##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2011
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 0-52705
 Abington Bancorp, Inc.
  Pennsylvania(State or Other Jurisdiction of Incorporation or Organization)
    

20-8613037
(I.R.S. Employer Identification No.)
 180 Old York RoadJenkintown, Pennsylvania
    
    19046(Address of Principal Executive Offices)
    
    (Zip Code)
 (Registrants Telephone Number, Including Area Code)
 (Former name, former address or former fiscal year if changed since last report)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller reporting company o
 o þ




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##### 



ABINGTON BANCORP, INC.
 TABLE OF CONTENTS
 PagePART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSUnaudited Consolidated Statements of Financial Condition as of March 31, 2011 and
December 31, 2010
    
    
    1Unaudited Consolidated Statements of Operations for the Three Months Ended March 31,
2011 and 2010
    
    
    2Unaudited Consolidated Statements of Stockholders Equity for the Three Months Ended
March 31, 2011 and 2010
    
    
    3Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31,
2011 and 2010
    
    
    4Notes to Unaudited Consolidated Financial Statements
    
    
    6ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
    
    
    43ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
    
    59ITEM 4. CONTROLS AND PROCEDURES
    
    
    62PART II  OTHER INFORMATIONITEM 1. Legal Proceedings
    
    
    62ITEM 1A. Risk Factors
    
    
    63ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    63ITEM 3. Defaults upon Senior Securities
    
    
    64ITEM 4. (Removed and Reserved)
    
    
    64ITEM 5. Other Information
    
    
    64ITEM 6. Exhibits
    
    
    64SIGNATURES
    
    
    65CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2




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##### Table of Contents



ABINGTON BANCORP, INC.
 
 UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 March 31, 2011
    
    
    December 31, 2010ASSETSCash and due from banks
    
    $
    18,405,431
    
    
    $
    17,917,261Interest-bearing deposits in other banks
    
    
    29,386,046
    
    
    
    59,769,447Total cash and cash equivalents
    
    
    47,791,477
    
    
    
    77,686,708Investment securities held to maturity (estimated fair
value2011, $20,953,409; 2010, $20,806,340)
    
    
    20,384,241
    
    
    
    20,384,781Investment securities available for sale (amortized cost
2011, $107,946,969; 2010, $124,245,038)
    
    
    108,284,090
    
    
    
    124,903,901Mortgage-backed securities held to maturity (estimated fair
value2011, $53,948,263; 2010, $58,338,548)
    
    
    52,715,892
    
    
    
    56,872,188Mortgage-backed securities available for sale (amortized cost
2011, $158,923,851; 2010, $164,632,654)
    
    
    161,748,148
    
    
    
    168,172,796Loans receivable, net of allowance for loan losses
(2011, $4,301,401; 2010, $4,271,618)
    
    
    680,029,837
    
    
    
    696,443,502Accrued interest receivable
    
    
    4,231,694
    
    
    
    4,102,984Federal Home Loan Bank stockat cost
    
    
    13,183,400
    
    
    
    13,877,300Cash surrender value  bank owned life insurance
    
    
    43,175,786
    
    
    
    42,744,766Property and equipment, net
    
    
    9,561,814
    
    
    
    9,751,694Real estate owned
    
    
    23,628,145
    
    
    
    23,588,139Deferred tax asset
    
    
    3,770,146
    
    
    
    3,631,218Prepaid expenses and other assets
    
    
    4,884,941
    
    
    
    4,938,037TOTAL ASSETS
    
    $
    1,173,389,611
    
    
    $
    1,247,098,014LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIES:Deposits:Noninterest-bearing
    
    $
    38,789,486
    
    
    $
    49,807,778Interest-bearing
    
    
    810,158,125
    
    
    
    850,251,190Total deposits
    
    
    848,947,611
    
    
    
    900,058,968Advances from Federal Home Loan Bank
    
    
    83,867,458
    
    
    
    109,874,674Other borrowed money
    
    
    16,367,141
    
    
    
    15,881,449Accrued interest payable
    
    
    2,098,902
    
    
    
    912,321Advances from borrowers for taxes and insurance
    
    
    3,042,039
    
    
    
    2,956,425Accounts payable and accrued expenses
    
    
    6,200,955
    
    
    
    5,504,215Total liabilities
    
    
    960,524,106
    
    
    
    1,035,188,052COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS EQUITYPreferred stock, $0.01 par value, 20,000,000 shares authorized
none issued
    
    
    
    
    
    
    Common stock, $0.01 par value, 80,000,000 shares authorized;
24,460,240 shares issued; outstanding: 20,231,550 shares in 2011,
20,166,742 shares in 2010
    
    
    244,602
    
    
    
    244,602Additional paid-in capital
    
    
    202,723,230
    
    
    
    202,517,175Treasury stockat cost, 4,228,690 shares in 2011,
4,293,498 shares in 2010
    
    
    (34,394,607
    )
    
    
    (34,949,051
    )Unallocated common stock held by:Employee Stock Ownership Plan (ESOP)
    
    
    (13,250,578
    )
    
    
    (13,460,338
    )Recognition & Retention Plan Trust (RRP)
    
    
    (2,337,547
    )
    
    
    (2,589,310
    )Deferred compensation plans trust
    
    
    (1,061,718
    )
    
    
    (1,045,153
    )Retained earnings
    
    
    58,935,362
    
    
    
    58,519,670Accumulated other comprehensive income
    
    
    2,006,761
    
    
    
    2,672,367Total stockholders equity
    
    
    212,865,505
    
    
    
    211,909,962TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    1,173,389,611
    
    
    $
    1,247,098,014
   1




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##### Table of Contents



ABINGTON BANCORP, INC.
 
 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended March 31,2011
    
    
    2010INTEREST INCOME:Interest on loans
    
    $
    8,987,401
    
    
    $
    9,999,227Interest and dividends on investment and
mortgage-backed securities:Taxable
    
    
    2,321,562
    
    
    
    2,697,977Tax-exempt
    
    
    377,634
    
    
    
    398,027Interest and dividends on other interest-earning assets
    
    
    16,534
    
    
    
    5,892Total interest income
    
    
    11,703,131
    
    
    
    13,101,123INTEREST EXPENSE:Interest on deposits
    
    
    2,769,310
    
    
    
    3,288,583Interest on Federal Home Loan Bank advances
    
    
    874,912
    
    
    
    1,554,366Interest on other borrowed money
    
    
    21,378
    
    
    
    14,292Total interest expense
    
    
    3,665,600
    
    
    
    4,857,241NET INTEREST INCOME
    
    
    8,037,531
    
    
    
    8,243,882PROVISION FOR LOAN LOSSES
    
    
    
    
    
    
    563,445NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
    
    
    8,037,531
    
    
    
    7,680,437NON-INTEREST INCOMEService charges
    
    
    273,931
    
    
    
    296,378Income on bank owned life insurance
    
    
    431,020
    
    
    
    438,486Net loss on real estate owned
    
    
    (195,577
    )
    
    
    (581,275
    )Other income
    
    
    185,054
    
    
    
    201,741Total non-interest income
    
    
    694,428
    
    
    
    355,330NON-INTEREST EXPENSESSalaries and employee benefits
    
    
    3,096,957
    
    
    
    2,929,782Occupancy
    
    
    748,662
    
    
    
    712,720Depreciation
    
    
    196,760
    
    
    
    229,725Professional services
    
    
    970,642
    
    
    
    443,911Data processing
    
    
    448,740
    
    
    
    422,622Deposit insurance premium
    
    
    518,025
    
    
    
    360,503Advertising and promotions
    
    
    169,657
    
    
    
    107,373Director compensation
    
    
    142,916
    
    
    
    219,946Other
    
    
    643,868
    
    
    
    540,739Total non-interest expenses
    
    
    6,936,227
    
    
    
    5,967,321INCOME BEFORE INCOME TAXES
    
    
    1,795,732
    
    
    
    2,068,446PROVISION FOR INCOME TAXES
    
    
    253,279
    
    
    
    460,086NET INCOME
    
    $
    1,542,453
    
    
    $
    1,608,360BASIC EARNINGS PER COMMON SHARE
    
    $
    0.08
    
    
    $
    0.08DILUTED EARNINGS PER COMMON SHARE
    
    $
    0.08
    
    
    $
    0.08BASIC AVERAGE COMMON SHARES OUTSTANDING:
    
    
    18,510,508
    
    
    
    18,995,279DILUTED AVERAGE COMMON SHARES OUTSTANDING:
    
    
    19,313,058
    
    
    
    19,372,522
   2




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##### Table of Contents



ABINGTON BANCORP, INC.
 
 UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
 CommonStock
    
    
    
    
    
    
    AccumulatedCommon
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    Acquired by
    
    
    
    
    
    
    Other
    
    
    TotalStock
    
    
    Common
    
    
    Paid-in
    
    
    Treasury
    
    
    Benefit
    
    
    Retained
    
    
    Comprehensive
    
    
    StockholdersShares
    
    
    Stock
    
    
    Capital
    
    
    Stock
    
    
    Plans
    
    
    Earnings
    
    
    Income
    
    
    EquityBALANCEJANUARY 1, 2011
    
    
    24,460,240
    
    
    $
    244,602
    
    
    $
    202,517,175
    
    
    $
    (34,949,051
    )
    
    $
    (17,094,801
    )
    
    $
    58,519,670
    
    
    $
    2,672,367
    
    
    $
    211,909,962Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,542,453
    
    
    
    
    
    
    
    1,542,453Net unrealized holding loss on
available for sale securities
arising during the period, net
of tax benefit of $352,780
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (684,807
    )
    
    
    (684,807
    )Amortization of unrecognized
deferred costs on SERP, net
of tax expense of $9,891
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,201
    
    
    
    19,201Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    876,847Treasury stock purchased
(22,232 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (276,789
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (276,789
    )Cash dividends declared,
($0.06 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,126,761
    )
    
    
    
    
    
    
    (1,126,761
    )Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    (97,276
    )
    
    
    831,233
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    733,957Excess tax benefit on stock-based
compensation
    
    
    
    
    
    
    
    
    
    
    105,770
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    105,770Stock options expense
    
    
    
    
    
    
    
    
    
    
    135,501
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    135,501Common stock released from
benefit plans
    
    
    
    
    
    
    
    
    
    
    62,060
    
    
    
    
    
    
    
    464,123
    
    
    
    
    
    
    
    
    
    
    
    526,183Common stock acquired by
benefit plans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19,165
    )
    
    
    
    
    
    
    
    
    
    
    (19,165
    )BALANCE
MARCH 31, 2011
    
    
    24,460,240
    
    
    $
    244,602
    
    
    $
    202,723,230
    
    
    $
    (34,394,607
    )
    
    $
    (16,649,843
    )
    
    $
    58,935,362
    
    
    $
    2,006,761
    
    
    $
    212,865,505
 Common
    
    
    
    
    
    
    AccumulatedStock
    
    
    
    
    
    
    OtherCommon
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    Acquired by
    
    
    
    
    
    
    Comprehensive
    
    
    TotalStock
    
    
    Common
    
    
    Paid-in
    
    
    Treasury
    
    
    Benefit
    
    
    Retained
    
    
    Income
    
    
    StockholdersShares
    
    
    Stock
    
    
    Capital
    
    
    Stock
    
    
    Plans
    
    
    Earnings
    
    
    (Loss)
    
    
    EquityBALANCEJANUARY 1, 2010
    
    
    24,460,240
    
    
    $
    244,602
    
    
    $
    201,922,651
    
    
    $
    (27,446,596
    )
    
    $
    (19,214,142
    )
    
    $
    54,804,913
    
    
    $
    3,870,572
    
    
    $
    214,182,000Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,608,360
    
    
    
    
    
    
    
    1,608,360Net unrealized holding gain on
available for sale securities
arising during the period, net
of tax expense of $113,356
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    220,044
    
    
    
    220,044Amortization of unrecognized
deferred costs on SERP, net
of tax benefit of $10,175
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,751
    
    
    
    19,751Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,848,155Treasury stock purchased
(193,677 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,374,751
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,374,751
    )Cash dividends declared,
($0.05 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (965,995
    )
    
    
    
    
    
    
    (965,995
    )Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    (13,970
    )
    
    
    65,398
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,428Excess tax liability on stock-based
compensation
    
    
    
    
    
    
    
    
    
    
    (63,591
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (63,591
    )Stock options expense
    
    
    
    
    
    
    
    
    
    
    217,275
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    217,275Common stock released from
benefit plans
    
    
    
    
    
    
    
    
    
    
    (70,672
    )
    
    
    
    
    
    
    627,055
    
    
    
    
    
    
    
    
    
    
    
    556,383Common stock acquired by
benefit plans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17,318
    )
    
    
    
    
    
    
    
    
    
    
    (17,318
    )BALANCE
MARCH 31, 2010
    
    
    24,460,240
    
    
    $
    244,602
    
    
    $
    201,991,693
    
    
    $
    (28,755,949
    )
    
    $
    (18,604,405
    )
    
    $
    55,447,278
    
    
    $
    4,110,367
    
    
    $
    214,433,586
   3




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##### Table of Contents



ABINGTON BANCORP, INC.
 
 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
 Three Months Ended March 31,2011
    
    
    2010OPERATING ACTIVITIES:Net income
    
    $
    1,542,453
    
    
    $
    1,608,360Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    
    
    
    
    563,445Depreciation
    
    
    196,760
    
    
    
    229,725Stock-based compensation expense
    
    
    659,084
    
    
    
    771,058Net loss on real estate owned
    
    
    
    
    
    
    297,286Deferred income tax expense (benefit)
    
    
    203,961
    
    
    
    (241,840
    )Amortization of:Deferred loan fees
    
    
    (214,786
    )
    
    
    (331,420
    )Premiums and discounts, net
    
    
    (38,175
    )
    
    
    (41,830
    )Income from bank owned life insurance
    
    
    (431,020
    )
    
    
    (438,486
    )Changes in assets and liabilities which (used) provided cash:Accrued interest receivable
    
    
    (128,710
    )
    
    
    (244,306
    )Prepaid expenses and other assets
    
    
    53,096
    
    
    
    999,366Accrued interest payable
    
    
    1,186,581
    
    
    
    892,560Accounts payable and accrued expenses
    
    
    709,267
    
    
    
    311,778Net cash provided by operating activities
    
    
    3,738,511
    
    
    
    4,375,696INVESTING ACTIVITIES:Principal collected on loans
    
    
    35,487,137
    
    
    
    29,717,723Disbursements for loans
    
    
    (18,858,686
    )
    
    
    (17,668,949
    )Purchases of:Mortgage-backed securities available for sale
    
    
    (9,045,938
    )
    
    
    (18,466,875
    )Investments available for sale
    
    
    (4,013,271
    )
    
    
    (35,013,521
    )Property and equipment
    
    
    (6,880
    )
    
    
    (7,439
    )Additions to real estate owned, net
    
    
    (40,006
    )
    
    
    Proceeds from:Maturities of mortgage-backed securities held to maturity
    
    
    
    
    
    
    150,178Maturities of mortgage-backed securities available for sale
    
    
    522,951
    
    
    
    Maturities of investments available for sale
    
    
    20,298,500
    
    
    
    18,540,000Principal repayments of mortgage-backed securities held to maturity
    
    
    4,145,433
    
    
    
    5,348,352Principal repayments of mortgage-backed securities available for sale
    
    
    14,294,208
    
    
    
    12,904,872Redemption of Federal Home Loan Bank stock
    
    
    693,900
    
    
    
    Sales of real estate owned
    
    
    
    
    
    
    704,914Net cash (used in) provided by investing activities
    
    
    43,477,348
    
    
    
    (3,790,745
    )FINANCING ACTIVITIES:Net (decrease) increase in demand deposits and savings accounts
    
    
    (31,577,024
    )
    
    
    20,215,781Net (decrease) increase in certificate accounts
    
    
    (19,534,333
    )
    
    
    7,232,341Net increase in other borrowed money
    
    
    485,692
    
    
    
    5,414,286Advances from Federal Home Loan Bank
    
    
    
    
    
    
    935,000Repayments of advances from Federal Home Loan Bank
    
    
    (26,007,216
    )
    
    
    (6,941,261
    )Net increase in advances from borrowers for taxes and insurance
    
    
    85,614
    
    
    
    548,213Proceeds from exercise of stock options
    
    
    733,957
    
    
    
    51,428Excess tax benefit (liability) from stock-based compensation
    
    
    105,770
    
    
    
    (63,591
    )Purchase of treasury stock
    
    
    (276,789
    )
    
    
    (1,374,751
    )Payment of cash dividend
    
    
    (1,126,761
    )
    
    
    (965,995
    )Net cash (used in) provided by financing activities
    
    
    (77,111,090
    )
    
    
    25,051,451NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    (29,895,231
    )
    
    
    25,636,402CASH AND CASH EQUIVALENTSBeginning of period
    
    
    77,686,708
    
    
    
    44,714,239CASH AND CASH EQUIVALENTSEnd of period
    
    $
    47,791,477
    
    
    $
    70,350,641
   4




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##### Table of Contents



ABINGTON BANCORP, INC.
 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
 Three Months Ended March 31,2011
    
    
    2010SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Cash paid during the year for:Interest on deposits and other borrowings
    
    $
    2,479,019
    
    
    $
    3,964,381Income taxes
    
    $
    
    
    
    $
    Non-cash transfer of loans to real estate owned
    
    $
    
    
    
    $
    Acquisition of stock for deferred compensation plans trust
    
    $
    
    
    
    $
    17,318Release of stock from deferred compensation plans trust
    
    $
    2,600
    
    
    $
    2,600
   5




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##### Table of Contents



ABINGTON BANCORP, INC.
 
 NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 1.
    
    FINANCIAL STATEMENT PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
 Basis of Financial Statement Presentation
     6




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Use of Estimates in the Preparation of Financial Statements
 Other-Than-Temporary Impairment of Securities
 Allowance for Loan Losses
  7




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8




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##### Table of Contents



Comprehensive Income
  9




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##### Table of Contents



Three Months EndedMarch 31,2011
    
    
    2010Net unrealized (loss) gain on securities
arising during the period, net of tax
    
    $
    (684,807
    )
    
    $
    220,044Plus: reclassification adjustment for net loss
(gain) included in net income, net of tax
    
    
    
    
    
    
    Net unrealized (loss) gain on securities,
net of tax
    
    
    (684,807
    )
    
    
    220,044Amortization of deferred costs on
supplemental retirement plan, net of tax
    
    
    19,201
    
    
    
    19,751Total other comprehensive (loss) income,
net of tax
    
    $
    (665,606
    )
    
    $
    239,795
  March 31
    
    
    December 31,2011
    
    
    2010Net unrealized gain on securities, net of tax
    
    $
    2,086,536
    
    
    $
    2,771,343Unrecognized deferred costs of supplemental
retirment plan, net of tax
    
    
    (79,775
    )
    
    
    (98,976
    )Total accumulated other comprehensive income,
net of tax
    
    $
    2,006,761
    
    
    $
    2,672,367
 Share-Based Compensation Compensation 
Stock Compensation
    10




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##### Table of Contents



Earnings per share
 Three Months Ended March 312011
    
    
    2010Basic
    
    
    Diluted
    
    
    Basic
    
    
    DilutedNet income
    
    $
    1,542,453
    
    
    $
    1,542,453
    
    
    $
    1,608,360
    
    
    $
    1,608,360Weighted average shares outstanding
    
    
    18,510,508
    
    
    
    18,510,508
    
    
    
    18,995,279
    
    
    
    18,995,279Effect of common stock equivalents
    
    
    
    
    
    
    802,550
    
    
    
    
    
    
    
    377,243Adjusted weighted average shares used
in earnings per share computation
    
    
    18,510,508
    
    
    
    19,313,058
    
    
    
    18,995,279
    
    
    
    19,372,522Earnings per share
    
    $
    0.08
    
    
    $
    0.08
    
    
    $
    0.08
    
    
    $
    0.08
 Recent Accounting Pronouncements Improving Disclosures about Fair Value Measurements Fair Value Measurements and Disclosures
 Disclosures about the Credit Quality of Financing
Receivables and the Allowance for Credit Losses , Receivables
  11




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Disclosure of Supplementary Pro Forma Information
for Business Combinations Business Combinations
 Deferral of the Effective Date of Disclosures
about Troubled Debt Restructurings in Update No. 2010-20
 A Creditors Determination of Whether a
Restructuring Is a Troubled Debt Restructuring
  12




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##### Table of Contents



Reconsideration of Effective Control for Repurchase
Agreements Transfers and Servicing
 Reclassifications 
 2.
    
    INVESTMENT SECURITIES
  Held to MaturityMarch 31, 2011Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:Municipal bonds
    
    $
    20,384,241
    
    
    $
    584,409
    
    
    $
    (15,241
    )
    
    $
    20,953,409Total debt securities
    
    $
    20,384,241
    
    
    $
    584,409
    
    
    $
    (15,241
    )
    
    $
    20,953,409
 Available for SaleMarch 31, 2011Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:Agency bonds
    
    $
    82,364,990
    
    
    $
    669,133
    
    
    $
    (1,053,395
    )
    
    $
    81,980,728Corporate bonds and
commercial paper
    
    
    4,528,535
    
    
    
    42,641
    
    
    
    
    
    
    
    4,571,176Municipal bonds
    
    
    18,372,240
    
    
    
    644,973
    
    
    
    (3,080
    )
    
    
    19,014,133Total debt securities
    
    
    105,265,765
    
    
    
    1,356,747
    
    
    
    (1,056,475
    )
    
    
    105,566,037Equity securities:Mutual funds
    
    
    2,681,204
    
    
    
    36,849
    
    
    
    
    
    
    
    2,718,053Total equity securities
    
    
    2,681,204
    
    
    
    36,849
    
    
    
    
    
    
    
    2,718,053Total
    
    $
    107,946,969
    
    
    $
    1,393,596
    
    
    $
    (1,056,475
    )
    
    $
    108,284,090
  13




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##### Table of Contents



Held to MaturityDecember 31, 2010Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:Municipal bonds
    
    $
    20,384,781
    
    
    $
    436,457
    
    
    $
    (14,898
    )
    
    $
    20,806,340Total debt securities
    
    $
    20,384,781
    
    
    $
    436,457
    
    
    $
    (14,898
    )
    
    $
    20,806,340
 Available for SaleDecember 31, 2010Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:Agency bonds
    
    $
    99,365,386
    
    
    $
    812,591
    
    
    $
    (865,277
    )
    
    $
    99,312,700Corporate bonds and
commercial paper
    
    
    3,535,415
    
    
    
    24,245
    
    
    
    (1,365
    )
    
    
    3,558,295Municipal bonds
    
    
    18,680,054
    
    
    
    640,846
    
    
    
    
    
    
    
    19,320,900Total debt securities
    
    
    121,580,855
    
    
    
    1,477,682
    
    
    
    (866,642
    )
    
    
    122,191,895Equity securities:Mutual funds
    
    
    2,664,183
    
    
    
    47,823
    
    
    
    
    
    
    
    2,712,006Total equity securities
    
    
    2,664,183
    
    
    
    47,823
    
    
    
    
    
    
    
    2,712,006Total
    
    $
    124,245,038
    
    
    $
    1,525,505
    
    
    $
    (866,642
    )
    
    $
    124,903,901
    14




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##### Table of Contents



March 31, 2011Available for Sale
    
    
    Held to MaturityEstimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueDue in one year or less
    
    $
    3,563,337
    
    
    $
    3,588,152
    
    
    $
    
    
    
    $
    Due after one year through five years
    
    
    96,756,428
    
    
    
    96,876,009
    
    
    
    
    
    
    
    Due after five years through ten years
    
    
    4,946,000
    
    
    
    5,101,876
    
    
    
    16,299,068
    
    
    
    16,772,475Due after ten years
    
    
    
    
    
    
    
    
    
    
    4,085,173
    
    
    
    4,180,934Total
    
    $
    105,265,765
    
    
    $
    105,566,037
    
    
    $
    20,384,241
    
    
    $
    20,953,409
  Less than 12 months
    
    
    More than 12 monthsGross
    
    
    Estimated
    
    
    Gross
    
    
    EstimatedUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    ValueSecurities held to maturity:Municipal bonds
    
    $
    (15,241
    )
    
    $
    1,320,355
    
    
    $
    
    
    
    $
    Total securities held to maturity
    
    
    (15,241
    )
    
    
    1,320,355
    
    
    
    
    
    
    
    Securities available for sale:Agency bonds
    
    
    (1,053,395
    )
    
    
    65,914,260
    
    
    
    
    
    
    
    Municipal bonds
    
    
    (3,080
    )
    
    
    959,349
    
    
    
    
    
    
    
    Total securities available for sale
    
    
    (1,056,475
    )
    
    
    66,873,609
    
    
    
    
    
    
    
    Total
    
    $
    (1,071,716
    )
    
    $
    68,193,964
    
    
    $
    
    
    
    $
    
  15




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##### Table of Contents



Less than 12 months
    
    
    More than 12 monthsGross
    
    
    Estimated
    
    
    Gross
    
    
    EstimatedUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    ValueSecurities held to maturity:Municipal bonds
    
    $
    (14,898
    )
    
    $
    2,119,768
    
    
    $
    
    
    
    $
    Total securities held to maturity
    
    
    (14,898
    )
    
    
    2,119,768
    
    
    
    
    
    
    
    Securities available for sale:Agency bonds
    
    
    (865,277
    )
    
    
    54,612,715
    
    
    
    
    
    
    
    Corporate bonds and
commercial paper
    
    
    (1,365
    )
    
    
    489,115
    
    
    
    
    
    
    
    Total securities available for sale
    
    
    (866,642
    )
    
    
    55,101,830
    
    
    
    
    
    
    
    Total
    
    $
    (881,540
    )
    
    $
    57,221,598
    
    
    $
    
    
    
    $
    
   16




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##### Table of Contents



3.
    
    MORTGAGE-BACKED SECURITIES
  Held to MaturityMarch 31, 2011Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueGNMA pass-through
certificates
    
    $
    13,216,242
    
    
    $
    379,390
    
    
    $
    
    
    
    $
    13,595,632FNMA pass-through
certificates
    
    
    18,194,725
    
    
    
    1,079,998
    
    
    
    
    
    
    
    19,274,723FHLMC pass-through
certificates
    
    
    8,850,070
    
    
    
    336,846
    
    
    
    
    
    
    
    9,186,916Collateralized mortgage
obligations
    
    
    12,454,855
    
    
    
    
    
    
    
    (563,863
    )
    
    
    11,890,992Total
    
    $
    52,715,892
    
    
    $
    1,796,234
    
    
    $
    (563,863
    )
    
    $
    53,948,263
 Available for saleMarch 31, 2011Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueGNMA pass-through
certificates
    
    $
    1,789
    
    
    $
    68
    
    
    $
    
    
    
    $
    1,857FNMA pass-through
certificates
    
    
    27,684,710
    
    
    
    1,735,714
    
    
    
    
    
    
    
    29,420,424FHLMC pass-through
certificates
    
    
    22,937,870
    
    
    
    1,588,047
    
    
    
    
    
    
    
    24,525,917Collateralized mortgage
obligations
    
    
    108,299,482
    
    
    
    489,736
    
    
    
    (989,268
    )
    
    
    107,799,950Total
    
    $
    158,923,851
    
    
    $
    3,813,565
    
    
    $
    (989,268
    )
    
    $
    161,748,148
  17




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##### Table of Contents



Held to MaturityDecember 31, 2010Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueGNMA pass-through
certificates
    
    $
    13,854,013
    
    
    $
    485,257
    
    
    $
    
    
    
    $
    14,339,270FNMA pass-through
certificates
    
    
    20,044,999
    
    
    
    1,217,065
    
    
    
    
    
    
    
    21,262,064FHLMC pass-through
certificates
    
    
    9,665,262
    
    
    
    354,111
    
    
    
    
    
    
    
    10,019,373Collateralized mortgage
obligations
    
    
    13,307,914
    
    
    
    8
    
    
    
    (590,081
    )
    
    
    12,717,841Total
    
    $
    56,872,188
    
    
    $
    2,056,441
    
    
    $
    (590,081
    )
    
    $
    58,338,548
 Available for SaleDecember 31, 2010Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueGNMA pass-through
certificates
    
    $
    1,929
    
    
    $
    77
    
    
    $
    
    
    
    $
    2,006FNMA pass-through
certificates
    
    
    30,005,032
    
    
    
    1,923,275
    
    
    
    
    
    
    
    31,928,307FHLMC pass-through
certificates
    
    
    26,843,006
    
    
    
    1,805,146
    
    
    
    
    
    
    
    28,648,152Collateralized mortgage
obligations
    
    
    107,782,687
    
    
    
    648,305
    
    
    
    (836,661
    )
    
    
    107,594,331Total
    
    $
    164,632,654
    
    
    $
    4,376,803
    
    
    $
    (836,661
    )
    
    $
    168,172,796
    18




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##### Table of Contents



Less than 12 months
    
    
    More than 12 monthsGross
    
    
    Estimated
    
    
    Gross
    
    
    EstimatedUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    ValueSecurities held to maturity:Collateralized mortgage
obligations
    
    $
    (17,418
    )
    
    $
    (2,867,344
    )
    
    $
    (546,445
    )
    
    $
    9,023,648Total securities held
to maturity
    
    
    (17,418
    )
    
    
    (2,867,344
    )
    
    
    (546,445
    )
    
    
    9,023,648Securities available for sale:Collateralized mortgage
obligations
    
    
    (989,268
    )
    
    
    65,111,069
    
    
    
    
    
    
    
    Total securities
available for sale
    
    
    (989,268
    )
    
    
    65,111,069
    
    
    
    
    
    
    
    Total
    
    $
    (1,006,686
    )
    
    $
    62,243,725
    
    
    $
    (546,445
    )
    
    $
    9,023,648
  Less than 12 months
    
    
    More than 12 monthsGross
    
    
    Estimated
    
    
    Gross
    
    
    EstimatedUnrealized
    
    
    Fair
    
    
    Unrealized
    
    
    FairLosses
    
    
    Value
    
    
    Losses
    
    
    ValueSecurities held to maturity:Collateralized mortgage
obligations
    
    $
    
    
    
    $
    
    
    
    $
    (590,081
    )
    
    $
    9,529,808Total securities held to maturity
    
    
    
    
    
    
    
    
    
    
    (590,081
    )
    
    
    9,529,808Securities available for sale:Collateralized mortgage
obligations
    
    
    (836,661
    )
    
    
    59,786,355
    
    
    
    
    
    
    
    Total securities available for sale
    
    
    (836,661
    )
    
    
    59,786,355
    
    
    
    
    
    
    
    Total
    
    $
    (836,661
    )
    
    $
    59,786,355
    
    
    $
    (590,081
    )
    
    $
    9,529,808
  19




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##### Table of Contents



4.
    
    LOANS RECEIVABLE AND REAL ESTATE OWNED
  March 31, 2011
    
    
    December 31, 2010One-to four-family residential
    
    $
    385,486,465
    
    
    $
    393,434,519Multi-family residential and commercial
    
    
    137,307,600
    
    
    
    141,090,844Construction
    
    
    129,431,691
    
    
    
    138,558,368Home equity lines of credit
    
    
    39,743,652
    
    
    
    41,213,274Commercial business loans
    
    
    16,192,660
    
    
    
    16,326,982Consumer non-real estate loans
    
    
    2,573,839
    
    
    
    870,406Total loans
    
    
    710,735,907
    
    
    
    731,494,393Less:Construction loans in process
    
    
    (25,653,015
    )
    
    
    (30,065,072
    )Deferred loan fees, net
    
    
    (751,654
    )
    
    
    (714,201
    )Allowance for loan losses
    
    
    (4,301,401
    )
    
    
    (4,271,618
    )Loans receivablenet
    
    $
    680,029,837
    
    
    $
    696,443,502
    20




---



##### Table of Contents



Three Months Ended
    
    
    Year Ended
    
    
    Three Months EndedMarch 31, 2011
    
    
    December 31, 2010
    
    
    March 31, 2010Balancebeginning of year
    
    $
    4,271,618
    
    
    $
    9,090,353
    
    
    $
    9,090,353Provision for loan losses
    
    
    
    
    
    
    976,550
    
    
    
    563,445Charge-offs
    
    
    (15,255
    )
    
    
    (7,076,332
    )
    
    
    (342,267
    )Recoveries
    
    
    45,038
    
    
    
    1,281,047
    
    
    
    8,411Charge-offsnet
    
    
    29,783
    
    
    
    (5,795,285
    )
    
    
    (333,856
    )Balanceend of period
    
    $
    4,301,401
    
    
    $
    4,271,618
    
    
    $
    9,319,942
   SpecialPass
    
    
    Mention
    
    
    Substandard
    
    
    Doubtful
    
    
    Total(In Thousands)One-to four-family residential
    
    $
    383,263
    
    
    $
    81
    
    
    $
    2,142
    
    
    $
    
    
    
    $
    385,486Multi-family residential and
commercial
    
    
    103,929
    
    
    
    11,481
    
    
    
    21,897
    
    
    
    
    
    
    
    137,307Construction:Land only
    
    
    3,227
    
    
    
    1,810
    
    
    
    3,511
    
    
    
    
    
    
    
    8,548One-to four-family residential
    
    
    18,218
    
    
    
    14,476
    
    
    
    9,030
    
    
    
    
    
    
    
    41,724Multi-family residential
    
    
    5,650
    
    
    
    20,457
    
    
    
    417
    
    
    
    
    
    
    
    26,524Commercial
    
    
    15,087
    
    
    
    
    
    
    
    11,896
    
    
    
    
    
    
    
    26,983Total construction
    
    
    42,182
    
    
    
    36,743
    
    
    
    24,854
    
    
    
    
    
    
    
    103,779Home equity lines of credit
    
    
    39,744
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39,744Commercial business loans
    
    
    14,853
    
    
    
    1,340
    
    
    
    
    
    
    
    
    
    
    
    16,193Consumer non-real estate loans
    
    
    2,574
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,574Total
    
    $
    586,545
    
    
    $
    49,645
    
    
    $
    48,893
    
    
    $
    
    
    
    $
    685,083
  21




---



##### Table of Contents



SpecialPass
    
    
    Mention
    
    
    Substandard
    
    
    Doubtful
    
    
    Total(In Thousands)One-to four-family residential
    
    $
    391,903
    
    
    $
    12
    
    
    $
    1,520
    
    
    $
    
    
    
    $
    393,435Multi-family residential and commercial
    
    
    113,589
    
    
    
    7,286
    
    
    
    20,216
    
    
    
    
    
    
    
    141,091Construction:Land only
    
    
    3,212
    
    
    
    1,810
    
    
    
    4,045
    
    
    
    
    
    
    
    9,067One-to four-family residential
    
    
    18,107
    
    
    
    15,020
    
    
    
    9,058
    
    
    
    
    
    
    
    42,185Multi-family residential
    
    
    5,677
    
    
    
    19,703
    
    
    
    417
    
    
    
    
    
    
    
    25,797Commercial
    
    
    19,731
    
    
    
    
    
    
    
    11,713
    
    
    
    
    
    
    
    31,444Total construction
    
    
    46,727
    
    
    
    36,533
    
    
    
    25,233
    
    
    
    
    
    
    
    108,493Home equity lines of credit
    
    
    41,198
    
    
    
    15
    
    
    
    
    
    
    
    
    
    
    
    41,213Commercial business loans
    
    
    14,882
    
    
    
    1,445
    
    
    
    
    
    
    
    
    
    
    
    16,327Consumer non-real estate loans
    
    
    870
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    870Total
    
    $
    609,169
    
    
    $
    45,291
    
    
    $
    46,969
    
    
    $
    
    
    
    $
    701,429
   22




---



##### Table of Contents



Unpaid
    
    
    
    
    
    
    Average
    
    
    InterestRecorded
    
    
    Principal
    
    
    Related
    
    
    Recorded
    
    
    IncomeInvestment
    
    
    Balance
    
    
    Allowance
    
    
    Investment
    
    
    Recognized(In Thousands)With an allowance recorded:One-to four-family residential
    
    $
    435
    
    
    $
    435
    
    
    $
    40
    
    
    $
    5
    
    
    $
    Multi-family residential and commercial
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction:Land only
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    One-to four-family residential
    
    
    3,743
    
    
    
    4,077
    
    
    
    208
    
    
    
    342
    
    
    
    27Multi-family residential
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial
    
    
    1,660
    
    
    
    1,852
    
    
    
    230
    
    
    
    1,699
    
    
    
    Total construction
    
    
    5,403
    
    
    
    5,929
    
    
    
    438
    
    
    
    2,041
    
    
    
    27Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    With no related allowance recorded:One-to four-family residential
    
    $
    583
    
    
    $
    583
    
    
    $
    
    
    
    $
    454
    
    
    $
    8Multi-family residential and commercial
    
    
    9,924
    
    
    
    11,019
    
    
    
    
    
    
    
    9,813
    
    
    
    112ConstructionLand only
    
    
    600
    
    
    
    1,928
    
    
    
    
    
    
    
    600
    
    
    
    One-to four-family residential
    
    
    3,072
    
    
    
    5,327
    
    
    
    
    
    
    
    1,252
    
    
    
    19Multi-family residential
    
    
    417
    
    
    
    417
    
    
    
    
    
    
    
    417
    
    
    
    Commercial
    
    
    1,359
    
    
    
    1,584
    
    
    
    
    
    
    
    1,364
    
    
    
    Total construction
    
    
    5,448
    
    
    
    9,256
    
    
    
    
    
    
    
    3,633
    
    
    
    19Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total:One-to four-family residential
    
    $
    1,018
    
    
    $
    1,018
    
    
    $
    40
    
    
    $
    459
    
    
    $
    8Multi-family residential and commercial
    
    
    9,924
    
    
    
    11,019
    
    
    
    
    
    
    
    9,813
    
    
    
    112ConstructionLand only
    
    
    600
    
    
    
    1,928
    
    
    
    
    
    
    
    600
    
    
    
    One-to four-family residential
    
    
    6,815
    
    
    
    9,404
    
    
    
    208
    
    
    
    1,594
    
    
    
    46Multi-family residential
    
    
    417
    
    
    
    417
    
    
    
    
    
    
    
    417
    
    
    
    Commercial
    
    
    3,019
    
    
    
    3,436
    
    
    
    230
    
    
    
    3,063
    
    
    
    Total construction
    
    
    10,851
    
    
    
    15,185
    
    
    
    438
    
    
    
    5,674
    
    
    
    46Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  23




---



##### Table of Contents



Unpaid
    
    
    
    
    
    
    Average
    
    
    InterestRecorded
    
    
    Principal
    
    
    Related
    
    
    Recorded
    
    
    IncomeInvestment
    
    
    Balance
    
    
    Allowance
    
    
    Investment
    
    
    Recognized(In Thousands)With an allowance recorded:One-to four-family residential
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Multi-family residential and commercial
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction:Land only
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    One-to four-family residential
    
    
    304
    
    
    
    452
    
    
    
    34
    
    
    
    2,252
    
    
    
    Multi-family residential
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial
    
    
    1,670
    
    
    
    1,852
    
    
    
    272
    
    
    
    5,556
    
    
    
    Total construction
    
    
    1,974
    
    
    
    2,304
    
    
    
    306
    
    
    
    7,808
    
    
    
    Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    With no related allowance recorded:One-to four-family residential
    
    $
    583
    
    
    $
    583
    
    
    $
    
    
    
    $
    506
    
    
    $
    29Multi-family residential and commercial
    
    
    9,765
    
    
    
    10,840
    
    
    
    
    
    
    
    6,088
    
    
    
    114ConstructionLand only
    
    
    600
    
    
    
    1,100
    
    
    
    
    
    
    
    2,879
    
    
    
    One-to four-family residential
    
    
    1,294
    
    
    
    3,549
    
    
    
    
    
    
    
    3,881
    
    
    
    Multi-family residential
    
    
    417
    
    
    
    417
    
    
    
    
    
    
    
    668
    
    
    
    Commercial
    
    
    1,379
    
    
    
    1,584
    
    
    
    
    
    
    
    1,318
    
    
    
    Total construction
    
    
    3,690
    
    
    
    6,650
    
    
    
    
    
    
    
    8,746
    
    
    
    Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total:One-to four-family residential
    
    $
    583
    
    
    $
    583
    
    
    $
    
    
    
    $
    506
    
    
    $
    29Multi-family residential and commercial
    
    
    9,765
    
    
    
    10,840
    
    
    
    
    
    
    
    6,088
    
    
    
    114ConstructionLand only
    
    
    600
    
    
    
    1,100
    
    
    
    
    
    
    
    2,879
    
    
    
    One-to four-family residential
    
    
    1,598
    
    
    
    4,001
    
    
    
    34
    
    
    
    6,133
    
    
    
    Multi-family residential
    
    
    417
    
    
    
    417
    
    
    
    
    
    
    
    668
    
    
    
    Commercial
    
    
    3,049
    
    
    
    3,436
    
    
    
    272
    
    
    
    6,874
    
    
    
    Total construction
    
    
    5,664
    
    
    
    8,954
    
    
    
    306
    
    
    
    16,554
    
    
    
    Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  24




---



##### Table of Contents



March 31, 2011Multi-family
    
    
    Construction
    
    
    
    
    
    
    
    
    
    
    ConsumerOne- to Four-
    
    
    Residential
    
    
    
    
    
    
    One- to Four-
    
    
    
    
    
    
    
    
    
    
    Home Equity
    
    
    Commercial
    
    
    Non-realFamily
    
    
    and
    
    
    
    
    
    
    Family
    
    
    Multi-family
    
    
    
    
    
    
    Lines of
    
    
    Business
    
    
    Estate
    
    
    UnallocatedResidential
    
    
    Commercial
    
    
    Land Only
    
    
    Residential
    
    
    Residential
    
    
    Commercial
    
    
    Credit
    
    
    Loans
    
    
    Loans
    
    
    Allowance(In Thousands)Allowance for loan losses:Beginning balance
    
    $
    528
    
    
    $
    841
    
    
    $
    362
    
    
    $
    1,100
    
    
    $
    28
    
    
    $
    1,250
    
    
    $
    82
    
    
    $
    75
    
    
    $
    6
    
    
    $
    Charge-offs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15
    )
    
    
    Recoveries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    Provisions
    
    
    31
    
    
    
    29
    
    
    
    1
    
    
    
    5
    
    
    
    (37
    )
    
    
    (181
    )
    
    
    (3
    )
    
    
    (1
    )
    
    
    16
    
    
    
    140Ending balance
    
    $
    559
    
    
    $
    870
    
    
    $
    363
    
    
    $
    1,105
    
    
    $
    28
    
    
    $
    1,069
    
    
    $
    79
    
    
    $
    74
    
    
    $
    14
    
    
    $
    140Ending balance:individually evaluated
for impairment
    
    $
    40
    
    
    $
    
    
    
    $
    
    
    
    $
    208
    
    
    $
    
    
    
    $
    230
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    
    n/aEnding balance:collectively evaluated
for impairment
    
    $
    519
    
    
    $
    870
    
    
    $
    363
    
    
    $
    897
    
    
    $
    28
    
    
    $
    839
    
    
    $
    79
    
    
    $
    74
    
    
    $
    14
    
    
    
    n/aLoans receivable:Ending balance
    
    $
    385,486
    
    
    $
    137,307
    
    
    $
    8,548
    
    
    $
    41,724
    
    
    $
    26,524
    
    
    $
    26,983
    
    
    $
    39,744
    
    
    $
    16,193
    
    
    $
    2,574
    
    
    
    n/aEnding balance:individually evaluated
for impairment
    
    $
    1,018
    
    
    $
    9,924
    
    
    $
    600
    
    
    $
    6,815
    
    
    $
    417
    
    
    $
    3,019
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    
    n/aEnding balance:collectively evaluated
for impairment
    
    $
    384,468
    
    
    $
    127,383
    
    
    $
    7,948
    
    
    $
    34,909
    
    
    $
    26,107
    
    
    $
    23,964
    
    
    $
    39,744
    
    
    $
    16,193
    
    
    $
    2,574
    
    
    
    n/a
  25




---



##### Table of Contents



December 31, 2010Multi-family
    
    

Construction
    
    
    
    
    
    
    
    
    
    
    ConsumerOne- to Four-
    
    
    Residential
    
    
    
    
    
    
    One- to Four-
    
    
    
    
    
    
    
    
    
    
    Home Equity
    
    
    Commercial
    
    
    Non-realFamily
    
    
    and
    
    
    
    
    
    
    Family
    
    
    Multi-family
    
    
    
    
    
    
    Lines of
    
    
    Business
    
    
    EstateResidential
    
    
    Commercial
    
    
    Land Only
    
    
    Residential
    
    
    Residential
    
    
    Commercial
    
    
    Credit
    
    
    Loans
    
    
    Loans(In Thousands)Allowance for loan losses:Ending balance
    
    $
    528
    
    
    $
    841
    
    
    $
    362
    
    
    $
    1,100
    
    
    $
    28
    
    
    $
    1,250
    
    
    $
    82
    
    
    $
    75
    
    
    $
    6Ending balance:individually evaluated
for impairment
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    34
    
    
    $
    
    
    
    $
    272
    
    
    $
    
    
    
    $
    
    
    
    $
    Ending balance:collectively evaluated
for impairment
    
    $
    528
    
    
    $
    841
    
    
    $
    362
    
    
    $
    1,066
    
    
    $
    28
    
    
    $
    978
    
    
    $
    82
    
    
    $
    75
    
    
    $
    6Loans receivable:Ending balance
    
    $
    393,435
    
    
    $
    141,091
    
    
    $
    9,067
    
    
    $
    42,185
    
    
    $
    25,797
    
    
    $
    31,444
    
    
    $
    41,213
    
    
    $
    16,327
    
    
    $
    870Ending balance:individually evaluated
for impairment
    
    $
    583
    
    
    $
    9,765
    
    
    $
    600
    
    
    $
    1,598
    
    
    $
    417
    
    
    $
    3,049
    
    
    $
    
    
    
    $
    
    
    
    $
    Ending balance:collectively evaluated
for impairment
    
    $
    392,852
    
    
    $
    131,326
    
    
    $
    8,467
    
    
    $
    40,587
    
    
    $
    25,380
    
    
    $
    28,395
    
    
    $
    41,213
    
    
    $
    16,327
    
    
    $
    870
  26




---



##### Table of Contents



March 31, 2011
    
    
    December 31, 2010(In Thousands)One-to four-family residential
    
    $
    
    
    
    $
    Multi-family residential and commercial
    
    
    1,514
    
    
    
    1,348Construction:Land only
    
    
    600
    
    
    
    600One-to four-family residential
    
    
    1,511
    
    
    
    1,597Multi-family residential
    
    
    417
    
    
    
    417Commercial
    
    
    3,019
    
    
    
    3,050Total construction
    
    
    5,547
    
    
    
    5,664Home equity lines of credit
    
    
    
    
    
    
    Commercial business loans
    
    
    
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    Total
    
    $
    7,061
    
    
    $
    7,012
   27




---



##### Table of Contents



RecordedInvestment90 Days
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    90 Days or30-59 Days
    
    
    60-89 Days
    
    
    or More
    
    
    Total
    
    
    
    
    
    
    Loan
    
    
    More andPast Due
    
    
    Past Due
    
    
    Past Due
    
    
    Past Due
    
    
    Current
    
    
    Receivables
    
    
    Accruing(In Thousands)One-to four-family residential
    
    $
    2,829
    
    
    $
    22
    
    
    $
    1,028
    
    
    $
    3,879
    
    
    $
    381,607
    
    
    $
    385,486
    
    
    $
    1,028Multi-family
residential and commercial
    
    
    2,375
    
    
    
    2,373
    
    
    
    185
    
    
    
    4,933
    
    
    
    132,374
    
    
    
    137,307
    
    
    
    Construction:Land only
    
    
    
    
    
    
    
    
    
    
    600
    
    
    
    600
    
    
    
    7,948
    
    
    
    8,548
    
    
    
    One-to four-family residential
    
    
    4,131
    
    
    
    
    
    
    
    1,525
    
    
    
    5,656
    
    
    
    36,068
    
    
    
    41,724
    
    
    
    14Multi-family residential
    
    
    
    
    
    
    
    
    
    
    417
    
    
    
    417
    
    
    
    26,107
    
    
    
    26,524
    
    
    
    Commercial
    
    
    
    
    
    
    
    
    
    
    3,019
    
    
    
    3,019
    
    
    
    23,964
    
    
    
    26,983
    
    
    
    Total construction
    
    
    4,131
    
    
    
    
    
    
    
    5,561
    
    
    
    9,692
    
    
    
    94,087
    
    
    
    103,779
    
    
    
    14Home equity lines of credit
    
    
    212
    
    
    
    
    
    
    
    62
    
    
    
    274
    
    
    
    39,470
    
    
    
    39,744
    
    
    
    62Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,193
    
    
    
    16,193
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,574
    
    
    
    2,574
    
    
    
    Total
    
    $
    9,547
    
    
    $
    2,395
    
    
    $
    6,836
    
    
    $
    18,778
    
    
    $
    666,305
    
    
    $
    685,083
    
    
    $
    1,104
  28




---



##### Table of Contents



RecordedInvestment90 Days
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    90 Days or30-59 Days
    
    
    60-89 Days
    
    
    or More
    
    
    Total
    
    
    
    
    
    
    Loan
    
    
    More andPast Due
    
    
    Past Due
    
    
    Past Due
    
    
    Past Due
    
    
    Current
    
    
    Receivables
    
    
    Accruing(In Thousands)One-to four-family residential
    
    $
    2,674
    
    
    $
    309
    
    
    $
    1,211
    
    
    $
    4,194
    
    
    $
    389,241
    
    
    $
    393,435
    
    
    $
    1,211Multi-family residential and commercial
    
    
    3,216
    
    
    
    
    
    
    
    725
    
    
    
    3,941
    
    
    
    137,150
    
    
    
    141,091
    
    
    
    725Construction:Land only
    
    
    
    
    
    
    
    
    
    
    600
    
    
    
    600
    
    
    
    8,467
    
    
    
    9,067
    
    
    
    One-to four-family residential
    
    
    
    
    
    
    
    
    
    
    1,611
    
    
    
    1,611
    
    
    
    40,574
    
    
    
    42,185
    
    
    
    14Multi-family residential
    
    
    
    
    
    
    
    
    
    
    417
    
    
    
    417
    
    
    
    25,380
    
    
    
    25,797
    
    
    
    Commercial
    
    
    
    
    
    
    
    
    
    
    3,050
    
    
    
    3,050
    
    
    
    28,394
    
    
    
    31,444
    
    
    
    Total construction
    
    
    
    
    
    
    
    
    
    
    5,678
    
    
    
    5,678
    
    
    
    102,815
    
    
    
    108,493
    
    
    
    14Home equity lines of credit
    
    
    20
    
    
    
    24
    
    
    
    76
    
    
    
    120
    
    
    
    41,093
    
    
    
    41,213
    
    
    
    76Commercial business loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,327
    
    
    
    16,327
    
    
    
    Consumer non-real estate loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    870
    
    
    
    870
    
    
    
    Total
    
    $
    5,910
    
    
    $
    333
    
    
    $
    7,690
    
    
    $
    13,933
    
    
    $
    687,496
    
    
    $
    701,429
    
    
    $
    2,026
  29




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##### Table of Contents



Three Months Ended
    
    
    Year EndedMarch 31, 2011
    
    
    December 31, 2010Balancebeginning of period
    
    $
    23,588,139
    
    
    $
    22,818,856Additions
    
    
    
    
    
    
    10,641,000Capitalized improvements
    
    
    40,006
    
    
    
    575,699Valuation adjustments
    
    
    
    
    
    
    (350,981
    )Dispositions
    
    
    
    
    
    
    (10,096,435
    )Balanceend of period
    
    $
    23,628,145
    
    
    $
    23,588,139
 5.
    
    DEPOSITS
  March 31, 2011
    
    
    December 31, 2010Type of Account
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentCertificates
    
    $
    412,482,145
    
    
    
    48.6
    %
    
    $
    432,016,478
    
    
    
    48.0
    %Passbook and MMDA
    
    
    307,192,979
    
    
    
    36.2
    
    
    
    326,060,212
    
    
    
    36.2NOW
    
    
    90,483,001
    
    
    
    10.6
    
    
    
    92,174,500
    
    
    
    10.3DDA
    
    
    38,789,486
    
    
    
    4.6
    
    
    
    49,807,778
    
    
    
    5.5Total
    
    $
    848,947,611
    
    
    
    100.0
    %
    
    $
    900,058,968
    
    
    
    100.0
    %
  30




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##### Table of Contents



6.
    
    DEFERRED INCOME TAXES
  March 31,
    
    
    December 31,2011
    
    
    2010Deferred tax assets:Allowance for loan losses
    
    $
    1,462,476
    
    
    $
    1,452,350Deferred compensation
    
    
    1,805,533
    
    
    
    2,097,730Write-down of impaired investments
    
    
    295,529
    
    
    
    295,529Write-down of real estate owned
    
    
    164,158
    
    
    
    164,158Property and equipment
    
    
    230,449
    
    
    
    219,098Alternative minimum tax refund
    
    
    837,440
    
    
    
    837,440Other assets
    
    
    419,287
    
    
    
    365,883Total deferred tax assets
    
    
    5,214,872
    
    
    
    5,432,188Deferred tax liabilities:Unrealized gain on securities available-for-sale
    
    
    (1,074,883
    )
    
    
    (1,427,662
    )Deferred loan fees
    
    
    (360,076
    )
    
    
    (364,331
    )Other liabilities
    
    
    (9,767
    )
    
    
    (8,977
    )Total deferred tax liabilities
    
    
    (1,444,726
    )
    
    
    (1,800,970
    )Net deferred tax asset
    
    $
    3,770,146
    
    
    $
    3,631,218
 7.
    
    PENSION, PROFIT SHARING AND STOCK COMPENSATION PLANS
  Employee Stock Ownership Plan
   31




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##### Table of Contents



Recognition and Retention Plans
    Three Months Ended March 31,2011
    
    
    2010Weighted
    
    
    
    
    
    
    WeightedNumber of
    
    
    average grant
    
    
    Number of
    
    
    average grantshares
    
    
    date fair value
    
    
    shares
    
    
    date fair valueNonvested at the beginning of the year
    
    
    311,060
    
    
    $
    9.21
    
    
    
    481,272
    
    
    $
    8.79Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Vested
    
    
    (93,140
    )
    
    
    9.11
    
    
    
    (94,940
    )
    
    
    9.11Forfeited
    
    
    
    
    
    
    
    
    
    
    (3,876
    )
    
    
    7.95Nonvested at the end of the period
    
    
    217,920
    
    
    $
    9.26
    
    
    
    382,456
    
    
    $
    8.71
  32




---



##### Table of Contents



Stock Options
    Three Months Ended March 31,2011
    
    
    2010Weighted
    
    
    
    
    
    
    WeightedNumber of
    
    
    average
    
    
    Number of
    
    
    averageshares
    
    

exercise price
    
    
    shares
    
    
    exercise priceOutstanding at the beginning of the
year
    
    
    2,167,700
    
    
    $
    8.47
    
    
    
    2,198,888
    
    
    $
    8.47Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    (87,040
    )
    
    
    8.43
    
    
    
    (6,848
    )
    
    
    7.51Forfeited
    
    
    (320
    )
    
    
    10.18
    
    
    
    (8,340
    )
    
    
    8.06Outstanding at the end of the period
    
    
    2,080,340
    
    
    $
    8.47
    
    
    
    2,183,700
    
    
    $
    8.47Exercisable at the end of the period
    
    
    1,577,932
    
    
    $
    8.27
    
    
    
    1,240,920
    
    
    $
    8.21
  33




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##### Table of Contents



Options Outstanding
    
    
    Options ExercisableWeighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    Weighted Average
    
    
    
    
    
    
    AverageNumber of
    
    
    Exercise
    
    
    Remaining
    
    
    Number of
    
    
    ExerciseExercise Price
    
    Shares
    
    
    Price
    
    
    Contractual Life
    
    
    Shares
    
    
    Price(in years)$6.00  $7.00
    
    
    12,000
    
    
    $
    6.72
    
    
    
    8.7
    
    
    
    2,000
    
    
    $
    6.727.01  8.00
    
    
    859,120
    
    
    
    7.51
    
    
    
    4.3
    
    
    
    859,120
    
    
    
    7.518.01  9.00
    
    
    2,400
    
    
    
    8.35
    
    
    
    4.7
    
    
    
    2,400
    
    
    
    8.359.01  10.00
    
    
    1,171,700
    
    
    
    9.14
    
    
    
    6.8
    
    
    
    686,700
    
    
    
    9.14Over 10.00
    
    
    35,120
    
    
    
    10.18
    
    
    
    5.6
    
    
    
    27,712
    
    
    
    10.18Total
    
    
    2,080,340
    
    
    $
    8.47
    
    
    
    5.8
    
    
    
    1,577,932
    
    
    $
    8.27Intrinsic value
    
    $
    7,817,514
    
    
    
    
    
    
    
    
    
    
    $
    6,255,036
   8.
    
    COMMITMENTS AND CONTINGENCIES
    34




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##### Table of Contents



9.
    
    FAIR VALUE MEASUREMENTS
  Fair Value Measurements and Disclosures
 
    
    Level 1  Valuation is based upon quoted prices for identical instruments traded
in active markets.
  35




---



##### Table of Contents




    
    Level 2  Valuation is based upon quoted prices for similar instruments in active
markets, quoted prices for identical or similar instruments in markets that are not
active, and model-based valuation techniques for which all significant assumptions are
observable in the market.
 
    
    Level 3  Valuation is generated from model-based techniques that use significant
assumptions not observable in the market. These unobservable assumptions reflect the
Companys own estimates of assumptions that market participants would use in pricing
the asset.
    Cash and Cash Equivalents
 Investment and Mortgage-backed Securities Available for Sale
  36




---



##### Table of Contents



Loans Receivable
 Impaired Loans
 Accrued Interest Receivable
 FHLB Stock
 Real Estate Owned
  37




---



##### Table of Contents



Deposits
 Advances from Federal Home Loan Bank
 Other Borrowed Money
 Accrued Interest Payable
 Commitments to Extend Credit and Letters of Credit
  38




---



##### Table of Contents



March 31, 2011Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Investment securities
available for sale:Debt securities:Agency bonds
    
    $
    81,980,728
    
    
    $
    
    
    
    $
    81,980,728
    
    
    $
    Corporate bonds and
commercial paper
    
    
    4,571,176
    
    
    
    
    
    
    
    4,571,176
    
    
    
    Municipal bonds
    
    
    19,014,133
    
    
    
    
    
    
    
    19,014,133
    
    
    
    Equity securities:Mutual funds
    
    
    2,718,053
    
    
    
    2,718,053
    
    
    
    
    
    
    
    Total investment securities
available for sale
    
    
    108,284,090
    
    
    
    2,718,053
    
    
    
    105,566,037
    
    
    
    Mortgage-backed securities
available for sale:GNMA pass-through
certificates
    
    $
    1,857
    
    
    $
    
    
    
    $
    1,857
    
    
    $
    FNMA pass-through
certificates
    
    
    29,420,424
    
    
    
    
    
    
    
    29,420,424
    
    
    
    FHLMC pass-through
certificates
    
    
    24,525,917
    
    
    
    
    
    
    
    24,525,917
    
    
    
    Collateralized mortgage
obligations
    
    
    107,799,950
    
    
    
    
    
    
    
    107,799,950
    
    
    
    Total mortgage-backed
securities available for sale
    
    
    161,748,148
    
    
    
    
    
    
    
    161,748,148
    
    
    
    Total
    
    $
    270,032,238
    
    
    $
    2,718,053
    
    
    $
    267,314,185
    
    
    $
    
  39




---



##### Table of Contents



December 31, 2010Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Investment securities
available for sale:Debt securities:Agency bonds
    
    $
    99,312,700
    
    
    $
    
    
    
    $
    99,312,700
    
    
    $
    Corporate bonds and
commercial paper
    
    
    3,558,295
    
    
    
    
    
    
    
    3,558,295
    
    
    
    Municipal bonds
    
    
    19,320,900
    
    
    
    
    
    
    
    19,320,900
    
    
    
    Equity securities:Mutual funds
    
    
    2,712,006
    
    
    
    2,712,006
    
    
    
    
    
    
    
    Total investment securities
available for sale
    
    
    124,903,901
    
    
    
    2,712,006
    
    
    
    122,191,895
    
    
    
    Mortgage-backed securities
available for sale:GNMA pass-through
certificates
    
    $
    2,006
    
    
    $
    
    
    
    $
    2,006
    
    
    $
    FNMA pass-through
certificates
    
    
    31,928,307
    
    
    
    
    
    
    
    31,928,307
    
    
    
    FHLMC pass-through
certificates
    
    
    28,648,152
    
    
    
    
    
    
    
    28,648,152
    
    
    
    Collateralized mortgage
obligations
    
    
    107,594,331
    
    
    
    
    
    
    
    107,594,331
    
    
    
    Total mortgage-backed
securities available for
sale
    
    
    168,172,796
    
    
    
    
    
    
    
    168,172,796
    
    
    
    Total
    
    $
    293,076,697
    
    
    $
    2,712,006
    
    
    $
    290,364,691
    
    
    $
    
  40




---



##### Table of Contents



March 31, 2011Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Impaired loans:One- to four-
family residential
    
    $
    395,908
    
    
    $
    
    
    
    $
    
    
    
    $
    395,908Multi-family
residential and
commerical
    
    
    1,328,618
    
    
    
    
    
    
    
    
    
    
    
    1,328,618Construction
    
    
    7,189,565
    
    
    
    
    
    
    
    
    
    
    
    7,189,565Total impaired loans
    
    
    8,914,091
    
    
    
    
    
    
    
    
    
    
    
    8,914,091Real estate owned
    
    
    23,628,145
    
    
    
    
    
    
    
    
    
    
    
    23,628,145Total
    
    $
    32,542,236
    
    
    $
    
    
    
    $
    
    
    
    $
    32,542,236
 December 31, 2010Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3Impaired loans:Multi-family
residential and
commerical
    
    $
    1,348,304
    
    
    $
    
    
    
    $
    
    
    
    $
    1,348,304Construction
    
    
    5,357,844
    
    
    
    
    
    
    
    
    
    
    
    5,357,844Total impaired loans
    
    
    6,706,148
    
    
    
    
    
    
    
    
    
    
    
    6,706,148Real estate owned
    
    
    23,588,139
    
    
    
    
    
    
    
    
    
    
    
    23,588,139Total
    
    $
    30,294,287
    
    
    $
    
    
    
    $
    
    
    
    $
    30,294,287
  41




---



##### Table of Contents



March 31, 2011
    
    
    December 31, 2010Estimated
    
    
    
    
    
    
    EstimatedCarrying
    
    
    Fair
    
    
    Carrying
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    Value(In Thousands)Assets:Cash and cash equivalents
    
    $
    47,791
    
    
    $
    47,791
    
    
    $
    77,687
    
    
    $
    77,687Investment securities
    
    
    128,668
    
    
    
    129,237
    
    
    
    145,289
    
    
    
    145,710Mortgage-backed securities
    
    
    214,464
    
    
    
    215,696
    
    
    
    225,045
    
    
    
    226,511Loans receivablenet
    
    
    680,030
    
    
    
    681,524
    
    
    
    696,444
    
    
    
    702,343FHLB stock
    
    
    13,183
    
    
    
    13,183
    
    
    
    13,877
    
    
    
    13,877Accrued interest receivable
    
    
    4,232
    
    
    
    4,232
    
    
    
    4,103
    
    
    
    4,103Liabilities:Deposits
    
    $
    848,948
    
    
    $
    840,012
    
    
    $
    900,059
    
    
    $
    886,873Advances from Federal
Home Loan Bank
    
    
    83,867
    
    
    
    87,954
    
    
    
    109,875
    
    
    
    114,772Other borrowed money
    
    
    16,367
    
    
    
    16,367
    
    
    
    15,881
    
    
    
    15,881Accrued interest payable
    
    
    2,099
    
    
    
    2,099
    
    
    
    912
    
    
    
    912Off balance sheet financial
instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  10.
    
    MERGER AGREEMENT WITH SUSQUEHANNA BANCSHARES, INC.
   42




---



##### Table of Contents



ITEM 2.
    
     MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 FORWARD LOOKING STATEMENTS
    43




---



##### Table of Contents



Overview
    44




---



##### Table of Contents



Critical Accounting Policies, Judgments and Estimates
 Allowance for Loan Losses
    45




---



##### Table of Contents



46




---



##### Table of Contents



Fair Value Measurements
  
    
    Level 1  Valuation is based upon quoted prices for identical instruments traded in
active markets.
  47




---



##### Table of Contents




    
    Level 2  Valuation is based upon quoted prices for similar instruments in active
markets, quoted prices for identical or similar instruments in markets that are not
active, and model-based valuation techniques for which all significant assumptions are
observable in the market.
 
    
    Level 3  Valuation is generated from model-based techniques that use significant
assumptions not observable in the market. These unobservable assumptions reflect the
Companys own estimates of assumptions that market participants would use in pricing the
asset.
   Other-Than-Temporary Impairment of Securities
  48




---



##### Table of Contents



Income Taxes
  COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2011 AND DECEMBER 31, 2010
    49




---



##### Table of Contents



LIQUIDITY AND CAPITAL RESOURCES
      50




---



##### Table of Contents



Actual Ratios AtMarch 31,
    
    
    December 31,
    
    
    Regulatory
    
    
    To Be Well2011
    
    
    2010
    
    
    Minimum
    
    
    CapitalizedCapital Ratios:Tier 1 leverage ratio
    
    
    14.55
    %
    
    
    13.84
    %
    
    
    4.00
    %
    
    
    5.00
    %Tier 1 risk-based capital ratio
    
    
    24.17
    
    
    
    23.31
    
    
    
    4.00
    
    
    
    6.00Total risk-based capital ratio
    
    
    24.76
    
    
    
    23.89
    
    
    
    8.00
    
    
    
    10.00
 SHARE-BASED COMPENSATION
    COMMITMENTS AND OFF-BALANCE SHEET ARRANGEMENTS
   51




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##### Table of Contents



52




---



##### Table of Contents



Amount of Commitment Expiration - Per PeriodAfter One to
    
    
    After ThreeTotal Amounts
    
    
    To
    
    
    Three
    
    
    to Five
    
    
    After FiveCommitted
    
    
    One Year
    
    
    Years
    
    
    Years
    
    
    Years(In Thousands)Letters of credit
    
    $
    46,619
    
    
    $
    27,475
    
    
    $
    18,298
    
    
    $
    
    
    
    $
    846Recourse obligations on loans
sold
    
    
    185
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    185Commitments to originate loans
    
    
    3,346
    
    
    
    3,346
    
    
    
    
    
    
    
    
    
    
    
    Unused portion of home equity
lines of credit
    
    
    30,429
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30,429Unused portion of commercial
lines of credit
    
    
    56,627
    
    
    
    56,627
    
    
    
    
    
    
    
    
    
    
    
    Undisbursed portion of
construction loans in process
    
    
    25,653
    
    
    
    23,029
    
    
    
    2,624
    
    
    
    
    
    
    
    Total commitments
    
    $
    162,859
    
    
    $
    110,477
    
    
    $
    20,922
    
    
    $
    
    
    
    $
    31,460
  Payments Due By PeriodAfter One to
    
    
    After ThreeTo
    
    
    Three
    
    
    to Five
    
    
    After FiveTotal
    
    
    One Year
    
    
    Years
    
    
    Years
    
    
    Years(In Thousands)Certificates of deposit
    
    $
    412,482
    
    
    $
    211,608
    
    
    $
    75,056
    
    
    $
    62,280
    
    
    $
    63,538FHLB advances
    
    
    83,867
    
    
    
    3,208
    
    
    
    32,320
    
    
    
    39,222
    
    
    
    9,117Repurchase agreements
    
    
    16,367
    
    
    
    16,367
    
    
    
    
    
    
    
    
    
    
    
    Total debt
    
    
    100,234
    
    
    
    19,575
    
    
    
    32,320
    
    
    
    39,222
    
    
    
    9,117Operating lease obligations
    
    
    4,322
    
    
    
    904
    
    
    
    1,597
    
    
    
    1,013
    
    
    
    808Total contractual obligations
    
    $
    517,038
    
    
    $
    232,087
    
    
    $
    109,440
    
    
    $
    96,285
    
    
    $
    73,463
  53




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##### Table of Contents



COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
 General.
 Interest Income.
 Interest Expense.
  54




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##### Table of Contents



Average Balances, Net Interest Income, and Yields Earned and Rates Paid.
 Three Months Ended March 31,2011
    
    
    2010Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/Rate
    
    
    Balance
    
    
    Interest
    
    
    Yield/Rate(Dollars in Thousands)Interest-earning assets:Investment securities(1)
    
    $
    137,930
    
    
    $
    828
    
    
    
    2.40
    %
    
    $
    113,695
    
    
    $
    811
    
    
    
    2.85
    %Mortgage-backed securities
    
    
    216,588
    
    
    
    1,871
    
    
    
    3.46
    
    
    
    209,577
    
    
    
    2,285
    
    
    
    4.36Loans receivable(2)
    
    
    685,663
    
    
    
    8,987
    
    
    
    5.24
    
    
    
    761,155
    
    
    
    9,999
    
    
    
    5.25Other interest-earning assets
    
    
    53,518
    
    
    
    17
    
    
    
    0.13
    
    
    
    46,351
    
    
    
    6
    
    
    
    0.05Total interest-earning assets
    
    
    1,093,699
    
    
    
    11,703
    
    
    
    4.28
    
    
    
    1,130,778
    
    
    
    13,101
    
    
    
    4.63Cash and non-interest bearing
balances
    
    
    18,067
    
    
    
    
    
    
    
    
    
    
    
    21,691Other non-interest-earning assets
    
    
    96,618
    
    
    
    
    
    
    
    
    
    
    
    94,921Total assets
    
    $
    1,208,384
    
    
    
    
    
    
    
    
    
    
    $
    1,247,390Interest-bearing liabilities:Deposits:Savings and money market accounts
    
    $
    311,794
    
    
    
    477
    
    
    
    0.61
    
    
    $
    274,438
    
    
    
    687
    
    
    
    1.00Checking accounts
    
    
    89,321
    
    
    
    5
    
    
    
    0.02
    
    
    
    80,630
    
    
    
    9
    
    
    
    0.04Certificate accounts
    
    
    427,328
    
    
    
    2,287
    
    
    
    2.14
    
    
    
    461,098
    
    
    
    2,593
    
    
    
    2.25Total deposits
    
    
    828,443
    
    
    
    2,769
    
    
    
    1.34
    
    
    
    816,166
    
    
    
    3,289
    
    
    
    1.61FHLB advances
    
    
    94,374
    
    
    
    875
    
    
    
    3.71
    
    
    
    143,740
    
    
    
    1,554
    
    
    
    4.32Other borrowings
    
    
    17,977
    
    
    
    21
    
    
    
    0.47
    
    
    
    20,018
    
    
    
    14
    
    
    
    0.28Total interest-bearing liabilities
    
    
    940,794
    
    
    
    3,665
    
    
    
    1.56
    
    
    
    979,924
    
    
    
    4,857
    
    
    
    1.98Non-interest-bearing liabilities:Non-interest-bearing demand
accounts
    
    
    43,978
    
    
    
    
    
    
    
    
    
    
    
    41,430Real estate tax escrow accounts
    
    
    3,416
    
    
    
    
    
    
    
    
    
    
    
    3,758Other liabilities
    
    
    7,334
    
    
    
    
    
    
    
    
    
    
    
    7,799Total liabilities
    
    
    995,522
    
    
    
    
    
    
    
    
    
    
    
    1,032,911Stockholders equity
    
    
    212,862
    
    
    
    
    
    
    
    
    
    
    
    214,479Total liabilities and stockholders
equity
    
    $
    1,208,384
    
    
    
    
    
    
    
    
    
    
    $
    1,247,390Net interest-earning assets
    
    $
    152,905
    
    
    
    
    
    
    
    
    
    
    $
    150,854Net interest income; average
interest rate spread
    
    
    
    
    
    $
    8,038
    
    
    
    2.72
    %
    
    
    
    
    
    $
    8,244
    
    
    
    2.65
    %Net interest margin(3)
    
    
    
    
    
    
    
    
    
    
    2.94
    %
    
    
    
    
    
    
    
    
    
    
    2.92
    %
 
 (1)
    
    Investment securities for the 2011 period include 123 tax-exempt municipal bonds with an
aggregate average balance of $38.9 million and an average yield of 3.9%. Investment securities
for the 2010 period include 133 tax-exempt municipal bonds with an aggregate average balance
of $40.9 million and an average yield of 3.9%. The tax-exempt income from such securities has
not been presented on a tax equivalent basis.(2)
    
    Includes non-accrual loans during the respective periods. Calculated net of deferred fees
and discounts and loans in process.(3)
    
    Equals net interest income divided by average interest-earning assets.  55




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##### Table of Contents



Provision for Loan Losses.
   56




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##### Table of Contents



March 31,
    
    
    December 31,
    
    
    March 31,2011
    
    
    2010
    
    
    2010(Dollars in Thousands)Non-accruing loans:One- to four-family residential
    
    $
    
    
    
    $
    
    
    
    $
    Multi-family residential and
commercial real estate(1)
    
    
    1,514
    
    
    
    1,348
    
    
    
    4,788Construction
    
    
    5,547
    
    
    
    5,664
    
    
    
    22,659Commercial business
    
    
    
    
    
    
    
    
    
    
    Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate
    
    
    
    
    
    
    
    
    
    
    Total non-accruing loans
    
    
    7,061
    
    
    
    7,012
    
    
    
    27,447Accruing loans 90 days or more past due:One- to four-family residential(2)
    
    
    1,028
    
    
    
    1,211
    
    
    
    29Multi-family residential and
commercial real estate
    
    
    
    
    
    
    725
    
    
    
    Construction
    
    
    14
    
    
    
    14
    
    
    
    10,535Commercial business
    
    
    
    
    
    
    
    
    
    
    Home equity lines of credit
    
    
    62
    
    
    
    76
    
    
    
    106Consumer non-real estate
    
    
    
    
    
    
    
    
    
    
    Total accruing loans 90 days or
more past due
    
    
    1,104
    
    
    
    2,026
    
    
    
    10,670Total non-performing loans(3)
    
    
    8,165
    
    
    
    9,038
    
    
    
    38,117Real estate owned, net
    
    
    23,628
    
    
    
    23,588
    
    
    
    21,817Total non-performing assets
    
    
    31,793
    
    
    
    32,626
    
    
    
    59,934Performing troubled debt restructurings:One- to four-family residential(4)
    
    
    219
    
    
    
    583
    
    
    
    Multi-family residential and
commercial real estate
    
    
    8,410
    
    
    
    8,417
    
    
    
    Construction
    
    
    3,439
    
    
    
    
    
    
    
    Commercial business
    
    
    
    
    
    
    
    
    
    
    Home equity lines of credit
    
    
    
    
    
    
    
    
    
    
    Consumer non-real estate
    
    
    
    
    
    
    
    
    
    
    Total performing troubled debt
restructurings
    
    
    12,068
    
    
    
    9,000
    
    
    
    Total non-performing assets and
performing troubled debt
restructurings
    
    $
    43,861
    
    
    $
    41,626
    
    
    $
    59,934Total non-performing loans as a
percentage of loans
    
    
    1.19
    %
    
    
    1.29
    %
    
    
    5.00
    %Total non-performing loans as a
percentage of total assets
    
    
    0.70
    %
    
    
    0.72
    %
    
    
    3.01
    %Total non-performing assets as a
percentage of total assets
    
    
    2.71
    %
    
    
    2.62
    %
    
    
    4.73
    %
 
 (1)
    
    Included in this category of non-accruing loans at March 31, 2011, December 31, 2010
and March 31, 2010 is one troubled debt restructuring with a balance of $1.3 million, $1.3
million, and $2.4 million at such date, respectively. See Note 4 in the Notes to the
Unaudited Consolidated Financial Statements herein.(2)
    
    Included in this category of non-accruing loans at March 31, 2011 is one troubled debt
restructuring with a balance of $219,000 at such date. See Note 4 in the Notes to the
Unaudited Consolidated Financial Statements herein.(3)
    
    Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more
past due.(4)
    
    Two performing troubled debt restructurings (TDRs) included in one- to four-family
residential real estate loans with an aggregate outstanding balance of $583,000 at March
31, 2010 were identified as a result of enhanced procedures, although no such balances were
previously reported at such date.  57




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##### Table of Contents



AllowanceAccruing
    
    
    for LoanType
    
    
    Loan Classification
    
    
    
    
    
    
    Loans 90
    
    
    LossesTotal
    
    
    
    
    
    
    One- to
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Days or
    
    
    Allocated toNo. of
    
    
    Balance
    
    
    Land
    
    
    Four-
    
    
    Multi-
    
    
    Commercial
    
    
    
    
    
    
    
    
    
    Special
    
    
    
    
    
    
    More Past
    
    
    ConstructionRange
    
    Loans
    
    
    Outstanding
    
    
    Only
    
    
    Family
    
    
    Family
    
    
    Real Estate
    
    
    Doubtful
    
    
    Substandard
    
    
    Mention
    
    
    Non-Accrual(1)
    
    
    Due
    
    
    Loans(Dollars in Thousands)Loans over $10.0 million
    
    
    1
    
    
    $
    20,457
    
    
    $
    
    
    
    $
    
    
    
    $
    20,457
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    20,457
    
    
    $
    
    
    
    $
    
    
    
    $
    Loans $5.0 million to $10.0 million
    
    
    4
    
    
    
    27,812
    
    
    
    
    
    
    
    13,160
    
    
    
    
    
    
    
    14,652
    
    
    
    
    
    
    
    8,877
    
    
    
    5,483
    
    
    
    
    
    
    
    
    
    
    
    867Loans $2.5 million to $5.0 million
    
    
    9
    
    
    
    30,330
    
    
    
    2,911
    
    
    
    14,991
    
    
    
    4,948
    
    
    
    7,480
    
    
    
    
    
    
    
    2,911
    
    
    
    8,774
    
    
    
    
    
    
    
    
    
    
    
    626Loans $1.0 million to $2.5 million
    
    
    13
    
    
    
    20,927
    
    
    
    4,482
    
    
    
    11,594
    
    
    
    
    
    
    
    4,851
    
    
    
    
    
    
    
    11,293
    
    
    
    1,255
    
    
    
    4,227
    
    
    
    
    
    
    
    825Loans under $1.0 million
    
    
    12
    
    
    
    4,253
    
    
    
    1,155
    
    
    
    1,979
    
    
    
    1,119
    
    
    
    
    
    
    
    
    
    
    
    1,773
    
    
    
    774
    
    
    
    1,320
    
    
    
    14
    
    
    
    246Total construction loans
    
    
    39
    
    
    $
    103,779
    
    
    $
    8,548
    
    
    $
    41,724
    
    
    $
    26,524
    
    
    $
    26,983
    
    
    $
    
    
    
    $
    24,854
    
    
    $
    36,743
    
    
    $
    5,547
    
    
    $
    14
    
    
    $
    2,564
 
 (1)
    
    All of the $5.5 million of non-accrual construction loans at March 31, 2011 were classified
substandard at such date.  58




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##### Table of Contents



Non-interest Income.
 Non-interest Expenses.
 Income Tax Expense.
 
 ITEM 3.
    
     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Asset/Liability Management and Market Risk.
   59




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##### Table of Contents



Gap Analysis.
  60




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##### Table of Contents



More than
    
    
    More than
    
    
    More than6 Months
    
    
    6 Months
    
    
    1 Year
    
    
    3 Years
    
    
    More than
    
    
    Totalor Less
    
    
    to 1 Year
    
    
    to 3 Years
    
    
    to 5 Years
    
    
    5 Years
    
    
    Amount(Dollars in Thousands)Interest-earning assets (1):Loans receivable (2)
    
    $
    243,076
    
    
    $
    40,996
    
    
    $
    140,153
    
    
    $
    103,031
    
    
    $
    150,015
    
    
    $
    677,271Mortgage-backed
securities
    
    
    38,613
    
    
    
    30,457
    
    
    
    78,842
    
    
    
    38,683
    
    
    
    25,045
    
    
    
    211,640Investment securities
    
    
    7,883
    
    
    
    1,420
    
    
    
    47,850
    
    
    
    70,015
    
    
    
    1,163
    
    
    
    128,331Other interest-earning
assets
    
    
    42,569
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42,569Total interest-earning
assets
    
    
    332,141
    
    
    
    72,873
    
    
    
    266,845
    
    
    
    211,729
    
    
    
    176,223
    
    
    
    1,059,811Interest-bearing liabilities:Savings and money market
accounts
    
    $
    72,467
    
    
    $
    72,467
    
    
    $
    64,903
    
    
    $
    53,089
    
    
    $
    44,267
    
    
    $
    307,193Checking accounts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    90,483
    
    
    
    90,483Certificate accounts
    
    
    144,796
    
    
    
    68,150
    
    
    
    73,719
    
    
    
    62,280
    
    
    
    63,537
    
    
    
    412,482FHLB advances
    
    
    17,652
    
    
    
    9,612
    
    
    
    25,786
    
    
    
    27,508
    
    
    
    3,309
    
    
    
    83,867Other borrowed money
    
    
    16,367
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,367Total interest-bearing
liabilities
    
    
    251,282
    
    
    
    150,229
    
    
    
    164,408
    
    
    
    142,877
    
    
    
    201,596
    
    
    
    910,392Interest-earning assets less
interest-bearing liabilities
    
    $
    80,859
    
    
    $
    (77,356
    )
    
    $
    102,437
    
    
    $
    68,852
    
    
    $
    (25,373
    )
    
    $
    149,419Cumulative interest-rate
sensitivity gap (3)
    
    $
    80,859
    
    
    $
    3,503
    
    
    $
    105,940
    
    
    $
    174,792
    
    
    $
    149,419Cumulative interest-rate
gap
as a percentage of total
assets at March 31, 2011
    
    
    6.89
    %
    
    
    0.30
    %
    
    
    9.03
    %
    
    
    14.90
    %
    
    
    12.73
    %Cumulative interest-earning
assets as a percentage of
cumulative interest-bearing
liabilities at March 31, 2011
    
    
    132.18
    %
    
    
    100.87
    %
    
    
    118.72
    %
    
    
    124.66
    %
    
    
    116.41
    %
 
 (1)
    
    Interest-earning assets are included in the period in which the balances are
expected to be redeployed and/or repriced as a result of anticipated prepayments,
scheduled rate adjustments and contractual maturities.(2)
    
    For purposes of the gap analysis, loans receivable includes non-performing
loans net of the allowance for loan losses, undisbursed loan funds, unamortized
discounts and deferred loan fees.(3)
    
    Interest-rate sensitivity gap represents the difference between net interest-earning
assets and interest-bearing liabilities.  61




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##### Table of Contents



ITEM 4.
    
     CONTROLS AND PROCEDURES
   
 PART II OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
 RSD Capital vs. Robert W. White, et al., C.A. No. 2011-06590
 Exum, et al. vs.
Robert W. White, et al., C.A. No. 110302814
  62




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##### Table of Contents



ITEM 1A.
    
    RISK FACTORS
  
 ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    Not applicable.
 (b)
    
    Not applicable.
 (c)
    
    Purchases of Equity Securities
  63




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##### Table of Contents



The Companys purchases of its common stock made during the quarter are set forth in the
following table.
 Total Number of
    
    
    Maximum NumberTotal
    
    
    
    
    
    
    Shares Purchased
    
    
    of Shares that MayNumber of
    
    
    Average
    
    
    as Part of Publicly
    
    
    Yet be PurchasedShares
    
    
    Price Paid
    
    
    Announced Plans
    
    
    Under the Plan orPeriod
    
    Purchased(1)
    
    
    per Share
    
    
    or Programs
    
    
    Programs(2)January 1, 
January 31, 2011
    
    
    22,232
    
    
    $
    12.45
    
    
    
    
    
    
    
    265,824February 1, 
February 28, 2011
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    March 1,  March
31, 2011
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    Total
    
    
    22,232
    
    
    $
    12.45
    
    
    
    
    
    
    
    
 
 (1)
    
    All 22,232 shares purchased during the quarter were purchased as permitted by the tax
withholding provisions of the Companys recognition and retention plan. In conjunction with
the plan, participants may elect to have a portion of their awarded shares withheld upon
vesting solely to pay for any related tax liabilities on these awards. The subject shares
were withheld directly from the amount that otherwise would become vested. There was no
transaction in the open market with respect to these withheld shares.(2)
    
    On January 14, 2010, the Company announced a stock repurchase program to repurchase up
to 5% of its outstanding shares, or 1,048,603 shares. This purchase program terminated
January 14, 2011 with 782,779 total shares purchased under the plan. 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4.
    
    (REMOVED AND RESERVED)
 
 ITEM 5.
    
    OTHER INFORMATION
  
 ITEM 6.
    
    EXHIBITS
 No.
    
    Description31.1
    
    
    Rule 13a-14(d) and 15d-14(d) Certification of the Chief Executive Officer.31.2
    
    
    Rule 13a-14(d) and 15d-14(d) Certification of the Chief Financial Officer.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.
  64




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##### Table of Contents



SIGNATURES
  ABINGTON BANCORP, INC.Date: May 10, 2011
    By:
    /s/ Robert W. WhiteRobert W. WhiteChairman, President and
Chief Executive OfficerDate: May 10, 2011
    By:
    /s/ Jack J. SandoskiJack J. SandoskiSenior Vice President and
Chief Financial Officer  65