 |   |   |   | 7.38 |   |   |   | 302 |   |   |   | 8.17 |   |   |   | 6.17 |   |   |   | – |   |   |   | – |   |   |   | 4.63 |   |
| Land      and land development       |   |                  | 62      |   |   |   | 1.63 |   |   |   | 2.60 |   |   |   | 258 |   |   |   | 6.98 |   |   |   | 3.11 |   |   |   | 50 |   |   |   | 2.89 |   |   |   | 2.69 |   |
| Commercial      business             |   |                  | 891     |   |   |   | 23.38 |   |   |   | 8.86 |   |   |   | 444 |   |   |   | 12.02 |   |   |   | 10.25 |   |   |   | 196 |   |   |   | 11.34 |   |   |   | 8.15 |   |
| Consumer                             |   |                  | 429     |   |   |   | 11.26 |   |   |   | 10.54 |   |   |   | 927 |   |   |   | 25.10 |   |   |   | 12.00 |   |   |   | 641 |   |   |   | 37.07 |   |   |   | 9.73 |   |
| Unallocated                          |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Total      allowance for loan losses |   | $                     | 3,811   |   |   |   | 100.00 | % |   |   | 100.00 | % |   | $ | 3,695 |   |   |   | 100.00 | % |   |   | 100.00 | % |   | $ | 1,729 |   |   |   | 100.00 | % |   |   | 100.00 | % |

|                                 |   | At      September 30, |    |
|--------------------------------------|--------|-----------------------|---------|
|                                 |   | 2007                  |    |   | 2006 |   |
| (Dollars      in thousands)          |   | Amount                |    |   | %      ofAllowanceto      TotalAllowance |   |   | %      ofLoans      inCategoryto      TotalLoans |   |   | Amount |   |   | %      ofAllowanceto      TotalAllowance |   |   | %      ofLoans      inCategoryto      TotalLoans |   |
| Residential      real estate         |   | $                     | 267     |   |   |   | 20.59 | % |   |   | 60.33 | % |   | $ | 88 |   |   |   | 10.14 | % |   |   | 59.29 | % |
| Commercial      real estate          |   |                  | 137     |   |   |   | 10.56 |   |   |   | 10.62 |   |   |   | 118 |   |   |   | 13.59 |   |   |   | 11.19 |   |
| Multi-family                         |   |                  | – |   |   |   | – |   |   |   | 0.74 |   |   |   | – |   |   |   | – |   |   |   | 1.07 |   |
| Construction                         |   |                  | – |   |   |   | – |   |   |   | 8.59 |   |   |   | – |   |   |   | – |   |   |   | 12.08 |   |
| Land      and land development       |   |                  | – |   |   |   | – |   |   |   | 2.91 |   |   |   | – |   |   |   | – |   |   |   | 1.48 |   |
| Commercial      business             |   |                  | 268     |   |   |   | 20.66 |   |   |   | 7.31 |   |   |   | 157 |   |   |   | 18.09 |   |   |   | 6.00 |   |
| Consumer                             |   |                  | 625     |   |   |   | 48.19 |   |   |   | 9.50 |   |   |   | 505 |   |   |   | 58.18 |   |   |   | 8.89 |   |
| Unallocated                          |   |                  | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Total      allowance for loan losses |   | $                     | 1,297   |   |   |   | 100.00 | % |   |   | 100.00 | % |   | $ | 868 |   |   |   | 100.00 | % |   |   | 100.00 | % |

----

|                                                                                    |   | Year      Ended September 30, |    |
|-----------------------------------------------------------------------------------------|--------|-------------------------------|---------|
| (Dollars      in thousands)                                                             |   | 2010                          |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Allowance      for loan losses at beginning of period                                   |   | $                             | 3,695   |   |   | $ | 1,729 |   |   | $ | 1,297 |   |   | $ | 868 |   |   | $ | 882 |   |
| Provision      for loan losses                                                          |   |                          | 1,604   |   |   |   | 819 |   |   |   | 1,540 |   |   |   | 758 |   |   |   | 813 |   |
| Charge      offs:                                                                       |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate                                                            |   |                          | 334     |   |   |   | 580 |   |   |   | 1,085 |   |   |   | – |   |   |   | 528 |   |
| Commercial      real estate                                                             |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | 216 |   |   |   | – |   |
| Multi-family                                                                            |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Land      and land development                                                          |   |                          | 5       |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Construction                                                                            |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Commercial      business                                                                |   |                          | 964     |   |   |   | 39 |   |   |   | – |   |   |   | 9 |   |   |   | – |   |
| Consumer                                                                                |   |                          | 340     |   |   |   | 209 |   |   |   | 153 |   |   |   | 199 |   |   |   | 314 |   |
| Total      charge-offs                                                                  |   |                          | 1,643   |   |   |   | 828 |   |   |   | 1,238 |   |   |   | 424 |   |   |   | 842 |   |
|                                                                                    |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                                             |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate                                                            |   |                          | 68      |   |   |   | 57 |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Commercial      real estate                                                             |   |                          | – |   |   |   | – |   |   |   | 110 |   |   |   | – |   |   |   | – |   |
| Multi-family                                                                            |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Land      and land development                                                          |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Construction                                                                            |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Commercial      business                                                                |   |                          | – |   |   |   | – |   |   |   | – |   |   |   | 2 |   |   |   | – |   |
| Consumer                                                                                |   |                          | 87      |   |   |   | 82 |   |   |   | 20 |   |   |   | 93 |   |   |   | 15 |   |
| Total      recoveries                                                                   |   |                          | 155     |   |   |   | 139 |   |   |   | 130 |   |   |   | 95 |   |   |   | 15 |   |
| Net      charge-offs                                                                    |   |                          | 1,488   |   |   |   | 689 |   |   |   | 1,108 |   |   |   | 329 |   |   |   | 827 |   |
| Increase      due to acquisition of Community First                                     |   |                          | – |   |   |   | 1,836 |   |   |   | – |   |   |   | – |   |   |   | – |   |
|                                                                                    |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses at end of period                                         |   | $                             | 3,811   |   |   | $ | 3,695 |   |   | $ | 1,729 |   |   | $ | 1,297 |   |   | $ | 868 |   |
|                                                                                    |   |                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses to non-performing loans                                  |   |                          | 63.88   | % |   |   | 70.06 | % |   |   | 104.72 | % |   |   | 117.16 | % |   |   | 50.61 | % |
| Allowance      for loan losses to total loans outstanding at the end of the      period |   |                          | 1.09    | % |   |   | 1.03 | % |   |   | 0.98 | % |   |   | 0.75 | % |   |   | 0.51 | % |
| Net      charge-offs to average loans outstanding during the period                     |   |                          | 0.42    | % |   |   | 0.38 | % |   |   | 0.64 | % |   |   | 0.21 | % |   |   | 0.51 | % |

----

| At      September 30, 2010                              |   |
|---------------------------------------------------------|--------|
|                                                    |   | Net      Portfolio Value |   |   | Net      Portfolio Value as aPercent      ofPortfolio      Value of Assets |   |
| Basis      Point (“bp”)Change      in Rates |   | DollarAmount |   |   | DollarChange |   |   | PercentChange |   |   | NPV      Ratio |   |   | Change |   |
|                                                    |   | (Dollars      in thousands) |   |   |   |   |   |   |   |
| 300                                                     |   | $ | 42,861 |   |   | $ | (13,261 | ) |   |   | (24 | )% |   |   | 8.63 | % |   |   | (214 | )bp |
| 200                                                     |   |   | 49,898 |   |   |   | (6,224 | ) |   |   | (11 | ) |   |   | 9.85 |   |   |   | (92 | )bp |
| 100                                                     |   |   | 54,492 |   |   |   | (1,630 | ) |   |   | (3 | ) |   |   | 10.58 |   |   |   | (19 | )bp |
| 0                                                       |   |   | 56,122 |   |   |   | - |   |   |   | - |   |   |   | 10.77 |   |   |   | - |   |
| (100)                                                   |   |   | 56,666 |   |   |   | 544 |   |   |   | 1 |   |   |   | 10.79 |   |   |   | 2 | bp |

----

|                                      |   |   |   |   | Payments      due by period |   |
|-------------------------------------------|--------|--------|--------|--------|-----------------------------|--------|
| (In      thousands)                       |   | Total  |   |   | Less      thanOne      Year |   |   | One      toThree      Years |   |   | Three      toFive      Years |   |   | More      ThanFive      Years |   |
| Deferred      director fee agreements     |   | $      | 439    |   |                        | $      | 83 |   |   | $ | 11 |   |   | $ | 11 |   |   | $ | 334 |   |
| Deferred      compensation agreements (1) |   |   | 225    |   |                        |   | 33 |   |   |   | 72 |   |   |   | 81 |   |   |   | 39 |   |
| Operating      lease obligations          |   |   | 64     |   |                        |   | 26 |   |   |   | 38 |   |   |   | – |   |   |   | – |   |
| Repurchase      agreements                |   |   | 16,821 |   |                        |   | 1,312 |   |   |   | 15,509 |   |   |   | – |   |   |   | – |   |
| FHLB      borrowings                      |   |   | 67,159 |   |                        |   | 33,947 |   |   |   | 13,212 |   |   |   | 20,000 |   |   |   | – |   |
| Total                                     |   | $      | 84,708 |   |                        | $      | 35,401 |   |   | $ | 28,842 |   |   | $ | 20,092 |   |   | $ | 373 |   |

| (1) | Includes      deferred compensation agreement with a former officer that calls for      annual payments of $9,000 until hisdeath. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                      |   | Year      Ended September 30, |    |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
| (In      thousands)                                                                       |   | 2010                          |    |   | 2009 |   |   | 2008 |   |
| Investing      activities:                                                                |   |                          |    |   |   |   |   |   |   |
| Loan      purchases                                                                       |   | $                             | – |   |   | $ | – |   |   | $ | – |   |
| Loan      originations                                                                    |   |                          | (66,466 | ) |   |   | (61,629 | ) |   |   | (78,418 | ) |
| Loan      principal repayments                                                            |   |                          | 68,007  |   |   |   | 50,885 |   |   |   | 72,603 |   |
| Loan      sales                                                                           |   |                          | 7,848   |   |   |   | 2,513 |   |   |   | 1,879 |   |
| Proceeds      from maturities and principal repayments of investment      securities      |   |                          | 35,971  |   |   |   | 17,300 |   |   |   | 9,107 |   |
| Proceeds      from maturities and principal repayments of mortgage-backed      securities |   |                          | 12,356  |   |   |   | 4,438 |   |   |   | 992 |   |
| Proceeds      from sales of investment securities available- for-sale                     |   |                          | 3,666   |   |   |   | 16,041 |   |   |   | – |   |
| Proceeds      from sales of mortgage-backed securitiesavailable-for-sale                  |   |                          | 20,244  |   |   |   | – |   |   |   | – |   |
| Purchases      of investment securities                                                   |   |                          | (92,742 | ) |   |   | (44,547 | ) |   |   | (7,577 | ) |
| Purchases      of mortgage-backed securities                                              |   |                          | (10,020 | ) |   |   | (4,005 | ) |   |   | (6,040 | ) |
|                                                                                      |   |                          |    |   |   |   |   |   |   |   |   |   |
| Financing      activities:                                                                |   |                          |    |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in deposits                                                      |   |                          | 15,345  |   |   |   | (17,854 | ) |   |   | 20,427 |   |
| Decrease      in federal funds purchased                                                  |   |                          | (1,180  | ) |   |   | – |   |   |   | – |   |
| Decrease      in repurchase agreements                                                    |   |                          | (418    | ) |   |   | – |   |   |   | – |   |
| Increase      in Federal Home Loan Bank borrowings                                        |   |                          | 11,386  |   |   |   | 18,061 |   |   |   | 5,000 |   |

----

| Item      7A. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK |
|---------------|----------------------------------------------------------------|

| Item      8. | FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA |
|--------------|--------------------------------------------------|

| Item      9. | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE |
|--------------|------------------------------------------------------------------------------------------------|

| Item      9A. | CONTROLS      AND PROCEDURES |
|---------------|------------------------------|

|   | (a) | Disclosure      Controls and Procedures |
|--------|-----|-----------------------------------------|

|   | (b) | Internal      Control Over Financial Reporting |
|--------|-----|------------------------------------------------|

----

|   | (c) | Changes      to Internal Control Over FinancialReporting |
|--------|-----|----------------------------------------------------------|

| Item      9B. | OTHER      INFORMATION |
|---------------|------------------------|

|   | None. |
|--------|-------|

----

| Item      10. | DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE |
|---------------|------------------------------------------------------------|

| Item      11. | EXECUTIVE      COMPENSATION |
|---------------|-----------------------------|

----

| Item      12. | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS |
|---------------|----------------------------------------------------------------------------------------------------------|

|   | (a) | Security      Ownership of Certain BeneficialOwners |
|--------|-----|-----------------------------------------------------|

|   | (b) | Security      Ownership of Management |
|--------|-----|---------------------------------------|

|   | (c) | Changes      in Control |
|--------|-----|-------------------------|

|   | (d) | Equity      Compensation Plan Information |
|--------|-----|-------------------------------------------|

| Plan      category                                              |   | Number      of securitiesto      be issued uponexercise      ofoutstanding      options,warrants      and rights(a) |    |   | Weighted-averageexercise      price ofoutstanding      options,warrants      and rights(b) |   |   | Number      of securities remainingavailable      for future issuanceunder      equity compensationplans      (excluding securitiesreflected      in column (a))(c) |   |
|-----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   |                                                                                                                |    |   |                                                                                       |   |   |                                                                                                                                                                |   |   |   |   |
| Equity      compensation plans approved by security holders     |   |                                                                                                                | 254,204 |   |                                                                                       | $      | 13.25  |                                                                                                                                                                |   |   | – |   |
|                                                            |   |                                                                                                                |    |   |                                                                                       |   |   |                                                                                                                                                                |   |   |   |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                                | N/A     |   |                                                                                       |   | N/A    |                                                                                                                                                                |   |   | N/A |   |
|                                                            |   |                                                                                                                |    |   |                                                                                       |   |   |                                                                                                                                                                |   |   |   |   |
| Total                                                           |   |                                                                                                                | 254,204 |   |                                                                                       | $      | 13.25  |                                                                                                                                                                |   |   | – |   |

| Item      13. | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE |
|---------------|-------------------------------------------------------------------------------------|

| Item      14. | PRINCIPAL      ACCOUNTANT FEES AND SERVICES |
|---------------|---------------------------------------------|

----

| Item      15. | EXHIBITS      AND FINANCIAL STATEMENT SCHEDULES |
|---------------|-------------------------------------------------|

|   | (1) | The      financial statements required in response to this item are incorporated by      reference from Item 8 of this Annual Report on Form  10-K. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | All      financial statement schedules are omitted because they are not required or      applicable, or the required information is shown in the consolidated      financial statements or the notesthereto. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Exhibits |
|--------|-----|----------|

| No.    |         | Description                                                                                                                                                          |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                 |
| 3.1    |         | Articles      of Incorporation of First Savings Financial Group, Inc.  (1)                                                                                           |
| 3.2    |         | Bylaws      of First Savings Financial Group, Inc. (1)                                                                                                               |
| 4.0    |         | Specimen      Stock Certificate of First Savings Financial Group, Inc.    (1)                                                                                        |
| 10.1   |         | Employment      Agreement by and among First Savings Financial Group, Inc., First Savings      Bank, F.S.B. and Larry W. Myers, dated October 7, 2009*  (2)          |
| 10.2   |         | Employment      Agreement by and among First Savings Financial Group, Inc., First Savings      Bank, F.S.B. and John P. Lawson, Jr., dated October 7, 2009*      (2) |
| 10.3   |         | Employment      Agreement by and among First Savings Financial Group, Inc., First Savings      Bank, F.S.B. and Anthony A. Schoen, dated October 7, 2009*    (2)     |
| 10.4   |         | Employment      Agreement by and among First Savings Financial Group, Inc., First Savings      Bank, F.S.B. and Samuel E. Eckart, dated October 7, 2009*    (2)      |
| 10.5   |         | First      Savings Bank, F.S.B. Employee Severance Compensation Plan*    (3)                                                                                         |
| 10.6   |         | First      Savings Bank, F.S.B. Supplemental Executive Retirement Plan*      (3)                                                                                     |
| 21.0   |         | Subsidiaries      of the Registrant                                                                                                                                  |
| 23.0   |         | Consent      of Monroe Shine & Co., Inc.                                                                                                                         |
| 31.1   |         | Rule      13a-14(a)/15d-14(a) Certificate of Chief Executive  Officer                                                                                                |
| 31.2   |         | Rule      13a-14(a)/15d-14(a) Certificate of Chief Financial  Officer                                                                                                |
| 32.0   |    | Section      1350 Certificate of Chief Executive Officer and Chief Financial      Officer                                                                            |

----

|   | * | Management      contract or compensatory plan, contract or  arrangement |
|--------|---|-------------------------------------------------------------------------|

|    | (1) | Incorporated      herein by reference to the exhibits to the Company’s Registration      Statement on Form S-1 (File No. 333-151636), as amended, initially filed      with the Securities and Exchange Commission on June 13,    2008. |
|--------------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated      herein by reference to the exhibits to the Company’s Current Report on      Form 8-K filed with the Securities and Exchange Commission on October 8,      2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated      herein by reference to the exhibits to the Company’s Current Report on      Form 8-K filed with the Securities and Exchange Commission on October 10,      2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |         | Page   |
|-----------------------------------------------------------------|--------------|--------|
|                                                            |         |   |
| Report      of Independent Registered Public Accounting Firm    |         | F-2    |
|                                                            |         |   |
| CONSOLIDATED      BALANCE SHEETS                                |         | F-3    |
| CONSOLIDATED      STATEMENTS OF INCOME                          |         | F-4    |
| CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |         | F-5    |
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                      |         | F-6    |
| NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS                 |    | F-7    |

----

----

FIRST SAVINGS FINANCIAL GROUP, INC. ANDSUBSIDIARIES

| (In      thousands, except share and per share data)                                    |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                    |   |   |    |   |   |   |
| ASSETS                                                                                  |   |   |    |   |   |   |
| Cash      and due from banks                                                            |   | $      | 10,184  |   |   | $      | 8,359 |   |
| Interest-bearing      deposits with banks                                               |   |   | 1,094   |   |   |   | 2,045 |   |
| Total      cash and cash equivalents                                                    |   |   | 11,278  |   |   |   | 10,404 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| Securities      available for sale, at fair value                                       |   |   | 109,976 |   |   |   | 72,580 |   |
| Securities      held to maturity (fair value of $4,144 in 2010 and $7,054 in      2009) |   |   | 3,929   |   |   |   | 6,782 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| Loans      held for sale                                                                |   |   | 1,884   |   |   |   | 317 |   |
| Loans,      net of allowance for loan losses of $3,811 in 2010 and $3,695 in      2009  |   |   | 343,615 |   |   |   | 353,823 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| Federal      Home Loan Bank stock, at cost                                              |   |   | 4,170   |   |   |   | 4,170 |   |
| Premises      and equipment                                                             |   |   | 9,492   |   |   |   | 9,916 |   |
| Foreclosed      real estate                                                             |   |   | 1,331   |   |   |   | 1,589 |   |
| Accrued      interest receivable:                                                       |   |   |    |   |   |   |   |   |
| Loans                                                                                   |   |   | 1,646   |   |   |   | 1,607 |   |
| Securities                                                                              |   |   | 746     |   |   |   | 493 |   |
| Cash      surrender value of life insurance                                             |   |   | 8,234   |   |   |   | 3,931 |   |
| Goodwill                                                                                |   |   | 5,940   |   |   |   | 5,882 |   |
| Core      deposit intangible                                                            |   |   | 2,447   |   |   |   | 2,741 |   |
| Other      assets                                                                       |   |   | 3,754   |   |   |   | 6,576 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| Total      Assets                                                                       |   | $      | 508,442 |   |   | $      | 480,811 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| LIABILITIES                                                                             |   |   |    |   |   |   |   |   |
| Deposits:                                                                               |   |   |    |   |   |   |   |   |
| Noninterest-bearing                                                                     |   | $      | 28,853  |   |   | $      | 25,388 |   |
| Interest-bearing                                                                        |   |   | 337,308 |   |   |   | 325,428 |   |
| Total      deposits                                                                     |   |   | 366,161 |   |   |   | 350,816 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| Federal      funds purchased                                                            |   |   | -       |   |   |   | 1,180 |   |
| Repurchase      agreements                                                              |   |   | 16,821  |   |   |   | 17,239 |   |
| Borrowings      from Federal Home Loan Bank                                             |   |   | 67,159  |   |   |   | 55,773 |   |
| Accrued      interest payable                                                           |   |   | 427     |   |   |   | 516 |   |
| Advance      payments by borrowers for taxes and insurance                              |   |   | 252     |   |   |   | 341 |   |
| Accrued      expenses and other liabilities                                             |   |   | 2,471   |   |   |   | 2,069 |   |
| Total      Liabilities                                                                  |   |   | 453,291 |   |   |   | 427,934 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                               |   |   |    |   |   |   |   |   |
| Preferred      stock of $.01 par value per share                                        |   |   |    |   |   |   |   |   |
| Authorized      1,000,000 shares; none issued                                           |   |   | -       |   |   |   | - |   |
| Common      stock of $.01 par value per share                                           |   |   |    |   |   |   |   |   |
| Authorized      20,000,000 shares; issued 2,542,042 shares                              |   |   | 25      |   |   |   | 25 |   |
| Additional      paid-in capital                                                         |   |   | 24,310  |   |   |   | 24,263 |   |
| Retained      earnings - substantially restricted                                       |   |   | 31,889  |   |   |   | 29,453 |   |
| Accumulated      other comprehensive income                                             |   |   | 2,959   |   |   |   | 932 |   |
| Unearned      ESOP shares                                                               |   |   | (1,501  | )      |   |   | (1,796 | ) |
| Unearned      stock compensation                                                        |   |   | (1,202  | )      |   |   | - |   |
| Less      treasury stock, at cost - 127,102 shares                                      |   |   | (1,329  | )      |   |   | - |   |
| Total      Stockholders' Equity                                                         |   |   | 55,151  |   |   |   | 52,877 |   |
|                                                                                    |   |   |    |   |   |   |   |   |
| Total      Liabilities and Stockholders' Equity                                         |   | $      | 508,442 |   |   | $      | 480,811 |   |

----

FIRST SAVINGS FINANCIAL GROUP, INC. ANDSUBSIDIARIES

| (In      thousands, except share and per share data)     |   | 2010   |      |   | 2009   |   |
|----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                     |   |   |      |   |   |   |
| INTEREST      INCOME                                     |   |   |      |   |   |   |
| Loans,      including fees                               |   | $      | 22,213    |   |   | $      | 11,361 |   |
| Securities:                                              |   |   |      |   |   |   |   |   |
| Taxable                                                  |   |   | 3,296     |   |   |   | 1,402 |   |
| Tax-exempt                                               |   |   | 668       |   |   |   | 166 |   |
| Dividend      income                                     |   |   | 69        |   |   |   | 46 |   |
| Interest-bearing      deposits with banks                |   |   | 16        |   |   |   | 33 |   |
| Total      interest income                               |   |   | 26,262    |   |   |   | 13,008 |   |
|                                                     |   |   |      |   |   |   |   |   |
| INTEREST      EXPENSE                                    |   |   |      |   |   |   |   |   |
| Deposits                                                 |   |   | 4,771     |   |   |   | 4,125 |   |
| Repurchase      agreements                               |   |   | 337       |   |   |   | - |   |
| Borrowings      from Federal Home Loan Bank              |   |   | 1,009     |   |   |   | 315 |   |
| Total      interest expense                              |   |   | 6,117     |   |   |   | 4,440 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Net      interest income                                 |   |   | 20,145    |   |   |   | 8,568 |   |
| Provision      for loan losses                           |   |   | 1,604     |   |   |   | 819 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Net      interest income after provision for loan losses |   |   | 18,541    |   |   |   | 7,749 |   |
|                                                     |   |   |      |   |   |   |   |   |
| NONINTEREST      INCOME                                  |   |   |      |   |   |   |   |   |
| Service      charges on deposit accounts                 |   |   | 1,637     |   |   |   | 608 |   |
| Net      gain on sales of securities available for sale  |   |   | 153       |   |   |   | 100 |   |
| Other      than temporary impairment loss on securities  |   |   | (60       | )      |   |   | - |   |
| Unrealized      loss on derivative contract              |   |   | (124      | )      |   |   | - |   |
| Net      gain on sales of mortgage loans                 |   |   | 131       |   |   |   | 29 |   |
| Increase      in cash surrender value of life insurance  |   |   | 258       |   |   |   | 171 |   |
| Gain      on life insurance                              |   |   | 95        |   |   |   | - |   |
| Commission      income                                   |   |   | 167       |   |   |   | 26 |   |
| Other      income                                        |   |   | 659       |   |   |   | 329 |   |
| Total      noninterest income                            |   |   | 2,916     |   |   |   | 1,263 |   |
|                                                     |   |   |      |   |   |   |   |   |
| NONINTEREST      EXPENSE                                 |   |   |      |   |   |   |   |   |
| Compensation      and benefits                           |   |   | 8,925     |   |   |   | 3,787 |   |
| Occupancy      and equipment                             |   |   | 2,125     |   |   |   | 902 |   |
| Data      processing                                     |   |   | 1,838     |   |   |   | 647 |   |
| Advertising                                              |   |   | 360       |   |   |   | 167 |   |
| Professional      fees                                   |   |   | 941       |   |   |   | 520 |   |
| FDIC      insurance premiums                             |   |   | 604       |   |   |   | 277 |   |
| Charitable      contributions                            |   |   | 22        |   |   |   | 1,211 |   |
| Net      loss on foreclosed real estate                  |   |   | 149       |   |   |   | 88 |   |
| Other      operating expenses                            |   |   | 3,056     |   |   |   | 1,632 |   |
| Total      noninterest expense                           |   |   | 18,020    |   |   |   | 9,231 |   |
| Income      (loss) before income taxes                   |   |   | 3,437     |   |   |   | (219 | ) |
| Income      tax expense (benefit)                        |   |   | 808       |   |   |   | (252 | ) |
| Net      Income                                          |   | $      | 2,629     |   |   | $      | 33 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Net      income per common share:                        |   |   |      |   |   |   |   |   |
| Basic                                                    |   | $      | 1.17      |   |   | $      | 0.01 |   |
| Diluted                                                  |   | $      | 1.17      |   |   | $      | 0.01 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Weighted      average number of shares outstanding:      |   |   |      |   |   |   |   |   |
| Basic                                                    |   |   | 2,244,643 |   |   |   | 2,315,498 |   |
| Diluted                                                  |   |   | 2,244,643 |   |   |   | 2,315,498 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Dividends      per share on common shares                |   | $      | 0.08      |   |   | $      | - |   |

----

FIRST SAVINGS FINANCIAL GROUP, INC. ANDSUBSIDIARIES

|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   | Accumulated Other       |   |   |    |   |   |          |   |   |     |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------------------------|--------|--------|---------|--------|--------|---------------|--------|--------|----------|--------|
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   | Comprehensive Income    |   |   |    |   |   |          |   |   |     |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   | Net Unrealized          |   |   | Defined |   |   | Unearned      |   |   |     |   |   |   |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   | Gain on                 |   |   | Benefit |   |   | Stock         |   |   |     |   |   |   |   |
| (In      thousands, except share and per share data)                                                                        |   | Common |   |   | Additional           |   |   | Retained |   |   | Securities                   |   |   | Pension |   |   | Compensation  |   |   | Treasury |   |   |   |   |
|                                                                                                                        |   | Stock  |   |   | Paid-in Capital |   |   | Earnings |   |   | Available for Sale |   |   | Plan    |   |   | and ESOP |   |   | Stock    |   |   | Total |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |
| Balances      at October 1, 2008                                                                                            |   | $      | -      |   |                 | $      | -      |     |   | $      | 29,420                       |   |   | $       | 78     |   |          | $      | 222    |     |   | $ | - |   |   | $ | - |   |   | $ | 29,720 |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME                                                                                                   |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                             |   |   | -      |   |                 |   | -      |     |   |   | 33                           |   |   |    | -      |   |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | 33 |   |
| Other      comprehensive income:                                                                                            |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gain on securities available for sale, net of deferred      income tax expense of $319            |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | 486    |   |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | 486 |   |
| Less:  Reclassification      adjustment for realized securities gains in earnings, net of tax expense      of $40 |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | (60    | )      |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | (60 | ) |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Defined      benefit pension plan:                                                                                          |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      unrecognized gain, net of tax expense of $135                                                                      |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | -      |   |          |   | 206    |     |   |   | - |   |   |   | - |   |   |   | 206 |   |
| Total      comprehensive income                                                                                             |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   | 665 |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock                                                                                               |   |   | 25     |   |                 |   | 24,269 |     |   |   | -                            |   |   |    | -      |   |          |   | -      |     |   |   | (2,034 | ) |   |   | - |   |   |   | 22,260 |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      released by ESOP trust                                                                                          |   |   | -      |   |                 |   | (6     | )        |   |   | -                            |   |   |    | -      |   |          |   | -      |     |   |   | 238 |   |   |   | - |   |   |   | 232 |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at September 30, 2009                                                                                         |   | $      | 25     |   |                 | $      | 24,263 |     |   | $      | 29,453                       |   |   | $       | 504    |   |          | $      | 428    |     |   | $ | (1,796 | ) |   | $ | - |   |   | $ | 52,877 |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME                                                                                                   |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                             |   |   | -      |   |                 |   | -      |     |   |   | 2,629                        |   |   |    | -      |   |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | 2,629 |   |
| Other      comprehensive income:                                                                                            |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gain on securities available for sale, net of deferred      income tax expense of $1,676          |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | 2,556  |   |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | 2,556 |   |
| Less:  Reclassification      adjustment for realized securities gains in earnings, net of tax expense      of $52 |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | (101   | )      |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | (101 | ) |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Defined      benefit pension plan:                                                                                          |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification      adjustment for recognized gain on settlement, net of income tax expense of      $281                  |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | -      |   |          |   | (428   | )        |   |   | - |   |   |   | - |   |   |   | (428 | ) |
| Total      comprehensive income                                                                                             |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   | 4,656 |   |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends ($0.08 per share)                                                                                       |   |   | -      |   |                 |   | -      |     |   |   | (193                         | )      |   |    | -      |   |          |   | -      |     |   |   | - |   |   |   | - |   |   |   | (193 | ) |
| Shares      released by ESOP trust                                                                                          |   |   | -      |   |                 |   | 29     |     |   |   | -                            |   |   |    | -      |   |          |   | -      |     |   |   | 295 |   |   |   | - |   |   |   | 324 |   |
| Purchase      of common shares for restricted stock grants                                                                  |   |   | -      |   |                 |   | (41    | )        |   |   | -                            |   |   |    | -      |   |          |   | -      |     |   |   | (1,347 | ) |   |   | - |   |   |   | (1,388 | ) |
| Stock      compensation expense                                                                                             |   |   | -      |   |                 |   | 59     |     |   |   | -                            |   |   |    | -      |   |          |   | -      |     |   |   | 145 |   |   |   | - |   |   |   | 204 |   |
| Purchase      of 127,102 treasury shares                                                                                    |   |   | -      |   |                 |   | -      |     |   |   | -                            |   |   |    | -      |   |          |   | -      |     |   |   | - |   |   |   | (1,329 | ) |   |   | (1,329 | ) |
|                                                                                                                        |   |   |   |   |                 |   |   |     |   |   |                         |   |   |    |   |   |          |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances      at September 30, 2010                                                                                         |   | $      | 25     |   |                 | $      | 24,310 |     |   | $      | 31,889                       |   |   | $       | 2,959  |   |          | $      | -      |     |   | $ | (2,703 | ) |   | $ | (1,329 | ) |   | $ | 55,151 |   |

----

FIRST SAVINGS FINANCIAL GROUP, INC. ANDSUBSIDIARIES

| (In      thousands)                                                                         |   | 2010   |     |   | 2009   |   |
|---------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                        |   |   |     |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                   |   |   |     |   |   |   |
| Net      income                                                                             |   | $      | 2,629    |   |   | $      | 33 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |     |   |   |   |   |   |
| Provision      for loan losses                                                              |   |   | 1,604    |   |   |   | 819 |   |
| Depreciation      and amortization                                                          |   |   | 1,172    |   |   |   | 301 |   |
| Amortization      of premiums and accretion of discounts on securities, net                 |   |   | 51       |   |   |   | 215 |   |
| Mortgage      loans originated for sale                                                     |   |   | (9,289   | )      |   |   | (2,484 | ) |
| Proceeds      on sale of mortgage loans                                                     |   |   | 7,848    |   |   |   | 2,513 |   |
| Gain      on sale of mortgage loans                                                         |   |   | (131     | )      |   |   | (29 | ) |
| Net      realized and unrealized gain on foreclosed real estate                             |   |   | (30      | )      |   |   | (21 | ) |
| Net      gain on sales of securities available for sale                                     |   |   | (153     | )      |   |   | (100 | ) |
| Other      than temporary impairment loss on securities                                     |   |   | 60       |   |   |   | - |   |
| Unrealized      loss on derivative contract                                                 |   |   | 124      |   |   |   | - |   |
| Gain      on life insurance                                                                 |   |   | (95      | )      |   |   | - |   |
| Increase      in cash surrender value of life insurance                                     |   |   | (259     | )      |   |   | (176 | ) |
| Deferred      income taxes                                                                  |   |   | 251      |   |   |   | (537 | ) |
| ESOP      and stock compensation expense                                                    |   |   | 532      |   |   |   | 227 |   |
| Contribution      of common stock to charitable foundation                                  |   |   | -        |   |   |   | 1,100 |   |
| Increase      in accrued interest receivable                                                |   |   | (292     | )      |   |   | (43 | ) |
| Decrease      in accrued interest payable                                                   |   |   | (89      | )      |   |   | (33 | ) |
| Change      in other assets and liabilities, net                                            |   |   | 909      |   |   |   | 1,392 |   |
| Net      Cash Provided By Operating Activities                                              |   |   | 4,842    |   |   |   | 3,177 |   |
|                                                                                        |   |   |     |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                                   |   |   |     |   |   |   |   |   |
| Purchase      of securities available for sale                                              |   |   | (102,762 | )      |   |   | (48,552 | ) |
| Proceeds      from sales of securities available for sale                                   |   |   | 23,910   |   |   |   | 16,041 |   |
| Proceeds      from maturities of securities available for sale                              |   |   | 32,605   |   |   |   | 17,300 |   |
| Principal      collected on mortgage-backed securities                                      |   |   | 15,722   |   |   |   | 4,438 |   |
| Net      (increase) decrease in loans                                                       |   |   | 7,856    |   |   |   | (8,077 | ) |
| Purchase      of Federal Home Loan Bank stock                                               |   |   | -        |   |   |   | (34 | ) |
| Investment      in cash surrender value of life insurance                                   |   |   | (4,200   | )      |   |   | - |   |
| Proceeds      from life insurance                                                           |   |   | 251      |   |   |   | - |   |
| Proceeds      from sale of foreclosed real estate                                           |   |   | 970      |   |   |   | 155 |   |
| Purchase      of premises and equipment                                                     |   |   | (454     | )      |   |   | (178 | ) |
| Net      cash paid in acquisition of Community First Bank                                   |   |   | -        |   |   |   | (16,548 | ) |
| Net      Cash Used In Investing Activities                                                  |   |   | (26,102  | )      |   |   | (35,455 | ) |
|                                                                                        |   |   |     |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                                   |   |   |     |   |   |   |   |   |
| Net      increase (decrease) in deposits                                                    |   |   | 15,345   |   |   |   | (17,854 | ) |
| Net      decrease in federal funds purchased                                                |   |   | (1,180   | )      |   |   | - |   |
| Net      decrease in repurchase agreements                                                  |   |   | (418     | )      |   |   | - |   |
| Increase      in Federal Home Loan Bank line of credit                                      |   |   | 6,261    |   |   |   | 661 |   |
| Proceeds      from Federal Home Loan Bank advances                                          |   |   | 98,439   |   |   |   | 46,950 |   |
| Repayment      of Federal Home Loan Bank advances                                           |   |   | (93,314  | )      |   |   | (29,550 | ) |
| Net      decrease in advance payments by borrowers for taxes and      insurance             |   |   | (89      | )      |   |   | (64 | ) |
| Purchase      of treasury stock                                                             |   |   | (1,329   | )      |   |   | - |   |
| Purchase      of common shares for restricted stock grants                                  |   |   | (1,388   | )      |   |   | - |   |
| Dividends      paid                                                                         |   |   | (193     | )      |   |   | - |   |
| Proceeds      from issuance of common stock                                                 |   |   | -        |   |   |   | 21,160 |   |
| Net      Cash Provided By Financing Activities                                              |   |   | 22,134   |   |   |   | 21,303 |   |
|                                                                                        |   |   |     |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                                   |   |   | 874      |   |   |   | (10,975 | ) |
|                                                                                        |   |   |     |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                       |   |   | 10,404   |   |   |   | 21,379 |   |
|                                                                                        |   |   |     |   |   |   |   |   |
| Cash      and Cash Equivalents at End of Period                                             |   | $      | 11,278   |   |   | $      | 10,404 |   |

----

| (1) | SUMMARY OFSIGNIFICANT ACCOUNTING      POLICIES |
|-----|------------------------------------------------|

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----

| (2) | ACQUISITION OF COMMUNITY FIRST      BANK |
|-----|------------------------------------------|

|                                               |   | (In      thousands) |    |
|----------------------------------------------------|--------|---------------------|---------|
|                                               |   |                |    |
| Cash      and interest-bearing deposits with banks |   | $                   | 3,957   |   |
| Investment      securities                         |   |                | 48,908  |   |
| Loans,      net                                    |   |                | 173,104 |   |
| Premises      and equipment                        |   |                | 5,797   |   |
| Goodwill      arising in the acquisition           |   |                | 5,882   |   |
| Core      deposit intangible                       |   |                | 2,741   |   |
| Net      deferred tax asset                        |   |                | 2,576   |   |
| Other      assets                                  |   |                | 6,867   |   |
| Total      assets acquired                         |   |                | 249,832 |   |
|                                               |   |                |    |   |
| Deposit      accounts                              |   |                | 179,460 |   |
| Federal      funds purchased                       |   |                | 1,180   |   |
| Repurchase      agreements                         |   |                | 17,239  |   |
| Borrowings      from Federal Home Loan Bank        |   |                | 29,712  |   |
| Other      liabilities                             |   |                | 969     |   |
| Total      liabilities assumed                     |   |                | 228,560 |   |
|                                               |   |                |    |   |
| Net      assets acquired                           |   | $                   | 21,272  |   |

----

| (In      thousands, except per share data)               |   |   |   |
|----------------------------------------------------------|--------|--------|--------|
|                                                     |   |   |   |
| Interest      income                                     |   | $      | 27,952 |   |
| Interest      expense                                    |   |   | 12,176 |   |
| Net      interest income                                 |   |   | 15,776 |   |
| Provision      for loan losses                           |   |   | 1,360  |   |
| Net      interest income after provision for loan losses |   |   | 14,416 |   |
| Noninterest      income                                  |   |   | 2,083  |   |
| Noninterest      expenses                                |   |   | 19,122 |   |
| Loss      before income taxes                            |   |   | (2,623 | ) |
| Income      tax benefit                                  |   |   | (1,008 | ) |
|                                                     |   |   |   |   |
| Net      loss                                            |   | $      | (1,615 | ) |
|                                                     |   |   |   |   |
| Net      loss per common share, basic                    |   | $      | (0.70  | ) |
|                                                     |   |   |   |   |
| Net      loss per common share, diluted                  |   | $      | (0.70  | ) |

----

| (3) | RESTRICTION ON CASH AND DUE      FROM BANKS |
|-----|---------------------------------------------|

| (4) | INVESTMENTSECURITIES |
|-----|----------------------|

|                                     |   |      |    |   | Gross      |   |   | Gross      |   |   |   |   |
|------------------------------------------|--------|-----------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                     |   | Amortized |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
| (In      thousands)                      |   | Cost      |    |   | Gains      |   |   | Losses     |   |   | Value  |   |
| September      30, 2010:                 |   |      |    |   |       |   |   |       |   |   |   |   |
| Securities      available for sale:      |   |      |    |   |       |   |   |       |   |   |   |   |
| Agency      bonds and notes              |   | $         | 25,510  |   |       | $      | 196    |       |   | $      | 1      |   |   | $ | 25,705 |   |
| Agency      mortgage-backed              |   |      | 13,944  |   |       |   | 226    |       |   |   | 29     |   |   |   | 14,141 |   |
| Agency      CMO                          |   |      | 22,325  |   |       |   | 224    |       |   |   | 61     |   |   |   | 22,488 |   |
| Privately-issued      CMO                |   |      | 10,342  |   |       |   | 2,418  |       |   |   | 72     |   |   |   | 12,688 |   |
| Municipal                                |   |      | 33,109  |   |       |   | 1,920  |       |   |   | 152    |   |   |   | 34,877 |   |
| Subtotal      – debt securities    |   |      | 105,230 |   |       |   | 4,984  |       |   |   | 315    |   |   |   | 109,899 |   |
| Equity      securities                   |   |      | -       |   |       |   | 77     |       |   |   | -      |   |   |   | 77 |   |
| Total      securities available for sale |   | $         | 105,230 |   |       | $      | 5,061  |       |   | $      | 315    |   |   | $ | 109,976 |   |
| Securities      held to maturity:        |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Agency      mortgage-backed              |   | $         | 3,625   |   |       | $      | 211    |       |   | $      | -      |   |   | $ | 3,836 |   |
| Municipal                                |   |      | 304     |   |       |   | 4      |       |   |   | -      |   |   |   | 308 |   |
| Total      securities held to maturity   |   | $         | 3,929   |   |       | $      | 215    |       |   | $      | -      |   |   | $ | 4,144 |   |
|                                     |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| September      30, 2009:                 |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities      available for sale:      |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Agency      bonds and notes              |   | $         | 5,825   |   |       | $      | 20     |       |   | $      | -      |   |   | $ | 5,845 |   |
| Agency      mortgage-backed              |   |      | 34,368  |   |       |   | 115    |       |   |   | -      |   |   |   | 34,483 |   |
| Agency      CMO                          |   |      | 3,343   |   |       |   | 130    |       |   |   | -      |   |   |   | 3,473 |   |
| Privately-issued      CMO                |   |      | 11,139  |   |       |   | -      |       |   |   | -      |   |   |   | 11,139 |   |
| Privately-issued      ABS                |   |      | 52      |   |       |   | -      |       |   |   | -      |   |   |   | 52 |   |
| Municipal                                |   |      | 17,081  |   |       |   | 431    |       |   |   | -      |   |   |   | 17,512 |   |
| Subtotal      – debt securities    |   |      | 71,808  |   |       |   | 696    |       |   |   | -      |   |   |   | 72,504 |   |
| Equity      securities                   |   |      | -       |   |       |   | 76     |       |   |   | -      |   |   |   | 76 |   |
| Total      securities available for sale |   | $         | 71,808  |   |       | $      | 772    |       |   | $      | -      |   |   | $ | 72,580 |   |
|                                     |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities      held to maturity:        |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Agency      mortgage-backed              |   | $         | 6,477   |   |       | $      | 269    |       |   | $      | -      |   |   | $ | 6,746 |   |
| Municipal                                |   |      | 305     |   |       |   | 3      |       |   |   | -      |   |   |   | 308 |   |
| Total      securities held to maturity   |   | $         | 6,782   |   |       | $      | 272    |       |   | $      | -      |   |   | $ | 7,054 |   |

----

|                                        |   | Available for Sale |    |   | Held to Maturity |   |
|---------------------------------------------|--------|------------------------------|---------|--------|----------------------------|--------|
|                                        |   | Amortized                    |    |   | Fair                       |   |   | Amortized |   |   | Fair |   |
| (In      thousands)                         |   | Cost                         |    |   | Value                      |   |   | Cost |   |   | Value |   |
|                                        |   |                         |    |   |                       |   |   |   |   |   |   |   |
| Due      within one year                    |   | $                            | 174     |   |                       | $      | 178 |   |   | $ | 304 |   |   | $ | 308 |   |
| Due      after one year through five years  |   |                         | 910     |   |                       |   | 965 |   |   |   | - |   |   |   | - |   |
| Due      after five years through ten years |   |                         | 7,595   |   |                       |   | 8,019 |   |   |   | - |   |   |   | - |   |
| Due      after ten years                    |   |                         | 49,940  |   |                       |   | 51,420 |   |   |   | - |   |   |   | - |   |
|                                        |   |                         | 58,619  |   |                       |   | 60,582 |   |   |   | 304 |   |   |   | 308 |   |
|                                        |   |                         |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Equity      securities                      |   |                         | -       |   |                       |   | 77 |   |   |   | - |   |   |   | - |   |
| Collateralized      mortgage obligations    |   |                         | 32,667  |   |                       |   | 35,176 |   |   |   | - |   |   |   | - |   |
| Mortgage-backed      securities             |   |                         | 13,944  |   |                       |   | 14,141 |   |   |   | 3,625 |   |   |   | 3,836 |   |
|                                        |   |                         |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | $                            | 105,230 |   |                       | $      | 109,976 |   |   | $ | 3,929 |   |   | $ | 4,144 |   |

|                                                   |   | Number             |   |   | Gross  |   |   |       |   |
|--------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|------------|--------|
|                                                   |   | of Investment |   |   | Fair   |   |   | Unrealized |   |
| (Dollars in      thousands)                       |   | Positions          |   |   | Value  |   |   | Losses     |   |
|                                                   |   |               |   |   |   |   |   |       |   |
| Securities      available for sale:                    |   |               |   |   |   |   |   |       |   |
|                                                   |   |               |   |   |   |   |   |       |   |
| Continuous      loss position less than twelve months: |   |               |   |   |   |   |   |       |   |
| Agency      bonds and notes                            |   |               | 1      |   |   | $      | 1,999  |       |   | $ | 1 |   |
| Agency      mortgage-backed                            |   |               | 6      |   |   |   | 3,837  |       |   |   | 29 |   |
| Agency      CMO                                        |   |               | 4      |   |   |   | 5,901  |       |   |   | 61 |   |
| Privately-issued      CMO                              |   |               | 6      |   |   |   | 290    |       |   |   | 72 |   |
| Municipal      bonds                                   |   |               | 2      |   |   |   | 3,233  |       |   |   | 152 |   |
|                                                   |   |               |   |   |   |   |   |       |   |   |   |   |
| Total      securities available for sale               |   |               | 19     |   |   | $      | 15,260 |       |   | $ | 315 |   |

----

----

|  (5) | LOANS |
|-----------|-------|

| (In      thousands)                                |   | 2010   |    |   | 2009   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                               |   |   |    |   |   |   |
| Real      estate mortgage:                         |   |   |    |   |   |   |
| 1-4      family residential                        |   | $      | 172,007 |   |   | $      | 185,800 |   |
| Multi-family      residential                      |   |   | 20,360  |   |   |   | 12,584 |   |
| Commercial                                         |   |   | 53,869  |   |   |   | 48,090 |   |
| Residential      construction                      |   |   | 15,867  |   |   |   | 14,555 |   |
| Commercial      construction                       |   |   | 9,851   |   |   |   | 7,648 |   |
| Land      and land development                     |   |   | 9,076   |   |   |   | 11,189 |   |
| Commercial      business loans                     |   |   | 30,905  |   |   |   | 36,901 |   |
| Consumer:                                          |   |   |    |   |   |   |   |   |
| Home      equity loans                             |   |   | 16,335  |   |   |   | 17,365 |   |
| Auto      loans                                    |   |   | 13,405  |   |   |   | 18,279 |   |
| Other      consumer loans                          |   |   | 7,030   |   |   |   | 7,567 |   |
| Gross      loans                                   |   |   | 348,705 |   |   |   | 359,978 |   |
|                                               |   |   |    |   |   |   |   |   |
| Deferred      loan origination fees and costs, net |   |   | 778     |   |   |   | 846 |   |
| Undisbursed      portion of loans in process       |   |   | (2,057  | )      |   |   | (3,306 | ) |
| Allowance      for loan losses                     |   |   | (3,811  | )      |   |   | (3,695 | ) |
|                                               |   |   |    |   |   |   |   |   |
| Loans,      net                                    |   | $      | 343,615 |   |   | $      | 353,823 |   |

| (In      thousands)                                 |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning      balances                             |   | $      | 3,695  |   |   | $      | 1,729 |   |
| Recoveries                                          |   |   | 155    |   |   |   | 139 |   |
| Loans      charged-off                              |   |   | (1,643 | )      |   |   | (828 | ) |
| Provision      for loan losses                      |   |   | 1,604  |   |   |   | 819 |   |
| Increase      due to acquisition of Community First |   |   | -      |   |   |   | 1,836 |   |
|                                                |   |   |   |   |   |   |   |   |
| Ending      balances                                |   | $      | 3,811  |   |   | $      | 3,695 |   |

----

| (In      thousands)                                                                               |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                              |   |   |   |   |   |   |
| At      end of year:                                                                              |   |   |   |   |   |   |
| Impaired      loans with related allowance                                                        |   | $      | 1,200  |   |   | $      | 607 |   |
| Impaired      loans with no allowance                                                             |   |   | 4,766  |   |   |   | 4,667 |   |
| Total                                                                                             |   | $      | 5,966  |   |   | $      | 5,274 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Allowance      related to impaired loans                                                          |   | $      | 329    |   |   | $      | 303 |   |
| Average      balance of impaired loans during the year                                            |   |   | 6,152  |   |   |   | 2,461 |   |
| Interest      income recognized in the statements of income during the periods of      impairment |   |   | 40     |   |   |   | 18 |   |
| Interest      income received during the periods of impairment – cash    method             |   |   | 100    |   |   |   | 28 |   |

| (In      thousands)                                 |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning      balance                              |   | $      | 9,499  |   |   | $      | 3,585 |   |
| New      loans and advances                         |   |   | 402    |   |   |   | 1,191 |   |
| Repayments                                          |   |   | (3,174 | )      |   |   | (724 | ) |
| Reclassifications                                   |   |   | (293   | )      |   |   | (308 | ) |
| Increase      due to acquisition of Community First |   |   | -      |   |   |   | 5,755 |   |
| Ending      balance                                 |   | $      | 6,434  |   |   | $      | 9,499 |   |

| (6) | PREMISES AND      EQUIPMENT |
|-----|-----------------------------|

| (In      thousands)                    |   | 2010   |   |   | 2009   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Land      and land improvements        |   | $      | 1,974  |   |   | $      | 1,974 |   |
| Office      buildings                  |   |   | 8,663  |   |   |   | 8,581 |   |
| Furniture,      fixtures and equipment |   |   | 3,068  |   |   |   | 2,977 |   |
|                                   |   |   | 13,705 |   |   |   | 13,532 |   |
| Less      accumulated depreciation     |   |   | 4,213  |   |   |   | 3,616 |   |
| Totals                                 |   | $      | 9,492  |   |   | $      | 9,916 |   |

----

| (7) | FORECLOSED REAL      ESTATE |
|-----|-----------------------------|

| (8) | GOODWILL AND OTHER      INTANGIBLES |
|-----|-------------------------------------|

| (In      thousands)                                                  |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Beginning      balance                                               |   | $      | 5,882  |   |   | $      | - |   |
| Community      First acquisition                                     |   |   | -      |   |   |   | 5,882 |   |
| Additional      consideration related to Community First acquisition |   |   | 58     |   |   |   | - |   |
| Ending      balance                                                  |   | $      | 5,940  |   |   | $      | 5,882 |   |

| (In      thousands)                          |   | 2010   |   |   | 2009   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Acquired      in Community First acquisition |   | $      | 2,741  |   |   | $      | 2,741 |   |
| Less      accumulated amortization           |   |   | (294   | )      |   |   | - |   |
| Ending      balance                          |   | $      | 2,447  |   |   | $      | 2,741 |   |

| Years      ending September 30: |   | (In      thousands) |   |
|---------------------------------|--------|---------------------|--------|
| 2011                            |   | $                   | 294    |   |
| 2012                            |   |                | 294    |   |
| 2013                            |   |                | 294    |   |
| 2014                            |   |                | 294    |   |
| 2015                            |   |                | 294    |   |
| 2016      and thereafter        |   |                | 977    |   |
| Total                           |   | $                   | 2,447  |   |

----

| (9)  | DEPOSITS |
|-----------|----------|

| Years ending September 30: |   | (In thousands) |    |
|-------------------------------------------|--------|---------------------|---------|
|                                      |   |                |    |
| 2011                                      |   | $                   | 114,912 |   |
| 2012                                      |   |                | 45,711  |   |
| 2013                                      |   |                | 8,085   |   |
| 2014                                      |   |                | 7,043   |   |
| 2015      and thereafter                  |   |                | 21,672  |   |
|                                      |   |                |    |   |
| Total                                     |   | $                   | 197,423 |   |

| (10)  | FEDERAL FUNDS      PURCHASED |
|------------|------------------------------|

| (11)  | REPURCHASE      AGREEMENTS |
|------------|----------------------------|

|                                      |   | 2010     |   |   | 2009   |   |
|-------------------------------------------|--------|----------|--------|--------|--------|--------|
|                                      |   | Weighted |   |   |   |   |   | Weighted |   |   |   |   |
|                                      |   | Average  |   |   |   |   |   | Average |   |   |   |   |
| (In thousands)                       |   | Rate     |   |   | Amount |   |   | Rate |   |   | Amount |   |
|                                      |   |     |   |   |   |   |   |   |   |   |   |   |
| Retail      repurchase agreements         |   |     | 0.63   | %      |   | $      | 1,312 |   |   |   | 0.63 | % |   | $ | 1,304 |   |
|                                      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Broker-dealer      repurchase agreements: |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      agreements:                |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Maturing      November 2011               |   |     | 1.60   | %      |   |   | 10,342 |   |   |   | 1.60 | % |   |   | 10,635 |   |
| Maturing      December 2011               |   |     | 1.65   | %      |   |   | 5,167 |   |   |   | 1.65 | % |   |   | 5,300 |   |
|                                      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      repurchase agreements          |   |     |   |   |   | $      | 16,821 |   |   |   |   |   |   | $ | 17,239 |   |

----

|                                                                                    |   | (In thousands) |   |
|-----------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                    |   |                |   |
| Weighted      average interest rate during the year                                     |   |                | 0.50   | % |
| Average      balance during the year                                                    |   | $                   | 1,308  |   |
| Maximum      month-end balance during the year                                          |   |                | 1,312  |   |
|                                                                                    |   |                |   |   |
| Available      for sale debt securities underlying the agreements at September      30: |   |                |   |   |
|                                                                                    |   |                |   |   |
| Amortized      cost                                                                     |   | $                   | 2,500  |   |
| Fair      value                                                                         |   |                | 2,530  |   |

|                                                                                    |   | (In thousands) |   |
|-----------------------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                                    |   |                |   |
| Weighted      average interest rate during the year                                     |   |                | 2.10   | % |
| Average      balance during the year                                                    |   | $                   | 15,722 |   |
| Maximum      month-end balance during the year                                          |   |                | 15,899 |   |
|                                                                                    |   |                |   |   |
| Available      for sale debt securities underlying the agreements at September      30: |   |                |   |   |
|                                                                                    |   |                |   |   |
| Amortized      cost                                                                     |   | $                   | 15,939 |   |
| Fair      value                                                                         |   |                | 16,233 |   |

|                                     |   | (In thousands) |   |
|------------------------------------------|--------|---------------------|--------|
|                                     |   |                |   |
| Broker-dealer      repurchase agreements |   | $                   | 331    |   |
| Retail      repurchase agreements        |   |                | 6      |   |
|                                     |   |                |   |   |
| Total                                    |   | $                   | 337    |   |

----

| (12)  | BORROWINGS FROM FEDERAL HOME      LOAN BANK |
|------------|---------------------------------------------|

|                                              |   | 2010     |   |   | 2009   |   |
|---------------------------------------------------|--------|----------|--------|--------|--------|--------|
|                                              |   | Weighted |   |   |   |   |   | Weighted |   |   |   |   |
|                                              |   | Average  |   |   |   |   |   | Average |   |   |   |   |
| (In thousands)                               |   | Rate     |   |   | Amount |   |   | Rate |   |   | Amount |   |
|                                              |   |     |   |   |   |   |   |   |   |   |   |   |
| Advances      maturing in:                        |   |     |   |   |   |   |   |   |   |   |   |   |
| 2010                                              |   |     | -      |   |   | $      | - |   |   |   | 0.57 | % |   | $ | 36,650 |   |
| 2011                                              |   |     | 0.56   | %      |   |   | 27,025 |   |   |   | 0.98 | % |   |   | 5,175 |   |
| 2013                                              |   |     | 3.04   | %      |   |   | 13,212 |   |   |   | 3.04 | % |   |   | 13,287 |   |
| 2015                                              |   |     | 2.66   | %      |   |   | 20,000 |   |   |   | - |   |   |   | - |   |
|                                              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      advances                               |   |     |   |   |   |   | 60,237 |   |   |   |   |   |   |   | 55,112 |   |
|                                              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Line      of credit balance                       |   |     | 0.47   | %      |   |   | 6,922 |   |   |   | 0.47 | % |   |   | 661 |   |
|                                              |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      borrowings from Federal Home Loan Bank |   |     |   |   |   | $      | 67,159 |   |   |   |   |   |   | $ | 55,773 |   |

| (13)  | DEFERRED COMPENSATION      PLANS |
|------------|----------------------------------|

----

| (14)  | BENEFIT      PLANS |
|------------|--------------------|

| (In      thousands)                                                                              |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                             |   |   |   |   |   |   |
| Change      in projected benefit obligation:                                                     |   |   |   |   |   |   |
| Balance      at beginning of year                                                                |   | $      | 4,923  |   |   | $      | 5,051 |   |
| Interest      cost                                                                               |   |   | 149    |   |   |   | 376 |   |
| Actuarial      loss (gain)                                                                       |   |   | 905    |   |   |   | (354 | ) |
| Benefits      paid prior to settlement                                                           |   |   | (89    | )      |   |   | (150 | ) |
| Net      settlement of benefit obligation                                                        |   |   | (5,888 | )      |   |   | - |   |
| Balance      at end of year                                                                      |   | $      | -      |   |   | $      | 4,923 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Change      in plan assets:                                                                      |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year                                              |   | $      | 6,412  |   |   | $      | 6,198 |   |
| Actual      return on plan assets                                                                |   |   | 60     |   |   |   | 361 |   |
| Administrative      expenses                                                                     |   |   | (112   | )      |   |   | - |   |
| Benefits      paid                                                                               |   |   | (6,360 | )      |   |   | (147 | ) |
| Fair      value of plan assets at end of year                                                    |   | $      | -      |   |   | $      | 6,412 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Funded      status                                                                               |   | $      | -      |   |   | $      | 1,489 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Amounts      recognized in the balance sheets consist of:                                        |   |   |   |   |   |   |   |   |
| Excess      pension asset recognized in other assets                                             |   | $      | -      |   |   | $      | 1,489 |   |
| Accumulated      other comprehensive income                                                      |   | $      | -      |   |   | $      | 428 |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Amounts      recognized in accumulated other comprehensive income consist of the      following: |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |
| Net      gain at end of fiscal year                                                              |   | $      | -      |   |   | $      | 709 |   |
| Deferred      income tax expense                                                                 |   |   | -      |   |   |   | (281 | ) |
| Net      amount recognized                                                                       |   | $      | -      |   |   | $      | 428 |   |

----

| (In      thousands)                                |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |   |
| Net      periodic benefit expense:                 |   |   |   |   |   |   |
| Interest      cost on projected benefit obligation |   | $      | 149    |   |   | $      | 376 |   |
| Expected      return on plan assets                |   |   | (72    | )      |   |   | (376 | ) |
| Amortization      of unrecognized gain             |   |   | (2     | )      |   |   | - |   |
| Net      loss on settlement                        |   |   | 705    |   |   |   | - |   |
|                                               |   |   |   |   |   |   |   |   |
| Net      periodic benefit expense                  |   | $      | 780    |   |   | $      | - |   |

|                                          |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |   |
| Discount      rate                            |   |   | 5.25   | %      |   |   | 6.00 | % |
| Rate      of compensation increase            |   |   | 0.00   | %      |   |   | 3.50 | % |
| Expected      long-term return on plan assets |   |   | 2.25   | %      |   |   | 6.50 | % |

----

| Allocated      shares  |   |   | 53,233  |   |
|------------------------|--------|--------|---------|--------|
| Unearned      shares   |   |   | 150,130 |   |
| Total      ESOP shares |   |   | 203,363 |   |

----

| (15)  | STOCK BASED COMPENSATION      PLANS |
|------------|-------------------------------------|

|   | In      December 2009, the Company adopted the 2010 Equity Incentive Plan (Plan),      which the Company’s shareholders approved in February 2010. The Plan      provides for the award of stock options, restricted shares and performance      shares.  The aggregate number of shares of the Company’s common stock      available for issuance under the Plan may not exceed 355,885 shares.       The Company may grant both non-statutory and statutory (i.e., incentive)      stock options that may not have a term exceeding ten years.  An award      of a performance share is a grant of a right to receive shares of the      Company’s common stock contingent upon the achievement of specific      performance criteria or other objectives set at the grant date.       Awards granted under the Plan may be granted either alone, in addition to,      or in tandem with any other award granted under the Plan.  The terms      of the Plan include a provision whereby all unearned options and shares      become immediately exercisable and fully vested upon a change in      control. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   |   |    |   | Weighted        |   |
|-------------------------------------|--------|--------|---------|--------|-----------------|--------|
|                                |   | Number |    |   | Average         |   |
|                                |   | of     |    |   | Grant-Date      |   |
|                                |   | Shares |    |   | Fair Value |   |
|                                |   |   |    |   |            |   |
| Nonvested      at beginning of year |   |   | -       |   |            |   | - |   |
| Granted                             |   |   | 101,681 |   |            | $      | 13.25 |   |
| Vested                              |   |   | (3,589  | )      |            |   | 13.25 |   |
| Forfeited                           |   |   | -       |   |            |   | - |   |
|                                |   |   |    |   |            |   |   |   |
| Nonvested      at end of year       |   |   | 98,092  |   |            | $      | 13.25 |   |

| Expected      dividend yield                   |   |           | 4.53   | %      |
|------------------------------------------------|--------|----------------|--------|--------|
| Risk-free      interest rate                   |   |           | 2.82   | %      |
| Expected      volatility                       |   |           | 30.00  | %      |
| Expected      life of options                  |   | 7.5 years |   |
| Weighted      average fair value at grant date |   | $              | 3.09   |   |

----

|                                  |   |   |    |   |     |   |   | Weighted    |   |   |      |   |
|---------------------------------------|--------|--------|---------|--------|----------|--------|--------|-------------|--------|--------|-----------|--------|
|                                  |   |   |    |   | Weighted |   |   | Average     |   |   |      |   |
|                                  |   | Number |    |   | Average  |   |   | Remaining   |   |   | Aggregate |   |
|                                  |   | of     |    |   | Exercise |   |   | Contractual |   |   | Intrinsic |   |
|                                  |   | Shares |    |   | Price    |   |   | Term        |   |   | Value     |   |
|                                  |   |   |    |   |     |   |   |        |   |   |      |   |
| Outstanding      at beginning of year |   |   | -       |   |     |   | -      |        |   |   |      |   |   |   |
| Granted                               |   |   | 254,204 |   |     | $      | 13.25  |        |   |   |      |   |   |   |
| Exercised                             |   |   | -       |   |     |   | -      |        |   |   |      |   |   |   |
| Forfeited      or expired             |   |   | -       |   |     |   | -      |        |   |   |      |   |   |   |
|                                  |   |   |    |   |     |   |   |        |   |   |      |   |   |   |
| Outstanding      at end of year       |   |   | 254,204 |   |     | $      | 13.25  |        |   |   | 9.6       |   |   | $ | - |   |
|                                  |   |   |    |   |     |   |   |        |   |   |      |   |   |   |   |   |
| Exercisable      at end of year       |   |   | 8,972   |   |     | $      | 13.25  |        |   |   | 9.6       |   |   | $ | - |   |

| (16)  | INCOME    TAXES |
|------------|-----------------|

| (In      thousands)               |   | 2010   |   |   | 2009   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
|                              |   |   |   |   |   |   |
| Current                           |   | $      | 557    |   |   | $      | 285 |   |
| Deferred                          |   |   | 251    |   |   |   | (537 | ) |
|                              |   |   |   |   |   |   |   |   |
| Income      tax expense (benefit) |   | $      | 808    |   |   | $      | (252 | ) |

| (In      thousands)                              |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                             |   |   |   |   |   |   |
| Provision      at federal statutory rate         |   | $      | 1,169  |   |   | $      | (74 | ) |
| State      income tax-net of federal tax benefit |   |   | 25     |   |   |   | (51 | ) |
| Tax-exempt      interest income                  |   |   | (292   | )      |   |   | (66 | ) |
| Increase      in cash value of life insurance    |   |   | (87    | )      |   |   | (57 | ) |
| Other                                            |   |   | (7     | )      |   |   | (4 | ) |
|                                             |   |   |   |   |   |   |   |   |
| Income      tax expense (benefit)                |   | $      | 808    |   |   | $      | (252 | ) |

----

| (In      thousands)                                                        |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred      tax assets (liabilities):                                    |   |   |   |   |   |   |
| Allowance      for loan losses                                             |   | $      | 1,403  |   |   | $      | 1,266 |   |
| Acquisition      purchase accounting adjustments                           |   |   | 1,178  |   |   |   | 1,805 |   |
| Charitable      contributions carryover                                    |   |   | 348    |   |   |   | 403 |   |
| Deferred      compensation plans                                           |   |   | 239    |   |   |   | 214 |   |
| Other-than-temporary      impairment loss on available for sale securities |   |   | 79     |   |   |   | 149 |   |
| State      net operating loss and credit carryforwards                     |   |   | 87     |   |   |   | 72 |   |
| Accrued      severance expense payable                                     |   |   | 83     |   |   |   | - |   |
| Valuation      allowance on foreclosed real estate and repossessed assets  |   |   | 49     |   |   |   | 8 |   |
| Equity      incentive plans                                                |   |   | 44     |   |   |   | - |   |
| Unrealized      (gain) loss on securities available for sale               |   |   | (1,787 | )      |   |   | 175 |   |
| Accumulated      depreciation                                              |   |   | (540   | )      |   |   | (649 | ) |
| Deferred      loan fees and costs, net                                     |   |   | (300   | )      |   |   | (458 | ) |
| Prepaid      pension asset                                                 |   |   | -      |   |   |   | (584 | ) |
| Federal      Home Loan Bank stock dividends                                |   |   | (137   | )      |   |   | (137 | ) |
| Interest      rate cap contract                                            |   |   | (2     | )      |   |   | (40 | ) |
| Other                                                                      |   |   | 42     |   |   |   | 52 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| Net      deferred tax asset                                                |   | $      | 786    |   |   | $      | 2,276 |   |

----

| (17)  | COMMITMENTS AND CONTINGENT      LIABILITIES |
|------------|---------------------------------------------|

| (In      thousands)                                                 |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Loan      commitments:                                              |   |   |   |   |   |   |
| Fixed      rate                                                     |   | $      | 3,329  |   |   | $      | 3,117 |   |
| Adjustable      rate                                                |   |   | 2,819  |   |   |   | 2,202 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Unused      lines of credit on credit cards                         |   |   | 2,070  |   |   |   | 2,437 |   |
| Undisbursed      portion of home equity lines of credit             |   |   | 19,547 |   |   |   | 34,598 |   |
| Undisbursed      portion of commercial and personal lines of credit |   |   | 18,039 |   |   |   | 19,194 |   |
| Undisbursed      portion of construction loans in process           |   |   | 2,057  |   |   |   | 3,306 |   |
|                                                                |   |   |   |   |   |   |   |   |
| Total      commitments to extend credit                             |   | $      | 47,861 |   |   | $      | 64,854 |   |

| (18)  | FINANCIAL INSTRUMENTS WITH      OFF-BALANCE-SHEET RISK |
|------------|--------------------------------------------------------|

----

| (19)  | DISCLOSURES ABOUT FAIR VALUE OF      FINANCIAL INSTRUMENTS |
|------------|------------------------------------------------------------|

|                                                            |   | 2010     |    |   | 2009   |   |
|-----------------------------------------------------------------|--------|----------|---------|--------|--------|--------|
|                                                            |   | Carrying |    |   | Fair   |   |   | Carrying |   |   | Fair |   |
| (In      thousands)                                             |   | Amount   |    |   | Value  |   |   | Amount |   |   | Value |   |
|                                                            |   |     |    |   |   |   |   |   |   |   |   |   |
| Financial      assets:                                          |   |     |    |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks                                    |   | $        | 10,184  |   |   | $      | 10,184 |   |   | $ | 8,359 |   |   | $ | 8,359 |   |
| Interest-bearing      deposits in banks                         |   |     | 1,094   |   |   |   | 1,094 |   |   |   | 2,045 |   |   |   | 2,045 |   |
| Securities      available for sale                              |   |     | 109,976 |   |   |   | 109,976 |   |   |   | 72,580 |   |   |   | 72,580 |   |
| Securities      held to maturity                                |   |     | 3,929   |   |   |   | 4,144 |   |   |   | 6,782 |   |   |   | 7,054 |   |
|                                                            |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans,      net                                                 |   |     | 343,615 |   |   |   | 357,508 |   |   |   | 353,823 |   |   |   | 360,157 |   |
|                                                            |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      loans held for sale                               |   |     | 1,884   |   |   |   | 1,884 |   |   |   | 317 |   |   |   | 317 |   |
| Federal      Home Loan Bank stock                               |   |     | 4,170   |   |   |   | 4,170 |   |   |   | 4,170 |   |   |   | 4,170 |   |
| Accrued      interest receivable                                |   |     | 2,392   |   |   |   | 2,392 |   |   |   | 2,100 |   |   |   | 2,100 |   |
|                                                            |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                     |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                        |   |     | 366,161 |   |   |   | 371,869 |   |   |   | 350,816 |   |   |   | 354,194 |   |
| Federal      funds purchased                                    |   |     | -       |   |   |   | - |   |   |   | 1,180 |   |   |   | 1,180 |   |
| Short-term      repurchase agreements                           |   |     | 1,312   |   |   |   | 1,312 |   |   |   | 1,304 |   |   |   | 1,304 |   |
| Long-term      repurchase agreements                            |   |     | 15,509  |   |   |   | 15,602 |   |   |   | 15,935 |   |   |   | 15,935 |   |
| Borrowings      from Federal Home Loan Bank                     |   |     | 67,159  |   |   |   | 68,531 |   |   |   | 55,773 |   |   |   | 56,184 |   |
| Accrued      interest payable                                   |   |     | 427     |   |   |   | 427 |   |   |   | 516 |   |   |   | 516 |   |
| Advance      payments by borrowers for taxes and insurance      |   |     | 252     |   |   |   | 252 |   |   |   | 341 |   |   |   | 348 |   |
|                                                            |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative      financial instruments included in other assets: |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate cap                                          |   |     | 77      |   |   |   | 77 |   |   |   | 202 |   |   |   | 202 |   |
|                                                            |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance-sheet      financial instruments:                   |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      related to commitments to extend credit              |   |     | -       |   |   |   | 47 |   |   |   | - |   |   |   | 39 |   |

----

----

| (20)  | FAIR VALUE      MEASUREMENTS |
|------------|------------------------------|

|   | Level      1: | Inputs      to the valuation methodology are quoted prices, unadjusted, for identical      assets or liabilities in active markets. A quoted market price in an      active market provides the most reliable evidence of fair value and shall      be used to measure fair value whenever  available. |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      2: | Inputs      to the valuation methodology include quoted market prices for similar      assets or liabilities in active markets; inputs to the valuation      methodology include quoted market prices for identical or similar assets      or liabilities in markets that are not active; or inputs to the valuation      methodology that are derived principally from or can be corroborated by      observable market data by correlation or other  means. |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level      3: | Inputs      to the valuation methodology are unobservable and significant to the fair      value measurement. Level 3 assets and liabilities include financial      instruments whose value is determined using discounted cash flow      methodologies, as well as instruments for which the determination of fair      value requires significant management judgment or    estimation. |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | Carrying Value |   |
|-------------------------------------------|--------|---------------------|--------|
|                                      |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                      |   | (In      thousands) |   |
| September      30, 2010:                  |   |                |   |   |   |   |   |   |   |   |   |   |
| Assets      Measured - Recurring Basis    |   |                |   |   |   |   |   |   |   |   |   |   |
| Securities      available for sale:       |   |                |   |   |   |   |   |   |   |   |   |   |
| Agency      bonds and notes               |   | $                   | -      |   |   | $ | 25,705 |   |   | $ | - |   |   | $ | 25,705 |   |
| Agency      mortgage-backed               |   |                | -      |   |   |   | 14,141 |   |   |   | - |   |   |   | 14,141 |   |
| Agency      CMO                           |   |                | -      |   |   |   | 22,488 |   |   |   | - |   |   |   | 22,488 |   |
| Privately-issued      CMO                 |   |                | -      |   |   |   | 12,688 |   |   |   | - |   |   |   | 12,688 |   |
| Municipal                                 |   |                | -      |   |   |   | 34,877 |   |   |   | - |   |   |   | 34,877 |   |
| Equity      securities                    |   |                | 77     |   |   |   | - |   |   |   | - |   |   |   | 77 |   |
| Total      securities available for sale  |   | $                   | 77     |   |   | $ | 109,899 |   |   | $ | - |   |   | $ | 109,976 |   |
|                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate cap                    |   | $                   | -      |   |   | $ | 77 |   |   | $ | - |   |   | $ | 77 |   |
|                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets      Measured - Nonrecurring Basis |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired      loans                       |   | $                   | -      |   |   | $ | 5,637 |   |   | $ | - |   |   | $ | 5,637 |   |
| Loans      held for sale                  |   |                | -      |   |   |   | 1,884 |   |   |   | - |   |   |   | 1,884 |   |
| Foreclosed      real estate               |   |                | -      |   |   |   | 1,331 |   |   |   | - |   |   |   | 1,331 |   |
|                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September      30, 2009:                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets      Measured - Recurring Basis    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities      available for sale:       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agency      bonds and notes               |   | $                   | -      |   |   | $ | 5,845 |   |   | $ | - |   |   | $ | 5,845 |   |
| Agency      mortgage-backed               |   |                | -      |   |   |   | 34,483 |   |   |   | - |   |   |   | 34,483 |   |
| Agency      CMO                           |   |                | -      |   |   |   | 3,473 |   |   |   | - |   |   |   | 3,473 |   |
| Privately-issued      CMO and ABS         |   |                | -      |   |   |   | 11,191 |   |   |   | - |   |   |   | 11,191 |   |
| Municipal                                 |   |                | -      |   |   |   | 17,512 |   |   |   | - |   |   |   | 17,512 |   |
| Equity      securities                    |   |                | 76     |   |   |   | - |   |   |   | - |   |   |   | 76 |   |
| Total      securities available for sale  |   | $                   | 76     |   |   | $ | 72,504 |   |   | $ | - |   |   | $ | 72,580 |   |
|                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate cap                    |   | $                   | -      |   |   | $ | 202 |   |   | $ | - |   |   | $ | 202 |   |
|                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets      Measured - Nonrecurring Basis |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired      loans                       |   | $                   | -      |   |   | $ | 4,971 |   |   | $ | - |   |   | $ | 4,971 |   |
| Loans      held for sale                  |   |                | -      |   |   |   | 317 |   |   |   | - |   |   |   | 317 |   |
| Foreclosed      real estate               |   |                | -      |   |   |   | 1,589 |   |   |   | - |   |   |   | 1,589 |   |
|                                      |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| (21)  | DERIVATIVE      INSTRUMENTS |
|------------|-----------------------------|

| Strike                      |   |   | Remaining      |   | Notional |   |   | Purchase |   |   | Unrealized |   |   | Fair   |   |
|-----------------------------|--------|--------|----------------|--------|----------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Rate                        |   |   | Term           |   | Amount   |   |   | Premium  |   |   | Loss       |   |   | Value  |   |
| (Dollars      in thousands) |   |
|                        |   |   |           |   |     |   |   |     |   |   |       |   |   |   |   |
| 7.50                        | %      |   | 6.8      years |   | $        | 10,000 |   |     | $      | 150    |       |   | $      | 73     |   |   | $ | 77 |   |
|                        |   |   |           |   |     |   |   |     |   |   |       |   |   |   |   |   |   |   |   |

| (22)  | STOCKHOLDERS’      EQUITY |
|------------|---------------------------------|

----

| (23)  | DIVIDEND      RESTRICTION |
|------------|---------------------------|

| (24)  | REGULATORY      MATTERS |
|------------|-------------------------|

----

|                             |   |   |   |   |                    |   |   |                    |   |   | Minimum                |   |
|----------------------------------|--------|--------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|
|                             |   |   |   |   |                    |   |   |                    |   |   | To      Be Well        |   |
|                             |   |   |   |   |                    |   |   | Minimum                 |   |   | Capitalized      Under |   |
|                             |   |   |   |   |                    |   |   | For      Capital        |   |   | Prompt      Corrective |   |
|                             |   | Actual |   |   | Adequacy      Purposes: |   |   | Action      Provisions: |   |
| (Dollars      in thousands)      |   | Amount |   |   | Ratio                   |   |   | Amount                  |   |   | Ratio                  |   |   | Amount |   |   | Ratio |   |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |
| As      of September 30, 2010:   |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Total      capital (to risk      |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |
| weighted      assets)            |   | $      | 42,413 |   |                    |   | 12.77  | %                       |   | $      | 26,563                 |   |   |   | 8.00 | % |   | $ | 33,204 |   |   |   | 10.00 | % |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital (to risk     |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted      assets)            |   | $      | 38,931 |   |                    |   | 11.72  | %                       |   |   | N/A                    |   |   |   |   |   |   | $ | 19,923 |   |   |   | 6.00 | % |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital (to adjusted |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| total      assets)               |   | $      | 38,931 |   |                    |   | 7.84   | %                       |   | $      | 19,870                 |   |   |   | 4.00 | % |   | $ | 24,838 |   |   |   | 5.00 | % |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible      capital (to        |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjusted      total assets)      |   | $      | 38,931 |   |                    |   | 7.84   | %                       |   | $      | 7,451                  |   |   |   | 1.50 | % |   |   | N/A |   |   |   |   |   |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As      of September 30, 2009:   |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      capital (to risk      |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted      assets)            |   | $      | 38,876 |   |                    |   | 12.32  | %                       |   | $      | 25,236                 |   |   |   | 8.00 | % |   | $ | 31,545 |   |   |   | 10.00 | % |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital (to risk     |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted      assets)            |   | $      | 35,501 |   |                    |   | 11.25  | %                       |   |   | N/A                    |   |   |   |   |   |   | $ | 18,927 |   |   |   | 6.00 | % |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital (to adjusted |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| total      assets)               |   | $      | 35,501 |   |                    |   | 7.55   | %                       |   | $      | 18,816                 |   |   |   | 4.00 | % |   | $ | 23,520 |   |   |   | 5.00 | % |
|                             |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible      capital (to        |   |   |   |   |                    |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjusted      total assets)      |   | $      | 35,501 |   |                    |   | 7.55   | %                       |   | $      | 7,056                  |   |   |   | 1.50 | % |   |   | N/A |   |   |   |   |   |

----

| (25) | SUPPLEMENTAL DISCLOSURE FOR      EARNINGS PER SHARE |
|------|-----------------------------------------------------|

| (In      thousands, except for share and per share data) |   | Years Ended September 30, |      |
|----------------------------------------------------------|--------|---------------------------|-----------|
|                                                     |   | 2010                      |      |   | 2009 |   |
| Basic:                                                   |   |                      |      |   |   |   |
| Earnings:                                                |   |                      |      |   |   |   |
| Net      income                                          |   | $                         | 2,629     |   |   | $ | 33 |   |
|                                                     |   |                      |      |   |   |   |   |   |
| Shares:                                                  |   |                      |      |   |   |   |   |   |
| Weighted      average common shares outstanding          |   |                      | 2,244,643 |   |   |   | 2,315,498 |   |
|                                                     |   |                      |      |   |   |   |   |   |
| Net      income per common share, basic                  |   | $                         | 1.17      |   |   | $ | 0.01 |   |

| (26)  | PARENT COMPANY CONDENSED      FINANCIAL INFORMATION |
|------------|-----------------------------------------------------|

|                                    |   | As of September 30, |   |
|-----------------------------------------|--------|---------------------|--------|
|                                    |   | 2010                |   |   | 2009 |   |
| Assets:                                 |   |                |   |   |   |   |
| Cash      and interest bearing deposits |   | $                   | 3,693  |   |   | $ | 6,988 |   |
| Other      assets                       |   |                | 1,254  |   |   |   | 866 |   |
| Investment      in subsidiaries         |   |                | 50,276 |   |   |   | 45,056 |   |
|                                    |   | $                   | 55,223 |   |   | $ | 52,910 |   |
|                                    |   |                |   |   |   |   |   |   |
| Liabilities      and Equity:            |   |                |   |   |   |   |   |   |
| Accrued      expenses                   |   | $                   | 72     |   |   | $ | 33 |   |
| Stockholders'      equity               |   |                | 55,151 |   |   |   | 52,877 |   |
|                                    |   | $                   | 55,223 |   |   | $ | 52,910 |   |

----

|                                                                                      |   | Years Ended September 30, |   |
|-------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                      |   | 2010                      |   |   | 2009 |   |
|                                                                                      |   |                      |   |   |   |   |
| Other      operating expenses                                                             |   | $                         | (865   | ) |   | $ | (1,675 | ) |
|                                                                                      |   |                      |   |   |   |   |   |   |
| Loss      before income taxes and equity in undistributed net income of      subsidiaries |   |                      | (865   | ) |   |   | (1,675 | ) |
|                                                                                      |   |                      |   |   |   |   |   |   |
| Income      tax benefit                                                                   |   |                      | 301    |   |   |   | 602 |   |
|                                                                                      |   |                      |   |   |   |   |   |   |
| Loss      before equity in undistributed net income of subsidiaries                       |   |                      | (564   | ) |   |   | (1,073 | ) |
|                                                                                      |   |                      |   |   |   |   |   |   |
| Equity      in undistributed net income of subsidiaries                                   |   |                      | 3,193  |   |   |   | 1,106 |   |
|                                                                                      |   |                      |   |   |   |   |   |   |
| Net      income                                                                           |   | $                         | 2,629  |   |   | $ | 33 |   |

|                                                                              |   | Years Ended September 30, |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                              |   | 2010                                     |   |   | 2009 |   |
| Operating      Activities:                                                        |   |                                     |   |   |   |   |
| Net      income                                                                   |   | $                                        | 2,629  |   |   | $ | 33 |   |
| Adjustments      to reconcile net income to cash used in operating    activities: |   |                                     |   |   |   |   |   |   |
| Equity      in undistributed net income of subsidiaries                           |   |                                     | (3,193 | ) |   |   | (1,106 | ) |
| ESOP      and stock compensation expense                                          |   |                                     | 532    |   |   |   | 227 |   |
| Contribution      of common stock to charitable foundation                        |   |                                     | -      |   |   |   | 1,100 |   |
| Net      change in other assets and liabilities                                   |   |                                     | (353   | ) |   |   | (829 | ) |
| Net      cash used in operating activities                                        |   |                                     | (385   | ) |   |   | (575 | ) |
|                                                                              |   |                                     |   |   |   |   |   |   |
| Financing      Activities:                                                        |   |                                     |   |   |   |   |   |   |
| Proceeds      from issuance of common stock                                       |   |                                     | -      |   |   |   | 21,160 |   |
| Investment      in Bank                                                           |   |                                     | -      |   |   |   | (13,597 | ) |
| Purchase      of treasury stock                                                   |   |                                     | (1,329 | ) |   |   | - |   |
| Purchase      of common shares for restricted stock grants                        |   |                                     | (1,388 | ) |   |   | - |   |
| Dividends      paid                                                               |   |                                     | (193   | ) |   |   | - |   |
| Net      cash provided by (used in) financing activities                          |   |                                     | (2,910 | ) |   |   | 7,563 |   |
|                                                                              |   |                                     |   |   |   |   |   |   |
| Net      increase (decrease) in cash and interest bearing deposits                |   |                                     | (3,295 | ) |   |   | 6,988 |   |
|                                                                              |   |                                     |   |   |   |   |   |   |
| Cash      and interest bearing deposits at beginning of year                      |   |                                     | 6,988  |   |   |   | - |   |
|                                                                              |   |                                     |   |   |   |   |   |   |
| Cash      and interest bearing deposits at end of year                            |   | $                                        | 3,693  |   |   | $ | 6,988 |   |

----

| (27)  | CONCENTRATION OF CREDIT      RISK |
|------------|-----------------------------------|

| (28)  | SUPPLEMENTAL DISCLOSURE OF CASH      FLOW INFORMATION |
|------------|-------------------------------------------------------|

| (In      thousands)                                                      |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                     |   |   |   |   |   |   |
| Cash      payments for:                                                  |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |
| Interest                                                                 |   | $      | 8,168  |   |   | $      | 4,472 |   |
| Taxes                                                                    |   |   | 521    |   |   |   | 243 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Non-cash      investing activities:                                      |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Transfers      from loans to foreclosed real estate                      |   |   | 1,075  |   |   |   | 1,327 |   |
| Proceeds      from sales of foreclosed real estate financed throughloans |   |   | 405    |   |   |   | 241 |   |
| Transfer      of securities from held to maturity to available for sale  |   |   | 426    |   |   |   | - |   |

----

| (29)  | SELECTED QUARTERLY FINANCIAL      INFORMATION (UNAUDITED) |
|------------|-----------------------------------------------------------|

|                                                     |   | First   |   |   | Second  |   |   | Third   |   |   | Fourth  |   |
|----------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| (In thousands)                                      |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |
| September 30, 2010:                                      |   |    |   |   |    |   |   |    |   |   |    |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |
| Interest      income                                     |   | $       | 6,595  |   |    | $      | 6,526  |    |   | $      | 6,541   |   |   | $ | 6,600 |   |
| Interest      expense                                    |   |    | 1,667  |   |    |   | 1,511  |    |   |   | 1,475   |   |   |   | 1,464 |   |
| Net      interest income                                 |   |    | 4,928  |   |    |   | 5,015  |    |   |   | 5,066   |   |   |   | 5,136 |   |
| Provision      for loan losses                           |   |    | 358    |   |    |   | 588    |    |   |   | 300     |   |   |   | 358 |   |
| Net      interest income after provision for loan losses |   |    | 4,570  |   |    |   | 4,427  |    |   |   | 4,766   |   |   |   | 4,778 |   |
| Noninterest      income                                  |   |    | 725    |   |    |   | 537    |    |   |   | 739     |   |   |   | 915 |   |
| Noninterest      expenses                                |   |    | 3,965  |   |    |   | 4,043  |    |   |   | 4,922   |   |   |   | 5,090 |   |
| Income      before income taxes                          |   |    | 1,330  |   |    |   | 921    |    |   |   | 583     |   |   |   | 603 |   |
| Income      tax expense                                  |   |    | 438    |   |    |   | 221    |    |   |   | 83      |   |   |   | 66 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net      income                                          |   | $       | 892    |   |    | $      | 700    |    |   | $      | 500     |   |   | $ | 537 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net      income per common share, basic                  |   | $       | 0.38   |   |    | $      | 0.31   |    |   | $      | 0.23    |   |   | $ | 0.25 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net      income per common share, diluted                |   | $       | 0.38   |   |    | $      | 0.31   |    |   | $      | 0.23    |   |   | $ | 0.25 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| September 30, 2009:                                      |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Interest      income                                     |   | $       | 3,206  |   |    | $      | 3,098  |    |   | $      | 3,272   |   |   | $ | 3,432 |   |
| Interest      expense                                    |   |    | 1,289  |   |    |   | 1,076  |    |   |   | 1,060   |   |   |   | 1,015 |   |
| Net      interest income                                 |   |    | 1,917  |   |    |   | 2,022  |    |   |   | 2,212   |   |   |   | 2,417 |   |
| Provision      for loan losses                           |   |    | 59     |   |    |   | 69     |    |   |   | 272     |   |   |   | 419 |   |
| Net      interest income after provision for loan losses |   |    | 1,858  |   |    |   | 1,953  |    |   |   | 1,940   |   |   |   | 1,998 |   |
| Noninterest      income                                  |   |    | 282    |   |    |   | 253    |    |   |   | 291     |   |   |   | 437 |   |
| Noninterest      expenses                                |   |    | 3,189  |   |    |   | 1,862  |    |   |   | 2,080   |   |   |   | 2,100 |   |
| Income      (loss) before income taxes                   |   |    | (1,049 | )      |    |   | 344    |    |   |   | 151     |   |   |   | 335 |   |
| Income      tax expense (benefit)                        |   |    | (409   | )      |    |   | 69     |    |   |   | (2      | )      |   |   | 90 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net      income (loss)                                   |   | $       | (640   | )      |    | $      | 275    |    |   | $      | 153     |   |   | $ | 245 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net      income (loss) per common share, basic           |   | $       | (0.29  | )      |    | $      | 0.12   |    |   | $      | 0.06    |   |   | $ | 0.10 |   |
|                                                     |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Net      income (loss) per common share, diluted         |   | $       | (0.29  | )      |    | $      | 0.12   |    |   | $      | 0.06    |   |   | $ | 0.10 |   |

----

|                         | FIRST      SAVINGS FINANCIAL GROUP, INC. |
|------------------------------|------------------------------------------|
|                         |                                     |   |   |
| Date:      December 29, 2010 | By:                                      | /s/ Larry W. Myers |   |
|                         |                                     | Larry      W. Myers |   |
|                         |                                     | President,      Chief Executive Officer |   |
|                         |                                     | and      Director |   |

| Name                         |         | Title                                             |         | Date                   |
|------------------------------|--------------|---------------------------------------------------|--------------|------------------------|
|                         |         |                                              |         |                   |
| /s/ Larry W. Myers           |         | President,      Chief Executive Officer           |         | December      29, 2010 |
| Larry      W. Myers          |         | and      Director                                 |         |                   |
|                         |         | (principal      executive officer)                |         |                   |
|                         |         |                                              |         |                   |
| /s/ Anthony A. Schoen        |         | Chief      Financial Officer                      |         | December      29, 2010 |
| Anthony      A. Schoen       |         | (principal      accounting and financial officer) |         |                   |
|                         |         |                                              |         |                   |
| /s/ John P. Lawson, Jr.      |         | Chief      Operating Officer and Director         |         | December      29, 2010 |
| John      P. Lawson, Jr.     |         |                                              |         |                   |
|                         |         |                                              |         |                   |
| /s/ Samuel E. Eckart         |         | Executive      Vice President and Director        |         | December      29, 2010 |
| Samuel      E. Eckart        |         |                                              |         |                   |
|                         |         |                                              |         |                   |
| /s/ Charles E. Becht, Jr.    |         | Director                                          |         | December      29, 2010 |
| Charles      E. Becht, Jr.   |         |                                              |         |                   |
|                         |         |                                              |         |                   |
| /s/ Cecile A. Blau           |         | Director                                          |         | December      29, 2010 |
| Cecile      A. Blau          |         |                                              |         |                   |
|                         |         |                                              |         |                   |
| /s/ Gerald Wayne Clapp, Jr.  |         | Director                                          |         | December      29, 2010 |
| Gerald      Wayne Clapp, Jr. |         |                                              |         |                   |
|                         |         |                                              |         |                   |
| /s/ Michael F. Ludden        |         | Director                                          |         | December      29, 2010 |
| Michael      F. Ludden       |         |                                              |         |                   |
|                         |         |                                              |         |                   |
| /s/ Douglas A. York          |    | Director                                          |    | December      29, 2010 |
| Douglas      A. York         |         |                                              |         |                   |

----

| /s/ Vaughn K. Timberlake  |         | Director |         | December      29, 2010 |
|---------------------------|--------------|----------|--------------|------------------------|
| Vaughn      K. Timberlake |         |     |         |                   |
|                      |         |     |         |                   |
| /s/ Frank N. Czeschin     |         | Director |         | December      29, 2010 |
| Frank      N. Czeschin    |    |     |    |                   |

----