| CECIL BANCORP, INC.                                    |
|--------------------------------------------------------|
| (Exact name of Registrant as specified in its charter) |

| Maryland                                                      |   | 52-1883546                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction ofIncorporation or organization) |   | (I.R.S. Employer Identification No.) |

| 127 North Street, Elkton, Maryland       |   | 21921      |   |
|------------------------------------------|--------|------------|--------|
| (Address of principal executive offices) |   | (Zip Code) |   |

| (410) 398-1650                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

|   | Large accelerated filer o |   | Accelerated filer o         |
|--------|---------------------------|--------|-----------------------------|
|   | Non-accelerated filer o   |   | Smaller reporting company x |

----

|                              |                                                                  | PAGE   |
|-----------------------------------|-----------------------------------------------------------------------|--------|
| PART I - FINANCIAL INFORMATION    |                                                                  |   |
|                              |                                                                  |   |
|     ITEM 1.   | Financial Statements (unaudited)                                      |   |   |
|                              |                                                                  |   |   |
|                              | Consolidated Balance Sheets -                                         |   | 3 |
|                              | March 31, 2011 and December 31, 2010                                  |   |   |
|                              |                                                                  |   |   |
|                              | Consolidated Statements of Operations and Comprehensive Income (Loss) |   | 4-5 |
|                              | for the Three Months Ended March 31, 2011 and 2010)                   |   |   |
|                              |                                                                  |   |   |
|                              | Consolidated Statements of Cash Flows                                 |   | 6 |
|                              | for the Three Months Ended March 31, 2011 and 2010 (Unaudited)        |   |   |
|                              |                                                                  |   |   |
|                              | Notes to Consolidated Financial Statements                            |   | 7-19 |
|                              |                                                                  |   |   |
|     ITEM 2.   | Management’s Discussion and Analysis of Financial Condition     |   | 20-27 |
|                              | and Results of Operations                                             |   |   |
|                              |                                                                  |   |
|     ITEM 3.   | Quantitative and Qualitative Disclosure About Market Risk             |   | 27 |
|                              |                                                                  |   |
|     ITEM 4T.  | Controls and Procedures                                               |   | 27 |
|                              |                                                                  |   |
| PART II – OTHER INFORMATION |                                                                  | 28-29  |
|                              |                                                                  |   |
| SIGNATURES                        |                                                                  | 30     |
|                              |                                                                  |   |
| CERTIFICATIONS                    |                                                                  | 31-34  |
|                              |                                                                  |   |

----

| ASSETS                                                    |   |        |          |   |         |   |
|-----------------------------------------------------------|--------|-------------|---------------|--------|--------------|--------|
|                                                      |   | March 31,   |          |   | December 31, |   |
|                                                      |   | 2011        |          |   | 2010         |   |
|                                                      |   | (unaudited) |          |   |         |   |
|                                                      |   |        |          |   |         |   |
| Cash and due from banks                                   |   | $           | 25,778        |   |         | $      | 27,603 |   |
| Interest bearing deposits with banks                      |   |        | 28,418        |   |         |   | 24,185 |   |
| Federal funds sold                                        |   |        | 133           |   |         |   | 181 |   |
| Cash and cash equivalents                                 |   |        | 54,329        |   |         |   | 51,969 |   |
| Investment securities:                                    |   |        |          |   |         |   |   |   |
| Securities available-for-sale at fair value               |   |        | 2,166         |   |         |   | 2,159 |   |
| Securities held-to-maturity (fair value of $12,819        |   |        |          |   |         |   |   |   |
| in 2011 and $9,383 in 2010)                               |   |        | 12,958        |   |         |   | 9,489 |   |
| Restricted investment securities – at cost          |   |        | 4,382         |   |         |   | 4,382 |   |
| Loans receivable                                          |   |        | 368,132       |   |         |   | 379,919 |   |
| Less: Allowance for loan losses                           |   |        | (15,386       | )      |         |   | (15,077 | ) |
| Net loans receivable                                      |   |        | 352,746       |   |         |   |  364,842 |   |
| Other real estate owned                                   |   |        | 19,483        |   |         |   | 17,994 |   |
| Premises and equipment, net                               |   |        | 11,652        |   |         |   | 11,625 |   |
| Accrued interest receivable                               |   |        | 1,538         |   |         |   | 1,754 |   |
| Other intangible assets                                   |   |        | 484           |   |         |   | 469 |   |
| Bank owned life insurance                                 |   |        | 8,124         |   |         |   | 8,078 |   |
| Deferred tax assets                                       |   |        | 10,278        |   |         |   | 10,270 |   |
| Other assets                                              |   |        | 4,231         |   |         |   | 4,164 |   |
| TOTAL ASSETS                                              |   | $           | 482,371       |   |         | $      | 487,195 |   |
|                                                      |   |        |          |   |         |   |   |   |
|                                                      |   |        |          |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                |   |        |          |   |         |   |   |   |
| LIABILITIES:                                              |   |        |          |   |         |   |   |   |
| Deposits                                                  |   | $           | 350,979       |   |         | $      | 358,138 |   |
| Other liabilities                                         |   |        | 12,175        |   |         |   | 9,780 |   |
| Junior subordinated debentures                            |   |        | 17,000        |   |         |   | 17,000 |   |
| Advances from Federal Home Loan Bank of Atlanta           |   |        | 63,500        |   |         |   | 63,500 |   |
| Other borrowed funds                                      |   |        | 1,169         |   |         |   | 1,169 |   |
| Total liabilities                                         |   |        |  444,823 |   |         |   | 449,587 |   |
|                                                      |   |        |          |   |         |   |   |   |
| STOCKHOLDERS’ EQUITY:                               |   |        |          |   |         |   |   |   |
| Preferred stock, $.01 par value; authorized 1,000,000     |   |        |          |   |         |   |   |   |
| shares, issued and outstanding 11,560 shares, liquidation |   |        |          |   |         |   |   |   |
| preference $1,000 per share, in 2011 and 2010             |   |        | 11,090        |   |         |   | 11,053 |   |
| Common stock, $.01 par value; authorized 10,000,000       |   |        |          |   |         |   |   |   |
| shares, issued and outstanding 3,703,358 shares in        |   |        |          |   |         |   |   |   |
| 2011 and 3,699,096 shares in 2010                         |   |        | 37            |   |         |   | 37 |   |
| Additional paid in capital                                |   |        | 12,288        |   |         |   | 12,277 |   |
| Retained earnings                                         |   |        | 14,093        |   |         |   | 14,188 |   |
| Accumulated other comprehensive income                    |   |        | 40            |   |         |   | 53 |   |
| Total stockholders’ equity                          |   |        | 37,548        |   |         |   | 37,608 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY          |   | $           | 482,371       |   |         | $      | 487,195 |   |

----

|                                                |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                |   |   |   |   |   |   |
| INTEREST INCOME:                                    |   |   |   |   |   |   |
| Interest and fees on loans                          |   | $      | 5,826  |   |   | $      | 6,954 |   |
| Interest on investment securities                   |   |   | 57     |   |   |   | 45 |   |
| Dividends on FHLB and FRB stock                     |   |   | 17     |   |   |   | 12 |   |
| Other interest-earning assets                       |   |   | 18     |   |   |   | 9 |   |
|                                                |   |   |   |   |   |   |   |   |
| Total interest income                               |   |   | 5,918  |   |   |   | 7,020 |   |
|                                                |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE:                                   |   |   |   |   |   |   |   |   |
| Interest expense on deposits                        |   |   | 1,261  |   |   |   | 1,934 |   |
| Interest expense on junior subordinated debentures  |   |   | 297    |   |   |   | 278 |   |
| Interest expense on advances from FHLB              |   |   | 607    |   |   |   | 608 |   |
| Interest expense on other borrowed funds            |   |   | 15     |   |   |   | - |   |
|                                                |   |   |   |   |   |   |   |   |
| Total interest expense                              |   |   | 2,180  |   |   |   | 2,820 |   |
|                                                |   |   |   |   |   |   |   |   |
| NET INTEREST INCOME                                 |   |   | 3,738  |   |   |   | 4,200 |   |
|                                                |   |   |   |   |   |   |   |   |
| PROVISION FOR LOAN LOSSES                           |   |   | 500    |   |   |   | 910 |   |
|                                                |   |   |   |   |   |   |   |   |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |   |   | 3,238  |   |   |   | 3,290 |   |
|                                                |   |   |   |   |   |   |   |   |
| NONINTEREST INCOME:                                 |   |   |   |   |   |   |   |   |
| Deposit account fees                                |   |   | 134    |   |   |   | 147 |   |
| ATM fees                                            |   |   | 106    |   |   |   | 98 |   |
| Commission income                                   |   |   | 1      |   |   |   | 1 |   |
| Gain on sale of loans                               |   |   | 57     |   |   |   | 14 |   |
| (Loss) gain on sale of other real estate owned      |   |   | (5     | )      |   |   | 48 |   |
| Loss on investments                                 |   |   | (50    | )      |   |   | - |   |
| Income from bank owned life insurance               |   |   | 46     |   |   |   | 28 |   |
| Other                                               |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |
| Total noninterest income                            |   |   | 363    |   |   |   | 427 |   |
|                                                |   |   |   |   |   |   |   |   |
| NONINTEREST EXPENSE:                                |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                      |   |   | 1,284  |   |   |   | 1,333 |   |
| Occupancy expense                                   |   |   | 223    |   |   |   | 220 |   |
| Equipment and data processing expense               |   |   | 298    |   |   |   | 318 |   |
| FDIC deposit insurance premium                      |   |   | 192    |   |   |   | 153 |   |
| Other real estate owned expense and valuation       |   |   | 696    |   |   |   | 48 |   |
| Other                                               |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |
| Total noninterest expense                           |   |   | 3,474  |   |   |   | 2,641 |   |
|                                                |   |   |   |   |   |   |   |   |
| NET INCOME BEFORE INCOME TAXES                      |   |   | 127    |   |   |   | 1,076 |   |
|                                                |   |   |   |   |   |   |   |   |
| INCOME TAX EXPENSE                                  |   |   | 41     |   |   |   | 425 |   |
|                                                |   |   |   |   |   |   |   |   |
| NET INCOME (CARRIED FORWARD)                        |   | $      | 86     |   |   | $      | 651 |   |

----

|                                               |   | 2011   |   |   | 2010   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |   |
| NET INCOME (BROUGHT FORWARD)                       |   | $      | 86     |   |   | $      | 651 |   |
|                                               |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME                         |   |   |   |   |   |   |   |   |
| Unrealized (losses) gains on                       |   |   |   |   |   |   |   |   |
| investment securities,                             |   |   |   |   |   |   |   |   |
| net of deferred taxes                              |   |   | (13    | )      |   |   |  15 |   |
|                                               |   |   |   |   |   |   |   |   |
| TOTAL COMPREHENSIVE INCOME                         |   | $      | 73     |   |   | $      | 666 |   |
|                                               |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |
| NET INCOME                                         |   | $      | 86     |   |   | $      | 651 |   |
|                                               |   |   |   |   |   |   |   |   |
| PREFERRED STOCK DIVIDENDS AND DISCOUNT ACCRETION   |   |   | (181   | )      |   |   |  (179 | ) |
|                                               |   |   |   |   |   |   |   |   |
| NET (LOSS) INCOME AVAILABLE TO COMMON STOCKHOLDERS |   | $      | (95    | )      |   | $      | 472 |   |
|                                               |   |   |   |   |   |   |   |   |
| (Loss) earnings per common share - basic           |   | $      | (0.03  | )      |   | $      | 0.13 |   |
|                                               |   |   |   |   |   |   |   |   |
| (Loss) earnings per common share - diluted         |   | $      | (0.03  | )      |   | $      | 0.13 |   |
|                                               |   |   |   |   |   |   |   |   |
| Dividends declared per common share                |   | $      | 0.000  |   |   | $      | 0.000 |   |

----

|                                                             |   |   | 2011       |   |   |   | 2010   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|
|                                                             |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                            |   |   |       |   |   |   |   |   |
| Net income                                                       |   | $      | 86         |   |   | $      | 651    |   |
| Adjustments to reconcile net income to net cash                  |   |   |       |   |   |   |   |   |
|    provided by (used in) operating activities:    |   |   |       |   |   |   |   |   |
| Depreciation and amortization                                    |   |   | 178        |   |   |   | 151    |   |
| Provision for loan losses                                        |   |   | 500        |   |   |   | 910    |   |
| Gain on sale of loans                                            |   |   | (57        | )      |   |   | (14    | )      |
| Loss (gain) on sale of other real estate owned                   |   |   | 5          |   |   |   | (48    | )      |
| Loss on investments                                              |   |   | 50         |   |   |   | -      |   |
| Loss on premises and equipment                                   |   |   | 1          |   |   |   | -      |   |
| Increase in cash surrender value of bank owned life insurance    |   |   | (46        | )      |   |   | (28    | )      |
| Restricted stock awards                                          |   |   | -          |   |   |   | 1      |   |
| Excess servicing rights                                          |   |   | (33        | )      |   |   | (8     | )      |
| Origination of loans held for sale                               |   |   | (2,745     | )      |   |   | (744   | )      |
| Proceeds from sales of loans held for sale                       |   |   | 2,776      |   |   |   | 751    |   |
| Net change in:                                                   |   |   |       |   |   |   |   |   |
| Accrued interest receivable and other assets                     |   |   | 963        |   |   |   | 240    |   |
| Other liabilities                                                |   |   | 604        |   |   |   | (1,872 | )      |
| Net cash provided by (used in) operating activities              |   |   | 2,282      |   |   |   | (10    | )      |
|                                                             |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                            |   |   |       |   |   |   |   |   |
| Purchases of investment securities available-for-sale            |   |   | (109       | )      |   |   | -      |   |
| Purchases of investment securities held-to-maturity              |   |   | (3,898     | )      |   |   | (3,950 | )      |
| Proceeds from sales, maturities, calls and principal payments of |   |   |       |   |   |   |   |   |
|    investment securities available-for-sale       |   |   | 80         |   |   |   | 2      |   |
| Proceeds from maturities, calls and principal payments of        |   |   |       |   |   |   |   |   |
|    investment securities held-to-maturity         |   |   | 1,987      |   |   |   | 848    |   |
| Net decrease in loans                                            |   |   | 9,130      |   |   |   | 2,052  |   |
| Proceeds from sale of other real estate owned                    |   |   | 185        |   |   |   | 526    |   |
| Proceeds from premises and equipment                             |   |   | 9          |   |   |   | -      |   |
| Purchases of premises and equipment                              |   |   |  (157 | )      |   |   | (69    | )      |
| Net cash provided by (used in) investing activities              |   |   | 7,227      |   |   |   | (591   | )      |
|                                                             |   |   |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                            |   |   |       |   |   |   |   |   |
| Net (decrease) increase in deposits                              |   |   | (7,159     | )      |   |   | 4,386  |   |
| Net increase in other borrowed funds                             |   |   | -          |   |   |   | 1,169  |   |
| Proceeds from issuance of common stock                           |   |   | 10         |   |   |   | -      |   |
| Net cash (used in) provided by financing activities              |   |   | (7,149     | )      |   |   | 5,555  |   |
|                                                             |   |   |       |   |   |   |   |   |
| INCREASE IN CASH AND CASH EQUIVALENTS                            |   |   | 2,360      |   |   |   | 4,954  |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                 |   |   | 51,969     |   |   |   | 35,464 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                       |   | $      | 54,329     |   |   | $      | 40,418 |   |
|                                                             |   |   |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:               |   |   |       |   |   |   |   |   |
|                                                             |   |   |       |   |   |   |   |   |
| Cash paid for income taxes                                       |   | $      | -          |   |   | $      | 1,560  |   |
| Cash paid for interest                                           |   | $      | 1,888      |   |   | $      | 2,566  |   |
| Transfer from loans to other real estate owned                   |   | $      | 2,492      |   |   | $      | 1,172  |   |

----

----

|                                               |   | 2011   |      | 2010   |             |
|----------------------------------------------------|--------|--------|-----------|--------|--------------------------------------------------------------------|
|    BASIC AND DILUTED:               |   |   |      |   |                                                               |   |   |
| Net income                                         |   | $      | 86,000    |   | $                                                                  | 651,000 |   |
| Preferred stock dividends and discount accretion   |   |   | (181,000  | )      |                                                               |  (179,000 | ) |
| Net (loss) income available to common stockholders |   | $      | (95,000   | )      | $                                                                  | 472,000 |   |
|                                               |   |   |      |   |                                                               |   |   |
| Average common shares outstanding                  |   |   | 3,700,220 |   |                                                               | 3,689,346 |   |
| Basic and diluted net (loss) income per share      |   | $      | (0.03     | )      | $                                                                  | 0.13 |   |

|                          |   | Three Months Ended |   | Year Ended                             |    |
|-------------------------------|--------|--------------------|--------|----------------------------------------|---------|
|                          |   | March 31, 2011     |   | December 31, 2010                      |    |
|                          |   | Shares             |   | Weighted Average Grant Date Fair Value |    | Shares |   | Weighted Average Grant Date Fair Value |   |
|                          |   |               |   |                                   |    |   |   |   |   |   |   |
| Unvested at beginning of year |   | 58,144             |   | $                                      | 4.00    |   | 60,125 |   | $ | 4.00 |   |
| Forfeited                     |   | —            |   |                                   | — |   | (408 | ) |   | 4.00 |   |
| Awarded                       |   | —            |   |                                   | — |   | — |   |   |  — |   |
| Released                      |   | —            |   |                                   | — |   | (1,573 | ) |   | 4.00 |   |
|                          |   |               |   |                                   |    |   |   |   |   |   |   |
| Unvested at end of period     |   | 58,144             |   | $                                      | 4.00    |   | 58,144 |   | $ | 4.00 |   |
|                          |   |               |   |                                   |    |   |   |   |   |   |   |

----

|                                                                          |   | Fair Value Measurements at Reporting Date Using |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| Description                                                                   |   | CarryingValue                                   |   |   | Quoted Pricesin ActiveMarkets ForIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|    March 31, 2011                                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |
|    Investment securities                                       |   |                                            |   |   |   |   |   |   |   |   |   |   |
|   available-for-sale                                                |   |                                            |   |   |   |   |   |   |   |   |   |   |
|   Mutual funds – mortgage securities                          |   | $                                               | 711    |   |   | $ | 711 |   |   | $ | — |   |   | $ | — |   |
|   Mutual funds – U.S. Government                              |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Securities                                      |   |                                            | 675    |   |   |   | 675 |   |   |   | — |   |   |   | — |   |
|   Equity Securities                                                 |   |                                            | 341    |   |   |   | 341 |   |   |   | — |   |   |   | — |   |
|   Mortgage-backed securities                                        |   |                                            | 439    |   |   |   | — |   |   |   | 439 |   |   |   | — |   |
|                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total investment securities    available-for-sale |   | $                                               | 2,166  |   |   | $ | 1,727 |   |   | $ | 439 |   |   | $ | — |   |
|                                                                          |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                             |   | Fair Value Measurements at Reporting Date Using |   |
|------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| Description                                                      |   | CarryingValue                                   |   |   | Quoted Pricesin ActiveMarkets ForIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|    December 31, 2010                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |
|    Investment securities                               |   |                                            |   |   |   |   |   |   |   |   |   |   |
|   available-for-sale                                   |   |                                            |   |   |   |   |   |   |   |   |   |   |
|     Mutual funds – mortgage securities |   | $                                               | 714    |   |   | $ | 714 |   |   | $ | — |   |   | $ | — |   |
|     Mutual funds – U.S. Government     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Securities                   |   |                                            | 676    |   |   |   | 676 |   |   |   | — |   |   |   | — |   |
|     Equity Securities                        |   |                                            | 359    |   |   |   | 359 |   |   |   | — |   |   |   | — |   |
|     Mortgage-backed securities               |   |                                            | 410    |   |   |   | — |   |   |   | 410 |   |   |   | — |   |
|                                                             |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total investment securities  available-for-sale  |   | $                                               | 2,159  |   |   | $ | 1,749 |   |   | $ | 410 |   |   | $ | — |   |

----

|                                 |   | Fair Value Measurements at Reporting Date Using |   |
|--------------------------------------|--------|-------------------------------------------------|--------|
|                                 |   |                                            |   |   | Quoted Prices |   |   |   |   |   |   |   |
|                                 |   |                                            |   |   | In Active |   |   | Significant |   |   |   |   |
|                                 |   |                                            |   |   | Markets for |   |   | Other |   |   | Significant |   |
|                                 |   |                                            |   |   | Identical |   |   | Observable |   |   | Unobservable |   |
|                                 |   | Carrying                                        |   |   | Assets |   |   | Inputs |   |   | Inputs |   |
| Description                          |   | Value                                           |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                 |   |                                            |   |   |   |   |   |   |   |   |   |   |
|    Other real estate owned |   | $                                               | 19,483 |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 19,483 |   |
|    Impaired loans          |   |                                            | 54,239 |   |   |   | 0 |   |   |   | 0 |   |   |   | 54,239 |   |

----

|                                                     |   | Carrying |    | Fair   |                     |
|----------------------------------------------------------|--------|----------|---------|--------|--------------------------|
|                                                     |   | Value    |    | Value  |      |
|    Financial assets:                           |   |     |    |   |                     |   |   |
|     Cash and cash equivalents        |   | $        | 54,329  |   | $                        | 54,329 |   |
|     Investment securities:           |   |     |    |   |                     |   |   |
| Available-for-sale                                       |   |     | 2,166   |   |                     | 2,166 |   |
| Held-to-maturity                                         |   |     | 12,958  |   |                     | 12,819 |   |
|     Loans receivable                 |   |     | 368,132 |   |                     | 435,702 |   |
|     Restricted investment securities |   |     | 4,382   |   |                     | 4,382 |   |
|     Accrued interest receivable      |   |     | 1,538   |   |                     | 1,538 |   |
|    Financial liabilities:                      |   |     |    |   |                     |   |   |
|     Deposits                         |   |     | 350,979 |   |                     | 322,546 |   |
|     Junior subordinated debentures   |   |     | 17,000  |   |                     | 16,959 |   |
|     Advances from FHLB               |   |     | 63,500  |   |                     | 63,722 |   |
|     Other borrowed funds             |   |     | 1,169   |   |                     | 1,168 |   |

|                                                     |   | Carrying |    | Fair   |   |
|----------------------------------------------------------|--------|----------|---------|--------|--------|
|                                                     |   | Value    |    | Value  |   |
|    Financial assets:                           |   |     |    |   |   |   |   |
|     Cash and cash equivalents        |   | $        | 51,969  |   | $      | 51,969 |   |
|     Investment securities:           |   |     |    |   |   |   |   |
| Available-for-sale                                       |   |     | 2,159   |   |   | 2,159 |   |
| Held-to-maturity                                         |   |     | 9,489   |   |   | 9,383 |   |
|     Loans receivable                 |   |     | 379,919 |   |   | 455,262 |   |
|     Restricted investment securities |   |     | 4,382   |   |   | 4,382 |   |
|     Accrued interest receivable      |   |     | 1,754   |   |   | 1,754 |   |
|    Financial liabilities:                      |   |     |    |   |   |   |   |
|     Deposits                         |   |     | 358,138 |   |   | 328,870 |   |
|     Junior subordinated debentures   |   |     | 17,000  |   |   | 16,959 |   |
|     Advances from FHLB               |   |     | 63,500  |   |   | 63,788 |   |
|     Other borrowed funds             |   |     | 1,169   |   |   | 1,168 |   |

----

|                                      |   | March 31, 2011 |   |
|-------------------------------------------|--------|----------------|--------|
|                                      |   |           |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                      |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                      |   | Cost           |   |   | Gains |   |   | Losses |   |   | Value |   |
|    Available-for-Sale:          |   |           |   |   |   |   |   |   |   |   |   |   |
| Mutual funds - mortgage securities        |   | $              | 747    |   |   | $ | 7 |   |   | $ | 43 |   |   | $ | 711 |   |
| Mutual funds - U.S. Government securities |   |           | 686    |   |   |   | — |   |   |   | 11 |   |   |   | 675 |   |
| Equity securities                         |   |           | 226    |   |   |   | 115 |   |   |   | — |   |   |   | 341 |   |
| Residential mortgage-backed securities    |   |           | 443    |   |   |   | 3 |   |   |   | 7 |   |   |   | 439 |   |
|                                      |   | $              | 2,102  |   |   | $ | 125 |   |   | $ | 61 |   |   | $ | 2,166 |   |
|                                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Held-to-Maturity:            |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities    |   | $              | 7,139  |   |   | $ | 3 |   |   | $ | 127 |   |   | $ | 7,015 |   |
| SBA securitized loan pools                |   |           | 570    |   |   |   | — |   |   |   | 9 |   |   |   | 561 |   |
| Other debt securities                     |   |           | 4,500  |   |   |   | — |   |   |   | 7 |   |   |   | 4,493 |   |
| U. S. Treasury securities and obligations |   |           | 749    |   |   |   | 1 |   |   |   | — |   |   |   | 750 |   |
|                                      |   | $              | 12,958 |   |   | $ | 4 |   |   | $ | 143 |   |   | $ | 12,819 |   |

|                                      |   | December 31, 2010 |   |
|-------------------------------------------|--------|-------------------|--------|
|                                      |   |              |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                      |   | Amortized         |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                      |   | Cost              |   |   | Gains |   |   | Losses |   |   | Value |   |
|    Available-for-Sale:          |   |              |   |   |   |   |   |   |   |   |   |   |
| Mutual funds - mortgage securities        |   | $                 | 747    |   |   | $ | 10 |   |   | $ | 43 |   |   | $ | 714 |   |
| Mutual funds - U.S. Government securities |   |              | 686    |   |   |   | — |   |   |   | 10 |   |   |   | 676 |   |
| Equity securities                         |   |              | 226    |   |   |   | 133 |   |   |   | — |   |   |   | 359 |   |
| Residential mortgage-backed securities    |   |              | 414    |   |   |   | — |   |   |   | 4 |   |   |   | 410 |   |
|                                      |   | $                 | 2,073  |   |   | $ | 143 |   |   | $ | 57 |   |   | $ | 2,159 |   |
|                                      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Held-to-Maturity:            |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                                     |   | $                 | 50     |   |   | $ | — |   |   |   | — |   |   | $ | 50 |   |
| Residential mortgage-backed securities    |   |              | 8,689  |   |   |   | 8 |   |   |   | 114 |   |   |   | 8,583 |   |
| U. S. Treasury securities and obligations |   |              | 750    |   |   |   | — |   |   |   | — |   |   |   | 750 |   |
|                                      |   | $                 | 9,489  |   |   | $ | 8 |   |   | $ | 114 |   |   | $ | 9,383 |   |

----

|                                                                                                             |   | Less than 12 Months |    |   | More than 12 Months |   |    | Total  |   |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|--------|--------|
|                                                                                                             |   | Fair                |    |   | Unrealized          |   |    | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                                                                             |   | Value               |    |   | Losses              |   |    | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
|    Available-for-Sale:                                                                                 |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |
|     Mutual funds - mortgage securities                                                       |   | $                   | — |   |                | $      | — |   |   | $ | 133 |   |   | $ | 43 |   |   | $ | 133 |   |   | $ | 43 |   |
|     Mutual funds - U.S. Government        securities |   |                | — |   |                |   | — |   |   |   | 675 |   |   |   | 11 |   |   |   | 675 |   |   |   | 11 |   |
|     Residential ,mortgage-backed        securities   |   |                | 40      |   |                |   | 6       |   |   |   | 266 |   |   |   | 1 |   |   |   | 306 |   |   |   | 7 |   |
|  Held-to-Maturity:                                                                                          |   |                |    |   |                |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential mortgage-backed        securities    |   |                | 3,548   |   |                |   | 76      |   |   |   | 3,000 |   |   |   | 51 |   |   |   | 6,548 |   |   |   | 127 |   |
|     SBA securitized loan pools                                                               |   |                | 561     |   |                |   | 9       |   |   |   | — |   |   |   | — |   |   |   | 561 |   |   |   | 9 |   |
|     Other debt securities                                                                    |   |                | 2,493   |   |                |   | 7       |   |   |   | — |   |   |   | — |   |   |   | 2,493 |   |   |   | 7 |   |
|                                                                                                             |   | $                   | 6,642   |   |                | $      | 98      |   |   | $ | 4,074 |   |   | $ | 106 |   |   | $ | 10,716 |   |   | $ | 204 |   |

| Credit Quality Indicators                         |   |
|---------------------------------------------------|--------|
| As of March 31, 2011                              |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                              |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit risk profile by internally assigned grade: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass                                              |   | $ | 30,022 |   |   | $ | 96,490 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 106,456 |   |   | $ | 10,872 |   |   | $ | 3,468 |   |   | $ | 256,483 |   |
| Special mention                                   |   |   | 8,063 |   |   |   | 2,764 |   |   |   | - |   |   |   | - |   |   |   | 8,228 |   |   |   | 1,249 |   |   |   | - |   |   |   | 20,304 |   |
| Substandard                                       |   |   | 34,896 |   |   |   | 16,397 |   |   |   | - |   |   |   | - |   |   |   | 38,690 |   |   |   | 1,201 |   |   |   | 161 |   |   |   | 91,345 |   |
| Total                                             |   | $ | 72,981 |   |   | $ | 115,651 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 153,374 |   |   | $ | 13,322 |   |   | $ | 3,629 |   |   | $ | 368,132 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit risk profile based on payment activity:    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performing                                        |   | $ | 48,335 |   |   | $ | 99,282 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 130,285 |   |   | $ | 12,856 |   |   | $ | 3,625 |   |   | $ | 303,558 |   |
| Nonperforming                                     |   |   | 24,646 |   |   |   | 16,369 |   |   |   | - |   |   |   | - |   |   |   | 23,089 |   |   |   | 466 |   |   |   | 4 |   |   |   | 64,574 |   |
| Total                                             |   | $ | 72,981 |   |   | $ | 115,651 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 153,374 |   |   | $ | 13,322 |   |   | $ | 3,629 |   |   | $ | 368,132 |   |

----

| Credit Quality Indicators                         |   |
|---------------------------------------------------|--------|
| As of December 31, 2010                           |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                              |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit risk profile by internally assigned grade: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass                                              |   | $ | 44,036 |   |   | $ | 99,084 |   |   | $ | 5,123 |   |   | $ | 4,156 |   |   | $ | 110,880 |   |   | $ | 12,305 |   |   | $ | 3,628 |   |   | $ | 279,212 |   |
| Special mention                                   |   |   | 4,787 |   |   |   | 2,919 |   |   |   | - |   |   |   | - |   |   |   | 19,466 |   |   |   | 464 |   |   |   | - |   |   |   | 27,636 |   |
| Substandard                                       |   |   | 28,619 |   |   |   | 15,090 |   |   |   | - |   |   |   | - |   |   |   | 28,453 |   |   |   | 744 |   |   |   | 165 |   |   |   | 73,071 |   |
| Total                                             |   | $ | 77,442 |   |   | $ | 117,093 |   |   | $ | 5,123 |   |   | $ | 4,156 |   |   | $ | 158,799 |   |   | $ | 13,513 |   |   | $ | 3,793 |   |   | $ | 379,919 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Credit risk profile based on payment activity:    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performing                                        |   | $ | 51,484 |   |   | $ | 103,447 |   |   | $ | 4,832 |   |   | $ | 4,156 |   |   | $ | 131,671 |   |   | $ | 12,994 |   |   | $ | 3,632 |   |   | $ | 312,216 |   |
| Nonperforming                                     |   |   | 25,958 |   |   |   | 13,646 |   |   |   | 291 |   |   |   | - |   |   |   | 27,128 |   |   |   | 519 |   |   |   | 161 |   |   |   | 67,703 |   |
| Total                                             |   | $ | 77,442 |   |   | $ | 117,093 |   |   | $ | 5,123 |   |   | $ | 4,156 |   |   | $ | 158,799 |   |   | $ | 13,513 |   |   | $ | 3,793 |   |   | $ | 379,919 |   |

| Age Analysis of Past Due Loans Receivable     |   |
|-----------------------------------------------|--------|
| As of March 31, 2011                          |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                          |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30-59 Days Past Due                           |   | $ | - |   |   | $ | 7,218 |   |   | $ | - |   |   | $ | - |   |   | $ | 757 |   |   | $ | 3 |   |   | $ | 4 |   |   | $ | 7,982 |   |
| 60-89 Days Past Due                           |   |   | 3,367 |   |   |   | 421 |   |   |   | - |   |   |   | - |   |   |   | 4,503 |   |   |   | 19 |   |   |   | - |   |   |   | 8,310 |   |
| Greater Than 90 Days Past Due                 |   |   | 21,279 |   |   |   | 8,730 |   |   |   | - |   |   |   | - |   |   |   | 17,829 |   |   |   | 444 |   |   |   | - |   |   |   | 48,282 |   |
| Total Past Due                                |   |   | 24,646 |   |   |   | 16,369 |   |   |   | - |   |   |   | - |   |   |   | 23,089 |   |   |   | 466 |   |   |   | 4 |   |   |   | 64,574 |   |
| Current                                       |   |   | 48,335 |   |   |   | 99,282 |   |   |   | 5,311 |   |   |   | 3,864 |   |   |   | 130,285 |   |   |   | 12,856 |   |   |   | 3,625 |   |   |   | 303,558 |   |
| Total Loans Receivable                        |   | $ | 72,981 |   |   | $ | 115,651 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 153,374 |   |   | $ | 13,322 |   |   | $ | 3,629 |   |   | $ | 368,132 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded Investment > 90 Days and Accruing |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

| Age Analysis of Past Due Loans Receivable     |   |
|-----------------------------------------------|--------|
| As of December 31, 2010                       |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                          |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30-59 Days Past Due                           |   | $ | 2,831 |   |   | $ | 3,025 |   |   | $ | - |   |   | $ | - |   |   | $ | 5,302 |   |   | $ | 49 |   |   | $ | - |   |   | $ | 11,207 |   |
| 60-89 Days Past Due                           |   |   | - |   |   |   | 1,203 |   |   |   | - |   |   |   | - |   |   |   | 6,405 |   |   |   | 444 |   |   |   | - |   |   |   | 8,052 |   |
| Greater Than 90 Days Past Due                 |   |   | 19,103 |   |   |   | 7,986 |   |   |   | - |   |   |   | - |   |   |   | 19,766 |   |   |   | - |   |   |   | - |   |   |   | 46,855 |   |
| Total Past Due                                |   |   | 21,934 |   |   |   | 12,214 |   |   |   | - |   |   |   | - |   |   |   | 31,473 |   |   |   | 493 |   |   |   | - |   |   |   | 66,114 |   |
| Current                                       |   |   | 55,508 |   |   |   | 104,879 |   |   |   | 5,123 |   |   |   | 4,156 |   |   |   | 127,326 |   |   |   | 13,020 |   |   |   | 3,793 |   |   |   | 313,805 |   |
| Total Loans Receivable                        |   | $ | 77,442 |   |   | $ | 117,093 |   |   | $ | 5,123 |   |   | $ | 4,156 |   |   | $ | 158,799 |   |   | $ | 13,513 |   |   | $ | 3,793 |   |   | $ | 379,919 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded Investment > 90 Days and Accruing |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

| Allowance for Loan Losses and Recorded Investment in Loans Receivable |   |
|-----------------------------------------------------------------------|--------|
| For the Three Months Ended March 31, 2011                             |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Unallocated |   |   | Total |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning  balance                                          |   | $ | 7,268 |   |   | $ | 1,480 |   |   | $ | 51 |   |   | $ | - |   |   | $ | 4,455 |   |   | $ | 637 |   |   | $ | 174 |   |   | $ | 1,012 |   |   | $ | 15,077 |   |
| Charge-offs                                                           |   |   | (125 | ) |   |   | (58 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10 | ) |   |   | (12 | ) |   |   | - |   |   |   | (205 | ) |
| Recoveries                                                            |   |   | - |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6 |   |   |   | - |   |   |   | 14 |   |
| Provision                                                             |   |   | 41 |   |   |   | 514 |   |   |   | (19 | ) |   |   | - |   |   |   | (597 | ) |   |   | 445 |   |   |   | 6 |   |   |   | 110 |   |   |   | 500 |   |
| Ending balance                                                        |   | $ | 7,184 |   |   | $ | 1,944 |   |   | $ | 32 |   |   | $ | - |   |   | $ | 3,858 |   |   | $ | 1,072 |   |   | $ | 174 |   |   | $ | 1,122 |   |   | $ | 15,386 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance individually evaluated for impairment                  |   | $ | 1,950 |   |   | $ | 620 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,900 |   |   | $ | 984 |   |   | $ | 160 |   |   | $ | - |   |   | $ | 6,614 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance collectively evaluated for impairment                  |   | $ | 5,234 |   |   | $ | 1,324 |   |   | $ | 32 |   |   | $ | - |   |   | $ | 958 |   |   | $ | 88 |   |   | $ | 14 |   |   | $ | 1,122 |   |   | $ | 8,772 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                        |   | $ | 72,981 |   |   | $ | 115,651 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 153,374 |   |   | $ | 13,322 |   |   | $ | 3,629 |   |   | $ | - |   |   | $ | 368,132 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance individually evaluated for impairment                  |   | $ | 34,896 |   |   | $ | 16,397 |   |   | $ | - |   |   | $ | - |   |   | $ | 38,690 |   |   | $ | 1,201 |   |   | $ | 161 |   |   | $ | - |   |   | $ | 91,345 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance collectively evaluated for impairment                  |   | $ | 38,085 |   |   | $ | 99,254 |   |   | $ | 5,311 |   |   | $ | 3,864 |   |   | $ | 114,684 |   |   | $ | 12,121 |   |   | $ | 3,468 |   |   | $ | - |   |   | $ | 276,787 |   |

----

| Allowance for Loan Losses and Recorded Investment in Loans Receivable |   |
|-----------------------------------------------------------------------|--------|
| For the Year Ended December 31, 2010                                  |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Unallocated |   |   | Total |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                |   | $ | 6,360 |   |   | $ | 2,168 |   |   | $ | 45 |   |   | $ | - |   |   | $ | 3,079 |   |   | $ | 357 |   |   | $ | 52 |   |   | $ | 2,290 |   |   | $ | 14,351 |   |
| Charge-offs                                                           |   |   | (2,431 | ) |   |   | (1,235 | ) |   |   | - |   |   |   | - |   |   |   | (866 | ) |   |   | (100 | ) |   |   | (94 | ) |   |   | - |   |   |   | (4,726 | ) |
| Recoveries                                                            |   |   | - |   |   |   | 56 |   |   |   | - |   |   |   | - |   |   |   | 25 |   |   |   | 1 |   |   |   | 30 |   |   |   | - |   |   |   | 112 |   |
| Provision                                                             |   |   | 3,339 |   |   |   | 491 |   |   |   | 6 |   |   |   | - |   |   |   | 2,217 |   |   |   | 379 |   |   |   | 186 |   |   |   | (1,278 | ) |   |   | 5,340 |   |
| Ending balance                                                        |   | $ | 7,268 |   |   | $ | 1,480 |   |   | $ | 51 |   |   | $ | - |   |   | $ | 4,455 |   |   | $ | 637 |   |   | $ | 174 |   |   | $ | 1,012 |   |   | $ | 15,077 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance individually evaluated for impairment                  |   | $ | 1,926 |   |   | $ | 515 |   |   | $ | - |   |   | $ | - |   |   | $ | 3,116 |   |   | $ | 540 |   |   | $ | 161 |   |   | $ | - |   |   | $ | 6,258 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance collectively evaluated for impairment                  |   | $ | 5,342 |   |   | $ | 965 |   |   | $ | 51 |   |   | $ | - |   |   | $ | 1,339 |   |   | $ | 97 |   |   | $ | 13 |   |   | $ | 1,012 |   |   | $ | 8,819 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                        |   | $ | 77,442 |   |   | $ | 117,093 |   |   | $ | 5,123 |   |   | $ | 4,156 |   |   | $ | 158,799 |   |   | $ | 13,513 |   |   | $ | 3,793 |   |   | $ | - |   |   | $ | 379,919 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance individually evaluated for impairment                  |   | $ | 28,619 |   |   | $ | 15,090 |   |   | $ | - |   |   | $ | - |   |   | $ | 28,453 |   |   | $ | 744 |   |   | $ | 165 |   |   | $ | - |   |   | $ | 73,071 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance collectively evaluated for impairment                  |   | $ | 48,823 |   |   | $ | 102,003 |   |   | $ | 5,123 |   |   | $ | 4,156 |   |   | $ | 130,346 |   |   | $ | 12,769 |   |   | $ | 3,628 |   |   | $ | - |   |   | $ | 306,848 |   |

| Loans Receivable on Nonaccrual Status       |   |
|---------------------------------------------|--------|
| As of March 31, 2011                        |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                        |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                    |   | $ | 25,618 |   |   | $ | 8,730 |   |   | $ | - |   |   | $ | - |   |   | $ | 19,447 |   |   | $ | 444 |   |   | $ | - |   |   | $ | 54,239 |   |
|  Loans Receivable on Nonaccrual Status |   |
| As of December 31, 2010                     |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |   |   |
|                                        |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                    |   | $ | 24,972 |   |   | $ | 8,432 |   |   | $ | - |   |   | $ | - |   |   | $ | 21,016 |   |   | $ | - |   |   | $ | - |   |   | $ | 54,420 |   |

----

| Loan Modifications                                        |   |
|-----------------------------------------------------------|--------|
| As of March 31, 2011                                      |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                                      |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Troubled Debt Restructurings:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of Loans                                           |   |   | 1 |   |   |   | 19 |   |   |   | 1 |   |   |   | - |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 23 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-Modification Principal Balance                        |   | $ | 984 |   |   | $ | 4,164 |   |   | $ | 290 |   |   | $ | - |   |   | $ | 2,227 |   |   | $ | - |   |   | $ | - |   |   | $ | 7,665 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Post-Modification Principal Balance                       |   | $ | 984 |   |   | $ | 4,125 |   |   | $ | 290 |   |   | $ | - |   |   | $ | 2,166 |   |   | $ | - |   |   | $ | - |   |   | $ | 7,565 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Troubled Debt Restructurings That Subsequently Defaulted: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of Loans                                           |   |   | - |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 8 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Principal Balance                                 |   | $ | - |   |   | $ | 2,843 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,339 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,182 |   |

|  Loan Modifications                                  |   |
|-----------------------------------------------------------|--------|
| As of December 31, 2010                                   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                                      |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Troubled Debt Restructurings:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of Loans                                           |   |   | - |   |   |   | 23 |   |   |   | 1 |   |   |   | 1 |   |   |   | 7 |   |   |   | 1 |   |   |   | 1 |   |   |   | 34 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-Modification Principal Balance                        |   | $ | - |   |   | $ | 9,051 |   |   | $ | 290 |   |   | $ | 984 |   |   | $ | 9,262 |   |   | $ | 527 |   |   | $ | 162 |   |   | $ | 20,276 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Post-Modification Principal Balance                       |   | $ | - |   |   | $ | 8,118 |   |   | $ | 291 |   |   | $ | 986 |   |   | $ | 9,071 |   |   | $ | 519 |   |   | $ | 161 |   |   | $ | 19,146 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Troubled Debt Restructurings That Subsequently Defaulted: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of Loans                                           |   |   | - |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 8 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Principal Balance                                 |   | $ | - |   |   | $ | 2,904 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,342 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,246 |   |

----

| Impaired Loans                                      |   |
|-----------------------------------------------------|--------|
| As of and For the Three Months Ended March 31, 2011 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                                |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans With a Valuation Allowance:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                            |   | $ | 2,848 |   |   | $ | 1,926 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,077 |   |   | $ | 444 |   |   | $ | - |   |   | $ | 14,295 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related Allowance for Loan Losses                   |   | $ | 1,466 |   |   | $ | 314 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,065 |   |   | $ | 444 |   |   | $ | - |   |   | $ | 4,289 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Recorded Investment                         |   | $ | 3,303 |   |   | $ | 1,687 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,536 |   |   | $ | 222 |   |   | $ | - |   |   | $ | 14,748 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income Recognized                          |   | $ | - |   |   | $ | 6 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 6 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Without a Valuation Allowance:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                            |   | $ | 22,770 |   |   | $ | 6,804 |   |   | $ | - |   |   | $ | - |   |   | $ | 10,370 |   |   | $ | - |   |   | $ | - |   |   | $ | 39,944 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related Allowance for Loan Losses                   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Recorded Investment                         |   | $ | 21,992 |   |   | $ | 6,894 |   |   | $ | - |   |   | $ | - |   |   | $ | 10,696 |   |   | $ | - |   |   | $ | - |   |   | $ | 39,582 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income Recognized                          |   | $ | 59 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 59 |   |   | $ | - |   |   | $ | - |   |   | $ | 118 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Totals:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                            |   | $ | 25,618 |   |   | $ | 8,730 |   |   | $ | - |   |   | $ | - |   |   | $ | 19,447 |   |   | $ | 444 |   |   | $ | - |   |   | $ | 54,239 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related Allowance for Loan Losses                   |   | $ | 1,466 |   |   | $ | 314 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,065 |   |   | $ | 444 |   |   | $ | - |   |   | $ | 4,289 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Recorded Investment                         |   | $ | 25,295 |   |   | $ | 8,581 |   |   | $ | - |   |   | $ | - |   |   | $ | 20,232 |   |   | $ | 222 |   |   | $ | - |   |   | $ | 54,330 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income Recognized                          |   | $ | 59 |   |   | $ | 6 |   |   | $ | - |   |   | $ | - |   |   | $ | 59 |   |   | $ | - |   |   | $ | - |   |   | $ | 124 |   |

----

| Impaired Loans                                 |   |
|------------------------------------------------|--------|
| As of and For the Year Ended December 31, 2010 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   | 1-4 Family |   |   | Multi-Family |   |   |   |   |   | Commercial |   |   | Commercial |   |   |   |   |   |   |   |
|                                           |   | Construction |   |   | Residential |   |   | Residential |   |   | Land |   |   | Real Estate |   |   | Business |   |   | Consumer |   |   | Total |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans With a Valuation Allowance:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                       |   | $ | 3,758 |   |   | $ | 1,448 |   |   | $ | - |   |   | $ | - |   |   | $ | 9,995 |   |   | $ | - |   |   | $ | - |   |   | $ | 15,201 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related Allowance for Loan Losses              |   | $ | 1,749 |   |   | $ | 258 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,284 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,291 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Recorded Investment                    |   | $ | 3,725 |   |   | $ | 1,100 |   |   | $ | - |   |   | $ | - |   |   | $ | 6,842 |   |   | $ | - |   |   | $ | - |   |   | $ | 11,667 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income Recognized                     |   | $ | 2 |   |   | $ | 19 |   |   | $ | - |   |   | $ | - |   |   | $ | 377 |   |   | $ | - |   |   | $ | - |   |   | $ | 398 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Without a Valuation Allowance:           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                       |   | $ | 21,214 |   |   | $ | 6,984 |   |   | $ | - |   |   | $ | - |   |   | $ | 11,021 |   |   | $ | - |   |   | $ | - |   |   | $ | 39,219 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related Allowance for Loan Losses              |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Recorded Investment                    |   | $ | 20,717 |   |   | $ | 6,753 |   |   | $ | - |   |   | $ | - |   |   | $ | 7,617 |   |   | $ | 131 |   |   | $ | - |   |   | $ | 35,218 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income Recognized                     |   | $ | 707 |   |   | $ | 262 |   |   | $ | - |   |   | $ | - |   |   | $ | 391 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,360 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Totals:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unpaid Principal Balance                       |   | $ | 24,972 |   |   | $ | 8,432 |   |   | $ | - |   |   | $ | - |   |   | $ | 21,016 |   |   | $ | - |   |   | $ | - |   |   | $ | 54,420 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Related Allowance for Loan Losses              |   | $ | 1,749 |   |   | $ | 258 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,284 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,291 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Recorded Investment                    |   | $ | 24,442 |   |   | $ | 7,853 |   |   | $ | - |   |   | $ | - |   |   | $ | 14,459 |   |   | $ | 131 |   |   | $ | - |   |   | $ | 46,885 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income Recognized                     |   | $ | 709 |   |   | $ | 281 |   |   | $ | - |   |   | $ | - |   |   | $ | 768 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,758 |   |

----

----

----

----

----

|                                                  |   | March 31, 2011 |    | December 31, 2010 |    |
|-------------------------------------------------------|--------|----------------|---------|-------------------|---------|
|                                                  |   | Amount         |    |              | Percent |   |   | Amount |   |   | Percent |   |
| Type of Loan                                          |   |           |    |              |    |   |   |   |   |   |   |   |
| Real estate loans:                                    |   |           |    |              |    |   |   |   |   |   |   |   |
|   Construction                              |   | $              | 72,981  |              |    |   | 19.82 | % |   | $ | 77,442 |   |   |   | 20.38 | % |
|   1-4 family residential and home equity    |   |           | 115,651 |              |    |   | 31.42 |   |   |   | 117,093 |   |   |   | 30.82 |   |
|   Multi-family residential                  |   |           | 5,311   |              |    |   | 1.44 |   |   |   | 5,123 |   |   |   | 1.35 |   |
|   Land                                      |   |           | 3,864   |              |    |   | 1.05 |   |   |   | 4,156 |   |   |   | 1.09 |   |
|   Commercial                                |   |           | 153,374 |              |    |   | 41.66 |   |   |   | 158,799 |   |   |   | 41.80 |   |
|      Total real estate loans |   |           | 351,181 |              |    |   | 95.39 |   |   |   | 362,613 |   |   |   | 95.44 |   |
| Commercial business loans                             |   |           | 13,322  |              |    |   | 3.62 |   |   |   | 13,513 |   |   |   | 3.56 |   |
| Consumer loans                                        |   |           | 3,629   |              |    |   | 0.99 |   |   |   | 3,793 |   |   |   | 1.00 |   |
|      Gross loans             |   |           | 368,132 |              |    |   | 100.00 | % |   |   | 379,919 |   |   |   | 100.00 | % |
| Less:  allowance for loan losses            |   |           | (15,386 | )                 |    |   |   |   |   |   | (15,077 | ) |   |   |   |   |
|      Net loans               |   | $              | 352,746 |              |    |   |   |   |   | $ | 364,842 |   |   |   |   |   |

|                                              |   | March 31, |   |   | December 31, |                                                                                               |
|---------------------------------------------------|--------|-----------|--------|--------|--------------|----------------------------------------------------------------------------------------------------|
|  (Dollars in thousands)                      |   | 2011      |   |   | 2010         |                                                                                               |
|                                              |   |      |   |   |         |                    |
| Nonaccrual loans                                  |   | $         | 54,239 |   |         | $                                                                                                  | 54,420 |   |
| Loans 90 days or more past due and still accruing |   |      | 0      |   |         |                                                                                               | 0 |   |
| Restructured loans                                |   |      | 17,025 |   |         |                                                                                               | 13,283 |   |
| Total nonperforming loans                         |   |      | 71,264 |   |         |                                                                                               | 67,703 |   |
| Other real estate owned, net                      |   |      | 19,483 |   |         |                                                                                               | 17,994 |   |
| Total nonperforming assets                        |   | $         | 90,747 |   |         | $                                                                                                  | 85,697 |   |
| Nonperforming loans to total loans                |   |      | 19.36  | %      |         |                                                                                               | 17.82 | % |
| Nonperforming assets to total assets              |   |      | 18.81  |   |         |                                                                                               | 17.59 |   |
| Allowance for loan losses to non-performing loans |   |      | 21.59  |   |         |                                                                                               | 22.27 |   |
|                                              |   |      |   |   |         |                                                                                               |   |   |

----

----

|                                              |   | Three Months Ended |   | Year Ended        |   |
|--------------------------------------------------------|--------|--------------------|--------|-------------------|--------|
|    (Dollars in thousands)                    |   | March 31, 2011     |   | December 31, 2010 |   |
|                                                   |   |               |   |              |   |   |   |
|    Balance of allowance, beginning of period |   | $                  | 15,077 |              | $      | 14,351 |           |
|    Loan charge-offs:                         |   |               |   |              |   |   |   |
|     Real estate                    |   |               | (183   | )                 |   | (4,532 | ) |
|     Commercial loans               |   |               | (10    | )                 |   | (100 | ) |
|     Consumer                       |   |               | (12    | )                 |   | (94 | ) |
|     Total charge-offs              |   |               | (205   | )                 |   | (4,726 | ) |
|    Loan recoveries:                          |   |               |   |              |   |   |   |
|     Real estate                    |   |               | 8      |              |   | 81 |   |
|     Commercial loans               |   |               | 0      |              |   | 1 |   |
|     Consumer                       |   |               | 6      |              |   | 30 |   |
|     Total recoveries               |   |               | 14     |              |   | 112 |   |
|    Net charge-offs                           |   |               | (191   | )                 |   | (4,614 | ) |
|    Provision for loan losses                 |   |               | 500    |              |   | 5,340 |   |
|    Balance of allowance, end of period       |   | $                  | 15,386 |              | $      | 15,077 |   |
|                                                   |   |               |   |              |   |   |   |
|    Net charge-offs to average loans          |   |               | 0.21   | %                 |   | 1.14 | % |
|    Allowance to total loans                  |   |               | 4.18   |              |   | 3.97 |   |
|    Allowance to non-performing loans         |   |               | 21.59  |              |   | 22.27 |   |

|                                         |   | March 31, 2011 |    |   | December 31, 2010 |   |
|----------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                         |   | Amount         |    |   | Percent           |   |   | Amount |   |   | Percent |   |
|                                         |   |           |    |   |              |   |   |   |   |   |   |   |
| Regular checking                             |   | $              | 23,852  |   |              |   | 6.80 | % |   | $ | 26,614 |   |   |   | 7.43 | % |
| NOW accounts                                 |   |           | 32,444  |   |              |   | 9.24 |   |   |   | 30,941 |   |   |   | 8.64 |   |
| Passbook savings                             |   |           | 11,194  |   |              |   | 3.19 |   |   |   | 11,346 |   |   |   | 3.17 |   |
| Statement savings                            |   |           | 10,619  |   |              |   | 3.02 |   |   |   | 10,115 |   |   |   | 2.82 |   |
| Money market                                 |   |           | 11,993  |   |              |   | 3.42 |   |   |   | 11,851 |   |   |   | 3.31 |   |
| Holiday club                                 |   |           | 143     |   |              |   | 0.04 |   |   |   | 76 |   |   |   | 0.02 |   |
| Certificates of deposit                      |   |           | 230,249 |   |              |   | 65.60 |   |   |   | 239,188 |   |   |   | 66.79 |   |
| IRA certificates of deposit                  |   |           | 24,777  |   |              |   | 7.06 |   |   |   | 24,364 |   |   |   | 6.80 |   |
| Money market certificates                    |   |           | 5,708   |   |              |   | 1.63 |   |   |   | 3,643 |   |   |   | 1.02 |   |
|      Total deposits |   | $              | 350,979 |   |              |   | 100.00 | % |   | $ | 358,138 |   |   |   | 100.00 | % |

----

|                                         |   |   |   |   |   |   |   | Regulatory Minimum |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------------------|--------|
|                                         |   | 2011   |   |   | 2010   |   |   | Well               |   |   | Adequately |   |
|                                         |   | Actual |   |   | Actual |   |   | Capitalized        |   |   | Capitalized |   |
|                                         |   |   |   |   |   |   |   |               |   |   |   |   |
|    Total risk-based capital ratio  |   |   |   |   |   |   |   |               |   |   |   |   |
| Consolidated                                 |   |   | 15.23  | %      |   |   | 14.47  | %                  |   |   | 10.00 | % |   |   | 8.00 | % |
| The Bank                                     |   |   | 15.30  |   |   |   | 14.49  | %                  |   |   | 10.00 |   |   |   | 8.00 |   |
|                                         |   |   |   |   |   |   |   |               |   |   |   |   |   |   |   |   |
|    Tier 1 risk-based capital ratio |   |   |   |   |   |   |   |               |   |   |   |   |   |   |   |   |
| Consolidated                                 |   |   | 12.74  | %      |   |   | 12.03  | %                  |   |   | 6.00 | % |   |   | 4.00 | % |
| The Bank                                     |   |   | 10.65  |   |   |   | 9.93   | %                  |   |   | 6.00 |   |   |   | 4.00 |   |
|                                         |   |   |   |   |   |   |   |               |   |   |   |   |   |   |   |   |
|    Tier 1 leverage ratio           |   |   |   |   |   |   |   |               |   |   |   |   |   |   |   |   |
| Consolidated                                 |   |   | 9.91   | %      |   |   | 9.53   | %                  |   |   | 5.00 | % |   |   | 4.00 | % |
| The Bank                                     |   |   | 8.288  |   |   |   | 7.87   | %                  |   |   | 5.00 |   |   |   | 4.00 |   |

----

| Exhibit No. | Description                                                                                                                                                                                                                                                  | Incorporated by Reference to:                                                                                                                                                  |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         | Articles of Incorporation of Cecil Bancorp, Inc.                                                                                                                                                                                                             | Exhibit 3.1 to Quarterly Report on Form 10-Q for the quarter ended June 30, 2008                                                                                               |
| 3.2         | Bylaws of Cecil  Bancorp, Inc.                                                                                                                                                                                                                     | Exhibit 3.2 to Annual Report on Form 10-K for the year ended December 31, 2009, SEC File No. 0-24926.                                                                          |
| 3.3    | Articles Supplementary for Fixed Rate Cumulative Perpetual Preferred Stock, Series A                                                                                                                                                                    | Exhibit 3.1 to Current Report on Form 8-K filed December 23, 2008.                                                                                                             |
| 4.1         | Form of Common Stock Certificate                                                                                                                                                                                                                             | Exhibit 4 to Registration Statement on Form  S-1 (File No. 33-81374)                                                                                                 |
| 4.2         | Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A                                                                                                                                                                       | Exhibit 4.1 to Current Report on Form 8-K filed December 23, 2008.                                                                                                             |
| 4.3         | Warrant for Purchase of Shares of Common Stock                                                                                                                                                                                                               | Exhibit 4.2 to Current Report on Form 8-K filed December 23, 2008.                                                                                                             |
| 4.4         | Amended and Restated Trust Agreement, dated as of March 23, 2006, among Cecil Bancorp, Inc., as depositor, Wilmington Trust Company, as property and Delaware Trustee, and Charles F. Sposato, Mary B. Halsey and Jennifer Carr, as administrative trustees. | Not filed in accordance with the provisions of Item 601(b)(4)(iii) of Regulation S-K. The Registrant agrees to provide a copy of this document to the Commission upon request. |

----

| Exhibit No. | Description                                                                                                                                                                                                                                                          | Incorporated by Reference to:                                                                                                                                                  |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.5         | Junior Subordinated Indenture, dated as of March 23, 2006 between Cecil Bancorp, Inc. and Wilmington Trust Company, as Trustee.                                                                                                                                      | Not filed in accordance with the provisions of Item 601(b)(4)(iii) of Regulation S-K. The Registrant agrees to provide a copy of this document to the Commission upon request. |
| 4.6         | Guarantee Agreement, dated as of March 23, 2006, between Cecil Bancorp, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee.                                                                                                                      | Not filed in accordance with the provisions of Item 601(b)(4)(iii) of Regulation S-K. The Registrant agrees to provide a copy of this document to the Commission upon request. |
| 4.7         | Amended and Restated Declaration of Trust, dated as of November 30, 2006 by and among Wilmington Trust Company, as Delaware and institutional trustee, Cecil Bancorp, Inc., as sponsor, and Charles F. Sposato, Mary B. Halsey and Jennifer Carr, as administrators. | Exhibit 10.3 to Current Report on Form 8-K filed December 4, 2006.                                                                                                             |
| 4.8         | Indenture, dated as of November 30, 2006, between Cecil Bancorp, Inc. and Wilmington Trust Company, as trustee.                                                                                                                                                      | Exhibit 10.1 to Current Report on Form 8-K filed December 4, 2006.                                                                                                             |
| 4.9         | Guarantee Agreement, dated as of November 30, 2006, between Cecil Bancorp, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee.                                                                                                                   | Exhibit 10.4 to Current Report on Form 8-K filed December 4, 2006.                                                                                                             |
| 31          | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                                                                                                              |                                                                                                                                                                           |
| 32          | 18 U.S.C. Section 1350 Certifications                                                                                                                                                                                                                                |                                                                                                                                                                           |

----

|                                            |   | CECIL BANCORP, INC. |
|-------------------------------------------------|--------|---------------------|
|    Date:  May 13, 2011 |   | By:                 | /s/ Mary B. Halsey |
|                                            |   |                | Mary B. HalseyPresident and Chief Executive Officer(Duly Authorized Officer |
|    Date:  May 13, 2011 |   | By:                 | /s/ Robert Lee Whitehead |
|                                            |   |                | Robert Lee WhiteheadVice President and Chief Financial Officer(Principal Financial and Accounting Officer) |