----

----

| x      | Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|--------|------------------------------------------------------------------------------------------|
|   |                                                                                     |
|   | For the quarterly period ended September 30, 2011                                   |
|   |                                                                                     |
| OR     |
|   |                                                                                     |
| o      | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|   |                                                                                     |
|   | For the transition period from _______________ to _______________                   |

| Maryland                                                   |   | 36-4713616                             |
|------------------------------------------------------------|--------|----------------------------------------|
| (State or other jurisdiction ofin Company or organization) |   | (I.R.S. EmployerIdentification Number) |
|                                                       |   |                                   |
| 34 South 7thStreet, Richmond, Indiana                      |   | 47374                                  |
| (Address of Principal Executive Offices)                   |   | Zip Code                               |

| Large accelerated filer o                   |   | Accelerated filer o         |
|---------------------------------------------|--------|-----------------------------|
| Non-accelerated filer o                     |   | Smaller reporting company x |
| (Do not check if smaller reporting company) |   |                        |

----

|                          |   |                                                                                                                           |   | Page     |
|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| Part I. Financial Information |
|                          |   |                                                                                                                           |   |     |
| Item 1.                       |   | Condensed Consolidated Financial Statements                                                                                    |   |  1  |
|                          |   |                                                                                                                           |   |     |
|                          |   | Condensed Consolidated Balance Sheets as of September 30, 2011 (unaudited) and December 31, 2010                          |   | 1        |
|                          |   |                                                                                                                           |   |     |
|                          |   | Condensed Consolidated Statements of Income for the Three Months and Nine Months Ended September 30, 2011 and 2010 (unaudited) |   | 2        |
|                          |   |                                                                                                                           |   |     |
|                          |   | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2011 and 2010 (unaudited)              |   | 3        |
|                          |   |                                                                                                                           |   |     |
|                          |   | Notes to Condensed Consolidated Financial Statements (unaudited)                                                               |   | 4        |
|                          |   |                                                                                                                           |   |     |
| Item 2.                       |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                    |   |  25 |
|                          |   |                                                                                                                           |   |     |
| Item 3.                       |   | Quantitative and Qualitative Disclosures about Market Risk                                                                     |   |  31 |
|                          |   |                                                                                                                           |   |     |
| Item 4.                       |   | Controls and Procedures                                                                                                        |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Part II. Other Information    |
|                          |   |                                                                                                                           |   |     |
| Item 1.                       |   | Legal Proceedings                                                                                                              |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Item 1A.                      |   | Risk Factors                                                                                                                   |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Item 2.                       |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                    |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Item 3.                       |   | Defaults upon Senior Securities                                                                                                |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Item 4.                       |   | [Removed and Reserved]                                                                                                         |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Item 5.                       |   | Other Information                                                                                                              |   | 32       |
|                          |   |                                                                                                                           |   |     |
| Item 6.                       |   | Exhibits                                                                                                                       |   | 32       |
|                          |   |                                                                                                                           |   |     |
|                          |   | Signature Page                                                                                                                 |   | 33       |

----

----

| Item 1. | Financial Statements |
|---------|----------------------|

|                                                                 |   | September 30,2011 |        |   | December 31,2010 |   |
|----------------------------------------------------------------------|--------|-------------------|-------------|--------|------------------|--------|
|                                                                 |   | (Unaudited)       |        |   |             |   |
| Assets                                                               |   |              |        |   |             |   |
| Cash and due from banks                                              |   | $                 | 1,749,352   |   |             | $      | 1,706,247 |   |
| Interest-bearing demand deposits                                     |   |              | 11,905,252  |   |             |   | 6,587,359 |   |
| Cash and cash equivalents                                            |   |              | 13,654,604  |   |             |   | 8,293,606 |   |
| Investment securities available for sale                             |   |              | 45,328,248  |   |             |   | 41,215,625 |   |
| Loans held for sale                                                  |   |              | 360,686     |   |             |   | – |   |
| Loans, net of allowance for loan losses of $1,882,540 and $1,699,465 |   |              | 151,207,777 |   |             |   | 151,810,044 |   |
| Premises and equipment                                               |   |              | 3,626,840   |   |             |   | 3,690,575 |   |
| Federal Home Loan Bank stock                                         |   |              | 1,721,800   |   |             |   | 1,857,800 |   |
| Interest receivable                                                  |   |              | 961,404     |   |             |   | 886,224 |   |
| Bank-owned life insurance                                            |   |              | 4,703,729   |   |             |   | 4,589,294 |   |
| Foreclosed real estate held for sale                                 |   |              | 773,774     |   |             |   | 786,067 |   |
| Other assets                                                         |   |              | 2,881,133   |   |             |   | 2,860,137 |   |
|                                                                 |   |              |        |   |             |   |   |   |
| Total assets                                                         |   | $                 | 225,219,995 |   |             | $      | 215,989,372 |   |
|                                                                 |   |              |        |   |             |   |   |   |
| Liabilities and Equity                                               |   |              |        |   |             |   |   |   |
|                                                                 |   |              |        |   |             |   |   |   |
| Liabilities                                                          |   |              |        |   |             |   |   |   |
| Deposits                                                             |   | $                 | 179,162,544 |   |             | $      | 175,370,652 |   |
| Federal Home Loan Bank advances                                      |   |              | 27,000,000  |   |             |   | 22,000,000 |   |
| Interest payable                                                     |   |              | 158,000     |   |             |   | 141,517 |   |
| Other liabilities                                                    |   |              | 1,021,550   |   |             |   | 1,157,359 |   |
| Total liabilities                                                    |   |              | 207,342,094 |   |             |   | 198,669,528 |   |
|                                                                 |   |              |        |   |             |   |   |   |
| Commitments and Contingencies                                        |   |              |        |   |             |   |   |   |
|                                                                 |   |              |        |   |             |   |   |   |
| Equity                                                               |   |              |        |   |             |   |   |   |
| Retained earnings                                                    |   |              | 17,714,404  |   |             |   | 17,186,097 |   |
| Accumulated other comprehensive income                               |   |              | 163,497     |   |             |   | 133,747 |   |
| Total equity                                                         |   |              | 17,877,901  |   |             |   | 17,319,844 |   |
|                                                                 |   |              |        |   |             |   |   |   |
| Total liabilities and equity                                         |   | $                 | 225,219,995 |   |             | $      | 215,989,372 |   |

----

|                                                         |   | Three Months EndedSeptember 30, |      |   | Nine Months EndedSeptember 30, |   |
|--------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                                         |   | 2011                            |      |   | 2010                           |   |   | 2011 |   |   | 2010 |   |
|                                                         |   | (Unaudited)                     |      |
| Interest and Dividend Income                                 |   |                            |      |   |                           |   |   |   |   |   |   |   |
| Loans receivable, including fees                             |   | $                               | 2,518,417 |   |                           | $      | 2,554,004 |   |   | $ | 7,581,441 |   |   | $ | 7,569,888 |   |
| Investment securities                                        |   |                            | 278,624   |   |                           |   | 225,441 |   |   |   | 702,544 |   |   |   | 589,007 |   |
| Other                                                        |   |                            | 13,743    |   |                           |   | 12,367 |   |   |   | 42,478 |   |   |   | 25,727 |   |
| Total interest income                                        |   |                            | 2,810,784 |   |                           |   | 2,791,812 |   |   |   | 8,326,463 |   |   |   | 8,184,622 |   |
|                                                         |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                             |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                     |   |                            | 644,486   |   |                           |   | 859,884 |   |   |   | 2,056,225 |   |   |   | 2,589,984 |   |
| Federal Home Loan Bank advances                              |   |                            | 152,803   |   |                           |   | 147,902 |   |   |   | 403,435 |   |   |   | 525,589 |   |
| Total interest expense                                       |   |                            | 797,289   |   |                           |   | 1,007,786 |   |   |   | 2,459,660 |   |   |   | 3,115,573 |   |
|                                                         |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                          |   |                            | 2,013,495 |   |                           |   | 1,784,026 |   |   |   | 5,866,803 |   |   |   | 5,069,049 |   |
| Provision for loan losses                                    |   |                            | 300,000   |   |                           |   | 300,000 |   |   |   | 1,275,000 |   |   |   | 994,000 |   |
| Net Interest After Provision for Loan Losses                 |   |                            | 1,713,495 |   |                           |   | 1,484,026 |   |   |   | 4,591,803 |   |   |   | 4,075,049 |   |
|                                                         |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Other Income                                                 |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                          |   |                            | 154,119   |   |                           |   | 135,350 |   |   |   | 429,454 |   |   |   | 420,772 |   |
| Loan servicing income, net                                   |   |                            | (87,495   | )      |                           |   | (76,769 | ) |   |   | 24,090 |   |   |   | (3,938 | ) |
| Debit card income                                            |   |                            | 50,340    |   |                           |   | 39,193 |   |   |   | 146,009 |   |   |   | 113,153 |   |
| Gain on sale of loans                                        |   |                            | 295,659   |   |                           |   | 102,890 |   |   |   | 675,131 |   |   |   | 235,795 |   |
| Net realized gains on sales of available-for-sale securities |   |                            | 31,212    |   |                           |   | 14,592 |   |   |   | 95,129 |   |   |   | 45,946 |   |
| Gain on cash surrender value of life insurance               |   |                            | 38,145    |   |                           |   | 41,121 |   |   |   | 114,435 |   |   |   | 116,061 |   |
| Gain (loss) on sale of other assets                          |   |                            | (87,083   | )      |                           |   | 31,702 |   |   |   | (146,979 | ) |   |   | 51,651 |   |
| Other income                                                 |   |                            | 29,004    |   |                           |   | 6,729 |   |   |   | 83,777 |   |   |   | 40,886 |   |
| Total other income                                           |   |                            | 423,901   |   |                           |   | 294,808 |   |   |   | 1,421,046 |   |   |   | 1,020,326 |   |
|                                                         |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Other Expense                                                |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                               |   |                            | 1,001,607 |   |                           |   | 838,099 |   |   |   | 2,813,466 |   |   |   | 2,434,303 |   |
| Net occupancy                                                |   |                            | 119,195   |   |                           |   | 113,035 |   |   |   | 351,627 |   |   |   | 330,233 |   |
| Data processing fees                                         |   |                            | 68,610    |   |                           |   | 59,887 |   |   |   | 212,829 |   |   |   | 205,262 |   |
| Professional fees                                            |   |                            | 62,066    |   |                           |   | 73,049 |   |   |   | 181,595 |   |   |   | 183,746 |   |
| Advertising                                                  |   |                            | 62,145    |   |                           |   | 50,765 |   |   |   | 142,354 |   |   |   | 117,919 |   |
| ATM charges                                                  |   |                            | 66,510    |   |                           |   | 61,267 |   |   |   | 191,225 |   |   |   | 177,850 |   |
| Postage and courier                                          |   |                            | 44,375    |   |                           |   | 40,126 |   |   |   | 127,079 |   |   |   | 112,088 |   |
| FDIC insurance premiums                                      |   |                            | 40,995    |   |                           |   | 102,058 |   |   |   | 196,473 |   |   |   | 239,444 |   |
| Other expenses                                               |   |                            | 391,960   |   |                           |   | 337,169 |   |   |   | 999,059 |   |   |   | 866,609 |   |
| Total other expenses                                         |   |                            | 1,857,463 |   |                           |   | 1,675,455 |   |   |   | 5,215,707 |   |   |   | 4,667,454 |   |
|                                                         |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Income Tax                                     |   |                            | 279,933   |   |                           |   | 103,379 |   |   |   | 797,142 |   |   |   | 427,921 |   |
| Income tax expense                                           |   |                            | 86,265    |   |                           |   | 31,700 |   |   |   | 268,835 |   |   |   | 128,636 |   |
|                                                         |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                   |   | $                               | 193,668   |   |                           | $      | 71,679 |   |   | $ | 528,307 |   |   | $ | 299,285 |   |

----

|                                                                  |   | Nine Months EndedSeptember 30, |        |
|-----------------------------------------------------------------------|--------|--------------------------------|-------------|
|                                                                  |   | 2011                           |        |   | 2010 |   |
|                                                                  |   | (Unaudited)                    |        |
| Operating Activities                                                  |   |                           |        |   |   |   |
| Net income                                                            |   | $                              | 528,307     |   |   | $ | 299,285 |   |
| Items not requiring (providing) cash                                  |   |                           |        |   |   |   |   |   |
| Provision for loan losses                                             |   |                           | 1,275,000   |   |   |   | 994,000 |   |
| Depreciation and amortization                                         |   |                           | 178,675     |   |   |   | 183,750 |   |
| Investment securities amortization, net                               |   |                           | 591,249     |   |   |   | 507,585 |   |
| Investment securities gains                                           |   |                           | (95,129     | ) |   |   | (45,946 | ) |
| Loss (gain) on sale of other assets                                   |   |                           | 146,979     |   |   |   | (51,651 | ) |
| Loan originated for sale in the secondary market                      |   |                           | (4,235,403  | ) |   |   | — |   |
| Proceeds from loan sales in the secondary market                      |   |                           | 3,968,543   |   |   |   | — |   |
| Gain on loans sold                                                    |   |                           | (675,131    | ) |   |   | (235,795 | ) |
| Net change in                                                         |   |                           |        |   |   |   |   |   |
| Interest receivable                                                   |   |                           | (75,180     | ) |   |   | (430 | ) |
| Interest payable                                                      |   |                           | 16,483      |   |   |   | 14,723 |   |
| Cash surrender value of life insurance                                |   |                           | (114,435    | ) |   |   | (116,061 | ) |
| Prepaid FDIC insurance                                                |   |                           | 184,023     |   |   |   | 223,275 |   |
| Other adjustments                                                     |   |                           | (317,348    | ) |   |   | 164,392 |   |
| Net cash provided by operating activities                             |   |                           | 1,376,633   |   |   |   | 1,937,127 |   |
|                                                                  |   |                           |        |   |   |   |   |   |
| Investing Activities                                                  |   |                           |        |   |   |   |   |   |
| Purchases of securities available for sale                            |   |                           | (21,118,746 | ) |   |   | (31,621,461 | ) |
| Proceeds from maturities of securities available for sale             |   |                           | 11,057,487  |   |   |   | 9,945,339 |   |
| Proceeds from sales of securities available for sale                  |   |                           | 5,501,772   |   |   |   | 6,345,806 |   |
| Proceeds from redemption of FHLB stock                                |   |                           | 148,500     |   |   |   | — |   |
| Purchases of FHLB stock                                               |   |                           | (12,500     | ) |   |   | — |   |
| Proceeds from sale of loans                                           |   |                           | 1,878,159   |   |   |   | 8,336,398 |   |
| Net change in loans                                                   |   |                           | (2,171,112  | ) |   |   | (15,254,249 | ) |
| Purchase of premises and equipment                                    |   |                           | (175,612    | ) |   |   | (244,255 | ) |
| Proceeds from sale of foreclosed real estate                          |   |                           | 45,598      |   |   |   | 316,093 |   |
| Other investing activities                                            |   |                           | 38,927      |   |   |   | (9,327 | ) |
| Net cash used in investing activities                                 |   |                           | (4,807,527  | ) |   |   | (22,185,656 | ) |
|                                                                  |   |                           |        |   |   |   |   |   |
| Financing Activities                                                  |   |                           |        |   |   |   |   |   |
| Net change in demand deposits, money market, NOW and savings accounts |   |                           | 7,405,147   |   |   |   | 20,644,912 |   |
| Net change in certificates of deposit                                 |   |                           | (3,613,255  | ) |   |   | 14,104,125 |   |
| Repayment of FHLB advances                                            |   |                           | (10,000,000 | ) |   |   | (13,200,000 | ) |
| Proceeds from FHLB advances                                           |   |                           | 15,000,000  |   |   |   | 2,000,000 |   |
| Net cash provided by financing activities                             |   |                           | 8,791,892   |   |   |   | 23,549,037 |   |
|                                                                  |   |                           |        |   |   |   |   |   |
| Net Change in Cash and Cash Equivalents                               |   |                           | 5,360,998   |   |   |   | 3,300,508 |   |
|                                                                  |   |                           |        |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year                          |   |                           | 8,293,606   |   |   |   | 6,540,042 |   |
|                                                                  |   |                           |        |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                                |   | $                              | 13,654,604  |   |   | $ | 9,840,550 |   |
|                                                                  |   |                           |        |   |   |   |   |   |
| Additional Cash Flows Information                                     |   |                           |        |   |   |   |   |   |
| Interest paid                                                         |   | $                              | 2,443,177   |   |   | $ | 3,100,850 |   |
| Income taxes paid                                                     |   |                           | 354,000     |   |   |   | 103,823 |   |
| Real estate acquired in settlement of loans                           |   |                           | 725,800     |   |   |   | 720,564 |   |
| Sale and financing of foreclosed real estate                          |   |                           | 575,108     |   |   |   | 296,503 |   |

----

| NOTE 1: Basis of Presentation |
|-------------------------------|

| NOTE 2: Principles of Consolidation |
|-------------------------------------|

----

| NOTE 3: Securities |
|--------------------|

|                                         |   | September 30, 2011 (Unaudited) |   |
|----------------------------------------------|--------|--------------------------------|--------|
|                                         |   | AmortizedCost                  |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | ApproximateFair Value |   |
|                                         |   | (In Thousands)                 |   |
|                                         |   |                           |   |   |   |   |   |   |   |   |   |   |
| Available for sale                           |   |                           |   |   |   |   |   |   |   |   |   |   |
| Municipal bonds                              |   | $                              | 2,704  |   |   | $ | 1 |   |   | $ | (1 | ) |   | $ | 2,704 |   |
| Mortgage-backed securities - GSE residential |   |                           | 42,353 |   |   |   | 443 |   |   |   | (172 | ) |   |   | 42,624 |   |
|                                         |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total available for sale                     |   | $                              | 45,057 |   |   | $ | 444 |   |   | $ | (173 | ) |   | $ | 45,328 |   |

|                                         |   | December 31, 2010 |   |
|----------------------------------------------|--------|-------------------|--------|
|                                         |   | AmortizedCost     |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | ApproximateFair Value |   |
|                                         |   | (In Thousands)    |   |
|                                         |   |              |   |   |   |   |   |   |   |   |   |   |
| Available for sale                           |   |              |   |   |   |   |   |   |   |   |   |   |
| Federal agencies                             |   | $                 | 7,510  |   |   | $ | 29 |   |   | $ | — |   |   | $ | 7,539 |   |
| Mortgage-backed securities - GSE residential |   |              | 33,484 |   |   |   | 314 |   |   |   | (121 | ) |   |   | 33,677 |   |
|                                         |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total available for sale                     |   | $                 | 40,994 |   |   | $ | 343 |   |   | $ | (121 | ) |   | $ | 41,216 |   |

|                                         |   | September 30, 2011(Unaudited) |    |   | December 31, 2010 |   |
|----------------------------------------------|--------|-------------------------------|---------|--------|-------------------|--------|
|                                         |   | AmortizedCost                 |    |   | FairValue         |   |   | AmortizedCost |   |   | FairValue |   |
|                                         |   | (In Thousands)                |    |
|                                         |   |                          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| One to five years                            |   | $                             | — |   |              | $      | — |   |   | $ | 7,510 |   |   | $ | 7,539 |   |
| Five to ten years                            |   |                          | 765     |   |              |   | 766 |   |   |   | — |   |   |   | — |   |
| After ten years                              |   |                          | 1,939   |   |              |   | 1,938 |   |   |   | — |   |   |   | — |   |
|                                         |   |                          | 2,704   |   |              |   | 2,704 |   |   |   | 7,510 |   |   |   | 7,539 |   |
| Mortgage-backed securities - GSE residential |   |                          | 42,353  |   |              |   | 42,624 |   |   |   | 33,484 |   |   |   | 33,677 |   |
|                                         |   |                          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Totals                                       |   | $                             | 45,057  |   |              | $      | 45,328 |   |   | $ | 40,994 |   |   | $ | 41,216 |   |

----

|                                                 |   | Three Months EndedSeptember 30, |    |   | Nine Months EndedSeptember 30, |   |
|------------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                                                 |   | 2011                            |    |   | 2010                           |   |   | 2011 |   |   | 2010 |   |
|                                                 |   | (In Thousands)                  |    |
|                                                 |   |                            |    |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sales of available-for sale securities |   | $                               | 4,373   |   |                           | $      | 3,180 |   |   | $ | 5,502 |   |   | $ | 6,346 |   |
| Gross gains on sales                                 |   |                            | 31      |   |                           |   | 22 |   |   |   | 95 |   |   |   | 54 |   |
| Gross losses on sales                                |   |                            | — |   |                           |   | 7 |   |   |   | — |   |   |   | 8 |   |

|                                         |   | Less Than 12 Months |   |   | 12 Months or Longer |   |   | Total     |   |
|----------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|-----------|--------|
|                                         |   | FairValue           |   |   | UnrealizedLosses    |   |   | FairValue |   |   | GrossUnrealizedLosses |   |   | FairValue |   |   | GrossUnrealizedLosses |   |
|                                         |   | (In Thousands)      |   |
|                                         |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities                |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Municipal bonds                              |   | $                   | 830    |   |                | $      | (1     | )         |   | $ | — |   |   | $ | — |   |   | $ | 830 |   |   | $ | (1 | ) |
| Mortgage-backed securities - GSE residential |   |                | 14,267 |   |                |   | (164   | )         |   |   | 1,014 |   |   |   | (8 | ) |   |   | 15,281 |   |   |   | (172 | ) |
|                                         |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   | $                   | 15,097 |   |                | $      | (165   | )         |   | $ | 1,014 |   |   | $ | (8 | ) |   | $ | 16,111 |   |   | $ | (173 | ) |

|                                         |   | Less Than 12 Months |   |   | 12 Months or Longer |   |   | Total     |   |
|----------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|-----------|--------|
|                                         |   | FairValue           |   |   | UnrealizedLosses    |   |   | FairValue |   |   | GrossUnrealizedLosses |   |   | FairValue |   |   | GrossUnrealizedLosses |   |
|                                         |   | (In Thousands)      |   |
|                                         |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities                |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities - GSE residential |   | $                   | 12,484 |   |                | $      | (121   | )         |   | $ | — |   |   | $ | — |   |   | $ | 12,484 |   |   | $ | (121 | ) |

----

| NOTE 3: Loans and Allowance |
|-----------------------------|

----

----

|                                           |   | September 30,  |    |   |         |   |
|------------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                           |   | 2011           |    |   | December 31, |   |
|                                           |   | (Unaudited)    |    |   | 2010         |   |
|                                           |   | (In Thousands) |    |
|                                           |   |           |    |   |         |   |   |   |
| Commercial                                     |   | $              | 8,384   |   |         | $      | 7,302 |   |
| Real estate loans                              |   |           |    |   |         |   |   |   |
| Residential                                    |   |           | 57,921  |   |         |   | 58,949 |   |
| Commercial and multi-family                    |   |           | 26,294  |   |         |   | 27,208 |   |
| Construction                                   |   |           | 2,352   |   |         |   | 1,984 |   |
| Second mortgages and equity lines of credit    |   |           | 4,818   |   |         |   | 4,999 |   |
| Consumer loans                                 |   |           |    |   |         |   |   |   |
| Indirect                                       |   |           | 45,200  |   |         |   | 46,268 |   |
| Other                                          |   |           | 8,231   |   |         |   | 6,914 |   |
|                                           |   |           | 153,200 |   |         |   | 153,624 |   |
| Less                                           |   |           |    |   |         |   |   |   |
| Net deferred loan fees, premiums and discounts |   |           | 109     |   |         |   | 115 |   |
| Allowance for loan losses                      |   |           | 1,883   |   |         |   | 1,699 |   |
|                                           |   |           |    |   |         |   |   |   |
| Total loans                                    |   | $              | 151,208 |   |         | $      | 151,810 |   |

|   | The risk characteristics of each loan portfolio segment are as follows: |
|--------|-------------------------------------------------------------------------|

----

----

|                                   |   |           | Real Estate |   |        |   |   |
|----------------------------------------|--------|----------------|-------------|--------|-------------|--------|--------|
|                                   |   | Commercial     |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                   |   | (In Thousands) |        |
| Three Months Ended September 30, 2011: |   |           |        |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period           |   | $              | 102         |   |        | $      | 682    |   |   | $ | 470 |   |   | $ | 4 |   |   | $ | 9 |   |   | $ | 473 |   |   | $ | 1,740 |   |
| Provision for losses                   |   |           | 11          |   |        |   | 94     |   |   |   | 11 |   |   |   | 1 |   |   |   | 85 |   |   |   | 98 |   |   |   | 300 |   |
| Recoveries on loans                    |   |           | —     |   |        |   | 2      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 13 |   |   |   | 15 |   |
| Loans charged off                      |   |           | —     |   |        |   | (39    | ) |   |   | — |   |   |   | — |   |   |   | (62 | ) |   |   | (71 | ) |   |   | (172 | ) |
|                                   |   |           |        |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, end of period                 |   | $              | 113         |   |        | $      | 739    |   |   | $ | 481 |   |   | $ | 5 |   |   | $ | 32 |   |   | $ | 513 |   |   | $ | 1,883 |   |
| Nine Months Ended September 30, 2011:  |   |           |        |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, beginning of period           |   | $              | 107         |   |        | $      | 700    |   |   | $ | 336 |   |   | $ | 7 |   |   | $ | 18 |   |   | $ | 531 |   |   | $ | 1,699 |   |
| Provision for losses                   |   |           | 25          |   |        |   | 452    |   |   |   | 409 |   |   |   | (2 | ) |   |   | 87 |   |   |   | 304 |   |   |   | 1,275 |   |
| Recoveries on loans                    |   |           | —     |   |        |   | 7      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 41 |   |   |   | 48 |   |
| Loans charged off                      |   |           | (19         | )      |        |   | (420   | ) |   |   | (264 | ) |   |   | — |   |   |   | (73 | ) |   |   | (363 | ) |   |   | (1,139 | ) |
|                                   |   |           |        |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, end of period                 |   | $              | 113         |   |        | $      | 739    |   |   | $ | 481 |   |   | $ | 5 |   |   | $ | 32 |   |   | $ | 513 |   |   | $ | 1,883 |   |

|                                  |   | September 30, 2011 (unaudited) |        |
|---------------------------------------|--------|--------------------------------|-------------|
|                                  |   |                           | Real Estate |   |   |   |   |
|                                  |   | Commercial                     |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                  |   | (In Thousands)                 |        |
| Allowance:                            |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, end of year                  |   | $                              | 113         |   |   | $ | 739 |   |   | $ | 481 |   |   | $ | 5 |   |   | $ | 32 |   |   | $ | 513 |   |   | $ | 1,883 |   |
| Individually evaluated for impairment |   |                           | —     |   |   |   | 178 |   |   |   | 335 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 513 |   |
| Collectivity evaluated for impairment |   |                           | 113         |   |   |   | 561 |   |   |   | 146 |   |   |   | 5 |   |   |   | 32 |   |   |   | 513 |   |   |   | 1,370 |   |
|                                  |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                        |   |                           | 8,384       |   |   |   | 57,921 |   |   |   | 26,294 |   |   |   | 2,352 |   |   |   | 4,818 |   |   |   | 53,431 |   |   |   | 153,200 |   |
| Individually evaluated for impairment |   |                           | —     |   |   |   | 581 |   |   |   | 2,869 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,450 |   |
| Collectivity evaluated for impairment |   |                           | 8,384       |   |   |   | 57,340 |   |   |   | 23,425 |   |   |   | 2,352 |   |   |   | 4,818 |   |   |   | 53,431 |   |   |   | 149,750 |   |

----

|                                  |   | December 31, 2010 |        |
|---------------------------------------|--------|-------------------|-------------|
|                                  |   |              | Real Estate |   |   |   |   |
|                                  |   | Commercial        |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                  |   | (In Thousands)    |        |
| Allowance:                            |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, end of year                  |   | $                 | 107         |   |   | $ | 700 |   |   | $ | 336 |   |   | $ | 7 |   |   | $ | 18 |   |   | $ | 531 |   |   | $ | 1,699 |   |
| Individually evaluated for impairment |   |              | —     |   |   |   | 170 |   |   |   | 209 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 379 |   |
| Collectivity evaluated for impairment |   |              | 107         |   |   |   | 530 |   |   |   | 127 |   |   |   | 7 |   |   |   | 18 |   |   |   | 531 |   |   |   | 1,320 |   |
|                                  |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                        |   |              | 7,302       |   |   |   | 58,949 |   |   |   | 27,208 |   |   |   | 1,984 |   |   |   | 4,999 |   |   |   | 53,182 |   |   |   | 153,624 |   |
| Individually evaluated for impairment |   |              | —     |   |   |   | 908 |   |   |   | 3,397 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4,305 |   |
| Collectivity evaluated for impairment |   |              | 7,302       |   |   |   | 58,041 |   |   |   | 23,811 |   |   |   | 1,984 |   |   |   | 4,999 |   |   |   | 53,182 |   |   |   | 149,319 |   |

|            |   | September 30, 2011 (unaudited) |        |
|-----------------|--------|--------------------------------|-------------|
|            |   |                           | Real Estate |   |   |   |   |
|            |   | Commercial                     |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|            |   | (In Thousands)                 |        |
|            |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                              | 7,761       |   |   | $ | 56,866 |   |   | $ | 19,678 |   |   | $ | 2,352 |   |   | $ | 4,727 |   |   | $ | 53,431 |   |   | $ | 144,815 |   |
| Watch           |   |                           | —     |   |   |   | 354 |   |   |   | 1,825 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 2,179 |   |
| Special Mention |   |                           | —     |   |   |   | — |   |   |   | 1,842 |   |   |   | — |   |   |   | 91 |   |   |   | — |   |   |   | 1,933 |   |
| Substandard     |   |                           | 623         |   |   |   | 701 |   |   |   | 2,949 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   | 4,273 |   |
| Doubtful        |   |                           | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Loss            |   |                           | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|            |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total           |   | $                              | 8,384       |   |   | $ | 57,921 |   |   | $ | 26,294 |   |   | $ | 2,352 |   |   | $ | 4,818 |   |   | $ | 53,431 |   |   | $ | 153,200 |   |

|            |   | December 31, 2010 |        |
|-----------------|--------|-------------------|-------------|
|            |   |              | Real Estate |   |   |   |   |
|            |   | Commercial        |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|            |   | (In Thousands)    |        |
|            |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                 | 6,570       |   |   | $ | 57,330 |   |   | $ | 20,696 |   |   | $ | 1,984 |   |   | $ | 4,902 |   |   | $ | 53,031 |   |   | $ | 144,513 |   |
| Watch           |   |              | 34          |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 34 |   |
| Special Mention |   |              | 574         |   |   |   | 198 |   |   |   | 5,004 |   |   |   | — |   |   |   | 85 |   |   |   | — |   |   |   | 5,861 |   |
| Substandard     |   |              | 124         |   |   |   | 1,421 |   |   |   | 1,508 |   |   |   | — |   |   |   | — |   |   |   | 151 |   |   |   | 3,204 |   |
| Doubtful        |   |              | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Loss            |   |              | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 12 |   |   |   | — |   |   |   | 12 |   |
|            |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total           |   | $                 | 7,302       |   |   | $ | 58,949 |   |   | $ | 27,208 |   |   | $ | 1,984 |   |   | $ | 4,999 |   |   | $ | 53,182 |   |   | $ | 153,624 |   |

----

----

|                              |   | September 30, 2011 (Unaudited) |        |
|-----------------------------------|--------|--------------------------------|-------------|
|                              |   |                           | Real Estate |   |   |   |   |
|                              |   | Commercial                     |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                              |   | (In Thousands)                 |        |
|                              |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30-59 days past due               |   | $                              | 7           |   |   | $ | 428 |   |   | $ | 49 |   |   | $ | 17 |   |   | $ | — |   |   | $ | 758 |   |   | $ | 1,259 |   |
| 60-89 days past due               |   |                           | —     |   |   |   | 18 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 349 |   |   |   | 367 |   |
| Greater than 90 days and accruing |   |                           | 3           |   |   |   | 429 |   |   |   | — |   |   |   | — |   |   |   | 47 |   |   |   | 532 |   |   |   | 1,011 |   |
| Nonaccrual                        |   |                           | 16          |   |   |   | 828 |   |   |   | 594 |   |   |   | — |   |   |   | 28 |   |   |   | 16 |   |   |   | 1,482 |   |
| Total past due and nonaccrual     |   |                           | 26          |   |   |   | 1,703 |   |   |   | 643 |   |   |   | 17 |   |   |   | 75 |   |   |   | 1,655 |   |   |   | 4,119 |   |
| Current                           |   |                           | 8,358       |   |   |   | 56,218 |   |   |   | 25,651 |   |   |   | 2,335 |   |   |   | 4,743 |   |   |   | 51,776 |   |   |   | 149,081 |   |
|                              |   |                           |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                             |   | $                              | 8,384       |   |   | $ | 57,921 |   |   | $ | 26,294 |   |   | $ | 2,352 |   |   | $ | 4,818 |   |   | $ | 53,431 |   |   | $ | 153,200 |   |

|                              |   | December 31, 2010 |        |
|-----------------------------------|--------|-------------------|-------------|
|                              |   |              | Real Estate |   |   |   |   |
|                              |   | Commercial        |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                              |   | (In Thousands)    |        |
|                              |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30-59 days past due               |   | $                 | 9           |   |   | $ | 617 |   |   | $ | — |   |   | $ | — |   |   | $ | 9 |   |   | $ | 524 |   |   | $ | 1,159 |   |
| 60-89 days past due               |   |              | —     |   |   |   | — |   |   |   | 62 |   |   |   | — |   |   |   | — |   |   |   | 242 |   |   |   | 304 |   |
| Greater than 90 days and accruing |   |              | 35          |   |   |   | 376 |   |   |   | 12 |   |   |   | — |   |   |   | 77 |   |   |   | 295 |   |   |   | 795 |   |
| Nonaccrual                        |   |              | —     |   |   |   | 1,224 |   |   |   | 528 |   |   |   | — |   |   |   | 11 |   |   |   | 30 |   |   |   | 1,793 |   |
| Total past due and nonaccrual     |   |              | 44          |   |   |   | 2,217 |   |   |   | 602 |   |   |   | — |   |   |   | 97 |   |   |   | 1,091 |   |   |   | 4,051 |   |
| Current                           |   |              | 7,258       |   |   |   | 56,732 |   |   |   | 26,606 |   |   |   | 1,984 |   |   |   | 4,902 |   |   |   | 52,091 |   |   |   | 149,573 |   |
|                              |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                             |   | $                 | 7,302       |   |   | $ | 58,949 |   |   | $ | 27,208 |   |   | $ | 1,984 |   |   | $ | 4,999 |   |   | $ | 53,182 |   |   | $ | 153,624 |   |

----

|                                         |   | September 30, 2011 |        |
|----------------------------------------------|--------|--------------------|-------------|
|                                         |   |               | Real Estate |   |   |   |   |
|                                         |   | Commercial         |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                         |   | (In Thousands)     |        |
| Impaired loans without a specific allowance: |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment                          |   | $                  | —     |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Unpaid principal balance                     |   |               | —     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                         |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans with a specific allowance:    |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment                          |   |               | —     |   |   |   | 581 |   |   |   | 2,869 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,450 |   |
| Unpaid principal balance                     |   |               | —     |   |   |   | 581 |   |   |   | 2,869 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,450 |   |
| Specific allowance                           |   |               | —     |   |   |   | 178 |   |   |   | 335 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 513 |   |
|                                         |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total impaired loans:                        |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment                          |   |               | —     |   |   |   | 581 |   |   |   | 2,869 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,450 |   |
| Unpaid principal balance                     |   |               | —     |   |   |   | 581 |   |   |   | 2,869 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,450 |   |
| Specific allowance                           |   |               | —     |   |   |   | 178 |   |   |   | 335 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 513 |   |

|                                         |   | December 31, 2010 |        |
|----------------------------------------------|--------|-------------------|-------------|
|                                         |   |              | Real Estate |   |   |   |   |
|                                         |   | Commercial        |        |   | Residential |   |   | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                         |   | (In Thousands)    |        |
| Impaired loans without a specific allowance: |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment                          |   | $                 | —     |   |   | $ | 38 |   |   | $ | 594 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 632 |   |
| Unpaid principal balance                     |   |              | —     |   |   |   | 38 |   |   |   | 594 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 632 |   |
|                                         |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans with a specific allowance:    |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment                          |   |              | —     |   |   |   | 870 |   |   |   | 2,803 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,673 |   |
| Unpaid principal balance                     |   |              | —     |   |   |   | 870 |   |   |   | 2,803 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3,673 |   |
| Specific allowance                           |   |              | —     |   |   |   | 170 |   |   |   | 209 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 379 |   |
|                                         |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total impaired loans:                        |   |              |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment                          |   |              | —     |   |   |   | 908 |   |   |   | 3,397 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4,305 |   |
| Unpaid principal balance                     |   |              | —     |   |   |   | 908 |   |   |   | 3,397 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4,305 |   |
| Specific allowance                           |   |              | —     |   |   |   | 170 |   |   |   | 209 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 379 |   |

----

|                                       |   |           | Real Estate |   |        |   |    |
|--------------------------------------------|--------|----------------|-------------|--------|-------------|--------|---------|
|                                       |   | Commercial     |        |   | Residential |   |    | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                       |   | (In Thousands) |        |
|                                       |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Three Months Ended September 30, 2011:     |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total impaired loan:                       |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average recorded investment                |   | $              | —     |   |        | $      | 581     |   |   | $ | 2,869 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 3,450 |   |
| Interest income recognized                 |   |           | —     |   |        |   | — |   |   |   | 32 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 32 |   |
| Interest income recognized on a cash basis |   |           | —     |   |        |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

|                                       |   |           | Real Estate |   |        |   |    |
|--------------------------------------------|--------|----------------|-------------|--------|-------------|--------|---------|
|                                       |   | Commercial     |        |   | Residential |   |    | CommercialandMulti-Family |   |   | Construction |   |   | SecondsandEquity Line |   |   | Consumer |   |   | Total |   |
|                                       |   | (In Thousands) |        |
|                                       |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nine Months Ended September 30, 2011: |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total impaired loan:                       |   |           |        |   |        |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average recorded investment                |   | $              | —     |   |        | $      | 661     |   |   | $ | 3,149 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 3,810 |   |
| Interest income recognized                 |   |           | —     |   |        |   | — |   |   |   | 95 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 95 |   |
| Interest income recognized on a cash basis |   |           | —     |   |        |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

----

|                                                                                 |   | Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|--------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                                                                                 |   | 2011                           |   |   | 2010                          |   |   | 2011 |   |   | 2010 |   |
|                                                                                 |   | (Unaudited)(In Thousands)      |   |
|                                                                                 |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                           |   | $                              | 194    |   |                          | $      | 72 |   |   | $ | 528 |   |   | $ | 299 |   |
| Change in unrealized gains on securities, net of reclassification adjustment and tax |   |                           | (70    | )      |                          |   | (104 | ) |   |   | 30 |   |   |   | (56 | ) |
|                                                                                 |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                          |   | $                              | 124    |   |                          | $      | (32 | ) |   | $ | 558 |   |   | $ | 243 |   |

----

|                                                                         |   | Three Months Ended September 30, 2011 |   |
|------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                         |   |                                  |   |   | Tax |   |   |   |   |
|                                                                         |   | Before-Tax                            |   |   | (Expense) |   |   | Net-of-Tax |   |
|                                                                         |   | Amount                                |   |   | Benefit |   |   | Amount |   |
|                                                                         |   | (Unaudited)(In Thousands)             |   |
|                                                                         |   |                                  |   |   |   |   |   |   |   |
| Unrealized gains on securities:                                              |   |                                  |   |   |   |   |   |   |   |
| Unrealized holding losses arising during the year                            |   | $                                     | (84    | ) |   | $ | 33 |   |   | $ | (51 | ) |
| Less:  reclassification adjustment for gain realized in net income |   |                                  | 31     |   |   |   | (12 | ) |   |   | 19 |   |
|                                                                         |   |                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   | $                                     | (115   | ) |   | $ | 45 |   |   | $ | (70 | ) |

|                                                                         |   | Three Months Ended September 30, 2010 |   |
|------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                         |   |                                  |   |   | Tax |   |   |   |   |
|                                                                         |   | Before-Tax                            |   |   | (Expense) |   |   | Net-of-Tax |   |
|                                                                         |   | Amount                                |   |   | Benefit |   |   | Amount |   |
|                                                                         |   | (Unaudited)(In Thousands)             |   |
|                                                                         |   |                                  |   |   |   |   |   |   |   |
| Unrealized gains on securities:                                              |   |                                  |   |   |   |   |   |   |   |
| Unrealized holding lossess arising during the year                           |   | $                                     | (157   | ) |   | $ | 62 |   |   | $ | (95 | ) |
| Less:  reclassification adjustment for gain realized in net income |   |                                  | 15     |   |   |   | (6 | ) |   |   | 9 |   |
|                                                                         |   |                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   | $                                     | (172   | ) |   | $ | 68 |   |   | $ | (104 | ) |

|                                                                         |   | Nine Months Ended September 30, 2011 |   |
|------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                         |   |                                 |   |   | Tax |   |   |   |   |
|                                                                         |   | Before-Tax                           |   |   | (Expense) |   |   | Net-of-Tax |   |
|                                                                         |   | Amount                               |   |   | Benefit |   |   | Amount |   |
|                                                                         |   | (Unaudited)(In Thousands)            |   |
|                                                                         |   |                                 |   |   |   |   |   |   |   |
| Unrealized gains on securities:                                              |   |                                 |   |   |   |   |   |   |   |
| Unrealized holding gains arising during the year                             |   | $                                    | 144    |   |   | $ | (57 | ) |   | $ | 87 |   |
| Less:  reclassification adjustment for gain realized in net income |   |                                 | 95     |   |   |   | (38 | ) |   |   | 57 |   |
|                                                                         |   |                                 |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   | $                                    | 49     |   |   | $ | (19 | ) |   | $ | 30 |   |

|                                                                         |   | Nine Months Ended September 30, 2010 |   |
|------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                         |   |                                 |   |   | Tax |   |   |   |   |
|                                                                         |   | Before-Tax                           |   |   | (Expense) |   |   | Net-of-Tax |   |
|                                                                         |   | Amount                               |   |   | Benefit |   |   | Amount |   |
|                                                                         |   | (Unaudited)(In Thousands)            |   |
|                                                                         |   |                                 |   |   |   |   |   |   |   |
| Unrealized gains on securities:                                              |   |                                 |   |   |   |   |   |   |   |
| Unrealized holding losses arising during the year                            |   | $                                    | (47    | ) |   | $ | 19 |   |   | $ | (28 | ) |
| Less:  reclassification adjustment for gain realized in net income |   |                                 | 46     |   |   |   | (18 | ) |   |   | 28 |   |
|                                                                         |   |                                 |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   | $                                    | (93    | ) |   | $ | 37 |   |   | $ | (56 | ) |

----

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

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

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

----

|                                         |   |                      |   |   | September 30, 2011                                        |   |
|----------------------------------------------|--------|---------------------------|--------|--------|-----------------------------------------------------------|--------|
|                                         |   |                      |   |   | Fair Value Measurements Using                             |   |
|                                         |   | FairValue                 |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|                                         |   | (Unaudited)(In Thousands) |   |
|                                         |   |                      |   |   |                                                      |   |   |   |   |   |   |   |
| Available-for-sale securities:               |   |                      |   |   |                                                      |   |   |   |   |   |   |   |
| Municipal bonds                              |   | $                         | 2,704  |   |                                                      | $      | — |   |   | $ | 2,704 |   |   | $ | — |   |
| Mortgage-backed securities - GSE residential |   |                      | 42,624 |   |                                                      |   | — |   |   |   | 42,624 |   |   |   | — |   |
| Mortgage-servicing rights                    |   |                      | 467    |   |                                                      |   | — |   |   |   | — |   |   |   | 467 |   |

|                                         |   |           |   |   | December 31, 2010                                         |   |
|----------------------------------------------|--------|----------------|--------|--------|-----------------------------------------------------------|--------|
|                                         |   |           |   |   | Fair Value Measurements Using                             |   |
|                                         |   | FairValue      |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|                                         |   | (In Thousands) |   |
|                                         |   |           |   |   |                                                      |   |   |   |   |   |   |   |
| Available-for-sale securities:               |   |           |   |   |                                                      |   |   |   |   |   |   |   |
| Federal agencies                             |   | $              | 7,539  |   |                                                      | $      | — |   |   | $ | 7,539 |   |   | $ | — |   |
| Mortgage-backed securities - GSE residential |   |           | 33,677 |   |                                                      |   | — |   |   |   | 33,677 |   |   |   | — |   |
| Mortgage-servicing rights                    |   |           | 497    |   |                                                      |   | — |   |   |   | — |   |   |   | 497 |   |

|                                                   |   | Mortgage-Servicing Rights      |   |
|--------------------------------------------------------|--------|--------------------------------|--------|
|                                                   |   | Three Months EndedSeptember 30 |   |   | Nine Months EndedSeptember 30 |   |
|                                                   |   | 2011                           |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
|                                                   |   | (Unaudited)(In Thousands)      |   |
|                                                   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, beginning of period                          |   | $                              | 569    |   |   | $ | 519 |   |   | $ | 496 |   |   | $ | 474 |   |
| Total unrealized gains (losses) included in net income |   |                           | (101   | ) |   |   | (87 | ) |   |   | (26 | ) |   |   | (56 | ) |
| Additions (rights recorded on sale of loans)           |   |                           | 20     |   |   |   | 27 |   |   |   | 52 |   |   |   | 69 |   |
| Settlements (payments)                                 |   |                           | (21    | ) |   |   | (25 | ) |   |   | (55 | ) |   |   | (53 | ) |
|                                                   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, end of period                                |   | $                              | 467    |   |   | $ | 434 |   |   | $ | 467 |   |   | $ | 434 |   |

----

|           |   |                      |   |   | September 30, 2011                                        |   |
|----------------|--------|---------------------------|--------|--------|-----------------------------------------------------------|--------|
|           |   |                      |   |   | Fair Value Measurements Using                             |   |
|           |   | FairValue                 |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|           |   | (Unaudited)(In Thousands) |   |
|           |   |                      |   |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans |   | $                         | 2,884  |   |                                                      | $      | — |   |   | $ | — |   |   | $ | 2,884 |   |

|           |   |           |   |   | December 31, 2010                                         |   |
|----------------|--------|----------------|--------|--------|-----------------------------------------------------------|--------|
|           |   |           |   |   | Fair Value Measurements Using                             |   |
|           |   | FairValue      |   |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|           |   | (In Thousands) |   |
|           |   |           |   |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans |   | $              | 3,294  |   |                                                      | $      | — |   |   | $ | — |   |   | $ | 3,294 |   |

----

|                            |   | September 30   |    |   | December 31 |   |
|---------------------------------|--------|----------------|---------|--------|-------------|--------|
|                            |   | 2011           |    |   | 2010        |   |
|                            |   | CarryingAmount |    |   | FairValue   |   |   | CarryingAmount |   |   | FairValue |   |
|                            |   | (Unaudited)    |    |   |        |   |   |   |   |
|                            |   | (In Thousands) |    |
|                            |   |           |    |   |        |   |   |   |   |   |   |   |
| Financial assets                |   |           |    |   |        |   |   |   |   |   |   |   |
| Cash and cash equivalents       |   | $              | 13,655  |   |        | $      | 13,655 |   |   | $ | 8,294 |   |   | $ | 8,294 |   |
| Available-for-sale securities   |   |           | 45,328  |   |        |   | 45,328 |   |   |   | 41,216 |   |   |   | 41,216 |   |
| Loan held for sale              |   |           | 361     |   |        |   | 361 |   |   |   | — |   |   |   | — |   |
| Loans, net                      |   |           | 151,208 |   |        |   | 154,036 |   |   |   | 151,810 |   |   |   | 153,891 |   |
| Federal Home Loan Bank stock    |   |           | 1,722   |   |        |   | 1,722 |   |   |   | 1,858 |   |   |   | 1,858 |   |
| Interest receivable             |   |           | 961     |   |        |   | 961 |   |   |   | 886 |   |   |   | 886 |   |
|                            |   |           |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities           |   |           |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                        |   |           | 179,163 |   |        |   | 179,694 |   |   |   | 175,371 |   |   |   | 176,531 |   |
| Federal Home Loan Bank advances |   |           | 27,000  |   |        |   | 27,697 |   |   |   | 22,000 |   |   |   | 22,222 |   |
| Interest payable                |   |           | 158     |   |        |   | 158 |   |   |   | 142 |   |   |   | 142 |   |

----

| ● | The significant multiemployer plans in which an employer participates |
|---------|-----------------------------------------------------------------------|

| ● |  The level of participation in the significant plans including the contribution to the plans and whether the employer’s contributions represent more than 5 percent of total contributions to the plan by all participants |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The funding status of the plans and if a funding improvement plan is pending or implemented and related surcharges on contributions to the plan |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The nature of employer commitments to the plan |
|---------|------------------------------------------------|

----

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

| ● | statements of our goals, intentions and expectations; |
|---------|-------------------------------------------------------|

| ● | statements regarding our business plans, prospects, growth and operating strategies; |
|---------|--------------------------------------------------------------------------------------|

| ● | statements regarding the asset quality of our loan and investment portfolios; and |
|---------|-----------------------------------------------------------------------------------|

| ● | estimates of our risks and future costs and benefits. |
|---------|-------------------------------------------------------|

| ● | general economic conditions, either nationally or in our market areas, that are worse than expected; |
|---------|------------------------------------------------------------------------------------------------------|

| ● | competition among depository and other financial institutions; |
|---------|----------------------------------------------------------------|

| ● | our success in continuing to emphasize consumer lending, including indirect automobile lending; |
|---------|-------------------------------------------------------------------------------------------------|

| ● | our ability to improve our asset quality even as we increase our non-residential lending; |
|---------|-------------------------------------------------------------------------------------------|

| ● | our success in maintaining our commercial and multi-family real estate and our non-owner occupied one- to four-family residential real estate and commercial business lending; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | changes in the interest rate environment that reduce our margins or reduce the fair value of our financial instruments; |
|---------|-------------------------------------------------------------------------------------------------------------------------|

| ● | adverse changes in the securities markets; |
|---------|--------------------------------------------|

----

| ● | changes in laws or government regulations or policies affecting financial institutions, including changes in deposit insurance premiums, regulatory fees and capital requirements, which increase our compliance costs; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | our ability to enter new markets successfully and capitalize on growth opportunities; |
|---------|---------------------------------------------------------------------------------------|

| ● | changes in consumer spending, borrowing and savings habits; |
|---------|-------------------------------------------------------------|

| ● | changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | changes in our organization, compensation and benefit plans; |
|---------|--------------------------------------------------------------|

| ● | loan delinquencies and changes in the underlying cash flows of our borrowers; |
|---------|-------------------------------------------------------------------------------|

| ● | changes in our financial condition or results of operations that reduce capital available to pay dividends; and |
|---------|-----------------------------------------------------------------------------------------------------------------|

| ● | changes in the financial condition or future prospects of issuers of securities that we own. |
|---------|----------------------------------------------------------------------------------------------|

----

----

----

----

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

----

| Item 4. | Controls and Procedures |
|---------|-------------------------|

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

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

|   | (a) | There were no sales of unregistered securities during the period covered by this Report. |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (b) | Not applicable. |
|--------|-----|-----------------|

|   | (c) | There were no issuer repurchases of securities during the period covered by this Report. |
|--------|-----|------------------------------------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

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

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------------------------|

|   | 32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | WEST END INDIANA BANCSHARES, INC.                 |
|------------------------------------|--------|---------------------------------------------------|
|                               |   |                                              |
| Date:  December 22, 2011 |   | /s/ John P. McBride                               |   |
|                               |   | John P. McBride                                   |
|                               |   | President and Chief Executive Officer             |
|                               |   |                                              |
| Date:  December 22, 2011 |   | /s/ Shelley D. Miller                             |   |
|                               |   | Shelley D. Miller                                 |
|                               |   | Senior Vice President and Chief Financial Officer |