----

----

| UNITED      STATES                      |
|-----------------------------------------|
| SECURITIES      AND EXCHANGE COMMISSION |
| WASHINGTON,      D.C. 20549             |

|   |   |   |
|--------|--------|--------|
|   |   |   |

| FORM      10-K |
|----------------|

| x                                              | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934     |
|------------------------------------------------|----------------------------------------------------------------------------------------------------|
|                                           |                                                                                               |
| FOR      THE FISCAL YEAR ENDED: MARCH 31, 2009 |
| OR                                             |
| o                                              | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

----

| COMMUNITY      FINANCIAL CORPORATION                       |
|------------------------------------------------------------|
| (Exact      Name of Registrant as Specified in itsCharter) |

|   | Virginia                                         |   | 54-1532044               |
|--------|--------------------------------------------------|--------|--------------------------|
|   | (State      or other jurisdiction of             |   | (I.R.S.      Employer    |
|   | incorporation      or organization)              |   | Identification      No.) |
|   |                                             |   |                     |
|   | 38      North Central Avenue, Staunton, Virginia |   | 24401                    |
|   | (Address      of principal executive offices)    |   | (Zip      Code)          |

|                                                                  |                                        |                                             |   |
|-----------------------------------------------------------------------|---------------------------------------------|--------------------------------------------------|--------|
|                                                                  | Common      Stock, par value $.01 per share | NASDAQ      Capital Market                       |   |
|                                                                  |                                        |                                             |   |
|                                                                  | Title      of Class                         | (Name      of each exchange on which registered) |   |
|                                                                  |
| Securities      Registered Pursuant to Section 12(g) of the Act: None |

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

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----

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|                                                                                                                                 |                                                                             |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                 |                                                                             |   | Page   |
|                                                                                                                                 |                                                                             |   |   |
| CAUTIONARY      STATEMENT REGARDING FORWARDING LOOKING STATEMENTS                                                                    |                                                                             | 1      |   |
|                                                                                                                                 |                                                                             |   |   |   |
| PART      I                                                                                                                          |                                                                             | 2      |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      1. BUSINESS                                                                                                                |                                                                             | 2      |   |
|                                                                                                                                 |                                                                             |   |   |   |
|                                                                                                                                 | General                                                                          |   | 2      |   |
|                                                                                                                                 | Our      Operating      Strategy                                                 |   | 3      |   |
|                                                                                                                                 | Lending      Activities                                                          |   | 5      |   |
|                                                                                                                                 | Loan      Originations, Purchases and      Sales                                 |   | 13     |   |
|                                                                                                                                 | Asset      Quality                                                               |   | 14     |   |
|                                                                                                                                 | Investment      Activities                                                       |   | 19     |   |
|                                                                                                                                 | Sources      of Funds                                                            |   | 20     |   |
|                                                                                                                                 | Borrowings                                                                       |   | 23     |   |
|                                                                                                                                 | Subsidiary      Activities                                                       |   | 24     |   |
|                                                                                                                                 | Competition                                                                      |   | 24     |   |
|                                                                                                                                 | Regulation                                                                       |   | 24     |   |
|                                                                                                                                 | Federal      and State Taxation                                                  |   | 29     |   |
|                                                                                                                                 | Executive      Officers                                                          |   | 30     |   |
|                                                                                                                                 | Employees                                                                        |   | 31     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      1A. RISK FACTORS                                                                                                           |                                                                             |   |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      1B. UNRESOLVED STAFF COMMENTS                                                                                              |                                                                             | 31     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      2. PROPERTIES                                                                                                              |                                                                             | 32     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      3. LEGAL PROCEEDINGS                                                                                                       |                                                                             | 33     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                     |                                                                             | 33     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| PART      II                                                                                                                         |                                                                             | 33     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND      ISSUER PURCHASES OF EQUITY SECURITIES |                                                                             | 33     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      6. SELECTED FINANCIAL DATA                                                                                                 |                                                                             | 35     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS      OF OPERATIONS                        |                                                                             | 36     |   |
|                                                                                                                                 |                                                                             |   |   |   |
|                                                                                                                                 | Executive      Overview                                                          |   | 36     |   |
|                                                                                                                                 | Critical      Accounting Policies                                                |   | 37     |   |
|                                                                                                                                 | Asset/Liability      Management                                                  |   | 38     |   |
|                                                                                                                                 | Average      Balances, Interest Rates and Yields                                 |   | 40     |   |
|                                                                                                                                 | Rate/Volume      Analysis                                                        |   | 41     |   |
|                                                                                                                                 | Financial      Condition                                                         |   | 41     |   |
|                                                                                                                                 | Results      of Operations                                                       |   | 42     |   |
|                                                                                                                                 | Liquidity      and Capital Resources                                             |   | 45     |   |
|                                                                                                                                 | Contractual      Obligations and Off-Balance Sheet Arrangements                  |   | 46     |   |
|                                                                                                                                 | Impact      of Inflation and Changing Prices                                     |   | 46     |   |
|                                                                                                                                 | Recent      Accounting Pronouncements                                            |   | 46     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK                                                          |                                                                             | 46     |   |
|                                                                                                                                 |                                                                             |   |   |   |
| ITEM      8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                             |                                                                             | 46     |   |
|                                                                                                                                 |                                                                             |   |   |   |
|                                                                                                                                 | Index      to Financial      Statements                                          |   | 47     |   |
|                                                                                                                                 | Report      of Independent      Registered      Public      Accounting      Firm |   | 48     |   |
|                                                                                                                                 | Consolidated      Balance Sheets at      March      31, 2009 and 2008            |   | 49     |   |

----

|                                                                                                              | Consolidated      Statements of Operations for the years ended March 31, 2009, 2008      and 2007                      |   | 50     |   |
|-------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                              | Consolidated      Statements of Stockholders’ Equity for the Years ended march 31,      2009, 2008 and 2007 |   | 52     |   |
|                                                                                                              | Consolidated      Statements of Cash Flows for the Years ended March 31, 2009, 2008 and      2007                      |   | 54     |   |
|                                                                                                              | Summary      of Accounting Policies                                                                                    |   | 56     |   |
|                                                                                                              | Notes      to Consolidated Financial Statements                                                                        |   | 65     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND      FINANCIAL DISCLOSURE             |                                                                                                                   | 95     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      9A(T). CONTROLS AND PROCEDURES                                                                          |                                                                                                                   | 95     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      9B. OTHER INFORMATION                                                                                   |                                                                                                                   | 96     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| PART      III                                                                                                     |                                                                                                                   | 96     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERANCE                                               |                                                                                                                   | 96     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      11. EXECUTIVE COMPENSATION                                                                              |                                                                                                                   | 97     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND      RELATED STOCKHOLDER MATTERS |                                                                                                                   | 97     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR      INDEPENDENCE                          |                                                                                                                   | 97     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      14. PRINCIPAL ACCOUNTING FEES AND SERVICES                                                              |                                                                                                                   | 97     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| PART      IV                                                                                                      |                                                                                                                   | 97     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| ITEM      15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                             |                                                                                                                   | 97     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| SIGNATURES                                                                                                        |                                                                                                                   | 98     |   |
|                                                                                                              |                                                                                                                   |   |   |   |
| INDEX      TO EXHIBITS                                                                                            |                                                                                                                   | 99     |   |

----

|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | the      strength of the United States economy in general and the strength of the      local economies in which we conduct our operations; general economic      conditions, either nationally or regionally, may be less favorable than      expected, resulting in, among other things, a deterioration in the credit      quality of our loans and other assets; |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | the      effects of, and changes in, trade, monetary and fiscal policies and laws,      including interest rate policies of the Board of Governors of the Federal      Reserve System;                                                                                                                                                                              |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | financial      market, monetary and interest rate fluctuations, particularly the relative      relationship of short-term interest rates to long-term interest      rates;                                                                                                                                                                                          |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | the      timely development of and acceptance of new products and services of      Community Financial Corporation and Community Bank, and the perceived      overall value of these products and services by users, including the      features, pricing and quality compared to competitors’ products and      services;                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | the      impact of changes in financial services laws and regulations (including      laws concerning taxes, accounting standards, banking, securities and      insurance); legislative or regulatory changes may adversely affect the      business in which we are engaged;                                                                                       |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | the      impact of technological changes;                                                                                                                                                                                                                                                                                                                           |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | changes      in consumer spending and saving habits; and                                                                                                                                                                                                                                                                                                            |
|   |    |                                                                                                                                                                                                                                                                                                                                                                |
|   | ● | our      success at managing the risks involved in the  foregoing.                                                                                                                                                                                                                                                                                                  |

----

----

|   |    |                                                                                                      |
|--------|---------|-----------------------------------------------------------------------------------------------------------|
|   | ● | retaining      our community-oriented focus to meet the financial needs of the      communities we serve; |
|   |    |                                                                                                      |
|   | ● | enhancing      our focus on core deposits, including savings and checking      accounts;                  |

----

|   | ● | maintaining      a high level of asset quality.                                                                                                                                                                                                                                                   |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                              |
|   | ● | selectively      emphasizing products and services to provide diversification of revenue      sources and to capture our customer’s full relationship. We intend to      continue to expand our business by cross selling our loan and deposit      products and services to our customers; |
|   |    |                                                                                                                                                                                                                                                                                              |
|   | ● | growing      and diversifying our loan portfolio by emphasizing the origination of      commercial and multi-family real estate loans, one- to four-family      residential mortgage loans, construction loans, secured business loans and      consumer loans;                                   |
|   |    |                                                                                                                                                                                                                                                                                              |
|   | ● | expanding      our banking network by opening de novo branches and by selectively      acquiring branch offices, although currently we do not have any specific      expansion plans;                                                                                                             |
|   |    |                                                                                                                                                                                                                                                                                              |
|   | ● | controlling      operating expenses while continuing to provide quality personal service to      our customers; and                                                                                                                                                                               |
|   |    |                                                                                                                                                                                                                                                                                              |
|   | ● | utilizing      borrowings as needed to fund growth and enhance    profitability.                                                                                                                                                                                                                  |

----

----

|                                         |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |
|----------------------------------------------|--------|-----------------------------|---------|--------|---------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|---------|--------|
|                                         |   | March      31,              |    |
|                                         |   | 2009                        |    |   | 2008    |   |   | 2007   |   |   | 2006    |   |   | 2005   |   |
|                                         |   | Amount                      |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |    | Amount |   |   | Percent |   |   | Amount |    |   | Percent |   |
|                                         |   | (Dollars      in Thousands) |    |
|                                         |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |
| Real      Estate Loans:                      |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |
| Residential                                  |   | $                           | 140,064 |   |    |   | 28.17  | %      |   | $      | 122,605 |   |   |   | 27.08  | %      |    | $      | 118,044 |   |   |   | 28.59   | %      |   | $      | 115,169 |   |    |   | 30.77 | % |   | $ | 123,256 |   |   |   | 34.94 | % |
| Commercial                                   |   |                        | 154,781 |   |    |   | 31.14  |   |   |   | 150,059 |   |   |   | 33.14  |   |    |   | 119,354 |   |   |   | 28.91   |   |   |   | 105,990 |   |    |   | 28.32 |   |   |   | 95,700 |   |   |   | 27.12 |   |
| Construction                                 |   |                        | 62,887  |   |    |   | 12.65  |   |   |   | 53,891  |   |   |   | 11.90  |   |    |   | 48,857  |   |   |   | 11.83   |   |   |   | 41,645  |   |    |   | 11.13 |   |   |   | 35,019 |   |   |   | 9.92 |   |
| Total      real estate                       |   |                        | 357,732 |   |    |   | 71.96  |   |   |   | 326,555 |   |   |   | 72.12  |   |    |   | 286,255 |   |   |   | 69.33   |   |   |   | 262,804 |   |    |   | 70.22 |   |   |   | 253,975 |   |   |   | 71.98 |   |
| Consumer      Loans:                         |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Home      equity                             |   |                        | 41,653  |   |    |   | 8.37   |   |   |   | 32,780  |   |   |   | 7.24   |   |    |   | 30,806  |   |   |   | 7.46    |   |   |   | 20,992  |   |    |   | 5.61 |   |   |   | 17,963 |   |   |   | 5.09 |   |
| Automobile                                   |   |                        | 37,411  |   |    |   | 7.53   |   |   |   | 44,961  |   |   |   | 9.93   |   |    |   | 50,992  |   |   |   | 12.34   |   |   |   | 49,996  |   |    |   | 13.36 |   |   |   | 44,112 |   |   |   | 12.50 |   |
| Other                                        |   |                        | 6,906   |   |    |   | 1.39   |   |   |   | 6,930   |   |   |   | 1.53   |   |    |   | 7,171   |   |   |   | 1.74    |   |   |   | 6,911   |   |    |   | 1.84 |   |   |   | 6,638 |   |   |   | 1.88 |   |
| Total      consumer                          |   |                        | 85,970  |   |    |   | 17.29  |   |   |   | 84,671  |   |   |   | 18.70  |   |    |   | 88,969  |   |   |   | 21.54   |   |   |   | 77,899  |   |    |   | 20.81 |   |   |   | 68,713 |   |   |   | 19.47 |   |
| Commercial      business                     |   |                        | 53,436  |   |    |   | 10.75  |   |   |   | 41,578  |   |   |   | 9.18   |   |    |   | 37,691  |   |   |   | 9.13    |   |   |   | 33,564  |   |    |   | 8.97 |   |   |   | 30,174 |   |   |   | 8.55 |   |
| Total      loans receivable                  |   |                        | 497,138 |   |    |   | 100.00 | %      |   |   | 452,804 |   |   |   | 100.00 | %      |    |   | 412,915 |   |   |   | 100.00  | %      |   |   | 374,267 |   |    |   | 100.00 | % |   |   | 352,862 |   |   |   | 100.00 | % |
| Less:                                        |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Undisbursed      loans in process            |   |                        | 15,222  |   |    |   |   |   |   |   | 13,599  |   |   |   |   |   |    |   | 11,884  |   |   |   |    |   |   |   | 13,822  |   |    |   |   |   |   |   | 14,133 |   |   |   |   |   |
| Deferred      (costs) and unearned discounts |   |                        | (990    | )      |    |   |   |   |   |   | (1,184  | )      |   |   |   |   |    |   | (1,299  | )      |   |   |    |   |   |   | (1,235  | )      |    |   |   |   |   |   | (1,100 | ) |   |   |   |   |
| Allowance      for losses                    |   |                        | 5,956   |   |    |   |   |   |   |   | 3,215   |   |   |   |   |   |    |   | 3,078   |   |   |   |    |   |   |   | 2,966   |   |    |   |   |   |   |   | 3,021 |   |   |   |   |   |
| Total      loans receivable, net             |   | $                           | 476,950 |   |    |   |   |   |   | $      | 437,174 |   |   |   |   |   |    | $      | 399,252 |   |   |   |    |   |   | $      | 358,714 |   |    |   |   |   |   | $ | 336,808 |   |   |   |   |   |

----

|                             |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |
|----------------------------------|--------|-----------------------------|---------|--------|---------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|---------|--------|
|                             |   | March      31,              |    |
|                             |   | 2009                        |    |   | 2008    |   |   | 2007   |   |   | 2006    |   |   | 2005   |   |
|                             |   | Amount                      |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |    | Amount |   |   | Percent |   |   | Amount |    |   | Percent |   |
|                             |   | (Dollars      in Thousands) |    |
| Fixed-Rate      Loans:           |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |
| Real      Estate:                |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |
| Residential                      |   | $                           | 29,204  |   |    |   | 5.87   | %      |   | $      | 22,146  |   |   |   | 4.89   | %      |    | $      | 24,657  |   |   |   | 5.97    | %      |   | $      | 25,952  |   |    |   | 6.93 | % |   | $ | 34,129 |   |   |   | 9.67 | % |
| Commercial                       |   |                        | 31,919  |   |    |   | 6.42   |   |   |   | 22,592  |   |   |   | 4.99   |   |    |   | 15,097  |   |   |   | 3.66    |   |   |   | 13,651  |   |    |   | 3.65 |   |   |   | 12,303 |   |   |   | 3.49 |   |
| Construction(1)                  |   |                        | 3,528   |   |    |   | 0.71   |   |   |   | 6,870   |   |   |   | 1.52   |   |    |   | — |   |   |   | 0.00    |   |   |   | 855     |   |    |   | 0.23 |   |   |   | — |   |   |   | 0.00 |   |
| Total      real estate loans     |   |                        | 64,651  |   |    |   | 13.00  |   |   |   | 51,608  |   |   |   | 11.40  |   |    |   | 39,754  |   |   |   | 9.63    |   |   |   | 40,458  |   |    |   | 10.81 |   |   |   | 46,432 |   |   |   | 13.16 |   |
| Home      equity                 |   |                        | 5,437   |   |    |   | 1.09   |   |   |   | 5,692   |   |   |   | 1.26   |   |    |   | 4,972   |   |   |   | 1.20    |   |   |   | 4,816   |   |    |   | 1.29 |   |   |   | 4,413 |   |   |   | 1.25 |   |
| Automobile                       |   |                        | 37,300  |   |    |   | 7.51   |   |   |   | 44,843  |   |   |   | 9.90   |   |    |   | 50,895  |   |   |   | 12.32   |   |   |   | 49,840  |   |    |   | 13.32 |   |   |   | 43,970 |   |   |   | 12.46 |   |
| Other                            |   |                        | 5,718   |   |    |   | 1.15   |   |   |   | 5,872   |   |   |   | 1.30   |   |    |   | 5,619   |   |   |   | 1.36    |   |   |   | 5,548   |   |    |   | 1.47 |   |   |   | 5,488 |   |   |   | 1.55 |   |
| Total      consumer loans        |   |                        | 48,455  |   |    |   | 9.75   |   |   |   | 56,407  |   |   |   | 12.46  |   |    |   | 61,486  |   |   |   | 14.88   |   |   |   | 60,204  |   |    |   | 16.08 |   |   |   | 53,871 |   |   |   | 15.26 |   |
| Commercial      business         |   |                        | 21,234  |   |    |   | 4.27   |   |   |   | 19,912  |   |   |   | 4.40   |   |    |   | 17,721  |   |   |   | 4.29    |   |   |   | 15,340  |   |    |   | 4.10 |   |   |   | 11,330 |   |   |   | 3.21 |   |
| Total      fixed-rate loans      |   |                        | 134,340 |   |    |   | 27.02  |   |   |   | 127,927 |   |   |   | 28.26  |   |    |   | 118,961 |   |   |   | 28.80   |   |   |   | 116,002 |   |    |   | 30.99 |   |   |   | 111,633 |   |   |   | 31.63 |   |
| Adjustable-Rate      loans:      |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Real      Estate:                |   |                        |    |   |    |   |   |   |   |   |    |   |   |   |   |   |    |   |    |   |   |   |    |   |   |   |    |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Residential                      |   |                        | 110,860 |   |    |   | 22.30  |   |   |   | 100,459 |   |   |   | 22.19  |   |    |   | 93,387  |   |   |   | 22.62   |   |   |   | 89,217  |   |    |   | 23.84 |   |   |   | 89,127 |   |   |   | 25.27 |   |
| Commercial                       |   |                        | 122,862 |   |    |   | 24.72  |   |   |   | 127,467 |   |   |   | 28.15  |   |    |   | 104,257 |   |   |   | 25.25   |   |   |   | 92,339  |   |    |   | 24.67 |   |   |   | 83,397 |   |   |   | 23.63 |   |
| Construction(2)                  |   |                        | 59,359  |   |    |   | 11.94  |   |   |   | 47,021  |   |   |   | 10.38  |   |    |   | 48,857  |   |   |   | 11.83   |   |   |   | 40,790  |   |    |   | 10.90 |   |   |   | 35,019 |   |   |   | 9.92 |   |
| Total      real estate loans     |   |                        | 293,081 |   |    |   | 58.96  |   |   |   | 274,947 |   |   |   | 60.72  |   |    |   | 246,501 |   |   |   | 59.70   |   |   |   | 222,346 |   |    |   | 59.41 |   |   |   | 207,543 |   |   |   | 58.82 |   |
| Home      equity                 |   |                        | 36,216  |   |    |   | 7.28   |   |   |   | 27,088  |   |   |   | 5.98   |   |    |   | 25,834  |   |   |   | 6.26    |   |   |   | 16,176  |   |    |   | 4.32 |   |   |   | 13,550 |   |   |   | 3.84 |   |
| Automobile                       |   |                        | 111     |   |    |   | 0.02   |   |   |   | 118     |   |   |   | 0.03   |   |    |   | 97      |   |   |   | 0.02    |   |   |   | 156     |   |    |   | 0.04 |   |   |   | 142 |   |   |   | 0.04 |   |
| Other                            |   |                        | 1,188   |   |    |   | 0.24   |   |   |   | 1,058   |   |   |   | 0.23   |   |    |   | 1,552   |   |   |   | 0.38    |   |   |   | 1,363   |   |    |   | 0.37 |   |   |   | 1,150 |   |   |   | 0.33 |   |
| Total      consumer loans        |   |                        | 37,515  |   |    |   | 7.54   |   |   |   | 28,264  |   |   |   | 6.24   |   |    |   | 27,483  |   |   |   | 6.66    |   |   |   | 17,695  |   |    |   | 4.73 |   |   |   | 14,842 |   |   |   | 4.21 |   |
| Commercial      Business         |   |                        | 32,202  |   |    |   | 6.48   |   |   |   | 21,666  |   |   |   | 4.78   |   |    |   | 19,970  |   |   |   | 4.84    |   |   |   | 18,224  |   |    |   | 4.87 |   |   |   | 18,844 |   |   |   | 5.34 |   |
| Total      adjustable-rate loans |   |                        | 362,798 |   |    |   | 72.98  |   |   |   | 324,877 |   |   |   | 71.74  |   |    |   | 293,954 |   |   |   | 71.20   |   |   |   | 258,265 |   |    |   | 69.01 |   |   |   | 241,229 |   |   |   | 68.37 |   |
| Total      loans receivable      |   | $                           | 497,138 |   |    |   | 100.00 | %      |   | $      | 452,804 |   |   |   | 100.00 | %      |    | $      | 412,915 |   |   |   | 100.00  | %      |   | $      | 374,267 |   |    |   | 100.00 | % |   | $ | 352,862 |   |   |   | 100.00 | % |

|   |   |
|--------|--------|

----

|                                     |   |                                             |    |   |               |   |   |   |   |
|------------------------------------------|--------|--------------------------------------------------|---------|--------|--------------------|--------|--------|--------|--------|
|                                     |   | Real      Estate Constructionor      Development |    |   | CommercialBusiness |   |   | Total  |   |
|                                     |   | (Dollars      in Thousands)                      |    |
| Due      during periods ending March 31, |   |                                             |    |   |               |   |   |   |   |
|                                     |   |                                             |    |   |               |   |   |   |   |
| 2010                                     |   | $                                                | 46,926  |   |               | $      | 27,490 |   |   | $ | 74,416 |   |
| 2011      to 2014                        |   |                                             | 15,961  |   |               |   | 23,673 |   |   |   | 39,634 |   |
| After      2014                          |   |                                             | — |   |               |   | 2,273  |   |   |   | 2,273 |   |
|                                     |   |                                             |    |   |               |   |   |   |   |   |   |   |
| Totals                                   |   | $                                                | 62,887  |   |               | $      | 53,436 |   |   | $ | 116,323 |   |

----

----

|                                     |   |                        |   |   |             |   |
|------------------------------------------|--------|-----------------------------|--------|--------|------------------|--------|
|                                     |   | Numberof      loans         |   |   | PrincipalBalance |   |
|                                     |   | (Dollars      in Thousands) |   |
| Permanent      financing:                |   |                        |   |   |             |   |
| Multi-family      residential buildings  |   |                        | 34     |   |             | $      | 14,358 |   |
| Hotel      and motel                     |   |                        | 18     |   |             |   | 16,734 |   |
| Commercial      and industrial buildings |   |                        | 109    |   |             |   | 40,180 |   |
| Raw      land                            |   |                        | 181    |   |             |   | 40,855 |   |
| Church                                   |   |                        | 10     |   |             |   | 1,770 |   |
| Restaurant                               |   |                        | 12     |   |             |   | 2,390 |   |
| Warehouse                                |   |                        | 24     |   |             |   | 6,697 |   |
| Retail      Store                        |   |                        | 81     |   |             |   | 25,482 |   |
| School/Recreational                      |   |                        | 11     |   |             |   | 6,315 |   |
| Commercial      construction             |   |                        | 10     |   |             |   | 15,753 |   |
| Total                                    |   |                        | 490    |   |             | $      | 170,534 |   |

----

----

----

----

|                                                                                                                                                                                                                  |   |                      |    |   |   |   |    |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                                                                                                                                  |   | Year      Ended March 31, |    |
|                                                                                                                                                                                                                  |   | 2009                      |    |   | 2008   |   |    | 2007   |   |
|                                                                                                                                                                                                                  |   | (In      Thousands)       |    |
| Origination      by Type:                                                                                                                                                                                             |   |                      |    |   |   |   |    |   |   |
| Adjustable      Rate:                                                                                                                                                                                                 |   |                      |    |   |   |   |    |   |   |
| Real      estate - 1-4 family residential                                                                                                                                                                             |   | $                         | 41,441  |   |   | $      | 34,113  |   |   | $ | 38,784 |   |
|                              - commercial                                                               |   |                      | 25,814  |   |   |   | 37,837  |   |   |   | 24,554 |   |
|                              - construction                                                                  |   |                      | 30,740  |   |   |   | 14,671  |   |   |   | 21,338 |   |
| Non-real      estate - consumer                                                                                                                                                                                       |   |                      | 522     |   |   |   | 531     |   |   |   | 656 |   |
|                                     - commercial business            |   |                      | 7,695   |   |   |   | 3,841   |   |   |   | 3,193 |   |
| Total      adjustable rate                                                                                                                                                                                            |   |                      | 106,212 |   |   |   | 90,993  |   |   |   | 88,525 |   |
| Fixed      Rate:                                                                                                                                                                                                      |   |                      |    |   |   |   |    |   |   |   |   |   |
| Real      estate - 1-4 family residential                                                                                                                                                                             |   |                      | 7,757   |   |   |   | 6,256   |   |   |   | 7,006 |   |
|                              - commercial                                                               |   |                      | 10,329  |   |   |   | 9,452   |   |   |   | 2,506 |   |
|                              - construction                                                             |   |                      | 2,608   |   |   |   | 6,005   |   |   |   | — |   |
| Non-real      estate - consumer                                                                                                                                                                                       |   |                      | 15,711  |   |   |   | 21,252  |   |   |   | 26,143 |   |
|                                      - commercial business |   |                      | 9,449   |   |   |   | 9,124   |   |   |   | 8,701 |   |
| Total      fixed rate                                                                                                                                                                                                 |   |                      | 45,854  |   |   |   | 52,089  |   |   |   | 44,356 |   |
| Sales      and Repayments:                                                                                                                                                                                            |   |                      |    |   |   |   |    |   |   |   |   |   |
| Principal      repayments                                                                                                                                                                                             |   |                      | 107,732 |   |   |   | 103,193 |   |   |   | 94,233 |   |
| Total      reductions                                                                                                                                                                                                 |   |                      | 107,732 |   |   |   | 103,193 |   |   |   | 94,233 |   |
| Increase/(Decrease)      in other items, net                                                                                                                                                                          |   |                      | 4,558   |   |   |   | 1,967   |   |   |   | (1,890 | ) |
| Net      increase                                                                                                                                                                                                     |   | $                         | 39,776  |   |   | $      | 37,922  |   |   | $ | 40,538 |   |

----

|                        |   |                        |   |                                               |   |         |    |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------|--------|-----------------------------|--------|----------------------------------------------------|--------|--------------|---------|----------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                        |   | ResidentialReal      Estate |   | Commercial      Real Estate, Multi-Family and Land |   | Construction |    | Consumer |   | CommercialBusiness |   | Total  |   |
|                        |   | Number                      |   | Amount                                             |   | Number       |    | Amount   |   | Number             |   | Amount |   | Number |   | Amount |   | Number |   | Amount |   | Number |   | Amount |   |
|                        |   | (Dollars      in Thousands) |   |
|                        |   |                        |   |                                               |   |         |    |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      Delinquent for:  |   |                        |   |                                               |   |         |    |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30-59      days             |   | 14                          |   | $                                                  | 1,894  |         | 5       |     | $      | 450                |   | 12     |   | $      | 2,526  |   | 110    |   | $      | 1,431  |   | 28     |   | $      | 1,240  |   | 169    |   | $      | 7,541  |   |
| 60-89      days             |   | 6                           |   |                                               | 495    |         | — |     |   | —            |   | 1      |   |   | 400    |   | 8      |   |   | 124    |   | 16     |   |   | 254    |   | 31     |   |   | 1,273  |   |
| 90      days and over       |   | 7                           |   |                                               | 825    |         | 17      |     |   | 3,883              |   | 2      |   |   | 430    |   | 29     |   |   | 818    |   | 13     |   |   | 1,610  |   | 68     |   |   | 7,566  |   |
| Total      delinquent loans |   | 27                          |   | $                                                  | 3,214  |         | 22      |     | $      | 4,333              |   | 15     |   | $      | 3,356  |   | 147    |   | $      | 2,373  |   | 57     |   | $      | 3,104  |   | 268    |   | $      | 16,380 |   |

|                                          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                          |   | March      31,              |   |
|                                          |   | 2009                        |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|                                          |   | (Dollars      in Thousands) |   |
|                                          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accruing      loans:                      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial      business and consumer         |   | $                           | 2,428  |   |   | $      | 137    |   |   | $      | 142    |   |   | $      | 230    |   |   | $ | 70 |   |
| Real      Estate                              |   |                        | 5,138  |   |   |   | 889    |   |   |   | 1,173  |   |   |   | 239    |   |   |   | 339 |   |
|                                          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      non-accruing loans                 |   |                        | 7,566  |   |   |   | 1,026  |   |   |   | 1,315  |   |   |   | 469    |   |   |   | 409 |   |
| Real      estate acquired through foreclosure |   |                        | 1,400  |   |   |   | 593    |   |   |   | 181    |   |   |   | 120    |   |   |   | 139 |   |
| Total      non-performing assets              |   | $                           | 8,966  |   |   | $      | 1,619  |   |   | $      | 1,496  |   |   | $      | 589    |   |   | $ | 548 |   |
|                                          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      as a percentage of total assets    |   |                        | 1.75   | %      |   |   | .33    | %      |   |   | .32    | %      |   |   | .14    | % |   |   | .14 | % |
| Allowance      for loan losses                |   | $                           | 5,956  |   |   | $      | 3,215  |   |   | $      | 3,078  |   |   | $      | 2,966  |   |   | $ | 3,021 |   |

----

----

|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                                                |   | Year      Ended March 31,   |    |
|                                                                                                |   | 2009                        |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|                                                                                                |   | (Dollars      in Thousands) |    |
|                                                                                                |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Balance      at beginning of period                                                                 |   | $                           | 3,215   |   |   | $      | 3,078   |   |   | $      | 2,966   |   |   | $      | 3,021   |   |   | $ | 2,646 |   |
| Provision      charged to operations                                                                |   |                        | 4,285   |   |   |   | 625     |   |   |   | 388     |   |   |   | 177     |   |   |   | 870 |   |
| Charge-offs:                                                                                        |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential      real estate                                                                        |   |                        | (72     | )      |   |   | (44     | )      |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial      Real Estate, Multifamily and Land                                                   |   |                        | (488    | )      |   |   | (3      | )      |   |   | — |   |   |   | — |   |   |   | (241 | ) |
| Construction                                                                                        |   |                        | (100    | )      |   |   | (25     | )      |   |   | — |   |   |   | — |   |   |   | (51 | ) |
| Home      Equity                                                                                    |   |                        | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Automobile                                                                                          |   |                        | (438    | )      |   |   | (437    | )      |   |   | (279    | )      |   |   | (236    | ) |   |   | (332 | ) |
| Other                                                                                               |   |                        | (213    | )      |   |   | (73     | )      |   |   | (76     | )      |   |   | (79     | ) |   |   | (50 | ) |
| Commercial      Business                                                                            |   |                        | (371    | )      |   |   | (41     | )      |   |   | (2      | )      |   |   | (29     | ) |   |   | (6 | ) |
| Recoveries:                                                                                         |   |                        |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential      real estate                                                                        |   |                        | 11      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 11 |   |
| Commercial      Real Estate, Multifamily and Land                                                   |   |                        | — |   |   |   | 1       |   |   |   | — |   |   |   | — |   |   |   | 43 |   |
| Construction                                                                                        |   |                        | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Home      Equity                                                                                    |   |                        | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 4 |   |
| Automobile                                                                                          |   |                        | 116     |   |   |   | 79      |   |   |   | 55      |   |   |   | 63      |   |   |   | 85 |   |
| Other                                                                                               |   |                        | 9       |   |   |   | 10      |   |   |   | 26      |   |   |   | 49      |   |   |   | 29 |   |
| Commercial      Business                                                                            |   |                        | 2       |   |   |   | 45      |   |   |   | — |   |   |   | — |   |   |   | 13 |   |
| Net      charge-offs                                                                                |   |                        | (1,544  | )      |   |   | (488    | )      |   |   | (276    | )      |   |   | (232    | ) |   |   | (495 | ) |
| Balance      at end of period                                                                       |   | $                           | 5,956   |   |   | $      | 3,215   |   |   | $      | 3,078   |   |   | $      | 2,966   |   |   | $ | 3,021 |   |
| Ratio      of net charge-offs during the period to average loans outstanding during      the period |   |                        | .33     | %      |   |   | .12     | %      |   |   | .07     | %      |   |   | .07     | % |   |   | .16 | % |

----

|                                                  |   |                        |   |   |                                                 |   |   |         |   |   |               |   |   |             |   |   |     |   |   |   |   |
|-------------------------------------------------------|--------|-----------------------------|--------|--------|------------------------------------------------------|--------|--------|--------------|--------|--------|--------------------|--------|--------|------------------|--------|--------|----------|--------|--------|--------|--------|
|                                                  |   | Residential                 |   |   | CommercialReal      Estate,Multi-Familyand      Land |   |   | Construction |   |   | CommercialBusiness |   |   | Home      Equity |   |   | Consumer |   |   | Total  |   |
|                                                  |   | (Dollars      in Thousands) |   |
|                                                  |   |                        |   |   |                                                 |   |   |         |   |   |               |   |   |             |   |   |     |   |   |   |   |
| March      31, 2009: Amount of loan loss allowance    |   | $                           | 276    |   |                                                 | $      | 1,637  |         |   | $      | 665                |   |   | $                | 2,196  |   |     | $      | 224    |   |   | $ | 958 |   |   | $ | 5,956 |   |
| Percent      of loans in each category to total loans |   |                        | 28.17  | %      |                                                 |   | 31.14  | %            |   |   | 12.65              | %      |   |             | 10.75  | %      |     |   | 8.38   | %      |   |   | 8.91 | % |   |   | 100.00 | % |
|                                                  |   |                        |   |   |                                                 |   |   |         |   |   |               |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| March      31, 2008:Amount of loan loss allowance     |   | $                           | 258    |   |                                                 | $      | 981    |         |   | $      | 383                |   |   | $                | 565    |   |     | $      | 130    |   |   | $ | 898 |   |   | $ | 3,215 |   |
| Percent      of loans in each category to total loans |   |                        | 27.08  | %      |                                                 |   | 33.14  | %            |   |   | 11.90              | %      |   |             | 9.18   | %      |     |   | 7.24   | %      |   |   | 11.46 | % |   |   | 100.00 | % |
|                                                  |   |                        |   |   |                                                 |   |   |         |   |   |               |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| March      31, 2007: Amount of loan loss allowance    |   | $                           | 238    |   |                                                 | $      | 819    |         |   | $      | 354                |   |   | $                | 530    |   |     | $      | 109    |   |   | $ | 1,028 |   |   | $ | 3,078 |   |
| Percent      of loans in each category to total loans |   |                        | 28.59  | %      |                                                 |   | 28.90  | %            |   |   | 11.83              | %      |   |             | 9.13   | %      |     |   | 7.46   | %      |   |   | 14.09 | % |   |   | 100.00 | % |
|                                                  |   |                        |   |   |                                                 |   |   |         |   |   |               |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| March      31, 2006:Amount of loan loss allowance     |   | $                           | 250    |   |                                                 | $      | 713    |         |   | $      | 350                |   |   | $                | 514    |   |     | $      | 96     |   |   | $ | 1,043 |   |   | $ | 2,966 |   |
| Percent      of loans in each category to total loans |   |                        | 30.77  | %      |                                                 |   | 28.32  | %            |   |   | 11.13              | %      |   |             | 8.97   | %      |     |   | 5.61   | %      |   |   | 15.20 | % |   |   | 100.00 | % |
|                                                  |   |                        |   |   |                                                 |   |   |         |   |   |               |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| March      31, 2005:Amount of loan loss allowance     |   | $                           | 308    |   |                                                 | $      | 718    |         |   | $      | 409                |   |   | $                | 554    |   |     | $      | 109    |   |   | $ | 923 |   |   | $ | 3,021 |   |
| Percent      of loans in each category to total loans |   |                        | 34.94  | %      |                                                 |   | 27.12  | %            |   |   | 9.92               | %      |   |             | 8.55   | %      |     |   | 5.09   | %      |   |   | 14.38 | % |   |   | 100.00 | % |

----

|                                               |   |                                   |    |                                               |      |                                           |        |                         |    |   |   |   |   |   |   |   |
|----------------------------------------------------|--------|----------------------------------------|---------|----------------------------------------------------|-----------|------------------------------------------------|-------------|------------------------------|---------|--------|--------|--------|--------|--------|--------|--------|
|                                               |   | March      31, 2009                    |    |
|                                               |   | Within      1Year      orLessBookValue |    | After      1Yearthrough      5Years BookValue |      | After      5Yearsthrough10      YearsBookValue |        | TotalInvestmentSecurities(1) |    |
|                                               |   |                                   |    |                                               | BookValue |                                           | MarketValue |                         |
|                                               |   | (Dollars      in Thousands)            |    |
| Federal      agency obligations                    |   | $                                      | — |                                               | $         | 1,500                                          |        | $                            | — |   | $      | 1,500  |   | $      | 1,511  |   |
| State      agency obligations and commercial paper |   |                                   | 200     |                                               |      | —                                        |        |                         | — |   |   | 200    |   |   | 200    |   |
|                                               |   |                                   |    |                                               |      |                                           |        |                         |    |   |   |   |   |   |   |   |
| Total      Investment Securities                   |   | $                                      | 200     |                                               | $         | 1,500                                          |        | $                            | — |   | $      | 1,700  |   | $      | 1,711  |   |
|                                               |   |                                   |    |                                               |      |                                           |        |                         |    |   |   |   |   |   |   |   |
| Weighted Average      Yield      (2)               |   |                                   | 2.48    | %                                                  |      | 3.03                                           | %           |                         | — | %      |   | 2.97   | %      |   | 2.95   | %      |

|   |                                                                                                           |   |
|--------|----------------------------------------------------------------------------------------------------------------|--------|
| (1)    | Included      in the above table are $1.5 million of securities that are callable in      three years or less. |
|   |                                                                                                           |
| (2)    | The      weighted average yield is not computed on a tax equivalent      basis.                                |

----

|                                                            |   |                        |   |           |   |         |   |           |   |      |   |           |   |   |   |   |   |         |   |
|-----------------------------------------------------------------|--------|-----------------------------|--------|----------------|--------|--------------|--------|----------------|--------|-----------|--------|----------------|--------|--------|--------|--------|--------|--------------|--------|
|                                                            |   | March      31,              |   |
|                                                            |   | 2009                        |   | 2008           |   | 2007         |   |
|                                                            |   | BookValue                   |   | %      ofTotal |   | BookValue    |   | %      ofTotal |   | BookValue |   | %      ofTotal |   |
|                                                            |   | (Dollars      in Thousands) |   |
| Interest-bearing      deposits with banks                       |   | $                           | 512    |           |   | 100.0        | %      | $              | 12,762 |      |   | 100.0          | %      | $      | 1,045  |   |   | 100.0        | %      |
|                                                            |   |                        |   |           |   |         |   |           |   |      |   |           |   |   |   |   |   |         |   |
| Investment      securities:                                     |   |                        |   |           |   |         |   |           |   |      |   |           |   |   |   |   |   |         |   |
| Federal      agency obligations                                 |   | $                           | 1,500  |           |   | 21.0         | %      | $              | 2,500  |      |   | 14.1           | %      | $      | 22,581 |   |   | 52.9         | %      |
| State      agencies and commercial paper                        |   |                        | 200    |           |   | 2.8          |   |           | 440    |      |   | 2.5            |   |   | 1,005  |   |   | 2.4          |   |
| United      States agency equity securities                     |   |                        | 207    |           |   | 2.9          |   |           | 9,562  |      |   | 54.0           |   |   | 14,250 |   |   | 33.4         |   |
| Subtotal                                                        |   |                        | 1,907  |           |   | 26.7         |   |           | 12,502 |      |   | 70.6           |   |   | 37,836 |   |   | 88.7         |   |
| FHLB      stock                                                 |   |                        | 5,239  |           |   | 73.3         |   |           | 5,211  |      |   | 29.4           |   |   | 4,822  |   |   | 11.3         |   |
| Total      investment securities  and FHLB stock      |   | $                           | 7,146  |           |   | 100.0        | %      | $              | 17,713 |      |   | 100.0          | %      | $      | 42,658 |   |   | 100.0        | %      |
|                                                            |   |                        |   |           |   |         |   |           |   |      |   |           |   |   |   |   |   |         |   |
| Average remaining      life or term  to repricing (1) |   |                        |   |           |   | 3      Years |   |           |   |      |   | 2      Years   |   |   |   |   |   | 2      Years |   |

|   |                                                                                |   |
|--------|-------------------------------------------------------------------------------------|--------|
| (1)    | Excludes      Freddie Mac common stock and other marketable equity      securities. |

----

|                                          |   | March      31,      |    |
|-----------------------------------------------|--------|---------------------|---------|
|                                          |   | 2009                |    |   | 2008 |   |   | 2007 |   |
|                                          |   | (In      Thousands) |    |
| Passbook      and statement accounts          |   | $                   | 27,320  |   |   | $ | 27,520 |   |   | $ | 27,584 |   |
| NOW      and Super NOW accounts               |   |                | 56,626  |   |   |   | 55,034 |   |   |   | 58,109 |   |
| Money      market accounts                    |   |                | 25,255  |   |   |   | 22,364 |   |   |   | 20,122 |   |
| One-to      five-year fixed-rate certificates |   |                | 247,347 |   |   |   | 210,903 |   |   |   | 221,069 |   |
| Six-month      and 91 day certificates        |   |                | 8,958   |   |   |   | 34,910 |   |   |   | 3,654 |   |
| Total                                         |   | $                   | 365,506 |   |   | $ | 350,731 |   |   | $ | 330,538 |   |

----

|                   |   | Year      Ended March 31,   |    |
|------------------------|--------|-----------------------------|---------|
|                   |   | 2009                        |    |   | 2008 |   |   | 2007 |   |
|                   |   | (Dollars      in Thousands) |    |
| Opening      balance   |   | $                           | 350,731 |   |   | $ | 330,538 |   |   | $ | 306,849 |   |
| Net      deposits      |   |                        | 6,639   |   |   |   | 8,677 |   |   |   | 15,811 |   |
| Interest      credited |   |                        | 8,136   |   |   |   | 11,516 |   |   |   | 7,878 |   |
| Ending      balance    |   | $                           | 365,506 |   |   | $ | 350,731 |   |   | $ | 330,538 |   |
| Net      increase      |   | $                           | 14,775  |   |   | $ | 20,193 |   |   | $ | 23,689 |   |
| Percent      increase  |   |                        | 4.21    | % |   |   | 6.11 | % |   |   | 7.72 | % |

|                                      |   |                        |    |                   |   |                 |   |                   |    |                 |   |                   |   |   |    |   |   |    |   |
|-------------------------------------------|--------|-----------------------------|---------|------------------------|--------|----------------------|--------|------------------------|---------|----------------------|--------|------------------------|--------|--------|---------|--------|--------|---------|--------|
|                                      |   | Year      Ended March 31,   |    |
|                                      |   | 2009                        |    | 2008                   |   | 2007                 |   |
|                                      |   | Average      Balance        |    | Average      Rate Paid |   | Average      Balance |   | Average      Rate Paid |    | Average      Balance |   | Average      Rate Paid |   |
|                                      |   | (Dollars      in Thousands) |    |
| Deposit      Category:                    |   |                        |    |                   |   |                 |   |                   |    |                 |   |                   |   |   |    |   |   |    |   |
| Non-interest      bearing demand deposits |   | $                           | 25,514  |                   |   | —              | %      | $                      | 27,641  |                 |   | —                | %      | $      | 29,549  |   |   | — | %      |
| Interest      bearing demand deposits     |   |                        | 51,920  |                   |   | 1.16                 |   |                   | 45,747  |                 |   | 1.50                   |   |   | 45,042  |   |   | 1.32    |   |
| Savings      deposits                     |   |                        | 27,463  |                   |   | 1.18                 |   |                   | 27,690  |                 |   | 1.33                   |   |   | 28,115  |   |   | 0.80    |   |
| Time      deposits                        |   |                        | 250,702 |                   |   | 3.82                 |   |                   | 236,530 |                 |   | 4.78                   |   |   | 208,501 |   |   | 4.43    |   |
| Total      deposits                       |   | $                           | 355,599 |                   |   | 2.95                 | %      | $                      | 337,608 |                 |   | 3.66                   | %      | $      | 311,207 |   |   | 3.23    | %      |

|                |   |                        |    |       |   |             |   |       |    |       |   |       |   |   |    |   |   |    |   |   |    |   |
|---------------------|--------|-----------------------------|---------|------------|--------|------------------|--------|------------|---------|------------|--------|------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                |   | Less      Than 2.00%        |    | 2.00-3.00% |   | 3.01-      4.00% |   | 4.01-5.00% |    | 5.01-6.00% |   | 6.01-7.00% |   | Total  |    |
|                |   | (Dollars      in Thousands) |    |
| March      31, 2009 |   | $                           | 15,460  |       | $      | 63,401           |   | $          | 118,149 |       | $      | 55,266     |   | $      | 4,029   |   | $      | — |   | $      | 256,305 |   |
| March      31, 2008 |   | $                           | 88      |       | $      | 4,253            |   | $          | 56,806  |       | $      | 136,432    |   | $      | 48,234  |   | $      | — |   | $      | 245,813 |   |
| March      31, 2007 |   | $                           | — |       | $      | 10,366           |   | $          | 25,536  |       | $      | 78,910     |   | $      | 109,911 |   | $      | — |   | $      | 224,723 |   |

----

|                                             |   |                        |   |                             |   |                              |   |               |   |   |   |   |   |   |    |   |
|--------------------------------------------------|--------|-----------------------------|--------|----------------------------------|--------|-----------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|---------|--------|
|                                             |   | Maturity                    |   |
|                                             |   | 3      Months orless        |   | Over      3Monthsthrough 6Months |   | Over      6Monthsthrough 12Months |   | Over      12Months |   | Total  |   |
|                                             |   | (Dollars      in Thousands) |   |
| Certificates      of deposit less than $100,000  |   | $                           | 63,598 |                             | $      | 59,528                            |   | $                  | 33,987 |   | $      | 16,970 |   | $      | 174,083 |   |
| Certificates      of deposit of $100,000 or more |   |                        | 34,879 |                             |   | 25,807                            |   |               | 15,904 |   |   | 5,632  |   |   | 82,222  |   |
| Total      certificates of deposit               |   | $                           | 98,477 |                             | $      | 85,335                            |   | $                  | 49,891 |   | $      | 22,602 |   | $      | 256,305 |   |

|                                                |   | At      March 31,           |   |
|-----------------------------------------------------|--------|-----------------------------|--------|
|                                                |   | 2009                        |   |   | 2008 |   |   | 2007 |   |
|                                                |   | (Dollars      in thousands) |   |
|                                                |   |                        |   |   |   |   |   |   |   |
| Securities      sold under agreements to repurchase |   | $                           | 1,476  |   |   | $ | 2,834 |   |   | $ | 1,740 |   |
| Other      borrowings                               |   |                        | 1,000  |   |   |   | — |   |   |   | — |   |
| FHLB      advances                                  |   |                        | 94,000 |   |   |   | 96,000 |   |   |   | 89,000 |   |
| Total      Borrowings                               |   | $                           | 96,476 |   |   | $ | 98,834 |   |   | $ | 90,740 |   |
|                                                |   |                        |   |   |   |   |   |   |   |   |   |   |
| Weighted      average interest rate of borrowings   |   |                        | 1.00   | % |   |   | 2.74 | % |   |   | 5.18 | % |

----

|                                             |   |                        |   |   |   |   |    |   |   |
|--------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|---------|--------|--------|
| At      or for the Year Ended March 31,          |   | 2009                        |   |   | 2008   |   |    | 2007   |   |
|                                             |   | (Dollars      in Thousands) |   |
| Amount      outstanding at year end              |   | $                           | 74,000 |   |   | $      | 76,000  |   |   | $ | 84,000 |   |
| Average      interest rate on amount at year end |   |                        | 0.43   | %      |   |   | 2.75    | %      |   |   | 5.35 | % |
|                                             |   |                        |   |   |   |   |    |   |   |   |   |   |
| Average      amount outstanding during the year  |   | $                           | 72,055 |   |   | $      | 87,962  |   |   | $ | 85,003 |   |
| Average      interest rate during the year       |   |                        | 1.69   | %      |   |   | 4.80    | %      |   |   | 5.34 | % |
|                                             |   |                        |   |   |   |   |    |   |   |   |   |   |
| Maximum      amount outstanding during the year  |   | $                           | 94,000 |   |   | $      | 100,000 |   |   | $ | 91,000 |   |

----

----

----

----

----

----

----

----

|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
|----------------------------------------------------------|--------|--------|--------|------------------------------|--------|--------------------------|--------|------------------------------------------|-----------|--------|
| Location                                                 |   | Opened |   | Owned      orLeaseExpiration |   | Gross      SquareFootage |   | Net      Book Valueat      March 31,2009 |      |
| 38      North Central AvenueStaunton,      Virginia      |   | 1965   |   | Owned                        |   | 17,000                   |   | $                                        | 1,258,000 |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| Rte      250 WestWaynesboro,      Virginia               |   | 1989   |   | Owned                        |   | 5,300                    |   |                                     | 537,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| Route      340 and 608Stuarts      Draft, Virginia       |   | 1993   |   | Owned                        |   | 3,000                    |   |                                     | 896,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 621      Nevan RoadVirginia      Beach, Virginia         |   | 1998   |   | 2038                         |   | 13,000                   |   |                                     | 845,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 101      Community WayStaunton,      Virginia            |   | 1999   |   | 2039                         |   | 4,500                    |   |                                     | 563,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 2134      Raphine Road,Raphine,      Virginia            |   | 2001   |   | 2011                         |   | 2,308                    |   |                                     | 41,000    |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 21      Dick Huff LaneVerona,      Virginia              |   | 2002   |   | Owned                        |   | 3,850                    |   |                                     | 1,194,000 |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 123      West Frederick StreetStaunton,      Virginia    |   | 2003   |   | Owned                        |   | 22,000                   |   |                                     | 1,730,000 |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 1201      Lake James DriveVirginia      Beach, Virginia  |   | 2005   |   | 2012                         |   | 3,900                    |   |                                     | 226,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 463      Hidden Creek LaneHarrisonburg,      Virginia    |   | 2005   |   | 2009                         |   | 2,000                    |   |                                     | 43,000    |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 102      Walker StreetLexington,      Virginia           |   | 2006   |   | 2028                         |   | 2,200                    |   |                                     | 226,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 211      West Frederick StreetStaunton,      Virginia    |   | 2009   |   | Owned                        |   | 4,445                    |   |                                     | 274,000   |   |
|                                                     |   |   |   |                         |   |                     |   |                                     |      |   |
| 128      West 21st      StreetBuena      Vista, Virginia |   | 2009   |   | Owned                        |   | 4,100                    |   |                                     | 504,000   |   |

----

|                |   |   |   |   |   |   |   |                   |   |   |   |   |   |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|------------------------|--------|--------|--------|--------|--------|--------|
| Fiscal      2009    |   | High   |   | Low    |   | Close  |   | Dividend      Declared |   |
| March      2009     |   | $      | 4.40   |   | $      | 2.04   |   | $                      | 4.00   |   | $      | .000   |   |   |
| December      2008  |   |   | 6.73   |   |   | 3.25   |   |                   | 3.83   |   |   | .000   |   |   |
| September      2008 |   |   | 8.50   |   |   | 4.55   |   |                   | 5.85   |   |   | .065   |   |   |
| June      2008      |   |   | 9.25   |   |   | 6.70   |   |                   | 7.76   |   |   | .065   |   |   |
|                |   |   |   |   |   |   |   |                   |   |
| Fiscal      2008    |   | High   |   | Low    |   | Close  |   | Dividend      Declared |   |
| March      2008     |   | $      | 9.09   |   | $      | 7.03   |   | $                      | 8.00   |   | $      | .065   |   |   |
| December      2007  |   |   | 10.40  |   |   | 8.37   |   |                   | 8.99   |   |   | .065   |   |   |
| September      2007 |   |   | 11.00  |   |   | 9.20   |   |                   | 9.30   |   |   | .065   |   |   |
| June      2007      |   |   | 11.89  |   |   | 11.00  |   |                   | 11.43  |   |   | .065   |   |   |

----

|                             |   | 3/31/04 |   |   | 3/31/05 |   |   | 3/31/06 |   |   | 3/31/07 |   |   | 3/30/08 |   |   | 3/31/09 |   |
|----------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                             |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Community      Financial Corp VA |   | $       | 100.00 |   |    | $      | 105.15 |    |   | $      | 106.26  |   |   | $       | 114.94 |   |    | $      | 80.41 |   |   | $ | 40.86 |   |
|                             |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Savings      & Loans         |   |    | 100.00 |   |    |   | 100.24 |    |   |   | 110.29  |   |   |    | 114.31 |   |    |   | 66.60 |   |   |   | 46.86 |   |
|                             |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| NASDAQ      Market Index         |   |    | 100.00 |   |    |   | 100.44 |    |   |   | 118.41  |   |   |    | 122.81 |   |    |   | 115.02 |   |   |   | 76.35 |   |

----

|                                                                              |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                                              |   | At      March 31,                       |    |
|                                                                              |   | 2009                                    |    | 2008   |   | 2007    |   | 2006   |    | 2005   |   |
|                                                                              |   | (In      thousands)                     |    |
| Selected      Financial Condition Data:                                           |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Total      assets                                                                 |   | $                                       | 512,724 |   | $      | 491,246 |   | $      | 463,112 |   | $      | 422,606 |   | $      | 399,604 |   |
| Loans      receivable, net                                                        |   |                                    | 476,950 |   |   | 437,174 |   |   | 399,252 |   |   | 358,714 |   |   | 336,809 |   |
| Investment      securities and other earning assets(1)                            |   |                                    | 7,658   |   |   | 30,475  |   |   | 43,703  |   |   | 45,102  |   |   | 45,911  |   |
| Real      estate owned, net                                                       |   |                                    | 1,400   |   |   | 593     |   |   | 181     |   |   | 120     |   |   | 138     |   |
| Deposits                                                                          |   |                                    | 365,506 |   |   | 350,731 |   |   | 330,538 |   |   | 306,849 |   |   | 275,430 |   |
| Advances      and other borrowed money                                            |   |                                    | 96,476  |   |   | 98,834  |   |   | 90,740  |   |   | 78,976  |   |   | 91,650  |   |
| Stockholders’      equity                                                   |   |                                    | 46,337  |   |   | 38,705  |   |   | 38,570  |   |   | 35,167  |   |   | 31,325  |   |
|                                                                              |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
|                                                                              |   | Year      Ended March 31,               |    |
|                                                                              |   | 2009                                    |    | 2008   |   | 2007    |   | 2006   |    | 2005   |   |
|                                                                              |   | (In      thousands)                     |    |
| Selected      Operations Data:                                                    |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Total      interest income                                                        |   | $                                       | 28,692  |   | $      | 32,244  |   | $      | 29,419  |   | $      | 24,466  |   | $      | 20,038  |   |
| Total      interest expense                                                       |   |                                    | 12,460  |   |   | 16,978  |   |   | 14,792  |   |   | 10,312  |   |   | 6,281   |   |
| Net      interest income                                                          |   |                                    | 16,232  |   |   | 15,266  |   |   | 14,627  |   |   | 14,154  |   |   | 13,757  |   |
| Provision      for loan losses                                                    |   |                                    | 4,285   |   |   | 625     |   |   | 388     |   |   | 177     |   |   | 870     |   |
| Net      interest income after provision for loan losses                          |   |                                    | 11,946  |   |   | 14,641  |   |   | 14,239  |   |   | 13,977  |   |   | 12,887  |   |
| Service      charges and fees                                                     |   |                                    | 3,037   |   |   | 3,007   |   |   | 2,816   |   |   | 2,557   |   |   | 2,293   |   |
| Securities      impairment                                                        |   |                                    | (11,536 | )      |   | — |   |   | — |   |   | — |   |   | — |   |
| Other noninterest      income(2)                                                  |   |                                    | 386     |   |   | 336     |   |   | 369     |   |   | 444     |   |   | 415     |   |
| Noninterest      expenses                                                         |   |                                    | 13,449  |   |   | 12,292  |   |   | 11,306  |   |   | 10,791  |   |   | 10,060  |   |
| Income      (loss) before income taxes                                            |   |                                    | (9,616  | )      |   | 5,692   |   |   | 6,118   |   |   | 6,187   |   |   | 5,535   |   |
| Income      taxes (benefit)                                                       |   |                                    | (3,793  | )      |   | 1,856   |   |   | 2,027   |   |   | 1,919   |   |   | 1,729   |   |
| Net      income (loss)                                                            |   | $                                       | (5,823  | )      | $      | 3,836   |   | $      | 4,091   |   | $      | 4,268   |   | $      | 3,806   |   |
|                                                                              |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
|                                                                              |   | At      or For the Year Ended March 31, |    |
|                                                                              |   | 2009                                    |    | 2008   |   | 2007    |   | 2006   |    | 2005   |   |
| Other      Data:                                                                  |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Average      interest-earning assets to average interest bearing      liabilities |   |                                    | 105.41  | %      |   | 105.21  | %      |   | 104.86  | %      |   | 104.81  | %      |   | 104.81  | %      |
| Average      interest rate spread during year                                     |   |                                    | 3.25    |   |   | 3.14    |   |   | 3.30    |   |   | 3.51    |   |   | 3.84    |   |
| Non-performing      assets to total assets                                        |   |                                    | 1.75    |   |   | .33     |   |   | .32     |   |   | .14     |   |   | .14     |   |
| Return      on assets (ratio of net income to average total assets)               |   |                                    | (1.17   | )      |   | .80     |   |   | .92     |   |   | 1.04    |   |   | 1.04    |   |
| Return      on equity (ratio of net income to average total equity)               |   |                                    | (14.57  | )      |   | 9.77    |   |   | 11.06   |   |   | 12.79   |   |   | 12.56   |   |
| Equity-to-assets      ratio (ratio of average equity to average assets)           |   |                                    | 8.03    |   |   | 8.18    |   |   | 8.36    |   |   | 8.16    |   |   | 8.28    |   |
| Allowance      for loan losses to loans receivable, net                           |   |                                    | 1.25    |   |   | .73     |   |   | .77     |   |   | .82     |   |   | .89     |   |
| Allowance      for loan losses to non-performing loans                            |   |                                    | 78.70   |   |   | 313.30  |   |   | 234.16  |   |   | 503.57  |   |   | 551.28  |   |
|                                                                              |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Per      Share Data: (3)                                                          |   |                                    |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Net      income-diluted                                                           |   | $                                       | (1.39   | )      | $      | 0.87    |   | $      | 0.93    |   | $      | .98     |   | $      | .88     |   |
| Book      value                                                                   |   |                                    | 7.72    |   |   | 8.93    |   |   | 8.98    |   |   | 8.29    |   |   | 7.51    |   |
| Dividends                                                                         |   |                                    | .130    |   |   | .260    |   |   | .255    |   |   | .225    |   |   | .210    |   |
| Dividend      payout ratio                                                        |   |                                    | — |   |   | 29.22   | %      |   | 26.54   | %      |   | 22.13   | %      |   | 22.97   | %      |
| Number      of full-service offices                                               |   |                                    | 11      |   |   | 10      |   |   | 10      |   |   | 9       |   |   | 8       |   |

|   |                                                                                                                                                 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (1)    | Includes      federal funds sold, securities purchased under resale agreements and      overnight deposits.                                          |
| (2)    | Other      income includes customer service fees and commissions, gain or loss on      disposal of property and other items.                         |
| (3)    | Per      share data for the periods presented has been restated to reflect the      2-for-1 stock split declared on July 26, 2006, as    applicable. |

----

----

----

|                                                |   |                                        |   |   |                |   |                |                    |   |   |               |   |   |                    |   |
|-----------------------------------------------------|--------|---------------------------------------------|--------|--------|---------------------|--------|---------------------|-------------------------|--------|--------|--------------------|--------|--------|-------------------------|--------|
|                                                |   |                                        |   |   | March      31, 2009 |   | March      31, 2008 |                    |
| Change      inInterest      Rate(Basis      Points) |   | Board      LimitNPV      as %of      Assets |   |   | $Changein      NPV  |   |                | NPV      as % of Assets |   |   | $Changein      NPV |   |   | NPV      as % of Assets |   |
| (Dollars      in Thousands)                         |
| +200                                                |   | 7                                           |   |   | (4,234              | )      |                | 10.3                    | %      |   | (4,538             | )      |   | 9.0                     | %      |
| +100                                                |   | 8                                           |   |   | (1,852              | )      |                | 10.6                    |   |   | (2,192             | )      |   | 9.4                     |   |
| -0-                                                 |   | 9                                           |   |   | —             |   |                | 10.9                    |   |   | —            |   |   | 9.8                     |   |
| -100                                                |   | 8                                           |   |   | 840                 |   |                | 11.1                    |   |   | 899                |   |   | 9.9                     |   |
| -200                                                |   | 7                                           |   |   | —             |   |                | —                 |   |   | 1,647              |   |   | 10.0                    |   |

----

----

|                                                                       |   |                        |    |   |     |   |   |       |   |   |           |   |   |     |    |   |       |   |   |           |   |   |     |   |   |       |    |
|----------------------------------------------------------------------------|--------|-----------------------------|---------|--------|----------|--------|--------|------------|--------|--------|----------------|--------|--------|----------|---------|--------|------------|--------|--------|----------------|--------|--------|----------|--------|--------|------------|---------|
|                                                                       |   | Year      Ended March 31,   |    |
|                                                                       |   | 2009                        |    |   | 2008     |   |   | 2007       |   |
|                                                                       |   | AverageBalance              |    |   | Interest |   |   | Yield/Cost |   |   | AverageBalance |   |   | Interest |    |   | Yield/Cost |   |   | AverageBalance |   |   | Interest |   |   | Yield/Cost |    |
|                                                                       |   | (Dollars      in Thousands) |    |
| Interest-Earning      Assets                                               |   |                        |    |   |     |   |   |       |   |   |           |   |   |     |    |   |       |   |   |           |   |   |     |   |   |       |    |
| Loans                                                                      |   | $                           | 458,265 |   |     | $      | 28,129 |       |   |   | 6.14           | %      |   | $        | 417,897 |   |       | $      | 30,248 |           |   |   | 7.24     | %      |   | $          | 377,894 |   |   | $ | 27,268 |   |   |   | 7.22 | % |
| Investment      securities and other investments                           |   |                        | 20,172  |   |     |   | 563    |       |   |   | 2.79           | %      |   |     | 41,064  |   |       |   | 1,996  |           |   |   | 4.86     | %      |   |       | 44,321  |   |   |   | 2,151 |   |   |   | 4.85 | % |
| Total      interest-earning assets                                         |   |                        | 478,437 |   |     |   | 28,692 |       |   |   | 6.00           | %      |   |     | 458,961 |   |       |   | 32,244 |           |   |   | 7.03     | %      |   |       | 422,215 |   |   |   | 29,419 |   |   |   | 6.97 | % |
| Non-interest      earning assets                                           |   |                        | 18,953  |   |     |   |   |       |   |   |           |   |   |     | 20,959  |   |       |   |   |           |   |   |     |   |   |       | 20,261  |   |   |   |   |   |   |   |   |   |
| Total      Assets                                                          |   | $                           | 497,390 |   |     |   |   |       |   |   |           |   |   | $        | 479,920 |   |       |   |   |           |   |   |     |   |   | $          | 442,476 |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                        |    |   |     |   |   |       |   |   |           |   |   |     |    |   |       |   |   |           |   |   |     |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities                                          |   |                        |    |   |     |   |   |       |   |   |           |   |   |     |    |   |       |   |   |           |   |   |     |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Deposits                                                                   |   | $                           | 355,599 |   |     |   | 10,497 |       |   |   | 2.95           | %      |   | $        | 337,608 |   |       |   | 12,354 |           |   |   | 3.66     | %      |   | $          | 311,207 |   |   |   | 10,047 |   |   |   | 3.23 | % |
| FHLB      advances and other borrowings                                    |   |                        | 98,293  |   |     |   | 1,963  |       |   |   | 2.00           | %      |   |     | 98,636  |   |       |   | 4,624  |           |   |   | 4.69     | %      |   |       | 91,454  |   |   |   | 4,745 |   |   |   | 5.19 | % |
| Total      interest-bearing liabilities                                    |   |                        | 453,892 |   |     |   | 12,460 |       |   |   | 2.75           | %      |   |     | 436,244 |   |       |   | 16,978 |           |   |   | 3.89     | %      |   |       | 402,661 |   |   |   | 14,792 |   |   |   | 3.67 | % |
| Non-interest      bearing Liabilities                                      |   |                        | 3,533   |   |     |   |   |       |   |   |           |   |   |     | 4,414   |   |       |   |   |           |   |   |     |   |   |       | 2,815   |   |   |   |   |   |   |   |   |   |
| Total      Liabilities                                                     |   |                        | 457,425 |   |     |   |   |       |   |   |           |   |   |     | 440,658 |   |       |   |   |           |   |   |     |   |   |       | 405,476 |   |   |   |   |   |   |   |   |   |
| Stockholder’s      equity                                            |   |                        | 39,965  |   |     |   |   |       |   |   |           |   |   |     | 39,262  |   |       |   |   |           |   |   |     |   |   |       | 37,000  |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Stockholders’ Equity                 |   | $                           | 497,390 |   |     |   |   |       |   |   |           |   |   | $        | 479,920 |   |       |   |   |           |   |   |     |   |   | $          | 442,476 |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                   |   |                        |    |   |     | $      | 16,232 |       |   |   |           |   |   |     |    |   |       | $      | 15,266 |           |   |   |     |   |   |       |    |   |   | $ | 14,627 |   |   |   |   |   |
| Interest      rate spread                                                  |   |                        |    |   |     |   |   |       |   |   | 3.25           | %      |   |     |    |   |       |   |   |           |   |   | 3.14     | %      |   |       |    |   |   |   |   |   |   |   | 3.30 | % |
| Net      interest-earning assets/net yield on interest-earning    assets   |   | $                           | 24,545  |   |     |   |   |       |   |   | 3.39           | %      |   | $        | 22,717  |   |       |   |   |           |   |   | 3.33     | %      |   | $          | 19,554  |   |   |   |   |   |   |   | 3.46 | % |
| Percentage      of interest-earning assets to interest-bearing liabilities |   |                        | 105.41  | %      |     |   |   |       |   |   |           |   |   |     | 105.21  | %      |       |   |   |           |   |   |     |   |   |       | 104.86  | % |   |   |   |   |   |   |   |   |

----

|                                             |   |                                |   |
|--------------------------------------------------|--------|-------------------------------------|--------|
|                                             |   | Year      Ended March 31,           |   |
|                                             |   | 2009      v. 2008                   |   | 2008      v. 2007 |   |
|                                             |   | Increase(Decrease)Due      toVolume |   | Rate |   | TotalIncrease(Decrease) |   | Increase(Decrease)Due      toVolume |   | Rate |   | TotalIncrease(Decrease) |   |
|                                             |   | (Dollars      in Thousands)         |   |
| Interest-Earning      Assets                     |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                            |   | $                                   | 2,478  |   | $ | (4,597 | ) | $ | (2,119 | ) | $ | 2,895 |   | $ | 85 |   | $ | 2,980 |   |
| Investment      securities and other investments |   |                                | (583   | ) |   | (850 | ) |   | (1,433 | ) |   | (158 | ) |   | 3 |   |   | (155 | ) |
| Total      Interest-earning assets               |   | $                                   | 1,895  |   | $ | (5,447 | ) | $ | (3,552 | ) | $ | 2,737 |   | $ | 88 |   | $ | 2,825 |   |
|                                             |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                         |   | $                                   | 531    |   | $ | (2,388 | ) | $ | (1,857 | ) | $ | 966 |   | $ | 1,341 |   | $ | 2,307 |   |
| FHLB      advances and other borrowings          |   |                                | (7     | ) |   | (2,654 | ) |   | (2,661 | ) |   | 337 |   |   | (458 | ) |   | (121 | ) |
| Total      interest-bearing liabilities          |   | $                                   | 524    |   | $ | (5,042 | ) | $ | (4,518 | ) | $ | 1,303 |   | $ | 883 |   | $ | 2,186 |   |
| Net      interest income                         |   |                                |   |   |   |   |   | $ | 966 |   |   |   |   |   |   |   | $ | 639 |   |

----

----

|                          |   |             |      |   |             |   |      |   |   |
|-------------------------------|--------|------------------|-----------|--------|------------------|--------|-----------|--------|--------|
|                          |   | Fiscal      2009 |      |   | Fiscal      2008 |   |      | Change |   |
|                          |   |             |      |   |             |   |      |   |   |
| Loan      fee income          |   |             | 641,952   |   |             |   | 655,548   |   |   |   | (13,596 | ) |
| Deposit      fee income       |   |             | 2,394,740 |   |             |   | 2,351,277 |   |   |   | 43,463 |   |
| Other                         |   |             | 386,158   |   |             |   | 336,211   |   |   |   | 49,947 |   |
| Total      noninterest income |   | $                | 3,422,850 |   |             | $      | 3,343,036 |   |   | $ | 79,814 |   |

----

----

|                          |   |             |      |   |             |   |      |   |   |
|-------------------------------|--------|------------------|-----------|--------|------------------|--------|-----------|--------|--------|
|                          |   | Fiscal      2008 |      |   | Fiscal      2007 |   |      | Change |   |
|                          |   |             |      |   |             |   |      |   |   |
| Loan      fee income          |   |             | 655,548   |   |             |   | 608,937   |   |   |   | 46,611 |   |
| Deposit      fee income       |   |             | 2,351,277 |   |             |   | 2,207,027 |   |   |   | 144,250 |   |
| Other                         |   |             | 336,211   |   |             |   | 369,421   |   |   |   | (33,210 | ) |
| Total      noninterest income |   | $                | 3,343,036 |   |             | $      | 3,185,385 |   |   | $ | 157,651 |   |

----

|                  |   |   |       |   |                      |   |    |     |   |   |       |   |   |                       |    |
|-----------------------|--------|--------|------------|--------|---------------------------|--------|---------|----------|--------|--------|------------|--------|--------|----------------------------|---------|
|                  |   | Total  |       |   | Less      than1      year |   |    | 1-3years |   |   | 3-5years   |   |   | More      than5      years |    |
|                  |   |   |       |   |                      |   |    |     |   |   |       |   |   |                       |    |
| Operating      Leases |   | $      | 1,041,722  |   |                      | $      | 195,894 |     |   | $      | 381,692    |   |   | $                          | 224,885 |   |   | $ | 239,251 |   |
| Long-Term      Debt   |   |   | 20,000,000 |   |                      |   | — |     |   |   | 20,000,000 |   |   |                       | — |   |   |   | — |   |
| Total                 |   | $      | 21,041,722 |   |                      | $      | 195,894 |     |   | $      | 20,381,692 |   |   | $                          | 224,885 |   |   | $ | 239,251 |   |

----

|                                 |
|--------------------------------------|
| Community      Financial Corporation |
| and      Subsidiary                  |
|                                 |
| Contents                             |
|                                 |

| Report      of Independent Registered Public Accounting Firm |   | 48                      |   |
|--------------------------------------------------------------|--------|-------------------------|--------|
|                                                         |   |                    |   |
| Consolidated      Financial Statements                       |   |                    |   |
|                                                         |   |                    |   |
| Consolidated      Balance Sheets                             |   | 49                      |   |
|                                                         |   |                    |   |
| Consolidated      Statements of Operations                   |   | 50 –      51 |   |
|                                                         |   |                    |   |
| Consolidated      Statements of Stockholders’ Equity   |   | 52 –      53 |   |
|                                                         |   |                    |   |
| Consolidated      Statements of Cash Flows                   |   | 54 –      55 |   |
|                                                         |   |                    |   |
| Summary      of Accounting Policies                          |   | 56 –      64 |   |
|                                                         |   |                    |   |
| Notes      to Consolidated Financial Statements              |   | 65 –      94 |   |

----

|                                                       |   |
|-------------------------------------------------------|--------|
|                                                  |   |
| Certified      Public Accountantsand      Consultants |   |

|   | /s/      Yount, Hyde & Barbour, P.C. |
|--------|------------------------------------------|

| Winchester,      VirginiaJune      11, 2009 |
|---------------------------------------------|
|                                        |   |   |
| 50      South Cameron Street                |   |   |
| P.O.      Box 2560                          |   |   |
| Winchester,      VA 22604                   |   |   |
| (540)      662-3417                         |   | Offices      located in: Winchester, Middleburg, Leesburg, Culpeper, and Richmond,      Virginia |
| FAX      (540) 662-4211                     |   | Member:      American Institute of Certified Public Accountants / Virginia Society of      Certified PublicAccountants |

----

| Community      Financial Corporation |
|--------------------------------------|
| and      Subsidiary                  |
|                                 |
| Consolidated      Balance Sheets     |
|                                 |
|                                 |

| March      31,                                                                                                       |   | 2009   |        |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                                                                 |   |   |        |   |   |   |
| Assets                                                                                                               |   |   |        |   |   |   |
|                                                                                                                 |   |   |        |   |   |   |
| Cash      (including interest bearing deposits of $512,258      and $12,762,079)                                     |   | $      | 2,482,182   |   |   | $      | 15,998,041 |   |
| Securities                                                                                                           |   |   |        |   |   |   |   |   |
| Held      to maturity (fair value approximates $1,711,187      and $2,948,329)                                       |   |   | 1,700,010   |   |   |   | 2,940,217 |   |
| Available      for sale, at fair value                                                                               |   |   | 207,347     |   |   |   | 9,562,410 |   |
| Restricted      investment in Federal Home Loan Bank stock, at cost                                                  |   |   | 5,238,600   |   |   |   | 5,210,800 |   |
| Loans      receivable, net of allowance for loan losses of $5,955,847      and $3,214,771                            |   |   | 476,950,379 |   |   |   | 437,173,797 |   |
| Real      estate owned, net                                                                                          |   |   | 1,400,192   |   |   |   | 592,609 |   |
| Property      and equipment, net                                                                                     |   |   | 8,351,679   |   |   |   | 7,923,481 |   |
| Accrued      interest receivable                                                                                     |   |   | 1,976,475   |   |   |   | 2,079,073 |   |
| Prepaid      expenses and other assets                                                                               |   |   | 14,416,972  |   |   |   | 9,765,345 |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Total      assets                                                                                                    |   | $      | 512,723,836 |   |   | $      | 491,245,773 |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Liabilities      and Stockholders’ Equity                                                                      |   |   |        |   |   |   |   |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Liabilities                                                                                                          |   |   |        |   |   |   |   |   |
| Deposits                                                                                                             |   | $      | 365,505,504 |   |   | $      | 350,730,834 |   |
| Borrowings                                                                                                           |   |   | 95,000,000  |   |   |   | 96,000,000 |   |
| Securities      sold under agreements to repurchase                                                                  |   |   | 1,475,594   |   |   |   | 2,834,412 |   |
| Advance      payments by borrowers for taxes and insurance                                                           |   |   | 179,575     |   |   |   | 150,545 |   |
| Other      liabilities                                                                                               |   |   | 4,226,600   |   |   |   | 2,825,279 |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Total      liabilities                                                                                               |   |   | 466,387,273 |   |   |   | 452,541,070 |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Commitments      and Contingencies                                                                                   |   |   | —     |   |   |   | — |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Stockholders’      Equity                                                                                      |   |   |        |   |   |   |   |   |
| Preferred      stock, $.01 par value, $1,000 liquidation value, authorized 3,000,000      shares, 12,643 outstanding |   |   | 12,643,000  |   |   |   | — |   |
| Common      stock, $.01 par value, 10,000,000 authorized shares, 4,361,658 and      4,335,958 shares outstanding     |   |   | 43,617      |   |   |   | 43,360 |   |
| Warrants                                                                                                             |   |   | 603,153     |   |   |   | — |   |
| Discount      on preferred stock                                                                                     |   |   | (568,973    | )      |   |   | — |   |
| Additional      paid-in capital                                                                                      |   |   | 5,569,558   |   |   |   | 5,391,704 |   |
| Retained      earnings                                                                                               |   |   | 28,420,439  |   |   |   | 34,992,515 |   |
| Accumulated      other comprehensive (loss), net                                                                     |   |   | (374,231    | )      |   |   | (1,722,876 | ) |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Total      stockholders’ equity                                                                                |   |   | 46,336,563  |   |   |   | 38,704,703 |   |
|                                                                                                                 |   |   |        |   |   |   |   |   |
| Total      liabilities and stockholders’ equity                                                                |   | $      | 512,723,836 |   |   | $      | 491,245,773 |   |

----

| Community      Financial Corporation       |
|--------------------------------------------|
| and      Subsidiary                        |
|                                       |
| Consolidated      Statements of Operations |
|                                       |
|                                       |

| Year      Ended March 31,                                |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|----------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                     |   |   |        |   |   |   |       |   |   |
| Interest      and dividend income                        |   |   |        |   |   |   |       |   |   |
| Loans                                                    |   | $      | 28,128,744  |   |   | $      | 30,247,693 |   |   | $ | 27,268,394 |   |
| Investment      securities                               |   |   | 102,707     |   |   |   | 827,673    |   |   |   | 1,012,695 |   |
| Other      investments                                   |   |   | 460,431     |   |   |   | 1,168,394  |   |   |   | 1,138,199 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Total      interest and dividend income                  |   |   | 28,691,882  |   |   |   | 32,243,760 |   |   |   | 29,419,288 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Interest      expense                                    |   |   |        |   |   |   |       |   |   |   |   |   |
| Deposits                                                 |   |   | 10,497,223  |   |   |   | 12,354,281 |   |   |   | 10,047,423 |   |
| Borrowed      money                                      |   |   | 1,962,933   |   |   |   | 4,623,819  |   |   |   | 4,744,520 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Total      interest expense                              |   |   | 12,460,156  |   |   |   | 16,978,100 |   |   |   | 14,791,943 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      interest income                                 |   |   | 16,231,726  |   |   |   | 15,265,660 |   |   |   | 14,627,345 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Provision      for loan losses                           |   |   | 4,285,389   |   |   |   | 624,717    |   |   |   | 388,074 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      interest income after provision for loan losses |   |   | 11,946,337  |   |   |   | 14,640,943 |   |   |   | 14,239,271 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Noninterest      income                                  |   |   |        |   |   |   |       |   |   |   |   |   |
| Service      charges, fees and commissions               |   |   | 3,036,692   |   |   |   | 3,006,825  |   |   |   | 2,815,964 |   |
| Other                                                    |   |   | 386,158     |   |   |   | 336,211    |   |   |   | 369,421 |   |
| Securities      impairment                               |   |   | (11,535,669 | )      |   |   | —    |   |   |   | — |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Total      noninterest income                            |   |   | (8,112,819  | )      |   |   | 3,343,036  |   |   |   | 3,185,385 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Noninterest      expense                                 |   |   |        |   |   |   |       |   |   |   |   |   |
| Compensation      and employee benefits                  |   |   | 7,708,019   |   |   |   | 7,291,661  |   |   |   | 6,794,357 |   |
| Occupancy                                                |   |   | 1,537,291   |   |   |   | 1,450,116  |   |   |   | 1,431,263 |   |
| Data      processing                                     |   |   | 1,495,990   |   |   |   | 1,406,813  |   |   |   | 1,222,229 |   |
| Advertising                                              |   |   | 477,852     |   |   |   | 438,815    |   |   |   | 393,640 |   |
| Professional      fees                                   |   |   | 556,117     |   |   |   | 448,725    |   |   |   | 218,316 |   |
| Deposit      insurance                                   |   |   | 327,523     |   |   |   | 38,851     |   |   |   | 37,370 |   |
| Other                                                    |   |   | 1,346,559   |   |   |   | 1,217,551  |   |   |   | 1,209,700 |   |
|                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Total      noninterest expense                           |   |   | 13,449,351  |   |   |   | 12,292,532 |   |   |   | 11,306,875 |   |

----

| Community      Financial Corporation       |
|--------------------------------------------|
| and      Subsidiary                        |
|                                       |
| Consolidated      Statements of Operations |
| (continued)                                |
|                                       |
|                                       |

| Year      Ended March 31,                               |   | 2009   |       |   | 2008   |   |      | 2007   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
|                                                    |   |   |       |   |   |   |      |   |   |
| Income      (loss) before income taxes                  |   | $      | (9,615,833 | )      |   | $      | 5,691,447 |   |   | $ | 6,117,781 |   |
|                                                    |   |   |       |   |   |   |      |   |   |   |   |   |
| Income      tax (benefit) expense                       |   |   | (3,792,549 | )      |   |   | 1,855,625 |   |   |   | 2,026,573 |   |
|                                                    |   |   |       |   |   |   |      |   |   |   |   |   |
| Net      income (loss)                                  |   |   | (5,823,284 | )      |   |   | 3,835,822 |   |   |   | 4,091,208 |   |
|                                                    |   |   |       |   |   |   |      |   |   |   |   |   |
| Amortization      of discount on preferred stock        |   |   | (34,180    | )      |   |   | —   |   |   |   | — |   |
|                                                    |   |   |       |   |   |   |      |   |   |   |   |   |
| Cumulative      dividends on preferred stock            |   |   | (176,334   | )      |   |   | —   |   |   |   | — |   |
|                                                    |   |   |       |   |   |   |      |   |   |   |   |   |
| Net      income (loss) available to common stockholders |   | $      | (6,033,798 | )      |   | $      | 3,835,822 |   |   | $ | 4,091,208 |   |
|                                                    |   |   |       |   |   |   |      |   |   |   |   |   |
| Earnings      (loss) per share                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Basic                                                   |   | $      | (1.39      | )      |   | $      | 0.89      |   |   | $ | 0.96 |   |
| Diluted                                                 |   | $      | (1.39      | )      |   | $      | 0.87      |   |   | $ | 0.93 |   |

----

----

|                                                                                    |   | PreferredStock |       |   | CommonStock |   |    | Warrants |   |   | Discount      onPreferredStock |   |
|-----------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------|--------|---------|----------|--------|--------|--------------------------------|--------|
|                                                                                    |   |           |       |   |        |   |    |     |   |   |                           |   |
| Balance,      March 31, 2006                                                            |   | $              | —    |   |        | $      | 21,211  |     |   | $      | —                        |   |   | $ | — |   |
| Comprehensive      income:                                                              |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Net      income                                                                         |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Change      in unrealized gain on available for sale securities, net of      tax        |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Total      comprehensive income                                                         |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Adjustment      to initially apply SFAS No. 158, net of tax                             |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Cash      dividends, $.255 per share                                                    |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Exercise      of stock options                                                          |   |           | —    |   |        |   | 509     |     |   |   | —                        |   |   |   | — |   |
| Stock      split                                                                        |   |           | —    |   |        |   | 21,237  |     |   |   | —                        |   |   |   | — |   |
|                                                                                    |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Balance,      March 31, 2007                                                            |   |           | —    |   |        |   | 42,957  |     |   |   | —                        |   |   |   | — |   |
| Comprehensive      income:                                                              |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Net      income                                                                         |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Change      in unrealized gain (loss) on available for sale securities, net of      tax |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Pension      liability adjustment, net of tax                                           |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Total      comprehensive income                                                         |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Cash      dividends, $.260 per share                                                    |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Exercise      of stock options                                                          |   |           | —    |   |        |   | 483     |     |   |   | —                        |   |   |   | — |   |
| Repurchase      of common stock                                                         |   |           | —    |   |        |   | (80     | )        |   |   | —                        |   |   |   | — |   |
|                                                                                    |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Balance,      March 31, 2008                                                            |   |           | —    |   |        |   | 43,360  |     |   |   | —                        |   |   |   | — |   |
| Comprehensive      loss:                                                                |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Net      loss                                                                           |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Change      in unrealized loss on available for sale securities, net of      tax        |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Pension      liability adjustment, net of tax                                           |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Total      comprehensive loss                                                           |   |           |       |   |        |   |    |     |   |   |                           |   |   |   |   |   |
| Cash      dividends on common stock, $0.13 per share                                    |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Preferred      stock issuance                                                           |   |           | 12,643,000 |   |        |   | — |     |   |   | 603,153                        |   |   |   | (603,153 | ) |
| Reduction      due to change in pension measurement date, net of tax                    |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Amortization      of discount on preferred stock                                        |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | 34,180 |   |
| Dividend      on preferred stock                                                        |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Stock-based      compensation expense                                                   |   |           | —    |   |        |   | — |     |   |   | —                        |   |   |   | — |   |
| Exercise      of stock options                                                          |   |           | —    |   |        |   | 257     |     |   |   | —                        |   |   |   | — |   |
| Balance,      March 31, 2009                                                            |   | $              | 12,643,000 |   |        | $      | 43,617  |     |   | $      | 603,153                        |   |   | $ | (568,973 | ) |

----

----

|   | AdditionalPaid-inCapital |      | RetainedEarnings |   | AccumulatedOther      Compre-hensive      Income(Loss),      Net |   | TotalStockholders’Equity |       |
|--------|--------------------------|-----------|------------------|--------|------------------------------------------------------------------|--------|--------------------------------|------------|
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   | $                        | 4,782,126 |             | $      | 29,271,941                                                       |   | $                              | 1,091,471  |   | $ | 35,166,749 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | 4,091,208                                                        |   |                           | —    |   |   | 4,091,208 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | —                                                          |   |                           | 443,390    |   |   | 443,390 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   | 4,534,598 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | —                                                          |   |                           | (382,059   | ) |   | (382,059 | ) |
|   |                     | —   |             |   | (1,085,817                                                       | )      |                           | —    |   |   | (1,085,817 | ) |
|   |                     | 336,432   |             |   | —                                                          |   |                           | —    |   |   | 336,941 |   |
|   |                     | (21,237   | )                |   | —                                                          |   |                           | —    |   |   | — |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | 5,097,321 |             |   | 32,277,332                                                       |   |                           | 1,152,802  |   |   | 38,570,412 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | 3,835,822                                                        |   |                           | —    |   |   | 3,835,822 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | —                                                          |   |                           | (2,888,476 | ) |   | (2,888,476 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | —                                                          |   |                           | 12,798     |   |   | 12,798 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   | 960,144 |   |
|   |                     | —   |             |   | (1,120,639                                                       | )      |                           | —    |   |   | (1,120,639 | ) |
|   |                     | 375,042   |             |   | —                                                          |   |                           | —    |   |   | 375,525 |   |
|   |                     | (80,659   | )                |   | —                                                          |   |                           | —    |   |   | (80,739 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | 5,391,704 |             |   | 34,992,515                                                       |   |                           | (1,722,876 | ) |   | 38,704,703 |   |
|   |                     | —   |             |   | (5,823,284                                                       | )      |                           | —    |   |   | (5,823,284 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | —                                                          |   |                           | 1,353,616  |   |   | 1,353,616 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | —                                                          |   |                           | (4,971     | ) |   | (4,971 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   | (4,474,639 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | (565,814                                                         | )      |                           | —    |   |   | (565,814 | ) |
|   |                     | —   |             |   | —                                                          |   |                           | —    |   |   | 12,643,000 |   |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | (50,464                                                          | )      |                           | —    |   |   | (50,464 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | —   |             |   | (34,180                                                          | )      |                           | —    |   |   | — |   |
|   |                     | —   |             |   | (98,334                                                          | )      |                           | —    |   |   | (98,334 | ) |
|   |                     |      |             |   |                                                             |   |                           |       |   |   |   |   |
|   |                     | 6,826     |             |   | —                                                          |   |                           | —    |   |   | 6,826 |   |
|   |                     | 171,028   |             |   | —                                                          |   |                           | —    |   |   | 171,285 |   |
|   | $                        | 5,569,558 |             | $      | 28,420,439                                                       |   | $                              | (374,231   | ) | $ | 46,336,563 |   |

----

| Community      Financial Corporation       |
|--------------------------------------------|
| and      Subsidiary                        |
|                                       |   |
| Consolidated      Statements of Cash Flows |
|                                       |   |

| Year      Ended March 31,                                                                         |   | 2009   |        |   | 2008   |   |        | 2007   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                                              |   |   |        |   |   |   |        |   |   |
| Operating      activities                                                                         |   |   |        |   |   |   |        |   |   |
| Net      income (loss)                                                                            |   | $      | (5,823,284  | )      |   | $      | 3,835,822   |   |   | $ | 4,091,208 |   |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities |   |   |        |   |   |   |        |   |   |   |   |   |
| Provision      for loan losses                                                                    |   |   | 4,285,389   |   |   |   | 624,717     |   |   |   | 388,074 |   |
| Depreciation                                                                                      |   |   | 585,777     |   |   |   | 613,008     |   |   |   | 594,548 |   |
| Stock-based      compensation expense                                                             |   |   | 6,826       |   |   |   | —     |   |   |   | — |   |
| Amortization      of premium and accretion of discount on securities, net                         |   |   | 207         |   |   |   | 5,758       |   |   |   | 9,675 |   |
| (Increase)      decrease in net deferred loan origination costs                                   |   |   | 193,534     |   |   |   | 115,508     |   |   |   | (64,276 | ) |
| Securities      impairment                                                                        |   |   | 11,535,669  |   |   |   | —     |   |   |   | — |   |
| Deferred      income tax (benefit)                                                                |   |   | (5,851,976  | )      |   |   | (155,330    | )      |   |   | (184,604 | ) |
| (Increase)      decrease in other assets                                                          |   |   | 420,522     |   |   |   | (532,555    | )      |   |   | (536,054 | ) |
| Increase      (decrease) in other liabilities                                                     |   |   | 1,430,351   |   |   |   | (288,591    | )      |   |   | 1,033,436 |   |
|                                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
|                                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      cash provided by operating activities                                                    |   |   | 6,783,015   |   |   |   | 4,218,337   |   |   |   | 5,332,007 |   |
|                                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Investing      activities                                                                         |   |   |        |   |   |   |        |   |   |   |   |   |
| Proceeds      from maturities of held to maturity securities                                      |   |   | 4,840,000   |   |   |   | 21,140,000  |   |   |   | 1,875,000 |   |
| Proceeds      from redemption of available for sale securities                                    |   |   | —     |   |   |   | 28,852      |   |   |   | 4,125 |   |
| Purchase      of held to maturity securities                                                      |   |   | (3,600,000  | )      |   |   | (500,000    | )      |   |   | — |   |
| Net      increase in loans                                                                        |   |   | (46,384,656 | )      |   |   | (39,508,792 | )      |   |   | (40,923,574 | ) |
| Purchase      of property and equipment                                                           |   |   | (1,013,975  | )      |   |   | (515,218    | )      |   |   | (400,769 | ) |
| Proceeds      from sale of real estate owned                                                      |   |   | 1,321,568   |   |   |   | 435,767     |   |   |   | — |   |
| Purchase      of FHLB stock                                                                       |   |   | (27,800     | )      |   |   | (388,700    | )      |   |   | (471,800 | ) |
|                                                                                              |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      cash (used in) investing activities                                                      |   |   | (44,864,863 | )      |   |   | (19,308,091 | )      |   |   | (39,917,018 | ) |

----

| Community      Financial Corporation       |
|--------------------------------------------|
| and      Subsidiary                        |
|                                       |   |
| Consolidated      Statements of Cash Flows |
| (continued)                                |
|                                       |   |

| Year      Ended March 31,                                                       |   | 2009   |        |   | 2008   |   |       | 2007   |   |
|---------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                                            |   |   |        |   |   |   |       |   |   |
| Financing      activities                                                       |   |   |        |   |   |   |       |   |   |
| Net      increase in certificates of deposit                                    |   | $      | 10,491,810  |   |   | $      | 21,090,110 |   |   | $ | 28,930,995 |   |
| Net      increase (decrease) in savings and checking deposits                   |   |   | 4,282,860   |   |   |   | (896,980   | )      |   |   | (5,241,836 | ) |
| Proceeds      from issuance of common stock                                     |   |   | 171,285     |   |   |   | 375,525    |   |   |   | 336,941 |   |
| Proceeds      from issuance of preferred stock                                  |   |   | 12,643,000  |   |   |   | —    |   |   |   | — |   |
| Repurchase      of common stock                                                 |   |   | —     |   |   |   | (80,739    | )      |   |   | — |   |
| Increase      (decrease) in securities sold under agreements to    repurchase   |   |   | (1,358,818  | )      |   |   | 1,094,722  |   |   |   | 763,263 |   |
| Dividends      paid                                                             |   |   | (664,148    | )      |   |   | (1,120,639 | )      |   |   | (1,085,817 | ) |
| Net      change in borrowings                                                   |   |   | (1,000,000  | )      |   |   | 7,000,000  |   |   |   | 11,000,000 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      cash provided by financing activities                                  |   |   | 24,565,989  |   |   |   | 27,461,999 |   |   |   | 34,703,546 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| (Decrease)      increase in cash and cash equivalents                           |   |   | (13,515,859 | )      |   |   | 12,372,245 |   |   |   | 118,535 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents – beginning of    year                     |   |   | 15,998,041  |   |   |   | 3,625,796  |   |   |   | 3,507,261 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents – end of year                              |   | $      | 2,482,182   |   |   | $      | 15,998,041 |   |   | $ | 3,625,796 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Supplemental      Disclosure of Cash Flow Information                           |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash      payments of interest expense                                          |   | $      | 12,891,364  |   |   | $      | 17,409,308 |   |   | $ | 13,613,522 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash      payments of income taxes                                              |   | $      | 1,307,487   |   |   | $      | 1,806,188  |   |   | $ | 2,500,620 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Supplemental      Schedule of Non-Cash Investing and Financing Activities       |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Net      change in unrealized gain (loss) on securities available for      sale |   | $      | 2,180,606   |   |   | $      | (4,658,833 | )      |   | $ | 715,145 |   |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Pension      liability adjustment                                               |   | $      | (8,019      | )      |   | $      | 14,788     |   |   | $ | (610,368 | ) |
|                                                                            |   |   |        |   |   |   |       |   |   |   |   |   |
| Transfers      from loans to real estate acquired through foreclosure           |   | $      | 2,129,151   |   |   | $      | 847,164    |   |   | $ | 61,343 |   |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Summary      of Accounting Policies                     |
| (continued)                                             |
|                                                    |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
|                                            |

| 1. | Securities |
|----|------------|

| March      31, 2009                                  |   |          |      |   |                 |   |    |                  |   |   |                 |   |
|------------------------------------------------------|--------|---------------|-----------|--------|----------------------|--------|---------|-----------------------|--------|--------|----------------------|--------|
|                                                 |   |          |      |   |                 |   |    |                  |   |   |                 |   |
|                                                 |   | AmortizedCost |      |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | EstimatedMarketValue |   |
|                                                 |   |          |      |   |                 |   |    |                  |   |   |                 |   |
| Held      to Maturity                                |   |          |      |   |                 |   |    |                  |   |   |                 |   |
|                                                 |   |          |      |   |                 |   |    |                  |   |   |                 |   |
| United      States government and agency obligations |   | $             | 1,500,000 |   |                 | $      | 10,595  |                  |   | $      | —              |   |   | $ | 1,510,595 |   |
|                                                 |   |          |      |   |                 |   |    |                  |   |   |                 |   |   |   |   |   |
| State      and municipal obligations                 |   |          | 200,010   |   |                 |   | 582     |                  |   |   | —              |   |   |   | 200,592 |   |
|                                                 |   |          | 1,700,010 |   |                 |   | 11,177  |                  |   |   | —              |   |   |   | 1,711,187 |   |
| Available      for Sale                              |   |          |      |   |                 |   |    |                  |   |   |                 |   |   |   |   |   |
|                                                 |   |          |      |   |                 |   |    |                  |   |   |                 |   |   |   |   |   |
| Equity      securities                               |   |          | 207,347   |   |                 |   | — |                  |   |   | —              |   |   |   | 207,347 |   |
|                                                 |   |          |      |   |                 |   |    |                  |   |   |                 |   |   |   |   |   |
|                                                 |   | $             | 1,907,357 |   |                 | $      | 11,177  |                  |   | $      | —              |   |   | $ | 1,918,534 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 1. | Securities      (continued) |
|----|-----------------------------|

| March      31, 2008                                  |   |          |       |   |                 |   |      |                  |   |   |                 |   |
|------------------------------------------------------|--------|---------------|------------|--------|----------------------|--------|-----------|-----------------------|--------|--------|----------------------|--------|
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |
|                                                 |   | AmortizedCost |       |   | GrossUnrealizedGains |   |      | GrossUnrealizedLosses |   |   | EstimatedMarketValue |   |
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |
| Held      to Maturity                                |   |          |       |   |                 |   |      |                  |   |   |                 |   |
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |
| United      States government and agency obligations |   | $             | 2,500,000  |   |                 | $      | 7,250     |                  |   | $      | —              |   |   | $ | 2,507,250 |   |
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |   |   |   |   |
| State      and municipal obligations                 |   |          | 440,217    |   |                 |   | 913       |                  |   |   | 51                   |   |   |   | 441,079 |   |
|                                                 |   |          | 2,940,217  |   |                 |   | 8,163     |                  |   |   | 51                   |   |   |   | 2,948,329 |   |
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |   |   |   |   |
| Available      for Sale                              |   |          |       |   |                 |   |      |                  |   |   |                 |   |   |   |   |   |
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |   |   |   |   |
| Equity      securities                               |   |          | 11,745,663 |   |                 |   | 1,236,958 |                  |   |   | 3,420,211            |   |   |   | 9,562,410 |   |
|                                                 |   |          |       |   |                 |   |      |                  |   |   |                 |   |   |   |   |   |
|                                                 |   | $             | 14,685,880 |   |                 | $      | 1,245,121 |                  |   | $      | 3,420,262            |   |   | $ | 12,510,739 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 1. | Securities      (continued) |
|----|-----------------------------|

|                               |   |          |      |   |                 |   |
|------------------------------------|--------|---------------|-----------|--------|----------------------|--------|
|                               |   | AmortizedCost |      |   | EstimatedMarketValue |   |
|                               |   |          |      |   |                 |   |
| Held      to Maturity              |   |          |      |   |                 |   |
|                               |   |          |      |   |                 |   |
| Due      in one year or less       |   | $             | 200,010   |   |                 | $      | 200,592 |   |
| Due      in one through five years |   |          | 1,500,000 |   |                 |   | 1,510,595 |   |
|                               |   |          | 1,700,010 |   |                 |   | 1,711,187 |   |
|                               |   |          |      |   |                 |   |   |   |
| Available      for Sale            |   |          |      |   |                 |   |   |   |
|                               |   |          |      |   |                 |   |   |   |
| Equity      securities             |   |          | 207,347   |   |                 |   | 207,347 |   |
|                               |   |          |      |   |                 |   |   |   |
|                               |   | $             | 1,907,357 |   |                 | $      | 1,918,534 |   |

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 1. | Securities      (continued) |
|----|-----------------------------|

|                                 |   |                         |      |   |                    |   |      |                  |   |   |                 |   |
|--------------------------------------|--------|------------------------------|-----------|--------|-------------------------|--------|-----------|-----------------------|--------|--------|----------------------|--------|
| March      31, 2008                  |   |                         |      |   |                    |   |      |                  |   |   |                 |   |
|                                 |   | Less      Than Twelve Months |      |   | Over      Twelve Months |   |
|                                 |   | GrossUnrealizedLosses        |      |   | EstimatedMarketValue    |   |      | GrossUnrealizedLosses |   |   | EstimatedMarketValue |   |
|                                 |   |                         |      |   |                    |   |      |                  |   |   |                 |   |
| Held      to Maturity                |   |                         |      |   |                    |   |      |                  |   |   |                 |   |
|                                 |   |                         |      |   |                    |   |      |                  |   |   |                 |   |
| State      and municipal obligations |   | $                            | —   |   |                    | $      | —   |                  |   | $      | 51                   |   |   | $ | 199,996 |   |
|                                 |   |                         |      |   |                    |   |      |                  |   |   |                 |   |   |   |   |   |
| Available      for Sale              |   |                         |      |   |                    |   |      |                  |   |   |                 |   |   |   |   |   |
|                                 |   |                         |      |   |                    |   |      |                  |   |   |                 |   |   |   |   |   |
| Equity      securities               |   |                         | 1,657,000 |   |                    |   | 4,475,000 |                  |   |   | 1,763,211            |   |   |   | 3,800,125 |   |
|                                 |   | $                            | 1,657,000 |   |                    | $      | 4,475,500 |                  |   | $      | 1,763,262            |   |   | $ | 4,000,121 |   |

| 2. | Loans      Receivable, Net |
|----|----------------------------|

| Loans      receivable are summarized as follows: |   |   |        |   |   |   |
|--------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                             |   |   |        |   |   |   |
| March      31,                                   |   | 2009   |        |   | 2008   |   |
|                                             |   |   |        |   |   |   |
| Residential      real estate                     |   | $      | 140,063,979 |   |   | $      | 122,604,826 |   |
| Commercial      real estate                      |   |   | 154,781,353 |   |   |   | 150,059,098 |   |
| Construction                                     |   |   | 62,887,605  |   |   |   | 53,891,019 |   |
| Commercial      business                         |   |   | 53,436,237  |   |   |   | 41,577,858 |   |
| Consumer                                         |   |   | 85,968,679  |   |   |   | 84,671,436 |   |
|                                             |   |   | 497,137,853 |   |   |   | 452,804,237 |   |
| Less:                                            |   |   |        |   |   |   |   |   |
| Loans      in process                            |   |   | 15,221,797  |   |   |   | 13,599,373 |   |
| Deferred      loan (costs), net                  |   |   | (990,170    | )      |   |   | (1,183,704 | ) |
| Allowance      for loan losses                   |   |   | 5,955,847   |   |   |   | 3,214,771 |   |
|                                             |   |   | 20,187,474  |   |   |   | 15,630,440 |   |
|                                             |   | $      | 476,950,379 |   |   | $      | 437,173,797 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                        |
|                                            |   |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |   |

| 2. | Loans      Receivable, Net (continued) |
|----|----------------------------------------|

| A      summary of the allowance for loan losses is as follows: |   |   |       |   |   |   |      |   |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
|                                                           |   |   |       |   |   |   |      |   |   |
| Year      Ended March 31,                                      |   | 2009   |       |   | 2008   |   |      | 2007   |   |
|                                                           |   |   |       |   |   |   |      |   |   |
| Balance      at beginning of year                              |   | $      | 3,214,771  |   |   | $      | 3,078,397 |   |   | $ | 2,966,077 |   |
| Provision      for loan loss                                   |   |   | 4,285,389  |   |   |   | 624,717   |   |   |   | 388,074 |   |
| Loans      charged-off                                         |   |   | (1,682,067 | )      |   |   | (623,055  | )      |   |   | (356,659 | ) |
| Recoveries      of loans previously charged-off                |   |   | 137,754    |   |   |   | 134,712   |   |   |   | 80,905 |   |
| Balance      at end of year                                    |   | $      | 5,955,847  |   |   | $      | 3,214,771 |   |   | $ | 3,078,397 |   |

|   |                        |
|--------|-----------------------------|
| 3.     | Property      and Equipment |

|                                                |   |   |       |   |   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|
| March      31,                                      |   | 2009   |       |   | 2008   |   |
|                                                |   |   |       |   |   |   |
| Buildings                                           |   | $      | 7,867,829  |   |   | $      | 7,495,040 |   |
| Land      and improvements                          |   |   | 2,843,628  |   |   |   | 2,636,832 |   |
| Furniture      and equipment                        |   |   | 5,363,503  |   |   |   | 5,061,235 |   |
| Construction      in progress                       |   |   | 157,923    |   |   |   | 43,613 |   |
|                                                |   |   | 16,232,883 |   |   |   | 15,236,720 |   |
| Less      accumulated depreciation and amortization |   |   | 7,881,204  |   |   |   | 7,313,239 |   |
| Property      and equipment, net                    |   | $      | 8,351,679  |   |   | $      | 7,923,481 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                        |
|                                            |   |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |   |

| 4. | Deposits |
|----|----------|

|                               |   |   |        |   |   |   |
|------------------------------------|--------|--------|-------------|--------|--------|--------|
| March      31,                     |   | 2009   |        |   | 2008   |   |
|                               |   |   |        |   |   |   |
| Demand      deposits               |   |   |        |   |   |   |
| Noninterest      bearing           |   | $      | 25,445,489  |   |   | $      | 28,319,635 |   |
| Savings      accounts              |   |   | 27,320,324  |   |   |   | 27,520,369 |   |
| NOW      accounts                  |   |   | 31,180,035  |   |   |   | 26,713,601 |   |
| Money      market deposit accounts |   |   | 25,254,517  |   |   |   | 22,363,900 |   |
|                               |   |   |        |   |   |   |   |   |
| Total      demand deposits         |   |   | 109,200,365 |   |   |   | 104,917,505 |   |
|                               |   |   |        |   |   |   |   |   |
| Time      deposits                 |   |   | 256,305,139 |   |   |   | 245,813,329 |   |
|                               |   |   |        |   |   |   |   |   |
|                               |   | $      | 365,505,504 |   |   | $      | 350,730,834 |   |

|                       |   |   |        |   |
|----------------------------|--------|--------|-------------|--------|
| Year      Ending March 31, |   |   |        |   |
|                       |   |   |        |   |
| 2010                       |   | $      | 233,702,508 |   |
| 2011                       |   |   | 13,029,604  |   |
| 2012                       |   |   | 3,746,165   |   |
| 2013                       |   |   | 3,527,682   |   |
| 2014                       |   |   | 2,299,180   |   |
|                       |   |   |        |   |
|                       |   |   |        |   |
|                       |   | $      | 256,305,139 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                        |
|                                            |   |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |   |

| 4. | Deposits      (continued) |
|----|---------------------------|

|                                       |   |   |       |   |   |   |       |   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                       |   |   |       |   |   |   |       |   |   |
| Year      Ended March 31,                  |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|                                       |   |   |       |   |   |   |       |   |   |
| Time      deposits                         |   | $      | 9,569,305  |   |   | $      | 11,300,885 |   |   | $ | 9,227,349 |   |
| Money      market deposit and NOW accounts |   |   | 602,623    |   |   |   | 686,406    |   |   |   | 594,225 |   |
| Savings                                    |   |   | 325,295    |   |   |   | 366,990    |   |   |   | 225,849 |   |
|                                       |   |   |       |   |   |   |       |   |   |   |   |   |
|                                       |   | $      | 10,497,223 |   |   | $      | 12,354,281 |   |   | $ | 10,047,423 |   |

| 5. | Fair      Value Measurements |
|----|------------------------------|

|   |                 |                                                                                                                                                                                                                                                                                                                                                                                        |   |
|--------|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | Level      1 – | Valuation      is based on quoted prices in active markets for identical assets and      liabilities.                                                                                                                                                                                                                                                                                       |   |
|   |                 |                                                                                                                                                                                                                                                                                                                                                                                        |   |
|   | Level      2 – | Valuation      is based on observable inputs including quoted prices in active markets      for similar assets and liabilities, quoted prices for identical or similar      assets and liabilities in less active markets, and model-based valuation      techniques for which significant assumptions can be derived primarily from      or corroborated by observable data in the market. |   |

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 5. | Fair      Value Measurements(continued) |
|----|-----------------------------------------|

|   | Level      3 – | Valuation      is based on model-based techniques that use one or more significant inputs      or assumptions that are unobservable in the market. |   |
|--------|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|                               |   |                                 |    |                                                                          |                                                 |                                           |   |                                        |    |   |   |    |   |
|------------------------------------|--------|--------------------------------------|---------|-------------------------------------------------------------------------------|------------------------------------------------------|------------------------------------------------|--------|---------------------------------------------|---------|--------|--------|---------|--------|
|                               |   |                                 |    |                                                                          | Fair      Value Measurements at March 31, 2009 Using |                                           |
| Description                        |   | Balance      as ofMarch      31,2009 |    | Quoted      Pricesin      ActiveMarkets      forIdenticalAssets(Level      1) |                                                 | SignificantOtherObservableInputs(Level      2) |   | SignificantUnobservableInputs(Level      3) |    |
| Assets                             |   |                                 |    |                                                                          |                                                 |                                           |   |                                        |    |   |   |    |   |
| Available-for-sale      securities |   | $                                    | 207,347 |                                                                          | $                                                    | —                                        |   | $                                           | 207,347 |   | $      | — |   |

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 5. | Fair      Value Measurements(continued) |
|----|-----------------------------------------|

|                                           |   |                                 |      |                                                                          |   |                                           |   |                                        |    |   |   |      |   |
|------------------------------------------------|--------|--------------------------------------|-----------|-------------------------------------------------------------------------------|--------|------------------------------------------------|--------|---------------------------------------------|---------|--------|--------|-----------|--------|
|                                           |   |                                 |      |  Carrying      Value at March 31, 2009                                   |   |
| Description                                    |   | Balance      as ofMarch      31,2009 |      | Quoted      Pricesin      ActiveMarkets      forIdenticalAssets(Level      1) |   | SignificantOtherObservableInputs(Level      2) |   | SignificantUnobservableInputs(Level      3) |    |
| Assets                                         |   |                                 |      |                                                                          |   |                                           |   |                                        |    |   |   |      |   |
| Impaired      loans net of valuation allowance |   | $                                    | 7,914,505 |                                                                          | $      | —                                |   | $                                           | — |   | $      | 7,914,505 |   |

|                                                |   |           |    |   |      |   |    |           |   |   |      |   |
|-----------------------------------------------------|--------|----------------|---------|--------|-----------|--------|---------|----------------|--------|--------|-----------|--------|
| March      31,                                      |   | 2009           |    |   | 2008      |   |
| (In      Thousands)                                 |   | CarryingAmount |    |   | FairValue |   |    | CarryingAmount |   |   | FairValue |   |
|                                                |   |           |    |   |      |   |    |           |   |   |      |   |
| Financial      assets                               |   |           |    |   |      |   |    |           |   |   |      |   |
| Cash      and cash equivalents                      |   | $              | 2,482   |   |      | $      | 2,482   |           |   | $      | 15,998    |   |   | $ | 15,998 |   |
| Securities                                          |   |           | 1,907   |   |      |   | 1,919   |           |   |   | 12,503    |   |   |   | 12,511 |   |
| Federal      Home Loan Bank stock, restricted       |   |           | 5,239   |   |      |   | 5,239   |           |   |   | 5,211     |   |   |   | 5,211 |   |
| Loans,      net                                     |   |           | 476,950 |   |      |   | 487,788 |           |   |   | 437,174   |   |   |   | 449,159 |   |
| Accrued      interest receivable                    |   |           | 1,976   |   |      |   | 1,976   |           |   |   | 2,079     |   |   |   | 2,079 |   |
|                                                |   |           |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Financial      liabilities                          |   |           |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Deposits                                            |   | $              | 365,506 |   |      | $      | 373,896 |           |   | $      | 350,731   |   |   | $ | 355,167 |   |
| Borrowings                                          |   |           | 95,000  |   |      |   | 95,164  |           |   |   | 96,000    |   |   |   | 96,325 |   |
| Securities      sold under agreements to repurchase |   |           | 1,476   |   |      |   | 1,476   |           |   |   | 2,834     |   |   |   | 2,834 |   |
| Accrued      interest payable                       |   |           | 1,894   |   |      |   | 1,894   |           |   |   | 910       |   |   |   | 910 |   |

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 5. | Fair      Value of Financial Instruments(continued) |
|----|-----------------------------------------------------|

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 5. | Fair      Value of Financial Instruments(continued) |
|----|-----------------------------------------------------|

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 6. | Borrowings |
|----|------------|

|                              |   |   |       |   |
|-----------------------------------|--------|--------|------------|--------|
| Due      in year ending March 31, |   |   |       |   |
|                              |   |   |       |   |
| 2010                              |   | $      | 75,000,000 |   |
| 2011                              |   |   | 20,000,000 |   |
|                              |   | $      | 95,000,000 |   |

|                                            |   |   |        |   |   |   |        |   |   |
|-------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Year      Ended March 31,                       |   | 2009   |        |   | 2008   |   |        | 2007   |   |
|                                            |   |   |        |   |   |   |        |   |   |
| Maximum      amount outstanding during the year |   | $      | 113,000,000 |   |   | $      | 105,000,000 |   |   | $ | 96,000,000 |   |
|                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Average      amount outstanding during the year |   | $      | 96,204,110  |   |   | $      | 96,049,162  |   |   | $ | 90,002,740 |   |
|                                            |   |   |        |   |   |   |        |   |   |   |   |   |
| Average      interest rate during the year      |   |   | 2.02        | %      |   |   | 4.75        | %      |   |   | 5.22 | % |

----

| Community      Financial Corporationand Subsidiary |
|----------------------------------------------------|
|                                               |   |
| Notes      to Consolidated Financial Statements    |
| (continued)                                        |
|                                               |   |

| 7. | Securities      Sold Under Agreements toRepurchase |
|----|----------------------------------------------------|

|                                                             |   |   |      |   |   |   |      |   |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Year      Ended March 31,                                        |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|                                                             |   |   |      |   |   |   |      |   |   |
| Balance      at end of year                                      |   | $      | 1,475,594 |   |   | $      | 2,834,412 |   |   | $ | 1,739,690 |   |
|                                                             |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted      average interest rate during the year              |   |   | 1.00      | %      |   |   | 2.54      | %      |   |   | 3.18 | % |
|                                                             |   |   |      |   |   |   |      |   |   |   |   |   |
| Average      amount outstanding during the year                  |   | $      | 2,089,259 |   |   | $      | 2,586,392 |   |   | $ | 1,540,939 |   |
|                                                             |   |   |      |   |   |   |      |   |   |   |   |   |
| Maximum      amount outstanding at any month end during the year |   | $      | 3,010,248 |   |   | $      | 3,921,662 |   |   | $ | 2,361,835 |   |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Notes      to Consolidated Financial Statements         |
| (continued)                                             |
|                                                    |   |

| 8. | Income      Taxes |
|----|-------------------|

| March      31,                                                                                                                               |   |   | 2009       |   |   | 2008      |   |   |      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
| Deferred      tax assets                                                                                                                     |   |   |       |   |   |      |   |   |      |   |
| Allowance      for losses                                                                                                                    |   | $      | 2,263,222  |   | $      | 1,221,613 |   |   |      |   |
| Deferred      compensation                                                                                                                   |   |   | 645,857    |   |   | 480,789   |   |   |      |   |
| Unrealized      loss on securities available for sale                                                                                        |   |   | —    |   |   | 829,637   |   |   |      |   |
| Securities      impairment                                                                                                                   |   |   | 4,383,585  |   |   | —   |   |   |      |   |
| Pension                                                                                                                                      |   |   | 42,003     |   |   | —   |   |   |      |   |
| Other                                                                                                                                        |   |   | 336,179    |   |   | 248,726   |   |   |      |   |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
|                                                                                                                                         |   |   | 7,670,846  |   |   | 2,780,765 |   |   |      |   |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
| Deferred      tax liabilities                                                                                                                |   |   |       |   |   |      |   |   |      |   |
| Depreciable      assets                                                                                                                      |   |   | (187,305   | )      |   | (211,013  | )      |   |      |   |
| Pension                                                                                                                                      |   |   | —    |   |   | (111,598  | )      |   |      |   |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
|                                                                                                                                         |   |   | (187,305   | )      |   | (322,611  | )      |   |      |   |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
| Net      deferred tax asset                                                                                                                  |   | $      | 7,483,541  |   | $      | 2,458,154 |   |   |      |   |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
| The      provision for income taxes charged to operations for the years ended March      31, 2009, 2008 and 2007, consists of the following: |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
| Year      Ended March 31,                                                                                                                    |   |   | 2009       |   |   | 2008      |   |   | 2007      |   |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
| Current                                                                                                                                      |   | $      | 2,059,427  |   | $      | 2,010,955 |   | $      | 2,211,177 |   |
| Deferred                                                                                                                                     |   |   | (5,851,976 | )      |   | (155,330  | )      |   | (184,604  | )      |
|                                                                                                                                         |   |   |       |   |   |      |   |   |      |   |
|                                                                                                                                         |   | $      | (3,792,549 | )      | $      | 1,855,625 |   | $      | 2,026,573 |   |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Notes      to Consolidated Financial Statements         |
| (continued)                                             |
|                                                    |   |

| 8. | Income      Taxes (continued) |
|----|-------------------------------|

|                                                      |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Year      Ended March 31,                                 |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|                                                      |   |   |   |   |   |   |   |   |   |
| Tax      at statutory rate                                |   |   | 34.0   | %      |   |   | 34.0   | %      |   |   | 34.0 | % |
| Increases      (decreases) in taxes resulting from:       |   |   |   |   |   |   |   |   |   |   |   |   |
| State      income taxes, net of federal benefit           |   |   | 4.2    |   |   |   | 3.0    |   |   |   | 2.9 |   |
| Non-taxable      interest and dividend received deduction |   |   | 0.5    |   |   |   | (2.8   | )      |   |   | (2.8 | ) |
| Bank-owned      life insurance                            |   |   | 0.9    |   |   |   | (1.5   | )      |   |   | (1.1 | ) |
| Other                                                     |   |   | (0.2   | )      |   |   | (0.1   | )      |   |   | 0.1 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   | 39.4   | %      |   |   | 32.6   | %      |   |   | 33.1 | % |

| 9. | Comprehensive      Income |
|----|---------------------------|

|                                                                                                                        |   |   |       |   |   |   |       |   |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Year      Ended March 31,                                                                                                   |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |
| Net      income (loss)                                                                                                      |   | $      | (5,823,284 | )      |   | $      | 3,835,822  |   |   | $ | 4,091,208 |   |
| Other      comprehensive income (loss), net of tax:                                                                         |   |   |       |   |   |   |       |   |   |   |   |   |
| Unrealized      holding gain (loss) arising during the period                                                               |   |   | (2,180,606 | )      |   |   | (4,658,833 | )      |   |   | 715,145 |   |
| Pension      liability adjustment                                                                                           |   |   | (8,019     | )      |   |   | 14,788     |   |   |   |   |   |
| Income      tax (expense) benefit related to items of other comprehensive      income                                       |   |   | (823,942   | )      |   |   | 1,768,367  |   |   |   | (271,755 | ) |
| Total      other comprehensive income (loss), net of tax                                                                    |   |   | 1,348,645  |   |   |   | (2,875,678 | )      |   |   | 443,390 |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Total      comprehensive income (loss)                                                                                      |   | $      | (4,474,639 | )      |   | $      | 960,144    |   |   | $ | 4,534,598 |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| The      components of accumulated other comprehensive income, included in      stockholders’ equity, are as follows: |
|                                                                                                                        |
| March      31,                                                                                                              |   | 2009   |       |   | 2008   |   |       |   |   |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      unrealized (loss) on securities available for sale                                                                 |   | $      | —    |   |   | $      | (2,183,253 | )      |   |   |   |   |
| Tax      effect                                                                                                             |   |   | —    |   |   |   | 829,637    |   |   |   |   |   |
| Net-of-tax      amount                                                                                                      |   |   | —    |   |   |   | (1,353,616 | )      |   |   |   |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Pension      liability adjustment                                                                                           |   |   | (603,599   | )      |   |   | (595,580   | )      |   |   |   |   |
| Tax      effect                                                                                                             |   |   | 229,368    |   |   |   | 226,320    |   |   |   |   |   |
| Net-of-tax      amount                                                                                                      |   |   | (374,231   | )      |   |   | (369,260   | )      |   |   |   |   |
|                                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                                                        |   | $      | (374,231   | )      |   | $      | (1,722,876 | )      |   |   |   |   |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Notes      to Consolidated Financial Statements         |
| (continued)                                             |
|                                                    |   |

| 10. | Stockholders’      Equity and Regulatory CapitalRequirements |
|-----|--------------------------------------------------------------------|

|                    |   |           |   |            |   |         |   |          |   |         |   |   |   |   |
|-------------------------|--------|----------------|--------|-----------------|--------|--------------|--------|---------------|--------|--------------|--------|--------|--------|--------|
| March      31, 2009     |   | AmountRequired |   | PercentRequired |   | ActualAmount |   | ActualPercent |   | ExcessAmount |   |
| (In      Thousands)     |   |           |   |            |   |         |   |          |   |         |   |   |   |   |
|                    |   |           |   |            |   |         |   |          |   |         |   |   |   |   |
| Tangible      Capital   |   | $              | 7,743  |            | 1.50   | %            | $      | 46,771        |   | 9.06         | %      | $      | 39,028 |   |
| Core      Capital       |   |           | 20,649 |            | 4.00   |         |   | 46,771        |   | 9.06         |   |   | 26,122 |   |
| Risk-based      Capital |   |           | 35,456 |            | 8.00   |         |   | 49,523        |   | 11.17        |   |   | 14,067 |   |
|                    |   |           |   |            |   |         |   |          |   |         |   |   |   |   |
| March      31, 2008     |   | AmountRequired |   | PercentRequired |   | ActualAmount |   | ActualPercent |   | ExcessAmount |   |
|                    |   |           |   |            |   |         |   |          |   |         |   |   |   |   |
| Tangible      Capital   |   | $              | 7,466  |            | 1.50   | %            | $      | 38,872        |   | 7.81         | %      | $      | 31,406 |   |
| Core      Capital       |   |           | 19,910 |            | 4.00   |         |   | 38,872        |   | 7.81         |   |   | 18,962 |   |
| Risk-based      Capital |   |           | 33,699 |            | 8.00   |         |   | 42,042        |   | 9.98         |   |   | 8,343  |   |

----

| Community      Financial Corporationand      Subsidiary |
|---------------------------------------------------------|
|                                                    |   |
| Notes      to Consolidated Financial Statements         |
| (continued)                                             |
|                                                    |   |

| 10. | Stockholders’      Equity and Regulatory Capital Requirements  (continued) |
|-----|----------------------------------------------------------------------------------|

|   |                    |
|--------|-------------------------|
| 11.    | Earnings      Per Share |

|                                                |   |   |       |   |   |   |      |   |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
| Year      Ended March 31,                           |   | 2009   |       |   | 2008   |   |      | 2007   |   |
|                                                |   |   |       |   |   |   |      |   |   |
| Basic      earnings (loss) per share                |   |   |       |   |   |   |      |   |   |
|                                                |   |   |       |   |   |   |      |   |   |
| Income      (loss) available to common shareholders |   | $      | (6,033,798 | )      |   | $      | 3,835,822 |   |   | $ | 4,091,208 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Weighted      average shares outstanding            |   |   | 4,355,909  |   |   |   | 4,305,445 |   |   |   | 4,258,737 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Basic      earnings (loss) per share                |   | $      | (1.39      | )      |   | $      | 0.89      |   |   | $ | 0.96 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Diluted      earnings (loss) per share              |   |   |       |   |   |   |      |   |   |   |   |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Income      (loss) available to common shareholders |   | $      | (6,033,798 | )      |   | $      | 3,835,822 |   |   | $ | 4,091,208 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Weighted      average shares outstanding            |   |   | 4,355,909  |   |   |   | 4,305,445 |   |   |   | 4,258,737 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Dilutive      effect of stock options               |   |   | —    |   |   |   | 93,576    |   |   |   | 157,433 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Total      weighted average shares outstanding      |   | $      | 4,355,909  |   |   | $      | 4,399,021 |   |   | $ | 4,416,170 |   |
|                                                |   |   |       |   |   |   |      |   |   |   |   |   |
| Diluted      earnings (loss) per share              |   | $      | (1.39      | )      |   | $      | 0.87      |   |   | $ | 0.93 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 12. | Employee      Benefit Plans |
|-----|-----------------------------|

|                                                                         |   |   |      |   |   |   |      |   |   |
|------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| March      31,                                                               |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|                                                                         |   |   |      |   |   |   |      |   |   |
| Change      in benefit obligation:                                           |   |   |      |   |   |   |      |   |   |
| Benefit      obligation at beginning of year                                 |   | $      | 3,422,890 |   |   | $      | 2,956,892 |   |   | $ | 2,525,278 |   |
| Service      cost                                                            |   |   | 412,726   |   |   |   | 345,315   |   |   |   | 300,774 |   |
| Interest      cost                                                           |   |   | 262,757   |   |   |   | 182,931   |   |   |   | 149,327 |   |
| Actuarial      (gain) loss                                                   |   |   | (81,231   | )      |   |   | (32,329   | )      |   |   | 9,631 |   |
| Benefits      paid                                                           |   |   | (333,233  | )      |   |   | (29,919   | )      |   |   | (28,118 | ) |
|                                                                         |   |   |      |   |   |   |      |   |   |   |   |   |
| Benefit      obligation at end of year                                       |   |   | 3,683,909 |   |   |   | 3,422,890 |   |   |   | 2,956,892 |   |
|                                                                         |   |   |      |   |   |   |      |   |   |   |   |   |
| Change      in plan assets:                                                  |   |   |      |   |   |   |      |   |   |   |   |   |
| Fair      value of plan assets at beginning of year                          |   |   | 3,697,356 |   |   |   | 2,530,479 |   |   |   | 2,067,665 |   |
| Actual      return on plan assets                                            |   |   | 207,695   |   |   |   | 130,956   |   |   |   | 100,574 |   |
| Employer      contribution                                                   |   |   | —   |   |   |   | 1,065,840 |   |   |   | 390,358 |   |
| Benefits      paid                                                           |   |   | (333,233  | )      |   |   | (29,919   | )      |   |   | (28,118 | ) |
|                                                                         |   |   |      |   |   |   |      |   |   |   |   |   |
| Fair      value of plan assets at end of year                                |   |   | 3,571,818 |   |   |   | 3,697,356 |   |   |   | 2,530,479 |   |
|                                                                         |   |   |      |   |   |   |      |   |   |   |   |   |
| Funded      status                                                           |   | $      | (112,091  | )      |   | $      | 274,466   |   |   | $ | (426,413 | ) |
|                                                                         |   |   |      |   |   |   |      |   |   |   |   |   |
| Amounts      recognized in the balance sheet:                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Other      assets                                                            |   | $      | —   |   |   | $      | 274,466   |   |   | $ | — |   |
| Other      liabilities                                                       |   |   | 112,091   |   |   |   | —   |   |   |   | 426,413 |   |
|                                                                         |   |   |      |   |   |   |      |   |   |   |   |   |
| Amounts      recognized in accumulated other comprehensive income    (loss): |   |   |      |   |   |   |      |   |   |   |   |   |
| Net      (loss) gain                                                         |   | $      | (603,599  | )      |   | $      | (595,580  | )      |   | $ | 610,368 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |
|                                            |

| 12. | Employee      Benefit Plans (continued) |
|-----|-----------------------------------------|

|                                                                                                     |   |   |     |   |   |   |     |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Year      Ended March 31,                                                                                |   | 2009   |     |   | 2008   |   |     | 2007   |   |
|                                                                                                     |   |   |     |   |   |   |     |   |   |
| Components      of net periodic pension cost:                                                            |   |   |     |   |   |   |     |   |   |
|                                                                                                     |   |   |     |   |   |   |     |   |   |
| Service      cost                                                                                        |   | $      | 412,726  |   |   | $      | 345,315  |   |   | $ | 300,774 |   |
| Interest      cost                                                                                       |   |   | 262,757  |   |   |   | 182,931  |   |   |   | 149,327 |   |
| Expected      return on plan assets                                                                      |   |   | (320,873 | )      |   |   | (175,740 | )      |   |   | (143,504 | ) |
| Recognized      net actuarial loss                                                                       |   |   | 23,926   |   |   |   | 27,243   |   |   |   | 28,035 |   |
| Net      periodic benefit cost                                                                           |   |   | 378,536  |   |   |   | 379,749  |   |   |   | 334,632 |   |
|                                                                                                     |   |   |     |   |   |   |     |   |   |   |   |   |
| Other      changes in plan assets and benefit obligations recognized in other      comprehensive income: |   |   |     |   |   |   |     |   |   |   |   |   |
| Net      loss (gain)                                                                                     |   |   | 8,019    |   |   |   | (14,788  | )      |   |   | 610,368 |   |
| Deferred      income tax expense (benefit)                                                               |   |   | (3,048   | )      |   |   | 1,990    |   |   |   | (228,309 | ) |
| Total      recognized in other comprehensive income                                                      |   |   | 4,971    |   |   |   | (12,798  | )      |   |   | 382,059 |   |
|                                                                                                     |   |   |     |   |   |   |     |   |   |   |   |   |
| Total      recognized in net periodic benefit cost and other comprehensive      income                   |   | $      | 383,507  |   |   | $      | 366,951  |   |   | $ | 716,691 |   |
|                                                                                                     |   |   |     |   |   |   |     |   |   |   |   |   |
| Year      Ended March 31,                                                                                |   | 2009   |     |   |   |   |     |   |   |   |   |
|                                                                                                     |   |   |     |   |   |   |     |   |   |   |   |   |
| Adjustment      to retained earnings due to change in measurement date:                                  |   |   |     |   |   |   |     |   |   |   |   |   |
| Service      cost                                                                                        |   | $      | 87,669   |   |   |   |     |   |   |   |   |   |
| Interest      cost                                                                                       |   |   | 53,011   |   |   |   |     |   |   |   |   |   |
| Expected      return on plan assets                                                                      |   |   | (64,175  | )      |   |   |     |   |   |   |   |   |
| Recognized      net actuarial loss                                                                       |   |   | 4,888    |   |   |   |     |   |   |   |   |   |
| Detailed      income tax (benefit)                                                                       |   |   | (30,929  | )      |   |   |     |   |   |   |   |   |
| Net      periodic benefit cost                                                                           |   | $      | 50,464   |   |   |   |     |   |   |   |   |   |

| Year      Ended March 31,                   |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                        |   |   |   |   |   |   |   |   |   |
| Weighted      average discount rate         |   |   | 6.50   | %      |   |   | 6.25   | %      |   |   | 6.00 | % |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      in future compensation levels |   |   | 4.00   | %      |   |   | 4.00   | %      |   |   | 4.00 | % |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 12. | Employee      Benefit Plans (continued) |
|-----|-----------------------------------------|

|                                                  |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Year      Ended March 31,                             |   |   | 2009   |   |   |   | 2008   |   |   |   | 2007 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average discount rate                   |   |   | 6.25   | %      |   |   | 6.00   | %      |   |   | 5.75 | % |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected      long-term rate of return on plan assets |   |   | 7.00   | %      |   |   | 7.00   | %      |   |   | 7.00 | % |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      in future compensation levels           |   |   | 4.00   | %      |   |   | 4.00   | %      |   |   | 4.00 | % |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |
|                                            |

| 12. | Employee      Benefit Plans (continued) |
|-----|-----------------------------------------|

|                         |   |   |   |   |   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
| March      31,               |   | 2009   |   |   | 2008   |   |
|                         |   |   |   |   |   |   |
| Fixed      income securities |   |   | 77     | %      |   |   | 77 | % |
| Equity      securities       |   |   | 8      | %      |   |   | 11 | % |
| Cash                         |   |   | 5      | %      |   |   | 3 | % |
| Other                        |   |   | 10     | %      |   |   | 9 | % |
|                         |   |   | 100    | %      |   |   | 100 | % |

|                       |   |   |      |   |
|----------------------------|--------|--------|-----------|--------|
| Year      Ending March 31, |   |   |      |   |
|                       |   |   |      |   |
| 2010                       |   | $      | 102,191   |   |
| 2011                       |   |   | 110,606   |   |
| 2012                       |   |   | 130,935   |   |
| 2013                       |   |   | 152,672   |   |
| 2014                       |   |   | 210,431   |   |
| 2015-2019                  |   |   | 1,423,655 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 12. | Employee      Benefit Plans (continued) |
|-----|-----------------------------------------|

| 13. | Stock      Option Plan |
|-----|------------------------|

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 13. | Stock      Option Plan (continued) |
|-----|------------------------------------|

|                                  |   |   |    |   |                                |   |   |                    |   |
|---------------------------------------|--------|--------|---------|--------|-------------------------------------|--------|--------|-------------------------|--------|
| Year      Ended March 31,             |   |   |    |   | 2009                                |   |   |                    |   |
|                                  |   | Shares |    |   | Weighted      -AverageExercisePrice |   |   | AggregateIntrinsicValue |   |
|                                  |   |   |    |   |                                |   |   |                    |   |
| Outstanding      at beginning of year |   |   | 429,000 |   |                                | $      | 8.28   |                    |   |   |   |
|                                  |   |   |    |   |                                |   |   |                    |   |   |   |
| Granted                               |   |   | 5,000   |   |                                |   | 5.71   |                    |   |   |   |
| Forfeited                             |   |   | (25,700 | )      |                                |   | 6.86   |                    |   |   |   |
| Exercised                             |   |   | (28,100 | )      |                                |   | 7.08   |                    |   |   |   |
|                                  |   |   |    |   |                                |   |   |                    |   |   |   |
| Outstanding      at end of year       |   |   | 380,200 |   |                                | $      | 8.41   |                    |   | $ | — |   |
|                                  |   |   |    |   |                                |   |   |                    |   |   |   |   |
| Exercisable      at end of year       |   |   | 380,200 |   |                                | $      | 8.41   |                    |   | $ | — |   |

|                         |   |          |   |   |
|------------------------------|--------|---------------|--------|--------|
| Year      Ended March 31,    |   | 2009          |   |   |
|                         |   |          |   |   |
| Dividend      yield          |   | 2.50%         |   |   |
| Expected      life           |   | 10      years |   |   |
| Expected      volatility     |   | 20.84%        |   |   |
| Risk-free      interest rate |   | 3.80%         |   |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 13. | Stock      Option Plan (continued) |
|-----|------------------------------------|

|                         |   |                                     |    |                                                    |   |                         |   |   |   |
|------------------------------|--------|------------------------------------------|---------|---------------------------------------------------------|--------|------------------------------|--------|--------|--------|
|                         |   | Options      Outstanding and Exercisable |    |
| Range      of Exercise Price |   | Number                                   |    | WeightedAverageRemainingContractualLife      (in Years) |   | WeightedAverageExercisePrice |   |
|                         |   |                                     |    |                                                    |   |                         |   |   |   |
| $4.82      - $4.95           |   |                                     | 96,000  |                                                    | .82    |                         | $      | 4.89   |   |
| $5.57      - $9.40           |   |                                     | 170,200 |                                                    | 1.12   |                         |   | 8.56   |   |
| $10.90-$11.22                |   |                                     | 114,000 |                                                    | 6.13   |                         |   | 11.16  |   |

| 14. | Commitments      and Contingencies |
|-----|------------------------------------|

|                                            |   | Contract      Amount |   |   |   |   |
|-------------------------------------------------|--------|----------------------|--------|--------|--------|--------|
| March      31,                                  |   | 2009                 |   |   | 2008   |   |
| (In      Thousands)                             |   |                 |   |   |   |   |
|                                            |   |                 |   |   |   |   |
| Commitments      to grant loans                 |   | $                    | 17,807 |   |   | $      | 22,028 |   |
| Unfunded      commitments under lines of credit |   |                 | 31,644 |   |   |   | 43,281 |   |
| Standby      letters of credit                  |   |                 | 2,794  |   |   |   | 2,497 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 14. | Commitments      and Contingencies (continued) |
|-----|------------------------------------------------|

|                       |   |   |      |   |
|----------------------------|--------|--------|-----------|--------|
| Year      Ending March 31, |   | Amount |      |
|                       |   |   |      |   |
| 2010                       |   | $      | 195,894   |   |
| 2011                       |   |   | 197,825   |   |
| 2012                       |   |   | 183,867   |   |
| 2013                       |   |   | 150,865   |   |
| 2014                       |   |   | 74,020    |   |
| Thereafter                 |   |   | 239,251   |   |
|                       |   |   |      |   |
|                       |   | $      | 1,041,722 |   |

----

|   |                            |
|--------|---------------------------------|
|   |                            |
| 15.    | Related      Party Transactions |

|   |                                              |
|--------|---------------------------------------------------|
| 16.    | Selected      Quarterly Financial Data(Unaudited) |

|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |
|----------------------------------------------------------|--------|--------------|---------|--------|---------------|--------|---------|--------------|--------|--------|---------------|--------|
| Year      Ended March 31, 2009                           |   | FirstQuarter |    |   | SecondQuarter |   |    | ThirdQuarter |   |   | FourthQuarter |   |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |
| Total      interest income                               |   | $            | 7,480   |   |          | $      | 7,342   |         |   | $      | 7,053         |   |   | $ | 6,817 |   |
| Total      interest expense                              |   |         | 3,473   |   |          |   | 3,308   |         |   |   | 3,012         |   |   |   | 2,667 |   |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Net      interest income                                 |   |         | 4,007   |   |          |   | 4,034   |         |   |   | 4,041         |   |   |   | 4,150 |   |
| Provision      for loan losses                           |   |         | 152     |   |          |   | 601     |         |   |   | 894           |   |   |   | 2,638 |   |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Net      interest income after provision for loan losses |   |         | 3,855   |   |          |   | 3,433   |         |   |   | 3,147         |   |   |   | 1,512 |   |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Other      income                                        |   |         | 840     |   |          |   | 849     |         |   |   | 897           |   |   |   | 837 |   |
| Securities      impairment                               |   |         | — |   |          |   | (11,053 | )            |   |   | (482          | )      |   |   | — |   |
| Other      expenses                                      |   |         | 3,247   |   |          |   | 3,430   |         |   |   | 3,526         |   |   |   | 3,247 |   |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Income      (loss) before income taxes                   |   |         | 1,448   |   |          |   | (10,201 | )            |   |   | 36            |   |   |   | (898 | ) |
| Income      tax expense (benefit)                        |   |         | 483     |   |          |   | 289     |         |   |   | (4,203        | )      |   |   | (361 | ) |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Net      income (loss)                                   |   |         | 965     |   |          |   | (10,490 | )            |   |   | 4,239         |   |   |   | (537 | ) |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Effective      dividend on preferred stock               |   |         | — |   |          |   | — |         |   |   | (4            | )      |   |   | (207 | ) |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Net      income (loss) available to common stockholders  |   | $            | 965     |   |          | $      | (10,490 | )            |   | $      | 4,235         |   |   | $ | (744 | ) |
|                                                     |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Earnings      (loss) per share                           |   |         |    |   |          |   |    |         |   |   |          |   |   |   |   |   |
| Basic                                                    |   | $            | 0.22    |   |          | $      | (2.41   | )            |   | $      | 0.97          |   |   | $ | (0.17 | ) |
| Diluted                                                  |   | $            | 0.22    |   |          | $      | (2.41   | )            |   | $      | 0.97          |   |   | $ | (0.17 | ) |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 16. | Selected      Quarterly Financial Data (Unaudited)(continued) |
|-----|---------------------------------------------------------------|

|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
|----------------------------------------------------------|--------|--------------|--------|---------------|--------|--------------|--------|---------------|--------|--------|--------|--------|--------|
| Year      Ended March 31, 2008                           |   | FirstQuarter |   | SecondQuarter |   | ThirdQuarter |   | FourthQuarter |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Total      interest income                               |   | $            | 8,058  |          | $      | 8,185        |   | $             | 8,087  |   | $      | 7,914  |   |
| Total      interest expense                              |   |         | 4,238  |          |   | 4,356        |   |          | 4,432  |   |   | 3,952  |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Net      interest income                                 |   |         | 3,820  |          |   | 3,829        |   |          | 3,655  |   |   | 3,962  |   |
| Provision      for loan losses                           |   |         | 135    |          |   | 217          |   |          | 103    |   |   | 170    |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Net      interest income after provision for loan losses |   |         | 3,685  |          |   | 3,612        |   |          | 3,552  |   |   | 3,792  |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Other      income                                        |   |         | 829    |          |   | 857          |   |          | 917    |   |   | 740    |   |
| Other      expenses                                      |   |         | 2,980  |          |   | 3,179        |   |          | 3,108  |   |   | 3,025  |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Income      before income taxes                          |   |         | 1,534  |          |   | 1,290        |   |          | 1,361  |   |   | 1,507  |   |
| Income      tax expense                                  |   |         | 505    |          |   | 413          |   |          | 437    |   |   | 501    |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Net      income                                          |   | $            | 1,029  |          | $      | 877          |   | $             | 924    |   | $      | 1,006  |   |
|                                                     |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Earnings      per share                                  |   |         |   |          |   |         |   |          |   |   |   |   |   |
| Basic                                                    |   | $            | 0.24   |          | $      | 0.20         |   | $             | 0.21   |   | $      | 0.24   |   |
| Diluted                                                  |   | $            | 0.23   |          | $      | 0.20         |   | $             | 0.21   |   | $      | 0.23   |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 17. | Condensed      Financial Information of the Corporation (Parent Company    Only) |
|-----|----------------------------------------------------------------------------------|

|                                                  |   |   |       |   |   |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| March      31,                                        |   | 2009   |       |   | 2008   |   |
|                                                  |   |   |       |   |   |   |
| Assets                                                |   |   |       |   |   |   |
|                                                  |   |   |       |   |   |   |
| Investment      in subsidiary                         |   | $      | 46,396,550 |   |   | $      | 37,149,004 |   |
| Cash                                                  |   |   | 77,273     |   |   |   | 765,640 |   |
| Prepaid      expenses and other assets                |   |   | 864,375    |   |   |   | 790,059 |   |
|                                                  |   |   |       |   |   |   |   |   |
| Total      assets                                     |   | $      | 47,338,198 |   |   | $      | 38,704,703 |   |
|                                                  |   |   |       |   |   |   |   |   |
| Liabilities      and Stockholders’ Equity       |   |   |       |   |   |   |   |   |
|                                                  |   |   |       |   |   |   |   |   |
| Liabilities                                           |   |   |       |   |   |   |   |   |
| Borrowings                                            |   | $      | 1,000,000  |   |   | $      | — |   |
| Other      liabilities                                |   |   | 1,635      |   |   |   | — |   |
|                                                  |   |   |       |   |   |   |   |   |
| Total      liabilities                                |   |   | 1,001,635  |   |   |   | — |   |
|                                                  |   |   |       |   |   |   |   |   |
| Stockholders’      Equity                       |   |   |       |   |   |   |   |   |
| Preferred      stock                                  |   |   | 12,643,000 |   |   |   | — |   |
| Common      stock                                     |   |   | 43,617     |   |   |   | 43,360 |   |
| Warrants                                              |   |   | 603,153    |   |   |   | — |   |
| Discount      on preferred stock                      |   |   | (568,973   | )      |   |   | — |   |
| Additional      paid-in capital                       |   |   | 5,569,558  |   |   |   | 5,391,704 |   |
| Retained      earnings                                |   |   | 28,420,439 |   |   |   | 34,992,515 |   |
| Accumulated      other comprehensive (loss), net      |   |   | (374,231   | )      |   |   | (1,722,876 | ) |
|                                                  |   |   |       |   |   |   |   |   |
| Total      stockholders’ equity                 |   |   | 46,336,563 |   |   |   | 38,704,703 |   |
|                                                  |   |   |       |   |   |   |   |   |
| Total      liabilities and stockholders’ equity |   | $      | 47,338,198 |   |   | $      | 38,704,703 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 17. | Condensed      Financial Information of the Corporation (Parent Company Only)      (continued) |
|-----|------------------------------------------------------------------------------------------------|

|                                                                          |   |   |       |   |   |   |      |   |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|
| Year      Ended March 31,                                                     |   | 2009   |       |   | 2008   |   |      | 2007   |   |
|                                                                          |   |   |       |   |   |   |      |   |   |
| Income                                                                        |   |   |       |   |   |   |      |   |   |
| Dividend      from subsidiary                                                 |   | $      | —    |   |   | $      | 1,000,000 |   |   | $ | 1,000,000 |   |
| Interest      income                                                          |   |   | 54,241     |   |   |   | 52,460    |   |   |   | 86,492 |   |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Total      income                                                             |   |   | 54,241     |   |   |   | 1,052,460 |   |   |   | 1,086,492 |   |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Expenses                                                                      |   |   |       |   |   |   |      |   |   |   |   |   |
| Interest      expense                                                         |   |   | 59,889     |   |   |   | —   |   |   |   | — |   |
| Noninterest      expenses                                                     |   |   | 199,151    |   |   |   | 219,758   |   |   |   | 108,832 |   |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Total      expenses                                                           |   |   | 259,040    |   |   |   | 219,758   |   |   |   | 108,832 |   |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Income      (loss) before equity in undistributed net income of    subsidiary |   |   | (204,799   | )      |   |   | 832,702   |   |   |   | 977,660 |   |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Equity      in earnings (loss) of subsidiary, net of distributions            |   |   | (5,693,635 | )      |   |   | 2,939,614 |   |   |   | 3,105,068 |   |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Income      (loss) before income taxes                                        |   |   | (5,898,434 | )      |   |   | 3,772,316 |   |   |   | 4,082,728 |   |
| Income      tax (benefit)                                                     |   |   | (75,150    | )      |   |   | (63,506   | )      |   |   | (8,480 | ) |
|                                                                          |   |   |       |   |   |   |      |   |   |   |   |   |
| Net      income (loss)                                                        |   | $      | (5,823,284 | )      |   | $      | 3,835,822 |   |   | $ | 4,091,208 |   |

----

| Community      Financial Corporation            |
|-------------------------------------------------|
| and      Subsidiary                             |
|                                            |
| Notes      to Consolidated Financial Statements |
| (continued)                                     |
|                                            |

| 17. | Condensed      Financial Information of the Corporation (Parent Company Only)      (continued) |
|-----|------------------------------------------------------------------------------------------------|

|                                                               |   |   |        |   |   |     |       |   |     |
|--------------------------------------------------------------------|--------|--------|-------------|--------|--------|----------|------------|--------|----------|
| Year      Ended March 31,                                          |   | 2009   |        |   | 2008   |     |       | 2007   |     |
|                                                               |   |   |        |   |   |     |       |   |     |
| Operating      activities                                          |   |   |        |   |   |     |       |   |     |
| Net      income (loss)                                             |   | $      | (5,823,284  | )      |   | $        | 3,835,822  |   |     | $ | 4,091,208 |   |
| Adjustments                                                        |   |   |        |   |   |     |       |   |     |   |   |   |
| Equity      in (earnings) loss of subsidiary, net of distributions |   |   | 5,693,635   |   |   |     | (2,939,614 | )      |     |   | (3,105,068 | ) |
| (Increase)      in prepaid and other assets                        |   |   | (74,316     | )      |   |     | 27,939     |   |     |   | (75,816 | ) |
| Stock-based      compensation expense                              |   |   | 6,826       |   |   |     | —    |   |     |   | — |   |
| Increase      (decrease) in other liabilities                      |   |   | 1,635       |   |   |     | (6         | )      |     |   | (139 | ) |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Net      cash provided by (used in) operating activities           |   |   | (195,504    | )      |   |     | 924,141    |   |     |   | 910,185 |   |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Investing      activities                                          |   |   |        |   |   |     |       |   |     |   |   |   |
| Capital      to subsidiary                                         |   |   | (13,643,000 | )      |   |     | —    |   |     |   | — |   |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Net      cash (used in) investing activities                       |   |   | (13,643,000 | )      |   |     | —    |   |     |   | — |   |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Financing      activities                                          |   |   |        |   |   |     |       |   |     |   |   |   |
| Cash      dividends paid on common stock                           |   |   | (565,814    | )      |   |     | (1,120,639 | )      |     |   | (1,085,817 | ) |
| Cash      dividends paid on preferred stock                        |   |   | (98,334     | )      |   |  |       |   |  |   |
| Proceeds      from issuance of common stock                        |   |   | 171,285     |   |   |     | 375,525    |   |     |   | 336,941 |   |
| Proceeds      from issuance of preferred stock                     |   |   | 12,643,000  |   |   |     | —    |   |     |   | — |   |
| Proceeds      from borrowed money                                  |   |   | 4,000,000   |   |   |     | —    |   |     |   | — |   |
| Repayment      of borrowed money                                   |   |   | (3,000,000  | )      |   |     | —    |   |     |   | — |   |
| Repurchase      of common stock                                    |   |   | —     |   |   |     | (80,739    | )      |     |   | — |   |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Net      cash provided by (used in) financing activities           |   |   | 13,150,137  |   |   |     | (825,853   | )      |     |   | (748,876 | ) |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Increase      (decrease) in cash                                   |   |   | (688,367    | )      |   |     | 98,288     |   |     |   | 161,309 |   |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Cash,      beginning of year                                       |   |   | 765,640     |   |   |     | 667,352    |   |     |   | 506,043 |   |
|                                                               |   |   |        |   |   |     |       |   |     |   |   |   |
| Cash,      end of year                                             |   | $      | 77,273      |   |   | $        | 765,640    |   |     | $ | 667,352 |   |

| 18. | Subsequent      Event |
|-----|-----------------------|

----

----

----

|                                                            |   |                                                                                                               |    |                                                                                    |   |                                                                                                                                                                 |   |   |   |   |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Plan      Category                                              |   | Number      of securitiesto      be issued uponexercise      of out-standing      options,warrants      and rights |    | Weighted-averageexercise      price ofoutstanding      options,warrants      and rights |   | Number      of securitiesremaining      availablefor      future issuanceunder      equitycompensation      plans(excluding      securitiesreflected      in column) |   |
|                                                            |   |                                                                                                               |    |                                                                                    |   |                                                                                                                                                                 |   |   |   |   |
| Equity      compensation plans approved by security holders     |   |                                                                                                               | 380,200 |                                                                                    | $      | 8.41                                                                                                                                                                 |   |   | 17,800 |   |
|                                                            |   |                                                                                                               |    |                                                                                    |   |                                                                                                                                                                 |   |   |   |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                               | 0       |                                                                                    |   | 0                                                                                                                                                                    |   |   | 0      |   |
|                                                            |   |                                                                                                               |    |                                                                                    |   |                                                                                                                                                                 |   |   |   |   |
|                                                            |   |                                                                                                               |    |                                                                                    |   |                                                                                                                                                                 |   |   |   |   |
| Total                                                           |   |                                                                                                               | 380,200 |                                                                                    | $      | 8.41                                                                                                                                                                 |   |   | 17,800 |   |

----

|                     |                                 |                                  |
|--------------------------|--------------------------------------|---------------------------------------|
|                     | COMMUNITY      FINANCIAL CORPORATION |
|                     |                                 |
| Date:      June 26, 2009 | By:                                  | /s/      P. Douglas Richard           |
|                     |                                 | P.      Douglas Richard               |
|                     |                                 | (Duly      Authorized Representative) |

|   |                                                                                                                                |   |   |                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|
| By:    | /s/      P. Douglas Richard                                                                                                         |   | By:    | /s/      James R. Cooke, Jr.                                        |
|   | P.      Douglas RichardDirector, President and      ChiefExecutive      Officer   (Principal      Executive Officer) |   |   | James      R. Cooke, Jr.Chairman      of the Boardand      Director |
|   |                                                                                                                                |   |   |                                                                |
| Date:  | June      26, 2009                                                                                                                  |   | Date:  | June      26, 2009                                                  |
|   |                                                                                                                                |   |   |                                                                |
| By:    | /s/      Norman C. Smiley, III                                                                                                      |   | By:    | /s/      Charles F. Andersen                                        |
|   | Norman      C. Smiley, IIIDirector      and President ofCommunity      Bank                                                         |   |   | Charles      F. AndersenDirector                                    |
|   |                                                                                                                                |   |   |                                                                |
| Date:  | June      26, 2009                                                                                                                  |   | Date:  | June      26, 2009                                                  |
|   |                                                                                                                                |   |   |                                                                |
| By:    | /s/      Dale C. Smith                                                                                                              |   | By:    | /s/      Morgan N. Trimyer, Jr.                                     |
|   | Dale      C. SmithDirector                                                                                                          |   |   | Morgan      N. Trimyer, Jr.Director                                 |
|   |                                                                                                                                |   |   |                                                                |
| Date:  | June      26, 2009                                                                                                                  |   | Date:  | June      26, 2009                                                  |
|   |                                                                                                                                |   |   |                                                                |
| By:    | /s/      R. Jerry Giles                                                                                                             |   | By:    | /s/      Charles W. Fairchilds                                      |
|   | R.      Jerry GilesChief Financial Officer   (Principal      Financial and Accounting Officer)                       |   |   | Charles      W. FairchildsDirector                                  |
|   |                                                                                                                                |   |   |                                                                |
| Date:  | June      26, 2009                                                                                                                  |   | Date:  | June      26,2009                                                   |

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|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
|----------------------------------|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| RegulationS-K      ExhibitNumber |   | Document |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 3.1                              |   |     | Amended      and Restated Articles of Incorporation, filed on July 5, 1996 as an      exhibit to the Registrant’s Definitive Proxy Statement on Schedule 14A      (SEC File No. 000-18265), are incorporated herein by      reference.                                                                                 |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 3.2                              |   |     | Bylaws,      as amended and restated and currently in effect, filed on December 20,      2008 as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (SEC      File No. 000-18265), is incorporated herein by  reference.                                                                                       |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 4.1                              |   |     | Registrant’s      Specimen Common Stock Certificate, filed on June 29, 1999 as Exhibit 4 to      the Annual Report on Form 10-KSB (SEC File No. 000-18265) for the fiscal      year ended March 31, 1999, is incorporated herein by      reference.                                                                    |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 4.2                              |   |     | Registrant’s      Form of Certificate for the Series A Preferred Stock, filed on December      22, 2008, as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K      (SEC File No. 000-18265), is incorporated herein by    reference.                                                                    |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 4.3                              |   |     | Registrant’s      Form of Warrant for Purchase of Shares of Common Stock, filed on December      22, 2008, as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K      (SEC File No. 000-18265), is incorporated herein by    reference.                                                                  |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 10.1                             |   |     | Amended      and Restated Employment Agreement by and between Community Bank and P.      Douglas Richard, filed on May 5, 2006, as Exhibit 99.2 to the Registrant’s      Current Report on Form 8-K (SEC File No. 000-18265), is incorporated      herein by reference.                                                |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 10.2                             |   |     | Form      of Change in Control Agreement by and between Community Financial      Corporation and each of P. Douglas Richard and Chris P. Kyriakides, filed      on May 5, 2006 as Exhibit 99.4 to the Registrant’s Current Report on Form      8-K (SEC File No. 000-18265), is incorporated herein by      reference. |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 10.3                             |   |     | Registrant’s      1996 Incentive Plan, filed on July 5, 1996 as an exhibit to the      Registrant’s Definitive Proxy Statement on Schedule 14A (SEC File No.      000-18265), is incorporated herein by reference.                                                                                               |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 10.4                             |   |     | Amended      and Restated Employment Agreement by and between Community Bank and Chris      P. Kyriakides, filed on May 5, 2006 as Exhibit 99.3 to the Registrant’s      Current Report on Form 8-K (SEC File No. 000-18265), is incorporated      herein by reference.                                                |
|                             |   |     |                                                                                                                                                                                                                                                                                                                         |
| 10.5                             |   |     | Form      of Change in Control Agreement by and between Community Bank and each of      R. Jerry Giles and Benny N. Werner, filed on May 5, 2006 as Exhibit 99.5      to the Registrant’s Current Report on Form 8-K (SEC File No. 000-18265),      is incorporated herein byreference.                                |

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| 10.6   |   |   | Retirement      Agreements by and between Community Bank and Non-Employee Directors filed      on June 29, 2004 as an exhibit to the Registrant’s Annual Report on Form      10-KSB (SEC File No. 000-18265) for the fiscal year ended March 31, 2004,      and incorporated here by reference.                                                                                                                                                                          |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.7   |   |   | Form      of First Amendment to the Retirement Agreements by and between Community      Bank and Non-Employee Directors, filed on June 29, 2005 as an exhibit to      the Registrant’s Annual Report on Form 10-K (SEC File No. 000-18265) for      the fiscal year ended March 31, 2005, is incorporated here by      reference.                                                                                                                                        |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.8   |   |   | Salary      Continuance Agreements by and between Community Bank and Officers Richard,      Kyriakides, Giles, Smiley and Werner filed on June 29, 2004 as an exhibit      to the Registrant’s Annual Report on Form 10-KSB (SEC File No. 000-18265)      for the fiscal year ended March 31, 2004, and incorporated here by      reference.                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.9   |   |   | Form      of Director Deferred Fee Agreement, as amended, filed on June 29, 2005 as      an exhibit to the Registrant’s Annual Report on Form 10-K (SEC File No.      000-18265) for the fiscal year ended March 31, 2005, is incorporated here      by reference.                                                                                                                                                                                                       |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.10  |   |   | Registrant’s      2003 Stock Option and Incentive Plan, filed on June 26, 2003 as an exhibit      to the Registrant’s Definitive Proxy Statement on Schedule 14A (SEC File      No. 000-18265), is incorporated herein by reference.                                                                                                                                                                                                                               |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.11  |   |   | Form      of Incentive Stock Option Agreement and Non-Qualified Stock Option      Agreement for Registrant’s 2003 Stock Option and Incentive Plan, filed on      August 12, 2005 as an exhibit to the Registrant’s Quarterly Report on Form      10-Q (SEC File No. 000-18265) for the quarter ended June 30, 2005, are      incorporated herein by reference.                                                                                                     |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.12  |   |   | Employment      Agreement by and between Community Bank and Norman C. Smiley, III, filed      on June 16, 2008 as Exhibit 10.1 to the Registrant’s Current Report on      Form 8-K (SEC File No. 000-18265), is incorporated herein by      reference.                                                                                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.13  |   |   | Change      in Control Agreement by and between Community Financial Corporation and      Norman C. Smiley, III, filed on June 16, 2008 as an exhibit to the      Registrant’s Current Report on Form 8-K (SEC File No. 000-18265), is      incorporated herein by reference.                                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.14  |   |   | Form      of Change in Control Agreement by and between Community Financial      Corporation and Lyle Moffett, filed on July 1, 2008 as Exhibit 10.1 to the      Registrant’s Current Report on Form 8-K (SEC File No. 000-18265), is      incorporated herein by reference.                                                                                                                                                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.15  |   |   | Form      of Change in Control Agreement by and between Community Financial      Corporation and John Howerton is filed with this Form  10-Q.                                                                                                                                                                                                                                                                                                                                  |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.16  |   |   | Letter      Agreement, including Schedule A, and Securities Purchase Agreement, dated      December 19, 2008, between Community Financial Corporation and United      States Department of the Treasury, with respect to the issuance and sale      of the Series A Preferred Stock and the Warrant, filed on December 22,      2008, as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (SEC      File No. 000-18265), is incorporated herein by  reference |

----

| 10.17  |   |   | Form      of Compensation Modification Agreement and Waiver, executed by each of P.      Douglas Richard, Norman C. Smiley, III and Chris P. Kyriakides, filed on      December 22, 2008, as Exhibit 10.2 to the Registrant’s Current Report on      Form 8-K (SEC File No. 000-18265), is incorporated herein by      reference |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 10.18  |   |   | Separation      Agreement and Release between the Registrant, and its wholly owned      subsidiary, Community Bank, and Chris P. Kyriakides, filed on May 26, 2009      as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (SEC File      No. 000-18265), is incorporated herein by reference.                       |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 11     |   |   | Statement      re computation of per share earnings (see Note 12 of the Notes to      Consolidated Financial Statements included in Item 8 of this Annual Report      on Form 10-K).                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 14     |   |   | Code      of Ethics, filed on June 29, 2004 as an exhibit to the Registrant’s Annual      Report on Form 10-KSB (SEC File No. 000-18265) for the fiscal year ended      March 31, 2004, and incorporated here by reference.                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 21     |   |   | Subsidiaries      of the Registrant, filed on June 29, 2005 as an exhibit to the      Registrant’s Annual Report on Form 10-K (SEC File No. 000-18265) for the      fiscal year ended March 31, 2005, is incorporated here by      reference.                                                                                    |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 23     |   |   | Consent      of Independent Auditors                                                                                                                                                                                                                                                                                                   |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 31.1   |   |   | Rule      13(a)-14(a) Certification (Chief Executive Officer)                                                                                                                                                                                                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 31.2   |   |   | Rule      13(a)-14(a) Certification (Chief Financial Officer)                                                                                                                                                                                                                                                                          |
|   |   |   |                                                                                                                                                                                                                                                                                                                                   |
| 32     |   |   | Section      1350 Certifications                                                                                                                                                                                                                                                                                                       |