| FROM: |   | TO: |   |
|-------|--------|-----|--------|

| South Carolina                                                 | 57-0858504                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

| YES | X |   | NO |   |
|-----|---|--------|----|--------|

|   | Large accelerated filed              [  ]                 | Accelerated filer                             [  ]  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Non-accelerated filer                [  ]  | Smaller reporting company      [X]                                                                                                                                                    |

| YES |   |   | NO | X |
|-----|--------|--------|----|---|

| CLASS:                                  |   | OUTSTANDING SHARES AT: |   | SHARES:   |
|-----------------------------------------|--------|------------------------|--------|-----------|
| Common Stock, par value $0.01 per share |   | February 11, 2011      |   | 2,944,001 |

----

|     |                                                                                                                                           |   |     |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| PART I.  | FINANCIAL INFORMATION (UNAUDITED)                                                                                                              |   | PAGE NO. |
|     |                                                                                                                                           |   |     |
| Item 1.  | Financial Statements (Unaudited):                                                                                                              |   |     |
|     |                                                                                                                                           |   |     |
|     | Consolidated Balance Sheets at December 31, 2010 and March 31, 2010                                                                            |   | 1        |
|     |                                                                                                                                           |   |     |
|     | Consolidated Statements of Income for the Three and Nine Months Ended December 31, 2010 and 2009                                               |   | 2        |
|     |                                                                                                                                           |   |     |
|     | Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Income for the Nine Months Ended December 31, 2010 and 2009 |   | 4        |
|     |                                                                                                                                           |   |     |
|     | Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2010 and 2009                                                     |   | 5        |
|     |                                                                                                                                           |   |     |
|     | Notes to Consolidated Financial Statements                                                                                                     |   | 7        |
|     |                                                                                                                                           |   |     |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                    |   | 25       |
|     |                                                                                                                                           |   |     |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                                                                                     |   | 42       |
|     |                                                                                                                                           |   |     |
| Item 4.  | Controls and Procedures                                                                                                                        |   | 42       |
|     |                                                                                                                                           |   |     |
|     |                                                                                                                                           |   |     |
| PART II. | OTHER INFORMATION                                                                                                                              |   |     |
|     |                                                                                                                                           |   |     |
| Item 1.  | Legal Proceedings                                                                                                                              |   | 43       |
|     |                                                                                                                                           |   |     |
| Item 1A. | Risk Factors                                                                                                                                   |   | 43       |
|     |                                                                                                                                           |   |     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                    |   | 44       |
|     |                                                                                                                                           |   |     |
| Item 3.  | Defaults Upon Senior Securities                                                                                                                |   | 44       |
|     |                                                                                                                                           |   |     |
| Item 4.  | (Removed and Reserved)                                                                                                                         |   | 44       |
|     |                                                                                                                                           |   |     |
| Item 5.  | Other Information                                                                                                                              |   | 44       |
|     |                                                                                                                                           |   |     |
| Item 6.  | Exhibits                                                                                                                                       |   | 44       |
|     |                                                                                                                                           |   |     |
|     | Signatures                                                                                                                                     |   | 46       |
|     |                                                                                                                                           |   |     |

----

|                                                                                                                                                                                                                                                                                                                                                                       |               | December 31, 2010                  |               | March 31, 2010                                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------------------------------|--------------------|------------------------------------------------------------------|
| Assets:                                                                                                                                                                                                                                                                                                                                                                    |               | (Unaudited)                        |               | (Audited)                                                        |
| Cash And Cash Equivalents                                                                                                                                                                                                                                                                                                                                                  | $                  | 8,604,915                          | $                  | 8,804,645                                                        |
| Certificates Of Deposits With Other Banks                                                                                                                                                                                                                                                                                                                                  |               | 100,000                            |               | -                                                                |
| Investment And Mortgage-Backed Securities:                                                                                                                                                                                                                                                                                                                                 |               |                               |               |                                                             |
| Available For Sale:     (Amortized cost of $313,436,672 at December 31, 2010 and                                        $284,831,441 at March 31, 2010)            |               |  320,033,387                  |               |  292,261,039                                                |
| Held To Maturity:       (Fair value of $15,406,440 at December 31, 2010 and $19,854,106 at                                         March 31, 2010)  |               |  14,351,155                   |               |  18,785,380                                                 |
| Total Investment And Mortgage-Backed Securities                                                                                                                                                                                                                                                                                                                            |               | 334,384,542                        |               | 311,046,419                                                      |
| Loans Receivable, Net:                                                                                                                                                                                                                                                                                                                                                     |               |                               |               |                                                             |
| Held For Sale                                                                                                                                                                                                                                                                                                                                                              |               | 13,500,063                         |               | 3,161,463                                                        |
| Held For Investment:   (Net of allowance of $12,408,796 at December 31, 2010 and                                          $12,307,394 at March 31, 2010) |               |  506,022,938                  |               |  565,237,372                                                |
| Total Loans Receivable, Net                                                                                                                                                                                                                                                                                                                                                |               | 519,523,001                        |               | 568,398,835                                                      |
| Accrued Interest Receivable:                                                                                                                                                                                                                                                                                                                                               |               |                               |               |                                                             |
| Loans                                                                                                                                                                                                                                                                                                                                                                      |               | 1,802,435                          |               | 1,787,471                                                        |
| Mortgage-Backed Securities                                                                                                                                                                                                                                                                                                                                                 |               | 870,095                            |               | 964,380                                                          |
| Investments                                                                                                                                                                                                                                                                                                                                                                |               | 924,484                            |               | 703,339                                                          |
| Premises And Equipment, Net                                                                                                                                                                                                                                                                                                                                                |               |     20,172,623 |               | 20,720,484                                                       |
| Federal Home Loan Bank Stock, At Cost                                                                                                                                                                                                                                                                                                                                      |               | 11,267,485                         |               | 12,624,400                                                       |
| Bank Owned Life Insurance                                                                                                                                                                                                                                                                                                                                                  |               | 10,306,305                         |               | 10,001,305                                                       |
| Repossessed Assets Acquired In Settlement Of Loans                                                                                                                                                                                                                                                                                                                         |               | 14,977,764                         |               |          10,773,050 |
| Intangible Assets, Net                                                                                                                                                                                                                                                                                                                                                     |               | 182,000                            |               | 249,500                                                          |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                   |               | 1,199,754                          |               | 1,199,754                                                        |
| Other Assets                                                                                                                                                                                                                                                                                                                                                               |               | 8,135,631                          |               | 8,728,076                                                        |
| Total Assets                                                                                                                                                                                                                                                                                                                                                               | $                  | 932,451,034                        | $                  | 956,001,658                                                      |
|                                                                                                                                                                                                                                                                                                                                                                       |               |                               |               |                                                             |
| Liabilities And Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                 |               |                               |               |                                                             |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                               |               |                               |               |                                                             |
| Deposit Accounts                                                                                                                                                                                                                                                                                                                                                           | $                  | 689,294,592                        | $                  | 694,252,437                                                      |
| Advances From Federal Home Loan Bank (“FHLB”)                                                                                                                                                                                                                                                                                                                  |               | 137,890,420                        |               | 164,003,882                                                      |
| Other Borrowed Money                                                                                                                                                                                                                                                                                                                                                       |               | 11,225,060                         |               | 12,060,470                                                       |
| Advance Payments By Borrowers For Taxes And Insurance                                                                                                                                                                                                                                                                                                                      |               | 220,913                            |               | 327,332                                                          |
| Mandatorily Redeemable Financial Instrument                                                                                                                                                                                                                                                                                                                                |               | 1,658,312                          |               | 1,663,312                                                        |
| Senior Convertible Debentures                                                                                                                                                                                                                                                                                                                                              |               | 6,084,000                          |               | 6,084,000                                                        |
| Junior Subordinated Debentures                                                                                                                                                                                                                                                                                                                                             |               | 5,155,000                          |               | 5,155,000                                                        |
| Other Liabilities                                                                                                                                                                                                                                                                                                                                                          |               | 4,511,338                          |               | 4,594,606                                                        |
| Total Liabilities                                                                                                                                                                                                                                                                                                                                                          |               | 856,039,635                        |               | 888,141,039                                                      |
|                                                                                                                                                                                                                                                                                                                                                                       |               |                               |               |                                                             |
| Shareholders' Equity:                                                                                                                                                                                                                                                                                                                                                      |               |                               |               |                                                             |
|     Serial Preferred Stock, $.01 Par Value; Authorized Shares – 200,000; Issued And Outstanding          Shares, 22,000 and 18,000 At December 31, 2010 And March 31, 2010, Respectively                                                                                                                      |               |  22,000,000                   |               |  17,692,609                                                 |
|     Common Stock, $.01 Par Value; Authorized Shares – 5,000,000; Issued And Outstanding         Shares -3,144,934 And 2,944,001, Respectively, At December 31, 2010; And 2,662,028 And         2,461,095, Respectively, At March 31, 2010                                       |   30,884 |                               |   26,055 |
|     Warrant Issued In Conjunction With Serial Preferred Stock                                                                                                                                                                                                                                                                                               |               | 400,000                            |               | 400,000                                                          |
|     Additional Paid-In Capital                                                                                                                                                                                                                                                                                                                              |               | 10,201,218                         |               | 5,352,144                                                        |
|     Treasury Stock, (At Cost, 200,933 Shares, At December 31, 2010 And March 31,2010)                                                                                                                                                                                                                                                                       |               | (4,330,712)                        |               | (4,330,712)                                                      |
|     Accumulated Other Comprehensive Income                                                                                                                                                                                                                                                                                                                  |               | 4,091,533                          |               | 4,608,080                                                        |
|     Retained Earnings, Substantially Restricted                                                                                                                                                                                                                                                                                                             |               | 44,018,476                         |               | 44,112,443                                                       |
| Total Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                 |               | 76,411,399                         |               | 67,860,619                                                       |
| Total Liabilities And Shareholders' Equity                                                                                                                                                                                                                                                                                                                                 | $                  | 932,451,034                        | $                  | 956,001,658                                                      |

----

|                                                               |   | Three Months Ended December 31,                                                                                          |
|--------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|
|                                                               |   | 2010                                                                                                                     |   | 2009 |
| Interest Income:                                                   |   |                                                                                                                     |   |   |
| Loans                                                              | $      | 8,011,236                                                                                                                | $ | 8,899,817 |
| Mortgage-Backed Securities                                         |   | 1,966,515                                                                                                                |   | 2,789,088 |
| Investment Securities                                              |   | 579,571                                                                                                                  |   | 555,733 |
| Other                                                              |   | 1,956                                                                                                                    |   | 46 |
| Total Interest Income                                              |   | 10,559,278                                                                                                               |   | 12,244,684 |
|                                                               |   |                                                                                                                     |   |   |
| Interest Expense:                                                  |   |                                                                                                                     |   |   |
| NOW And Money Market Accounts                                      |   | 459,440                                                                                                                  |   | 637,225 |
| Statement Savings Accounts                                         |   |                    13,134 |   |                    19,202 |
| Certificate Accounts                                               |   | 1,846,667                                                                                                                |   | 2,342,602 |
| Advances And Other Borrowed Money                                  |   | 1,382,049                                                                                                                |   | 1,634,734 |
| Convertible Senior Debentures                                      |   | 121,680                                                                                                                  |   | 40,560 |
| Junior Subordinated Debentures                                     |   | 58,451                                                                                                                   |   | 58,431 |
| Total Interest Expense                                             |   | 3,881,421                                                                                                                |   | 4,732,754 |
|                                                               |   |                                                                                                                     |   |   |
| Net Interest Income                                                |   | 6,677,857                                                                                                                |   | 7,511,930 |
| Provision For Loan Losses                                          |   | 1,900,000                                                                                                                |   | 2,475,000 |
| Net Interest Income After Provision For Loan Losses                |   | 4,777,857                                                                                                                |   | 5,036,930 |
| Non-Interest Income:                                               |   |                                                                                                                     |   |   |
| Gain On Sale Of Investments                                        |   | 492,975                                                                                                                  |   | 300,976 |
| Gain On Sale Of Loans                                              |   | 334,713                                                                                                                  |   | 215,080 |
| Loss On Sale Of Repossessed Assets Acquired In Settlement Of Loans |   | (35,580)                                                                                                                 |   | (3,742) |
| Service Fees On Deposit Accounts                                   |   | 289,810                                                                                                                  |   | 347,164 |
| Income From Cash Value Of Life Insurance                           |   | 105,000                                                                                                                  |   | 90,000 |
| Commissions From Insurance Agency                                  |   | 92,619                                                                                                                   |   | 94,544 |
| Other Agency Income                                                |   | 91,742                                                                                                                   |   | 108,302 |
| Trust Income                                                       |   | 109,500                                                                                                                  |   | 105,000 |
| Mandatorily Redeemable Financial Instrument Valuation              |   | 90,000                                                                                                                   |   | (65,000) |
| Other                                                              |   | 173,603                                                                                                                  |   | 236,120 |
| Total Non-Interest Income                                          |   | 1,744,382                                                                                                                |   | 1,428,444 |
|                                                               |   |                                                                                                                     |   |   |
| General And Administrative Expenses:                               |   |                                                                                                                     |   |   |
| Salaries And Employee Benefits                                     |   | 3,016,325                                                                                                                |   | 3,007,360 |
| Occupancy                                                          |   | 439,374                                                                                                                  |   | 497,423 |
| Advertising                                                        |   | 97,491                                                                                                                   |   | 102,946 |
| Depreciation And Maintenance Of Equipment                          |   | 453,291                                                                                                                  |   | 433,734 |
| FDIC Insurance Premiums                                            |   | 366,000                                                                                                                  |   | 366,000 |
| Amortization of Intangibles                                        |   | 22,500                                                                                                                   |   | 22,500 |
| Other                                                              |   | 1,443,441                                                                                                                |   | 1,078,312 |
| Total General And Administrative Expenses                          |   | 5,838,422                                                                                                                |   | 5,508,275 |
|                                                               |   |                                                                                                                     |   |   |
| Income Before Income Taxes                                         |   | 683,817                                                                                                                  |   | 957,099 |
| Provision For Income Taxes                                         |   | 229,446                                                                                                                  |   | 395,008 |
| Net Income                                                         |   | 454,371                                                                                                                  |   | 562,091 |
| Preferred Stock Dividends                                          |   | 110,001                                                                                                                  |   | 225,000 |
| Accretion Of Preferred Stock To Redemption Value                   |   | -                                                                                                                        |   | 17,579 |
| Net Income Available To Common Shareholders                        | $      | 344,370                                                                                                                  | $ | 319,512 |
|                                                               |   |                                                                                                                     |   |   |
| Basic Net Income Per Common Share                                  | $      | 0.12                                                                                                                     | $ | 0.13 |
| Diluted Net Income Per Common Share                                | $      | 0.12                                                                                                                     | $ | 0.13 |
| Cash Dividend Per Share On Common Stock                            | $      | 0.08                                                                                                                     | $ | 0.08 |
| Basic Weighted Average Shares Outstanding                          |   | 2,869,205                                                                                                                |   | 2,461,095 |
| Diluted Weighted Average Shares Outstanding                        |   | 2,931,633                                                                                                                |   | 2,543,389 |

----

|                                                               |   | Nine Months Ended December 31, |
|--------------------------------------------------------------------|--------|--------------------------------|
|                                                               |   | 2010                           |   | 2009 |
| Interest Income:                                                   |   |                           |   |   |
| Loans                                                              | $      | 24,649,276                     | $ | 26,096,241 |
| Mortgage-Backed Securities                                         |   | 6,359,160                      |   | 8,166,348 |
| Investment Securities                                              |   | 1,928,999                      |   | 1,818,640 |
| Other                                                              |   | 3,433                          |   | 376 |
| Total Interest Income                                              |   | 32,940,868                     |   | 36,081,605 |
|                                                               |   |                           |   |   |
| Interest Expense:                                                  |   |                           |   |   |
| NOW And Money Market Accounts                                      |   | 1,638,090                      |   | 1,960,383 |
| Statement Savings Accounts                                         |   | 46,191                         |   | 58,654 |
| Certificate Accounts                                               |   | 5,963,591                      |   | 8,424,088 |
| Advances And Other Borrowed Money                                  |   | 4,440,815                      |   | 4,970,069 |
| Convertible Senior Debentures                                      |   | 365,040                        |   | 40,560 |
| Junior Subordinated Debentures                                     |   | 176,121                        |   | 182,474 |
| Total Interest Expense                                             |   | 12,629,848                     |   | 15,636,228 |
|                                                               |   |                           |   |   |
| Net Interest Income                                                |   | 20,311,020                     |   | 20,445,377 |
| Provision For Loan Losses                                          |   | 5,950,000                      |   | 5,475,000 |
| Net Interest Income After Provision For Loan Losses                |   | 14,361,020                     |   | 14,970,377 |
| Non-Interest Income:                                               |   |                           |   |   |
| Gain On Sale Of Investments                                        |   | 1,188,381                      |   | 675,101 |
| Gain On Sale Of Loans                                              |   | 1,180,870                      |   | 811,545 |
| Loss On Sale Of Repossessed Assets Acquired In Settlement Of Loans |   | (228,447)                      |   | (64,846) |
| Service Fees On Deposit Accounts                                   |   | 879,627                        |   | 935,846 |
| Income From Cash Value Of Life Insurance                           |   | 305,000                        |   | 270,000 |
| Commissions From Insurance Agency                                  |   | 301,585                        |   | 341,874 |
| Other Agency Income                                                |   | 277,480                        |   | 349,813 |
| Trust Income                                                       |   | 328,500                        |   | 315,000 |
| Mandatorily Redeemable Financial Instrument Valuation              |   | 5,000                          |   | (109,000) |
| Other                                                              |   | 752,970                        |   | 645,340 |
| Total Non-Interest Income                                          |   | 4,990,966                      |   | 4,170,673 |
|                                                               |   |                           |   |   |
| General And Administrative Expenses:                               |   |                           |   |   |
| Salaries And Employee Benefits                                     |   | 9,023,500                      |   | 8,828,625 |
| Occupancy                                                          |   | 1,443,340                      |   | 1,490,587 |
| Advertising                                                        |   | 298,839                        |   | 318,875 |
| Depreciation And Maintenance Of Equipment                          |   | 1,377,859                      |   | 1,316,130 |
| FDIC Insurance Premiums                                            |   | 994,048                        |   | 1,473,000 |
| Amortization of Intangibles                                        |   | 67,500                         |   | 67,500 |
| Other                                                              |   | 3,845,001                      |   | 3,080,447 |
| Total General And Administrative Expenses                          |   | 17,050,087                     |   | 16,575,164 |
|                                                               |   |                           |   |   |
| Income Before Income Taxes                                         |   | 2,301,899                      |   | 2,565,886 |
| Provision For Income Taxes                                         |   | 849,590                        |   | 1,049,548 |
| Net Income                                                         |   | 1,452,309                      |   | 1,516,338 |
| Preferred Stock Dividends                                          |   | 556,452                        |   | 675,000 |
| Accretion Of Preferred Stock To Redemption Value                   |   | 18,816                         |   | 53,935 |
| Net Income Available To Common Shareholders                        | $      | 877,041                        | $ | 787,403 |
|                                                               |   |                           |   |   |
| Basic Net Income Per Common Share                                  | $      | 0.34                           | $ | 0.32 |
| Diluted Net Income Per Common Share                                | $      | 0.33                           | $ | 0.31 |
| Cash Dividend Per Share On Common Stock                            | $      | 0.24                           | $ | 0.24 |
| Basic Weighted Average Shares Outstanding                          |   | 2,599,081                      |   | 2,460,777 |
| Diluted Weighted Average Shares Outstanding                        |   | 2,678,530                      |   | 2,521,964 |

----

|                                                                                                         |   |   Preferred Stock |   |    Warrants |   |   Common Stock |   |  AdditionalPaid – In Capital |   |   TreasuryStock                                                                               |   | Accumulated Other Comprehensive Income |   |   Retained Earnings |   |    Total |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|----------------------------|--------|--------------------------|--------|----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|-------------------------------|--------|-------------------------|
| Balance At March 31, 2009                                                                                    | $      | 17,620,065                  | $      | 400,000                    | $      | 26,040                   | $      | 5,299,235                                    | $      | (4,330,712)                                                                                             | $      | 3,809,934                              | $      | 44,267,736                    | $      | 67,092,298              |
| Net Income                                                                                                   |   | -                           |   | -                          |   | -                        |   | -                                            |   |          -                                                 |   | -                                      |   | 1,516,338                     |   | 1,516,338               |
| Other Comprehensive Income,   Net Of Tax:                                                     |   |                        |   |                       |   |                     |   |                                         |   |                                                                                                    |   |                                   |   |                          |   |                    |
| Unrealized Holding Gains   On Securities Available   For Sale, Net Of Taxes    |   |   -               |   |   -              |   |   -            |   |   -                                |   |            -                                     |   |   969,460                    |   |   -                 |   |   969,460     |
| Reclassification Adjustment   For Gains Included In Net   Income, Net Of Taxes |   |   -               |   |   -              |   |   -            |   |   -                                |   |                  - |   |   (418,563)                  |   |   -                 |   |   (418,563)   |
| Comprehensive Income                                                                                         |   | -                           |   | -                          |   | -                        |   | -                                            |   |            -                                     |   | -                                      |   | -                             |   | 2,067,235               |
| Accretion Of Preferred Stock To Redemption Value                                                             |   |  53,935                |   |   -              |   |  -                  |   |  -                                      |   |           -                                           |   |  -                                |   |  (53,935)                |   |  -                 |
| Employee Stock Purchase Plan         Purchases                            |   |  -                     |   |  -                    |   |  15                 |   |  19,785                                 |   |           -                                           |   |  -                                |   |  -                       |   |  19,800            |
| Stock Compensation Expense                                                                                   |   | -                           |   | -                          |   | -                        |   | 24,843                                       |   |          -                                                 |   | -                                      |   | -                             |   | 24,843                  |
| Cash Dividends On Preferred                                                                                  |   | -                           |   | -                          |   | -                        |   | -                                            |   |          -                                                 |   | -                                      |   | (675,000)                     |   | (675,000)               |
| Cash Dividends On Common                                                                                     |   | -                           |   | -                          |   | -                        |   | -                                            |   |          -                                                 |   | -                                      |   | (590,661)                     |   | (590,661)               |
| Balance At December 31, 2009                                                                                 | $      | 17,674,000                  | $      | 400,000                    | $      | 26,055                   | $      | 5,343,863                                    | $      | (4,330,712)                                                                                             | $      | 4,360,831                              | $      | 44,464,478                    | $      | 67,938,515              |

|                                                                                                         |   |   Preferred Stock |   |    Warrants |   |   Common Stock |   |  AdditionalPaid – In Capital |   |   TreasuryStock                                                                               |   | Accumulated Other Comprehensive Income |   |   Retained Earnings |   |    Total |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|----------------------------|--------|--------------------------|--------|----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|-------------------------------|--------|-------------------------|
| Balance At March 31, 2010                                                                                    | $      | 17,692,609                  | $      | 400,000                    | $      | 26,055                   | $      | 5,352,144                                    | $      | (4,330,712)                                                                                             | $      | 4,608,080                              | $      | 44,112,443                    | $      | 67,860,619              |
| Net Income                                                                                                   |   | -                           |   | -                          |   | -                        |   | -                                            |   |          -                                                 |   | -                                      |   | 1,452,309                     |   | 1,452,309               |
| Other Comprehensive Income,   Net Of Tax:                                                     |   |                        |   |                       |   |                     |   |                                         |   |                                                                                                    |   |                                   |   |                          |   |                    |
| Unrealized Holding Gains   On Securities Available   For Sale, Net Of Taxes    |   |   -               |   |   -              |   |   -            |   |   -                                |   |            -                                     |   |   220,249                    |   |   -                 |   |   220,249     |
| Reclassification Adjustment   For Gains Included In Net   Income, Net Of Taxes |   |   -               |   |   -              |   |   -            |   |   -                                |   |                  - |   |   (736,796)                  |   |   -                 |   |   (736,796)   |
| Comprehensive Income                                                                                         |   | -                           |   | -                          |   | -                        |   | -                                            |   |            -                                     |   | -                                      |   | -                             |   | 935,762                 |
| Common Stock Issuance                                                                                        |   | -                           |   | -                          |   | 4,829                    |   | 4,824,231                                    |   | -                                                                                                       |   | -                                      |   | -                             |   | 4,829,060               |
| Preferred Stock Issuance                                                                                     |   | 22,000,000                  |   | -                          |   | -                        |   | -                                            |   | -                                                                                                       |   | -                                      |   | -                             |   | 22,000,000              |
| Preferred Stock Redemption                                                                                   |   | (17,711,425)                |   | -                          |   | -                        |   | -                                            |   | -                                                                                                       |   | -                                      |   | (288,575)                     |   | (18,000,000)            |
| Accretion Of Preferred Stock To        Redemption Value                        |   |  18,816                |   |   -              |   |  -                  |   |  -                                      |   |           -                                           |   |  -                                |   |  (18,816)                |   |  -                 |
| Stock Compensation Expense                                                                                   |   | -                           |   | -                          |   | -                        |   | 24,843                                       |   |          -                                                 |   | -                                      |   | -                             |   | 24,843                  |
| Cash Dividends On Preferred                                                                                  |   | -                           |   | -                          |   | -                        |   | -                                            |   |          -                                                 |   | -                                      |   | (616,222)                     |   | (616,222)               |
| Cash Dividends On Common                                                                                     |   | -                           |   | -                          |   | -                        |   | -                                            |   |          -                                                 |   | -                                      |   | (622,663)                     |   | (622,663)               |
| Balance At December 31, 2010                                                                                 | $      | 22,000,000                  | $      | 400,000                    | $      | 30,884                   | $      | 10,201,218                                   | $      | (4,330,712)                                                                                             | $      | 4,091,533                              | $      | 44,018,476                    | $      | 76,411,399              |

----

|   |                                                                                   |   | Nine Months Ended December 31,                                                              |
|--------|----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|
|   |                                                                                   | 2010   |                                                                                        | 2009 |
|   | Cash Flows From Operating Activities:                                                  |   |                                                                                        |   |   |
|   | Net Income                                                                             | $      | 1,452,309                                                                                   | $ | 1,516,338 |
|   | Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities:      |   |                                                                                        |   |   |
|   |    Depreciation Expense                                                      |   | 1,173,023                                                                                   |   | 1,164,294 |
|   |    Amortization Of Intangible Assets                                         |   | 67,500                                                                                      |   | 67,500 |
|   |    Stock Option Compensation Expense                                         |   | 24,843                                                                                      |   | 24,843 |
|   |    Discount Accretion And Premium Amortization                               |   | 2,547,909                                                                                   |   | 1,326,548 |
|   |    Provisions For Losses On Loans And Real Estate                            |   | 5,950,000                                                                                   |   | 5,475,000 |
|   |    Write Down Of Goodwill                                                    |   | -                                                                                           |   | 222,000 |
|   |    Write Down Of Repossessed Assets Acquired In Settlement Of Loans          |   | 621,496                                                                                     |   | - |
|   |    Mandatorily Redeemable Financial Instrument Valuation Expense (Income)    |   | (5,000)                                                                                     |   | 109,000 |
|   |    Gain On Sale Of Mortgage-Backed Securities Available For Sale             |   | (1,038,435)                                                                                 |   | (273,330) |
|   |    Gain On Sale Of Investment Securities Available For Sale                  |   | (149,946)                                                                                   |   | (401,771) |
|   |    Gain On Sale Of Loans                                                     |   | (1,180,870)                                                                                 |   | (811,545) |
|   |    Loss On Sale Of Repossessed Assets Acquired In Settlement Of Loans        |   |               228,447 |   |                 64,846 |
|   |    Gain On Disposition Of Premises And Equipment                             |   | -                                                                                           |   | (25) |
|   |    Amortization Of Deferred Fees On Loans                                    |   | (18,405)                                                                                    |   | (96,392) |
|   |    Income From Bank Owned Life Insurance                                     |   | (305,000)                                                                                   |   | (270,000) |
|   |    Proceeds From Sale Of Loans Held For Sale                                 |   |          63,318,003                            |   |          54,823,727 |
|   |    Origination Of Loans For Sale                                             |   | (72,475,733)                                                                                |   | (53,458,227) |
|   |    (Increase) Decrease In Accrued Interest Receivable:                       |   |                                                                                        |   |   |
|   |    Loans                                                                     |   | (14,964)                                                                                    |   | 17,890 |
|   |    Mortgage-Backed Securities                                                |   | 94,285                                                                                      |   | 136,103 |
|   |    Investments                                                               |   | (221,145)                                                                                   |   | (464,738) |
|   |    Decrease In Advance Payments By Borrowers                                 |   | (106,419)                                                                                   |   | (227,589) |
|   |    Other, Net                                                                |   | 825,513                                                                                     |   | (6,358,358) |
|   | Net Cash Provided By Operating Activities                                              |   | 787,411                                                                                     |   | 2,586,114 |
|   |                                                                                   |   |                                                                                        |   |   |
|   | Cash Flows From Investing Activities:                                                  |   |                                                                                        |   |   |
|   |    Principal Repayments On Mortgage-Backed Securities Held To Maturity       |   | 3,018,518                                                                                   |   | 5,981,325 |
|   |    Principal Repayments On Mortgage-Backed Securities Available For Sale     |   | 44,906,395                                                                                  |   | 49,180,520 |
|   | Purchase Of Investment Securities Available For Sale                                   |   | (72,633,466)                                                                                |   | (49,800,374) |
|   | Purchase Of Mortgage-Backed Securities Available For Sale                              |   | (72,675,609)                                                                                |   | (58,437,257) |
|   | Maturities Of Investment Securities Available For Sale                                 |   | 26,631,467                                                                                  |   | 13,490,722 |
|   | Maturities Of Investment Securities Held To Maturity                                   |   | 1,388,855                                                                                   |   | 4,258,066 |
|   | Proceeds From Sale Of Mortgage-Backed Securities Available For Sale                    |   | 38,291,203                                                                                  |   | 17,599,784 |
|   | Proceeds From Sale Of Investment Securities Available For Sale                         |   | 5,442,103                                                                                   |   | 12,576,398 |
|   | Redemption Of FHLB Stock                                                               |   | 1,356,915                                                                                   |   | 38,300 |
|   | Decrease In Loans To Customers                                                         |   | 42,031,986                                                                                  |   | 13,388,374 |
|   | Proceeds From Sale Of Repossessed Assets                                               |   | 6,196,196                                                                                   |   | 501,544 |
|   | Purchase And Improvement Of Premises And Equipment                                     |   | (625,162)                                                                                   |   | (487,281) |
|   |        Proceeds From Sale Of Premises And Equipment |   | -                                                                                           |   | 971 |
|   | Net Cash Provided By Investing Activities                                              |   | 23,329,401                                                                                  |   | 8,291,092 |
|   |                                                                                   |   |                                                                                        |   |   |
|   |                                                                                   |   |                                                                                        |   |   |
|   |                                                                                   |   |                                                                                        |   |   |
|   |                                                                                   |   |                                                                                        |   |   |
|   |                                                                                   |   |                                                                                        |   |   |

----

|   |                                                  |   | Nine Months Ended December 31, |
|--------|-------------------------------------------------------|--------|--------------------------------|
|   |                                                  |   | 2010                           |   | 2009 |
|   | Cash Flows From Financing Activities:                 |   |                           |   |   |
|   | Increase (Decrease) In Deposit Accounts               |   | (4,957,845)                    |   | 11,050,407 |
|   | Proceeds From FHLB Advances                           |   | 113,120,000                    |   | 257,705,000 |
|   | Repayment Of FHLB Advances                            |   | (139,233,462)                  |   | (305,371,886) |
|   | Proceeds From TAF Advances                            |   | -                              |   | 117,000,000 |
|   | Repayment Of TAF Advances                             |   | -                              |   | (87,000,000) |
|   | Proceeds From Convertible Senior Debentures Offering  |   | -                              |   | 6,084,000 |
|   | Net Repayment Of Other Borrowings                     |   | (835,410)                      |   | (5,661,820) |
|   | Proceeds From Issuance Of Preferred Stock             |   | 22,000,000                     |   | - |
|   | Proceeds From Issuance Of Common Stock                |   | 4,829,060                      |   |   |
|   | Redemption Of Preferred Stock                         |   | (18,000,000)                   |   |   |
|   | Dividends To Preferred Shareholders                   |   | (622,663)                      |   | (675,000) |
|   | Dividends To Common Shareholders                      |   | (616,222)                      |   | (590,661) |
|   | Proceeds From Employee Stock Purchases                |   | -                              |   | 19,800 |
|   | Net Cash Used By Financing Activities                 |   | (24,316,542)                   |   | (7,440,160) |
|   |                                                  |   |                           |   |   |
|   | Net Increase (Decrease) In Cash And Cash Equivalents  |   | (199,730)                      |   | 3,437,046 |
|   | Cash And Cash Equivalents At Beginning Of Period      |   | 8,804,645                      |   | 6,562,394 |
|   | Cash And Cash Equivalents At End Of Period            | $      | 8,604,915                      | $ | 9,999,440 |
|   |                                                  |   |                           |   |   |
|   | Supplemental Disclosure Of Cash Flows Information:    |   |                           |   |   |
|   | Cash Paid During The Period For Interest              | $      | 12,925,718                     | $ | 15,704,896 |
|   | Cash Paid During The Period For Income Taxes          | $      | 19,432                         | $ | 2,513,082 |
|   | Additions To Repossessed Acquired Through Foreclosure | $      | 11,250,853                     | $ | 2,163,972 |
|   |                                                  |   |                           |   |   |

----

| 1.   | Basis of Presentation |
|----------------|-----------------------|

| 2.   | Principles of Consolidation |
|----------------|-----------------------------|

----

| 3.   | Critical Accounting Policies, Continued |
|----------------|-----------------------------------------|

| 4. | Earnings Per Common Share |
|----|---------------------------|

----

|     For the Quarter Ended:                                                  |   | December 31,                          |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                       |   | 2010                                  |   | 2009 |   |
| Earnings Available to Common Shareholders:                                                 |   |                                  |   |   |   |
|     Net Income                                                              | $      |   454,371                   | $      |   562,091 |   |
| Preferred Stock Dividends                                                                  |   |      110,001 |   |      225,000 |   |
| Deemed Dividends On Preferred Stock From Net   Accretion of Preferred Stock |   |  -                               |   |       17,579 |   |
| Net Income Available To Common Shareholders                                                | $      |     344,370       | $      |     319,512 |   |

|    For the Nine Months Ended:                                               |   | December 31,                                                       |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                       |   | 2010                                                               |   | 2009 |   |
| Earnings Available to Common Shareholders:                                                 |   |                                                               |   |   |   |
|     Net Income                                                              | $      |    1,452,309                                        | $      |    1,516,338 |   |
| Preferred Stock Dividends                                                                  |   |     556,452                                    |   |     675,000 |   |
| Deemed Dividends On Preferred Stock From Net   Accretion of Preferred Stock |   |           18,816 |   |           53,935 |   |
| Net Income Available To Common Shareholders                                                | $      |      877,041                              | $      |      787,403 |   |

|                                                                                           | For the Quarter Ended                                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                           | December 31, 2010                                                                                                                                                                                                                |
|                                                                                           | Income (Numerator) Amount                                                                                                                                                                                                        |   | Shares (Denominator) |   | Per Share |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Basic EPS                                                                                      |  $                                   344,370 |   | 2,869,205 | $ | 0.12 |
| Effect of Diluted Securities:                                                                  |                                                                                                                                                                                                                             |   |   |   |   |
|     Mandatorily Redeemable       Shares |  -                                                                                                                                                                                                                          |   |  62,428 |   |  - |
|     Senior Convertible Debentures                                          | -                                                                                                                                                                                                                                |   | - |   | - |
| Stock Options & Warrants                                                                   | -                                                                                                                                                                                                                                |   | - |   | - |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Diluted EPS                                                                                    | $                                    344,370 |   | 2,931,633 | $ | 0.12 |

|                                                                                           | For the Quarter Ended                                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                           | December 31, 2009                                                                                                                                                                                                                |
|                                                                                           | Income (Numerator) Amount                                                                                                                                                                                                        |   | Shares (Denominator) |   | Per Share |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Basic EPS                                                                                      |  $                                   319,512 |   | 2,461,095 | $ | 0.13 |
| Effect of Diluted Securities:                                                                  |                                                                                                                                                                                                                             |   |   |   |   |
|     Mandatorily Redeemable       Shares |  -                                                                                                                                                                                                                          |   |  82,294 |   |  - |
|     Senior Convertible Debentures                                          | -                                                                                                                                                                                                                                |   | - |   | - |
| Stock Options & Warrants                                                                   | -                                                                                                                                                                                                                                |   | - |   | - |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Diluted EPS                                                                                    | $                                    319,512 |   | 2,543,389 | $ | 0.13 |

----

|                                                                                           | For the Nine Months Ended                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                           | December 31, 2010                                                                                                                                                                                                                |
|                                                                                           | Income (Numerator) Amount                                                                                                                                                                                                        |   | Shares (Denominator) |   | Per Share |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Basic EPS                                                                                      | $                                    877,041 |   | 2,599,081 | $ |            0.34 |
| Effect of Diluted Securities:                                                                  |                                                                                                                                                                                                                             |   |   |   |   |
|     Mandatorily Redeemable       Shares |  -                                                                                                                                                                                                                          |   |  79,449 |   |  (0.01) |
|     Senior Convertible Debentures                                          | -                                                                                                                                                                                                                                |   | - |   | - |
| Stock Options & Warrants                                                                   | -                                                                                                                                                                                                                                |   | - |   | - |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Diluted EPS                                                                                    | $                                    877,041 |   | 2,678,530 | $ | 0.33 |

|                                                                                           | For the Nine Months Ended                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                           | December 31, 2009                                                                                                                                                                                                                |
|                                                                                           | Income (Numerator) Amount                                                                                                                                                                                                        |   | Shares (Denominator) |   | Per Share |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Basic EPS                                                                                      | $                                    787,403 |   | 2,460,777 | $ |            0.32 |
| Effect of Diluted Securities:                                                                  |                                                                                                                                                                                                                             |   |   |   |   |
|     Mandatorily Redeemable       Shares |  -                                                                                                                                                                                                                          |   |  61,187 |   |  (0.01) |
|     Senior Convertible Debentures                                          | -                                                                                                                                                                                                                                |   | - |   | - |
| Stock Options & Warrants                                                                   | -                                                                                                                                                                                                                                |   | - |   | - |
|                                                                                           |                                                                                                                                                                                                                             |   |   |   |   |
| Diluted EPS                                                                                    | $                                    787,403 |   | 2,521,964 | $ | 0.31 |

| 5.   | Stock-Based Compensation |
|----------------|--------------------------|

|                              | Three Months EndedDecember 31, 2010 |                                  | Nine Months EndedDecember 31, 2010 |
|-----------------------------------|-------------------------------------|---------------------------------------|------------------------------------|
|                              |    Shares            |  Weighted Average Exercise Price |                               |    Shares |  Weighted Average Exercise Price |
| Balance, Beginning of Period/Year |  90,900                        |  $22.57                          |                               |  90,900 |  $22.57 |
| Options granted                   | -                                   | -                                     |                               | - | - |
| Options exercised                 | -                                   | -                                     |                               | - | - |
| Options forfeited                 | 9,500                               | 23.09                                 |                               | 9,500 | 23.09 |
| Balance, December 31, 2010        | 81,400                              | $22.51                                |                               | 81,400 | $22.51 |
|                              |                                |                                  |                               |   |   |
| Options Exercisable               | 49,900                              |                                  |                               | 49,900 |   |
|                              |                                |                                  |                               |   |   |
| Options Available For Grant       | 50,000                              |                                  |                               | 50,000 |   |

----

|                              | Three Months EndedDecember 31, 2009 |                                  | Nine Months EndedDecember 31, 2009 |
|-----------------------------------|-------------------------------------|---------------------------------------|------------------------------------|
|                              |    Shares            |  Weighted Average Exercise Price |                               |    Shares |  Weighted Average Exercise Price |
| Balance, Beginning of Period/Year |  90,900                        |  $22.57                          |                               |  100,500 |  $22.01 |
| Options granted                   | -                                   | -                                     |                               | - | - |
| Options exercised                 | -                                   | -                                     |                               | - | - |
| Options forfeited                 | -                                   | -                                     |                               | (9,600) | 16.67 |
| Balance, December 31, 2009        | 90,900                              | $22.57                                |                               | 90,900 | $22.57 |
|                              |                                |                                  |                               |   |   |
| Options Exercisable               | 50,400                              |                                  |                               | 50,400 |   |
|                              |                                |                                  |                               |   |   |
| Options Available For Grant       | 50,000                              |                                  |                               | 50,000 |   |

|  Grant Date |   | Outstanding Options |   |  Option Price |   |  Expiration Date |
|------------------|--------|---------------------|--------|--------------------|--------|-----------------------|
|             |   |                |   |               |   |                  |
| 09/01/03         |   | 2,400               |   | $24.00             |   | 08/31/13              |
|             |   |                |   |               |   |                  |
| 12/01/03         |   | 3,000               |   | $23.65             |   | 11/30/13              |
|             |   |                |   |               |   |                  |
| 01/01/04         |   | 5,000               |   | $24.22             |   | 12/31/13              |
|             |   |                |   |               |   |                  |
| 03/08/04         |   | 13,000              |   | $21.43             |   | 03/08/14              |
|             |   |                |   |               |   |                  |
| 06/07/04         |   | 2,000               |   | $24.00             |   | 06/07/14              |
|             |   |                |   |               |   |                  |
| 01/01/05         |   | 20,500              |   | $20.55             |   | 12/31/14              |
|             |   |                |   |               |   |                  |
| 01/01/06         |   | 4,000               |   | $23.91             |   | 01/01/16              |
|             |   |                |   |               |   |                  |
| 08/24/06         |   | 5,000               |   | $23.03             |   | 08/24/16              |
|             |   |                |   |               |   |                  |
| 05/24/07         |   | 2,000               |   | $24.34             |   | 05/24/17              |
|             |   |                |   |               |   |                  |
| 07/09/07         |   | 1,000               |   | $24.61             |   | 07/09/17              |
|             |   |                |   |               |   |                  |
| 10/01/07         |   | 2,000               |   | $24.28             |   | 10/01/17              |
|             |   |                |   |               |   |                  |
| 01/01/08         |   | 17,000              |   | $23.49             |   | 01/01/18              |
|             |   |                |   |               |   |                  |
| 05/19/08         |   | 2,500               |   | $22.91             |   | 05/19/18              |
|             |   |                |   |               |   |                  |
| 07/01/08         |   | 2,000               |   | $22.91             |   | 07/01/18              |

----

| 6.   | Stock Warrants |
|----------------|----------------|

----

| Level 1 | Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasuries and money market funds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. |
| Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.           |

----

----

| Assets:                                                                                                                                                                                                                                    | Quoted Market Price In Active Markets(Level 1)                                                                                                                                                      | Significant OtherObservable Inputs(Level 2)                                                                            | Significant Unobservable Inputs(Level 3)                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| FHLB Securities                                                                                                                                                                                                                            | $                                 - | $               15,813,251                  | $                                -            |
| Federal Farm Credit Securities                                                                                                                                                                                                             |     -                                                                                                                                                                           | 1,081,460                                                                                                              |     -                                                                                                                                                                                     |
| Federal National Mortgage      Association (“FNMA”) and      Federal Home Loan Mortgage      Corporation (“FHLMC”) Bonds |     -                                                                                                                                                                           |    10,671,500                                                                                           |     -                                                                                                                                                                                     |
| Small Business Administration   (“SBA”) Bonds                                                                                                                                                                   |  -                                                                                                                                                                                             |  67,572,776                                                                                                       |   -                                                                                                                                                                                                 |
| Taxable Municipal Securities                                                                                                                                                                                                               | -                                                                                                                                                                                                   | 4,500,333                                                                                                              | -                                                                                                                                                                                                             |
| Mortgage-Backed Securities                                                                                                                                                                                                                 |     -                                                                                                                                                                           | 220,317,567                                                                                                            |     -                                                                                                                                                                                     |
| Equity Securities                                                                                                                                                                                                                          |     -                                                                                                                                                                           | 76,500                                                                                                                 |     -                                                                                                                                                                                     |
| Mortgage Loans Held For Sale                                                                                                                                                                                                               |                              -                     |                  13,500,063       |                                   - |
| Total                                                                                                                                                                                                                                      | $                                -            | $             333,533,450                             | $                                -            |
| Liabilities:                                                                                                                                                                                                                               |                                                                                                                                                                                                |                                                                                                                   |                                                                                                                                                                                                          |
| Mandatorily Redeemable Financial   Instrument                                                                                                                                                                               |  $                                - |  $                 1,658,312 |  $                                -      |
| Total                                                                                                                                                                                                                                      | $                                -  | $                 1,658,312       | $                                -            |

|   Assets:                                          | Quoted Market Price In Active Markets(Level 1)                                                                                                                                                                | Significant Other Observable Inputs(Level 2)                                                                                | Significant Unobservable Inputs(Level 3)                                                                                                                                                                       |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| FHLB Securities                                              | $                                -            | $                  9,369,901      | $                                -             |
| Federal Farm Credit Securities                               |                                   - | 4,208,672                                                                                                                   |                                   -  |
| FNMA and FHLMC Bonds                                         |                                   - | 5,963,270                                                                                                                   |                                   -  |
| SBA Bonds                                                    |                                   - | 37,186,061                                                                                                                  |                                   -  |
| Taxable Municipal Bond                                       |                                   - | 3,225,926                                                                                                                   |                                   -  |
| Mortgage-Backed Securities                                   |                                   - |                 232,235,059                 |                                   -  |
| Equity Securities                                            |                                   - |       72,150                                                                                  |                                   -  |
| Mortgage Loans Held For Sale                                 |                                   - |                    3,161,463 |                                   -  |
| Total                                                        | $                                -            | $              295,422,502                            | $                                -             |
| Liabilities:                                                 |                                                                                                                                                                                                          |                                                                                                                        |                                                                                                                                                                                                           |
| Mandatorily Redeemable Financial   Instrument |  $                                -      |  $                 1,663,312      |  $                                 - |
| Total                                                        | $                                -            | $                 1,663,312            | $                                 -       |

----

|  Assets:      |  Level 1                                                                                                                          |  Level 2                                                                                                                          |  Level 3                                                  | Balance AtDecember 31, 2010                                                                        |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Intangible Assets  | $                      - | $                      - | $         182,000 | $               182,000 |
| Impaired Loans (1) | -                                                                                                                                      | 32,305,805                                                                                                                             | 4,836,772                                                      | 37,142,577                                                                                         |
| Foreclosed Assets  | -                                                                                                                                      | 14,977,764                                                                                                                             | -                                                              | 14,977,764                                                                                         |
| Total              | $                      - | $      47,283,569                                                                                        | $     5,018,772                       | $          52,302,341                            |
|               |                                                                                                                                   |                                                                                                                                   |                                                           |                                                                                               |

|  Assets:      |  Level 1                                                                                                                          |  Level 2                                                                                                                          |  Level 3                                                              | Balance AtMarch 31, 2010                                                                                             |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Goodwill           | $                      - | $                      - | $           249,500 | $                  249,500 |
| Impaired Loans (1) | -                                                                                                                                      | 19,735,647                                                                                                                             | 13,548,107                                                                 | 33,283,754                                                                                                           |
| Foreclosed Assets  | -                                                                                                                                      | 8,738,965                                                                                                                              | 2,034,085                                                                  | 10,773,050                                                                                                           |
| Total              | $                      - | $    28,474,612                                                                                                         | $      15,831,692                            | $             44,306,304                            |
|               |                                                                                                                                   |                                                                                                                                   |                                                                       |                                                                                                                 |

----

|                                                           |   |              |
|----------------------------------------------------------------|--------|-------------------|
|                                                           |   | December 31, 2010 |   | March 31, 2010 |
|                                                           |   | Carrying Amount   |   | Estimated Fair Value |   | Carrying Amount |   | Estimated Fair Value |
|                                                           |   | (In Thousands)    |
| Financial Assets:                                              |   |              |   |   |   |   |   |   |
| Cash And Cash Equivalents                                      | $      | 8,605             | $ | 8,605 | $ | 8,805 | $ | 8,805 |
| Certificates of Deposits With Other Banks                      |   | 100               |   | 100 |   | - |   | - |
| Investment And Mortgage-Backed Securities                      |   | 334,385           |   | 335,440 |   | 311,046 |   | 312,115 |
| Loans Receivable, Net                                          |   | 519,523           |   | 511,951 |   | 568,399 |   | 578,851 |
| FHLB Stock                                                     |   | 11,267            |   | 11,267 |   | 12,624 |   | 12,624 |
|                                                           |   |              |   |   |   |   |   |   |
| Financial Liabilities:                                         |   |              |   |   |   |   |   |   |
| Deposits:                                                      |   |              |   |   |   |   |   |   |
|    Checking, Savings, And Money Market Accounts | $      | 319,712           | $ | 319,712 | $ | 301,983 | $ | 301,983 |
|    Certificate Accounts                         |   | 369,583           |   | 373,986 |   | 392,270 |   | 398,206 |
| Advances From FHLB                                             |   | 137,890           |   | 147,562 |   | 164,004 |   | 172,983 |
| Other Borrowed Money                                           |   | 11,225            |   | 11,225 |   | 12,060 |   | 12,060 |
| Senior Convertible Debentures                                  |   | 6,084             |   | 6,084 |   | 6,084 |   | 6,084 |
| Junior Subordinated Debentures                                 |   | 5,155             |   | 5,155 |   | 5,155 |   | 5,155 |
|                                                           |   |              |   |   |   |   |   |   |

----

----

|   December 31, 2010                                                                                                                                  |   |  Amortized Cost   |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   |   Fair Value |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|------------------------|--------|-------------------------|--------|------------------------|
| FHLB Securities                                                                                                                                                     | $      | 16,008,334             | $      | 163,741                | $      | 358,824                 | $      | 15,813,251             |
| Federal Farm Credit Securities                                                                                                                                      |   | 1,007,350              |   | 74,110                 |   | -                       |   | 1,081,460              |
| Federal National Mortgage Association   (“FNMA”) And Federal Home Loan   Mortgage Corporation (“FHLMC”) Bonds |   |   11,000,581 |   |   -          |   |   329,081     |   |   10,671,500 |
| Small Business Administration (“SBA”) Bonds                                                                                                             |   | 66,880,242             |   | 928,174                |   | 235,640                 |   | 67,572,776             |
| Taxable Municipal Bonds                                                                                                                                             |   | 4,558,189              |   | -                      |   | 57,856                  |   | 4,500,333              |
| Mortgage-Backed Securities                                                                                                                                          |   | 213,879,038            |   | 7,007,676              |   | 569,147                 |   | 220,317,567            |
| Equity Securities                                                                                                                                                   |   | 102,938                |   | -                      |   | 26,438                  |   | 76,500                 |
| Total                                                                                                                                                               | $      | 313,436,672            | $      | 8,173,701              | $      | 1,576,986               | $      | 320,033,387            |

|                                          |   |                       |
|-----------------------------------------------|--------|----------------------------|
|    March 31, 2010              |   |   Amortized Cost |   |  Gross Unrealized Gains |   |  Gross Unrealized Losses |   |    Fair value |
| FHLB Securities                               | $      | 9,209,585                  | $ | 204,066 | $ | 43,750 | $ | 9,369,901 |
| Federal Farm Credit Securities                |   | 4,173,462                  |   | 40,079 |   | 4,869 |   | 4,208,672 |
|     FNMA Bonds and FHLMC Bonds |   | 5,993,806                  |   | - |   | 30,536 |   | 5,963,270 |
| SBA Bonds                                     |   | 36,955,783                 |   | 313,976 |   | 83,698 |   | 37,186,061 |
| Taxable Municipal Bond                        |   | 3,192,950                  |   | 32,976 |   | - |   | 3,225,926 |
| Mortgage-Backed Securities                    |   | 225,202,917                |   | 7,396,067 |   | 363,925 |   | 232,235,059 |
| Equity Securities                             |   | 102,938                    |   | - |   | 30,788 |   | 72,150 |
|                                          | $      | 284,831,441                | $ | 7,987,164 | $ | 557,566 | $ | 292,261,039 |

----

|                        |   | Amortized Cost |   | Fair Value  |
|-----------------------------|--------|----------------|--------|-------------|
|                        |   |           |   |        |
| Less Than One Year          | $      | -              | $      | -           |
| One – Five Years      |   | 8,242,117      |   | 8,356,325   |
| Over Five – Ten Years |   | 43,320,510     |   | 43,439,858  |
| After Ten Years             |   | 47,995,007     |   | 47,919,637  |
| Mortgage-Backed Securities  |   | 213,879,038    |   | 220,317,567 |
|                        | $      | 313,436,672    | $      | 320,033,387 |

|                       |   | Less than 12 Months |   | 12 Months or More |   | Total     |
|----------------------------|--------|---------------------|--------|-------------------|--------|-----------|
|                       |   | FairValue           |   | UnrealizedLosses  |   | FairValue |   | Unrealized Losses |   | FairValue |   | Unrealized Losses |
| FHLB Securities            | $      | 11,490,657          | $      | 358,824           | $      | -         | $ | - | $ | 11,490,657 | $ | 358,824 |
| Mortgage-Backed Securities |   | 41,613,962          |   | 569,147           |   | -         |   | - |   | 41,613,962 |   | 569,147 |
| SBA Bonds                  |   | 19,238,660          |   | 235,640           |   | -         |   | - |   | 19,238,660 |   | 235,640 |
| FNMA and FHLMC Bonds       |   | 10,671,500          |   | 329,081           |   | -         |   | - |   | 10,671,500 |   | 329,081 |
| Taxable Municipal Bonds    |   | 955,880             |   | 57,856            |   |      |   |   |   | 955,880 |   | 57,856 |
| Equity Securities          |   | -                   |   | -                 |   | 76,500    |   | 26,438 |   | 76,500 |   | 26,438 |
|                       | $      | 83,970,659          | $      | 1,550,548         | $      | 76,500    | $ | 26,438 | $ | 84,047,159 | $ | 1,576,986 |

|                           |   | Less than 12 Months |   | 12 Months or More |   | Total     |
|--------------------------------|--------|---------------------|--------|-------------------|--------|-----------|
|                           |   | FairValue           |   | UnrealizedLosses  |   | FairValue |   | Unrealized Losses |   | FairValue |   | Unrealized Losses |
| FHLB Securities                | $      | 2,956,250           | $      | 43,750            | $      | -         | $ | - | $ | 2,956,250 | $ | 43,750 |
| Federal Farm Credit Securities |   | 1,037,500           |   | 4,869             |   | -         |   | - |   | 1,037,500 |   | 4,869 |
| Mortgage-Backed Securities     |   | 36,866,308          |   | 363,925           |   | -         |   | - |   | 36,866,308 |   | 363,925 |
| FNMA and FHLMC Bonds           |   | 4,963,270           |   | 30,536            |   | -         |   | - |   | 4,963,270 |   | 30,536 |
| SBA Bonds                      |   | 10,464,706          |   | 83,698            |   | -         |   | - |   | 10,464,706 |   | 83,698 |
| Equity Securities              |   | -                   |   | -                 |   | 72,150    |   | 30,788 |   | 72,150 |   | 30,788 |
|                           | $      | 56,288,034          | $      | 526,778           | $      | 72,150    | $ | 30,788 | $ | 56,360,184 | $ | 557,566 |

----

|  December 31, 2010  |   |  Amortized Cost         |   | Gross Unrealized Gains                                          |   | Gross Unrealized Losses                                                                                                   |   |   Fair Value       |
|-------------------------------|--------|------------------------------|--------|-----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|
| FHLB Securities               | $      | 3,000,000                    | $      | 289,430                                                         | $      | -                                                                                                                         | $      | 3,289,430                    |
| SBA Bonds                     |   | 4,095,554                    |   | 285,529                                                         |   | -                                                                                                                         |   | 4,381,083                    |
| Mortgage-Backed Securities    |   | 7,100,601                    |   | 480,326                                                         |   | -                                                                                                                         |   | 7,580,927                    |
| Equity Securities             |   | 155,000                      |   | -                                                               |   | -                                                                                                                         |   | 155,000                      |
| Total                         | $      | 14,351,155    | $      |       1,055,285    | $      |                  -    | $      | 15,406,440    |

|  March 31, 2010  |                                   |  Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   |   Fair Value |
|----------------------------|----------------------------------------|----------------------|--------|------------------------|--------|-------------------------|--------|------------------------|
| FHLB Securities            |   $                          | 4,000,000            | $      | 284,070                | $      | -                       | $      | 4,284,070              |
| SBA Bonds                  |                                   | 4,481,515            |   | 262,584                |   | -                       |   | 4,744,099              |
| Mortgage-Backed Securities |                                   | 10,148,865           |   | 522,072                |   | -                       |   | 10,670,937             |
| Equity Securities          |                                   | 155,000              |   | -                      |   | -                       |   | 155,000                |
| Total                      |        $ | 18,785,380           | $      | 1,068,726              | $      | -                       | $      | 19,854,106             |

|                              |   | Amortized Cost |   | Fair Value |
|-----------------------------------|--------|----------------|--------|------------|
|                              |   |           |   |       |
|  Less Than One Year          | $      | -              | $      | -          |
|  One – Five Years      |   | 4,053,464      |   | 4,395,583  |
|  Over Five – Ten Years |   | -              |   | -          |
|  More Than Ten Years         |   | 3,197,090      |   | 3,429,930  |
|  Mortgage-Backed Securities  |   | 7,100,601      |   | 7,580,927  |
|                              | $      | 14,351,155     | $      | 15,406,440 |

----

|                             |   | December 31, 2010 |   | March 31, 2010 |
|----------------------------------|--------|-------------------|--------|----------------|
| Residential Real Estate          | $      | 109,751,903       | $      | 118,256,972    |
| Consumer                         |   | 65,548,802        |   | 68,526,203     |
| Commercial Business              |   | 15,683,163        |   | 17,813,383     |
| Commercial Real Estate           |   | 333,134,851       |   | 378,719,217    |
|  Loans Held For Sale        |   | 13,500,063        |   | 3,161,463      |
|                             |   | 537,618,782       |   | 586,477,238    |
|                             |   |              |   |           |
| Less:                            |   |              |   |           |
| Allowance For Possible Loan Loss |   | 12,408,796        |   | 12,307,394     |
| Loans In Process                 |   | 5,668,470         |   | 5,619,822      |
| Deferred Loan Fees               |   | 18,515            |   | 151,187        |
|                             |   | 18,095,781        |   | 18,078,403     |
|                             | $      | 519,523,001       | $      | 568,398,835    |

| Credit Quality Measures |   | Pass    |              |   | Watch  |    |                                | Special Mention |   |    | Substandard   |   |   | Total Loans |            |
|-------------------------|--------|---------|-------------------|--------|--------|---------|-------------------------------------|-----------------|--------|---------|---------------|--------|--------|-------------|-----------------|
| Residential Real Estate |   | $  |  102,135,728 |   |   | $  |  -                             |            |   | $  |  192,154 |   |   | $      |  7,424,021 |   |   | $  |  109,751,903 |   |
| Consumer                |   |    | 61,833,610        |   |   |    | 68,918                              |            |   |    | 10,059        |   |   |        | 3,636,215       |   |   |   | 65,548,802 |   |
| Commercial Business     |   |    | 15,421,665        |   |   |    | 16,062                              |            |   |    | -             |   |   |        | 245,436         |   |   |   | 15,683,163 |   |
| Commercial Real Estate  |   |    | 248,714,350       |   |   |    | 11,612,535                          |            |   |    | 29,792,088    |   |   |        | 43,015,878      |   |   |   | 333,134,851 |   |
| Total                   |   | $       | 428,105,353       |   |   | $       |      11,697,515 |            |   | $       | 29,994,301    |   |   | $           | 54,321,550      |   |   | $ | 524,118,719 |   |
|                    |   |    |              |   |   |    |                                |            |   |    |          |   |   |        |            |   |   |   |   |   |

|                                     |   | 30-59 Days Past Due |       |   | 60-89 Days Past Due |   |      | 90 Day or More Past Due |   |   | Total Past Due |   |   |  Current |       |   | Total Loans Receivable |   |
|------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|-----------|-------------------------|--------|--------|----------------|--------|--------|---------------|------------|--------|------------------------|--------|
| Residential   Real Estate |   | $                   | 478,300    |   |                | $      | 2,405,807 |                    |   | $      | 4,068,660      |   |   | $             | 6,952,767  |   |                   | $      | 102,799,136 |   |   | $ | 109,751,903 |   |
| Consumer                                 |   |                | 1,055,281  |   |                |   | 1,776,274 |                    |   |   | 2,430,912      |   |   |          | 5,262,467  |   |                   |   | 60,286,335 |   |   |   | 65,548,802 |   |
| Commercial   Business     |   |                | 506,487    |   |                |   | 95,702    |                    |   |   | 224,153        |   |   |          | 826,342    |   |                   |   | 14,856,821 |   |   |   | 15,683,163 |   |
| Commercial   Real Estate  |   |                | 23,138,447 |   |                |   | 3,304,482 |                    |   |   | 16,325,666     |   |   |          | 42,768,595 |   |                   |   | 290,366,255 |   |   |   | 333,134,851 |   |
| Total                                    |   | $                   | 25,178,515 |   |                | $      | 7,582,265 |                    |   | $      | 23,049,391     |   |   | $             | 55,810,171 |   |                   | $      | 468,308,548 |   |   | $ | 524,118,719 |   |
|                                     |   |                |       |   |                |   |      |                    |   |   |           |   |   |          |       |   |                   |   |   |   |   |   |   |   |

----

|                                             |   | At December 31, 2010 |       |   | At March 31, 2010 |   |   |  $ |   |   | %           |   |
|--------------------------------------------------|--------|----------------------|------------|--------|-------------------|--------|--------|---------|--------|--------|-------------|--------|
|                                             |   | Amount               |       |   | Percent (1)       |   |   | Amount  |   |   | Percent (1) |   |   | Increase (Decrease) |   |   | Increase (Decrease) |   |
| Non-accrual loans:                               |   |                 |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |
|      Residential real estate |   | $                    | 4,068,660  |   |              |   | 0.8    | %       |   | $      | 4,344,060   |   |   |   | 0.8 | % |   | $ | (275,400 | ) |   |   | 6.3 | % |
|      Commercial business     |   |                 | 224,153    |   |              |   | 0.0    |    |   |   | 699,182     |   |   |   | 0.1 |   |   |   | (475,029 | ) |   |   | (67.9 | ) |
| Commercial real estate                           |   |                 | 16,325,666 |   |              |   | 3.2    |    |   |   | 25,479,420  |   |   |   | 4.4 |   |   |   | (9,153,754 | ) |   |   | (35.9 | ) |
| Consumer                                         |   |                 | 2,430,912  |   |              |   | 0.4    |    |   |   | 703,288     |   |   |   | 0.1 |   |   |   | 1,727,624 |   |   |   | 245.6 |   |
| Total non-accural loans                          |   | $                    | 23,049,391 |   |              |   | 4.4    | %  |   | $      | 31,225,950  |   |   |   | 5.4 | %  |   | $ | (8,176,559 | ) |   |   | (26.2 | )% |

|              |   | December 31, 2010 |   | December 31, 2009 |
|-------------------|--------|-------------------|--------|-------------------|
| Beginning Balance | $      | 12,307,394        | $      | 10,181,599        |
| Provision         |   | 5,950,000         |   | 5,475,000         |
| Charge-offs       |   | (5,916,333)       |   | (1,718,860)       |
| Recoveries        |   | 67,735            |   | 27,040            |
| Ending Balance    | $      | 12,408,796        | $      | 13,964,779        |
|              |   |              |   |              |

| Ending Balances         |   | Allowance For Loan Losses             |
|-------------------------|--------|---------------------------------------|
|  December 31, 2010 |   | Individually Evaluated For Impairment |   | Collectively Evaluated For Impairment |   |  Total |
| Residential Real Estate | $      | -                                     | $ | 1,763,016 | $ | 1,763,016 |
| Consumer                |   | 138,100                               |   | 1,111,611 |   | 1,249,711 |
| Commercial Business     |   | 192,048                               |   | 701,120 |   | 893,168 |
| Commercial Real Estate  |   | 395,269                               |   | 8,107,632 |   | 8,502,901 |
| Total                   | $      | 725,417                               | $ | 11,683,379 | $ | 12,408,796 |

----

| IMPAIRED LOANS                      |   | Recorded Investment                                                                   |   | Unpaid Principal Balance                                                                                      |   | Related Allowance                                                                     |
|-------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                |   |                                                                                  |   |                                                                                                          |   |                                                                                  |
| With no related allowance recorded: |   |                                                                                  |   |                                                                                                          |   |                                                                                  |
| Residential Real Estate             | $      |    1,435,638                                                           | $      |        1,435,638                                                           | $      |               - |
| Consumer Loans                      |   | 726,192                                                                               |   |        726,192                                                             |   |               - |
| Commercial Business                 |   |       435,408                                           |   |          435,408                                                 |   |               - |
| Commercial Real Estate              |   |  31,252,983                                                                      |   |      31,252,983                                                                      |   |               - |
|                                |   |                                                                                  |   |                                                                                                          |   |                                                                                  |
| With an allowance recorded:         |   |                                                                                  |   |                                                                                                          |   |                                                                                  |
| Residential Real Estate             |   |               - |   |                   - |   |               - |
| Consumer Loans                      |   |       499,108                                           |   |          499,108                                                 |   |      138,100                                                 |
| Commercial Business                 |   |       198,959                                           |   |          198,959                                                 |   |      192,048                                                 |
| Commercial Real Estate              |   |    3,319,706                                                           |   |       3,319,706                                                                 |   |      395,269                                                 |
|                                |   |                                                                                  |   |                                                                                                          |   |                                                                                  |
| Total                               |   |                                                                                  |   |                                                                                                          |   |                                                                                  |
| Residential Real Estate             |   |    1,435,638                                                           |   |        1,435,638                                                           |   |               - |
| Consumer Loans                      |   |    1,225,300                                                           |   |         1,225,300                                                     |   |      138,100                                                 |
| Commercial Business                 |   |       634,367                                           |   |          634,367                                                 |   |      192,048                                                 |
| Commercial Real Estate              |   |  34,572,689                                                                      |   |      34,572,689                                                                      |   |      395,269                                                 |

----

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

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

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

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

| ·   | the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in general economic conditions, either nationally or in our market areas; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | secondary market conditions for loans and our ability to sell loans in the secondary market; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | results of examinations of us by the Office of Thrift Supervision or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | legislative or regulatory changes that adversely affect our business including changes in regulatory policies and principles, or  the interpretation of regulatory capital or other rules; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to attract and retain deposits; |
|--------------------|---------------------------------------------|

| ·   | further increases in premiums for deposit insurance; |
|--------------------|------------------------------------------------------|

| ·   | our ability to control operating costs and expenses; |
|--------------------|------------------------------------------------------|

| ·   | the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | difficulties in reducing risks associated with the loans on our balance sheet; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | computer systems on which we depend could fail or experience a security breach; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | our ability to retain key members of our senior management team; |
|--------------------|------------------------------------------------------------------|

| ·   | costs and effects of litigation, including settlements and judgments; |
|--------------------|-----------------------------------------------------------------------|

| ·   | our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may in the future acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased competitive pressures among financial services companies; |
|--------------------|---------------------------------------------------------------------|

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

| ·   | the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to pay dividends on our common stock; |
|--------------------|---------------------------------------------------|

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

| ·   | inability of key third-party providers to perform their obligations to us; |
|--------------------|----------------------------------------------------------------------------|

| ·   | changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | future legislative changes and our ability to comply with the requirement of the U.S. Treasury Community Development Capital Initiative (“CDCI”); and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and the other risks described elsewhere in this prospectus and the incorporated documents. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                    |   |             |               |   |           |   |               | Increase (Decrease) |   |
|---------------------------------------------------------------------------------------------------------|--------|------------------|--------------------|--------|----------------|--------|--------------------|---------------------|--------|
|                                                                                                    |   | December 31,2010 |               |   | March 31, 2010 |   |               | Amount              |   |   | Percent |   |
| Cash And Cash Equivalents                                                                               |   | $                | 8,604,915          |   |           | $      | 8,804,645          |                |   | $ | (199,730 | ) |   |   | (2.3 | )% |
| Investment And Mortgage-   Backed Securities –   Available For Sale |   |             |   320,033,387 |   |           |   |   292,261,039 |                |   |   |   27,772,348 |   |   |   |   9.5 |   |
| Investment And Mortgage-   Backed Securities – Held   To Maturity   |   |             |   14,351,155  |   |           |   |   18,785,380  |                |   |   | (4,434,225 | ) |   |   | (23.6 | ) |
| Loan Receivable, Net                                                                                    |   |             | 519,523,001        |   |           |   | 568,398,835        |                |   |   | (48,875,834 | ) |   |   | (8.6 | ) |
| FHLB Stock                                                                                              |   |             | 11,267,485         |   |           |   | 12,624,400         |                |   |   | (1,356,915 | ) |   |   | (10.8 | ) |
| Repossessed Assets   Acquired In   Settlement of Loans                    |   |             |   14,977,764  |   |           |   |   10,773,050  |                |   |   |   4,204,714 |   |   |   |   39.0 |   |
|                                                                                                    |   |             |               |   |           |   |               |                |   |   |   |   |   |   |   |   |

----

|                            |               |   |              |        |        |           |   |       | Balance             |   |
|---------------------------------|--------------------|--------|-------------------|-------------|-------------|----------------|--------|------------|---------------------|--------|
|                            |               |   | December 31, 2010 |        |        | March 31, 2010 |   |       | Increase (Decrease) |   |
|                            |               |   | Balance           |        |        | Weighted Rate  |   |       | Balance             |   |   | Weighted Rate |   |   | Amount |   |   | Percent |   |
| Demand Accounts:                |               |   |              |        |        |           |   |       |                |   |   |   |   |   |   |   |   |
| Checking                        |               |   | $                 | 111,521,249 |        |           |   | 0.14       | %                   |   | $ | 109,086,367 |   |   |   | 0.20 | % |   | $ | 2,434,882 |   |   |   | 2.2 | % |
| Money Market                    |               |   |              | 188,941,553 |        |           |   | 0.91       |                |   |   | 173,904,664 |   |   |   | 1.28 |   |   |   | 15,036,889 |   |   |   | 8.6 |   |
| Statement Savings Accounts |               |   |              | 19,248,788  |        |           |   |  0.25 |                |   |   | 18,991,543 |   |   |   |  0.39 |   |   |   | 257,245 |   |   |   | 1.4 |   |
| Total                           |               |   |              | 319,711,590 |        |           |   | 0.60       |                |   |   | 301,982,574 |   |   |   | 0.83 |   |   |   | 17,729,016 |   |   |   | 5.9 |   |
|                            |               |   |              |        |        |           |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate Accounts            |               |   |              |        |        |           |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            | 0.00 – 1.99% |   |              |        | 213,377,160 |           |   |       |                |   |   |   | 118,796,507 |   |   |   |   |   |   |   | 94,580,653 |   |   |   | 79.6 |   |
|                            | 2.00 – 2.99% |   |              |        | 143,582,110 |           |   |       |                |   |   |   | 255,352,355 |   |   |   |   |   |   |   | (111,770,245 | ) |   |   | (43.8 | ) |
|                            | 3.00 – 3.99% |   |              |        | 3,423,489   |           |   |       |                |   |   |   | 4,571,860 |   |   |   |   |   |   |   | (1,148,371 | ) |   |   | (25.1 | ) |
|                            | 4.00 – 4.99% |   |              |        | 5,509,875   |           |   |       |                |   |   |   | 8,818,487 |   |   |   |   |   |   |   | (3,308,612 | ) |   |   | (37.5 | ) |
|                            | 5.00 – 5.99% |   |              |        | 3,690,368   |           |   |       |                |   |   |   | 4,730,654 |   |   |   |   |   |   |   | (1,040,286 | ) |   |   | (22.0 | ) |
| Total                           |               |   |              | 369,583,002 |        |           |   | 1.85       |                |   |   | 392,269,863 |   |   |   | 2.15 |   |   |   | (22,686,861 | ) |   |   | (5.8 | ) |
| Total Deposits                  |               |   | $                 | 689,294,592 |        |           |   | 1.27       | %                   |   | $ | 694,252,437 |   |   |   | 1.58 | % |   | $ | (4,957,845 | ) |   |   | (0.7 | )% |

----

|             |   |              |        |   |           |   |   | Balance             |   |
|------------------|--------|-------------------|-------------|--------|----------------|--------|--------|---------------------|--------|
|             |   | December 31, 2010 |        |   | March 31, 2010 |   |   | Increase (Decrease) |   |
| Fiscal Year Due: |   | Balance           |        |   | Rate           |   |   | Balance             |   |   | Rate |   |   | Balance |   |   | Percent |   |
| 2011             |   | $                 | -           |   |           |   | -      |                |   | $ | 31,100,000 |   |   |   | 2.54 | % |   | $ | (31,100,000 | ) |   |   | (100.0 | )% |
| 2012             |   |              | 24,700,000  |   |           |   | 2.26   | %                   |   |   | 34,700,000 |   |   |   | 3.66 | % |   |   | (10,000,000 | ) |   |   | (28.8 | ) |
| 2013             |   |              | 10,000,000  |   |           |   | 4.76   | %                   |   |   | 10,000,000 |   |   |   | 4.76 | % |   |   | - |   |   |   | - |   |
| 2014             |   |              | 30,000,000  |   |           |   | 3.45   | %                   |   |   | 20,000,000 |   |   |   | 3.84 | % |   |   | 10,000,000 |   |   |   | (50.0 | ) |
| 2015             |   |              | 20,290,420  |   |           |   | 3.01   | %                   |   |   | 15,303,882 |   |   |   | 3.44 | % |   |   | 4,986,538 |   |   |   | 32.6 |   |
| Thereafter       |   |              | 52,900,000  |   |           |   | 4.27   | %                   |   |   | 52,900,000 |   |   |   | 4.27 | % |   |   | - |   |   |   | - |   |
| Total Advances   |   | $                 | 137,890,420 |   |           |   | 3.58   | %                   |   | $ | 164,003,882 |   |   |   | 3.71 | % |   | $ | (26,113,462 | ) |   |   | (15.9 | )% |

| As of December 31, 2010 |
|-------------------------|
| Borrow Date             |   | Maturity Date |   | Amount |   | Int. Rate |   | Type |   | Call Dates |
|                    |   |   |   |   |   |   |   |   |   |   |
| 11/23/05                |   | 11/23/15 |   |   5,000,000 |   | 3.933% |   | Multi-Call |   | 05/25/08 and quarterly thereafter |
| 01/12/06                |   | 01/12/16 |   |   5,000,000 |   | 4.450% |   | 1 Time Call |   | 01/12/11 |
| 06/02/06                |   | 06/02/16 |   |   5,000,000 |   | 5.160% |   | 1 Time Call |   | 06/02/11 |
| 07/11/06                |   | 07/11/16 |   |   5,000,000 |   | 4.800% |   | Multi-Call |   | 07/11/08 and quarterly thereafter |
| 11/29/06                |   | 11/29/16 |   |   5,000,000 |   | 4.025% |   | Multi-Call |   | 05/29/08 and quarterly thereafter |
| 01/19/07                |   | 07/21/14 |   |   5,000,000 |   | 4.885% |   | 1 Time Call |   | 07/21/11 |
| 03/09/07                |   | 03/09/12 |   |   4,700,000 |   | 4.286% |   | Multi-Call |   | 06/09/10 and quarterly thereafter |
| 05/24/07                |   | 05/24/17 |   |   7,900,000 |   | 4.375% |   | Multi-Call |   | 05/27/08 and quarterly thereafter |
| 07/25/07                |   | 07/25/17 |   |   5,000,000 |   | 4.396% |   | Multi-Call |   | 07/25/08 and quarterly thereafter |
| 11/16/07                |   | 11/16/11 |   |   5,000,000 |   | 3.745% |   | Multi-Call |   | 11/17/08 and quarterly thereafter |
| 08/28/08                |   | 08/28/13 |   |   5,000,000 |   | 3.113% |   | Multi-Call |   | 08/30/10 and quarterly thereafter |
| 08/28/08                |   | 08/28/18 |   |   5,000,000 |   | 3.385% |   | 1 Time Call |   | 08/29/11 |
| 12/17/10                |   | 06/17/14 |   |   5,000,000 |   | 1.685% |   | 1 Time Call |   | 03/17/11 |

----

----

|                                                                     |   | At December 31, 2010 |       |   | At March 31, 2010 |   |   |  $ |   |   | %           |   |
|--------------------------------------------------------------------------|--------|----------------------|------------|--------|-------------------|--------|--------|---------|--------|--------|-------------|--------|
|                                                                     |   | Amount               |       |   | Percent (1)       |   |   | Amount  |   |   | Percent (1) |   |   | Increase (Decrease) |   |   | Increase (Decrease) |   |
| Loans 90 days or more past due or non-accrual loans:                     |   |                 |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |
| Residential real estate                                                  |   | $                    | 4,068,660  |   |              |   | 0.8    | %       |   | $      | 4,344,060   |   |   |   | 0.8 | % |   | $ | (275,400 | ) |   |   | (6.3 | )% |
|     Commercial business                              |   |                 | 224,153    |   |              |   | 0.0    |    |   |   | 699,182     |   |   |   | 0.1 |   |   |   | (475,029 | ) |   |   | (67.9 | ) |
| Commercial real estate                                                   |   |                 | 16,325,666 |   |              |   | 3.2    |    |   |   | 25,479,420  |   |   |   | 4.4 |   |   |   | (9,153,754 | ) |   |   | (35.9 | ) |
| Consumer                                                                 |   |                 | 2,430,912  |   |              |   | 0.4    |    |   |   | 703,288     |   |   |   | 0.1 |   |   |   | 1,727,624 |   |   |   | 245.6 |   |
| Total non-performing loans                                               |   |                 | 23,049,391 |   |              |   | 4.4    |    |   |   | 31,225,950  |   |   |   | 5.4 |   |   |   | (8,176,559 | ) |   |   | (26.2 | ) |
|                                                                     |   |                 |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other non-performing assets:                                             |   |                 |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repossessed assets                                                       |   |                 | 21,370     |   |              |   | 0.0    |    |   |   | 43,106      |   |   |   | 0.0 |   |   |   | (21,736 | ) |   |   | (50.4 | ) |
| Real estate owned                                                        |   |                 | 14,956,394 |   |              |   | 2.9    |    |   |   | 10,729,944  |   |   |   | 1.9 |   |   |   | 4,226,450 |   |   |   | 39.4 |   |
| Total other non-performing assets                                        |   |                 | 14,977,764 |   |              |   | 2.9    |    |   |   | 10,773,050  |   |   |   | 1.9 |   |   |   | 4,204,714 |   |   |   | 39.0 |   |
| Total non-performing assets                                              |   | $                    | 38,027,155 |   |              |   | 7.3    | %       |   | $      | 41,999,000  |   |   |   | 7.3 | % |   | $ | (3,971,845 | ) |   |   | (9.5 | )% |
|                                                                     |   |                 |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing assets as a    percentage of total assets |   |                 | 4.1        | %      |              |   |   |    |   |   | 4.4         | %      |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                          | Three Months Ended December 31, |
|-------------------------------|---------------------------------|
|                          | 2010                            |   | 2009 |   |   |   |
|                          |                            |   Average Balance |   |    Yield |   |   |   Average Balance |   |    Yield |   |   | Increase (Decrease) In Interest And Dividend Income From 2009 |
| Loans Receivable, Net         | $                               | 528,369,487 |   | 6.06%   |   | $ | 595,444,922 |   | 5.98%    |   | $ | (888,581) |
| Mortgage-Backed Securities    |                            | 222,572,127 |   | 3.53      |   |   | 246,652,675 |   | 4.52       |   |   | (822,573) |
| Investment Securities         |                            | 107,929,680 |   | 2.15      |   |   | 82,351,288 |   | 2.70       |   |   | 23,838 |
| Overnight Time Deposits       |                            | 6,730,533 |   | 0.12      |   |   | 507,937 |   | 0.04       |   |   | 1,910 |
| Total Interest-Earning Assets | $                               | 865,601,827 |   | 4.88%   |   | $ | 924,956,822 |   | 5.30%    |   | $ | (1,685,406) |

----

|                                               | Three Months Ended December 31, |
|----------------------------------------------------|---------------------------------|
|                                               | 2010                            |   | 2009 |   |   |   |
|                                               |                            |   Average Balance |   |    Yield |   |   |   Average Balance |   |    Yield |   |   |  Increase (Decrease) In Interest Expense From 2009 |
| Now And Money Market   Accounts     |  $                         |  254,551,918 |   |     0.72% |   |  $ |  229,575,608 |   |     1.11% |   |  $ |  (177,785) |
| Statement Savings Accounts                         |                            | 19,265,588 |   | 0.27 |   |   | 17,302,147 |   | 0.44 |   |   | (6,068) |
| Certificates Accounts                              |                            | 378,853,218 |   | 1.95 |   |   | 380,085,063 |   | 2.47 |   |   | (495,935) |
| Advances And Other Borrowed   Money |                            |  148,734,175 |   |  3.72 |   |   |  229,088,616 |   |  2.85 |   |   |  (252,685) |
| Convertible Senior Debentures                      |                            | 6,084,000 |   | 8.00 |   |   | 2,050,043 |   | 7.91 |   |   | 81,120 |
| Junior Subordinated Debentures                     |                            | 5,155,000 |   | 4.54 |   |   | 5,155,000 |   | 4.53 |   |   | 20 |
| Total Interest-Bearing Liabilities                 | $                               | 812,643,899 |   | 1.91% |   | $ | 863,256,477 |   | 2.19% |   | $ | (851,333) |

----

|                                                                                                                                                                     |   | December 31, 2010 |   | December 31, 2009 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|-------------------|
| Beginning Balance                                                                                                                                                        | $      | 11,528,220        | $      | 12,723,921        |
| Provision                                                                                                                                                                |   | 1,900,000         |   | 2,475,000         |
| Charge-offs                                                                                                                                                              |   | (1,041,439)       |   | (1,238,686)       |
| Recoveries                                                                                                                                                               |   | 22,015            |   | 4,544             |
| Ending Balance                                                                                                                                                           | $      | 12,408,796        | $      | 13,964,779        |
|                                                                                                                                                                     |   |              |   |              |
| Allowance For Loan Losses As A Percentage Of Gross Loans Receivable,   Held For Investment At The End Of The Period                                       |   |  2.39%       |   |  2.33%       |
| Allowance For Loan Losses As A Percentage Of Impaired Loans At The   End Of The Period                                                                    |   |  32.77%      |   |  41.78%      |
| Impaired Loans                                                                                                                                                           | $      | 37,867,994        | $      | 33,426,994        |
| Non-accrual Loans And 90 Days Or More Past Due Loans As A   Percentage Of Loans Receivable, Held For Investment At The   End Of The Period |   |   4.44% |   |   6.56% |
| Gross Loans Receivable,  Held For Investment                                                                                                                   | $      | 518,431,733       | $      | 598,411,891       |
| Total Loans Receivable, Net                                                                                                                                              | $      | 519,523,001       | $      | 589,604,964       |

|                                                                                 | Three Months Ended December 31, |           | Increase (Decrease) |
|--------------------------------------------------------------------------------------|---------------------------------|----------------|---------------------|
|                                                                                 |                            | 2010           |                |   | 2009 |   |   | Amounts |   |   | Percent |
| Gain On Sale Of Investments                                                          | $                               | 492,975        |                | $ | 300,976 |   | $ | 191,999 |   |   | 63.8% |
| Gain On Sale Of Loans                                                                |                            | 334,713        |                |   | 215,080 |   |   | 119,633 |   |   | 55.6 |
| Loss On Sale Of Repossessed Asssets   Acquired In Settlement Of Loans |                            |  (35,580) |                |   |  (3,742) |   |   |  (31,838) |   |   |  (850.8) |
| Service Fees On Deposit Accounts                                                     |                            | 289,810        |                |   | 347,164 |   |   | (57,354) |   |   | (16.5) |
| Income From Cash Value Of   Life Insurance                            |                            |  105,000  |                |   |  90,000 |   |   |  15,000 |   |   |  16.7 |
| Commissions From Insurance Agency                                                    |                            | 92,619         |                |   | 94,544 |   |   | (1,925) |   |   | (2.0) |
| Other Agency Income                                                                  |                            | 91,742         |                |   | 108,302 |   |   | (16,560) |   |   | (15.3) |
| Trust Income                                                                         |                            | 109,500        |                |   | 105,000 |   |   | 4,500 |   |   | 4.3 |
| Mandatorily Redeemable Financial   Instrument Valuation               |                            |  90,000   |                |   |  (65,000) |   |   |  155,000 |   |   |  238.5   |
| Other                                                                                |                            | 173,603        |                |   | 236,120 |   |   | (62,517) |   |   | (26.4) |
| Total Non-Interest Income                                                            | $                               | 1,744,382      |                | $ | 1,428,444 |   | $ | 315,938 |   |   | 22.1% |

----

|                                                       | Three Months Ended December 31, |            | Increase (Decrease) |
|------------------------------------------------------------|---------------------------------|-----------------|---------------------|
|                                                       |                            | 2010            |                |   | 2009 |   |   | Amounts |   |   | Percent |
| Salaries And Employee Benefits                             | $                               | 3,016,325       |                | $ | 3,007,360 |   | $ | 8,965 |   |   | 0.3% |
| Occupancy                                                  |                            | 439,374         |                |   | 497,423 |   |   | (58,049) |   |   | (11.7) |
| Advertising                                                |                            | 97,491          |                |   | 102,946 |   |   | (5,455) |   |   | (5.3) |
| Depreciation And Maintenance   Of Equipment |                            |  453,291   |                |   |  433,734 |   |   |  19,557 |   |   |  4.5 |
| FDIC Insurance Premiums                                    |                            | 366,000         |                |   | 366,000 |   |   | - |   |   |       - |
| Amortization of Intangibles                                |                            | 22,500          |                |   | 22,500 |   |   | - |   |   |       - |
| Other                                                      |                            | 1,443,441       |                |   | 1,078,312 |   |   | 365,129 |   |   | 33.9 |
| Total General And Administrative   Expenses |  $                         |  5,838,422 |                |  $ |  5,508,275 |   |  $ |  330,147 |   |   |  6.0% |

----

----

|                          |   | Nine Months Ended December 31, |        |
|-------------------------------|--------|--------------------------------|-------------|
|                          |   | 2010                           |        |   | 2009 |   |   |   |   |
|                          |   |  Average Balance          |        |   |   Yield |   |   |  Average Balance |   |   |   Yield |   |   | Increase (Decrease) In Interest And Dividend Income From 2009 |   |
| Loans Receivable, Net         |   | $                              | 545,657,873 |   |   |   | 6.02 | % |   | $ | 603,913,556 |   |   |   | 5.76 | % |   | $ | (1,446,965 | ) |
| Mortgage-Backed Securities    |   |                           | 228,704,199 |   |   |   | 3.71 |   |   |   | 245,980,360 |   |   |   | 4.43 |   |   |   | (1,807,188 | ) |
| Investments                   |   |                           | 96,285,864  |   |   |   | 2.67 |   |   |   | 73,796,185 |   |   |   | 3.29 |   |   |   | 110,359 |   |
| Overnight Time Deposits       |   |                           | 3,427,522   |   |   |   | 0.13 |   |   |   | 755,359 |   |   |   | 0.07 |   |   |   | 3,057 |   |
| Total Interest-Earning Assets |   | $                              | 874,075,458 |   |   |   | 5.02 | % |   | $ | 924,445,460 |   |   |   | 5.20 | % |   | $ | (3,140,737 | ) |

----

|                                                                  |   | Nine Months Ended December 31, |        |
|-----------------------------------------------------------------------|--------|--------------------------------|-------------|
|                                                                  |   | 2010                           |        |   | 2009 |   |   |   |   |
|                                                                  |   |  Average Balance          |        |   |   Yield |   |   |  Average Balance |   |   |   Yield |   |   | Increase (Decrease) In Interest Expense From 2009 |   |
| Now And Money Market   Accounts                        |   | $                              | 247,884,852 |   |   |   | 0.88 | % |   | $ | 223,134,518 |   |   |   | 1.17 | % |   | $ | (322,293 | ) |
| Statement Savings Accounts                                            |   |                           | 19,220,447  |   |   |   | 0.32 |   |   |   | 17,329,303 |   |   |   | 0.45 |   |   |   | (12,463 | ) |
| Certificates Accounts                                                 |   |                           | 388,807,686 |   |   |   | 2.05 |   |   |   | 383,526,603 |   |   |   | 2.93 |   |   |   | (2,460,497 | ) |
| FHLB Advances, TAF Advances   And Other Borrowed Money |   |                           | 158,690,300 |   |   |   |  3.73 |   |   |   | 233,703,084 |   |   |   |  2.84 |   |   |   | (529,254 | ) |
| Senior Convertible Debentures                                         |   |                           | 6,084,000   |   |   |   | 8.00 |   |   |   | 685,833 |   |   |   | 7.89 |   |   |   | 324,480 |   |
| Junior Subordinated Debentures                                        |   |                           | 5,155,000   |   |   |   | 4.56 |   |   |   | 5,155,000 |   |   |   | 4.72 |   |   |   | (6,353 | ) |
| Total Interest-Bearing Liabilities                                    |   | $                              | 825,842,285 |   |   |   | 2.04 | % |   | $ | 863,534,341 |   |   |   | 2.41 | % |   | $ | (3,006,380 | ) |

|              |   | December 31, 2010 |   | December 31, 2009 |
|-------------------|--------|-------------------|--------|-------------------|
| Beginning Balance | $      | 12,307,394        | $      | 10,181,599        |
| Provision         |   | 5,950,000         |   | 5,475,000         |
| Charge-offs       |   | (5,916,333)       |   | (1,718,860)       |
| Recoveries        |   | 67,735            |   | 27,040            |
| Ending Balance    | $      | 12,408,796        | $      | 13,964,779        |
|              |   |              |   |              |

----

|                                                                                 | Nine Months Ended December 31, |            | Increase (Decrease) |
|--------------------------------------------------------------------------------------|--------------------------------|-----------------|---------------------|
|                                                                                 |                           | 2010            |                |   | 2009 |   |   | Amounts |   |   | Percent |
| Gain On Sale Of Investments                                                          | $                              | 1,188,381       |                | $ | 675,101 |   | $ | 513,280 |   |   | 76.0% |
| Gain On Sale Of Loans                                                                |                           | 1,180,870       |                |   | 811,545 |   |   | 369,325 |   |   | 45.5 |
| Loss On Sale Of Repossessed Asssets   Acquired In Settlement Of Loans |                           |  (228,447) |                |   |  (64,846) |   |   |  (163,601) |   |   |  (252.3) |
| Service Fees On Deposit Accounts                                                     |                           | 879,627         |                |   | 935,846 |   |   | (56,219) |   |   | (6.0) |
| Income From Cash Value Of   Life Insurance                            |                           |  305,000   |                |   |  270,000 |   |   |  35,000 |   |   |  13.0 |
| Commissions From Insurance Agency                                                    |                           | 301,585         |                |   | 341,874 |   |   | (40,289) |   |   | (11.8) |
| Other Agency Income                                                                  |                           | 277,480         |                |   | 349,813 |   |   | (72,333) |   |   | (20.7) |
| Trust Income                                                                         |                           | 328,500         |                |   | 315,000 |   |   | 13,500 |   |   | 4.3 |
| Mandatorily Redeemable Financial   Instrument Valuation               |                           |  5,000     |                |   |  (109,000) |   |   |  114,000 |   |   |  104.6 |
| Other                                                                                |                           | 752,970         |                |   | 645,340 |   |   | 107,630 |   |   | 16.7 |
| Total Non-Interest Income                                                            | $                              | 4,990,966       |                | $ | 4,170,673 |   | $ | 820,293 |   |   | 19.7% |

----

|                                                       | Nine Months Ended December 31, |             | Increase (Decrease) |
|------------------------------------------------------------|--------------------------------|------------------|---------------------|
|                                                       |                           | 2010             |                |   | 2009 |   |   | Amounts |   |   | Percent |
| Salaries And Employee Benefits                             | $                              | 9,023,500        |                | $ | 8,828,625 |   | $ | 194,875 |   |   | 2.2% |
| Occupancy                                                  |                           | 1,443,340        |                |   | 1,490,587 |   |   | (47,247) |   |   | 3.2 |
| Advertising                                                |                           | 298,839          |                |   | 318,875 |   |   | (20,036) |   |   | (6.3) |
| Depreciation And Maintenance   Of Equipment |                           |  1,377,859  |                |   |  1,316,130 |   |   |  61,729 |   |   |  4.7 |
| FDIC Insurance Premiums                                    |                           | 994,048          |                |   | 1,473,000 |   |   | (478,952) |   |   | (32.5) |
| Amortization of Intangibles                                |                           | 67,500           |                |   | 67,500 |   |   | - |   |   | - |
| Other                                                      |                           | 3,845,001        |                |   | 3,080,447 |   |   | 764,554 |   |   | 24.8 |
| Total General And Administrative   Expenses |  $                        |  17,050,087 |                |  $ |  16,575,164 |   |  $ |  474,923 |   |   |  2.9% |

----

|     (Dollars in thousands) |   WithinOneMonth |   |  After OneThroughThreeMonths |   | AfterThreeThroughTwelveMonths |   |    WithinOne Year |   |  GreaterThanOneYear |   |     Total |
|------------------------------------------------|----------------------------|--------|-----------------------------------|--------|-------------------------------|--------|----------------------------------|--------|--------------------------|--------|-------------------------------|
|                                           |                       |   |                              |   |                          |   |                             |   |                     |   |                          |
| Unused lines of credit                         | $800                       |   | $1,060                            |   | $7,209                        |   | $9,069                           |   | $30,004                  |   | $39,073                       |
|                                           |                       |   |                              |   |                          |   |                             |   |                     |   |                          |
| Standby letters of credit                      | 62                         |   | 113                               |   | 1,174                         |   | 1,348                            |   | 216                      |   | 1,564                         |
|                                           |                       |   |                              |   |                          |   |                             |   |                     |   |                          |
| Total                                          | $862                       |   | $1,173                            |   | $8,383                        |   | $10,417                          |   | $30,220                  |   | $40,637                       |

----

----

| •   | cash flow of the borrower and/or the project being financed; |
|---------------------|--------------------------------------------------------------|

| •   | the changes and uncertainties as to the future value of the collateral, in the case of a collateralized loan; |
|---------------------|---------------------------------------------------------------------------------------------------------------|

| •   | the duration of the loan; |
|---------------------|---------------------------|

| •   | the character and creditworthiness of a particular borrower; and |
|---------------------|------------------------------------------------------------------|

| •   | changes in economic and industry conditions. |
|---------------------|----------------------------------------------|

| •   | our general reserve, based on our historical default and loss experience and certain macroeconomic factors based on management’s expectations of future events; and |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | our specific reserve, based on our evaluation of non-performing loans and their underlying collateral. |
|---------------------|--------------------------------------------------------------------------------------------------------|

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|   |  3.1   | Articles Of Incorporation, as amended (1)                                                                                                                                  |
|--------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |  3.2   | Articles of Amendment, Including Certificate of Designation relating to the Company’s Fixed Rate Cumulative Perpetual Preferred Stock Series A(2)               |
|   |  3.3   | Bylaws (3)                                                                                                                                                                 |
|   |  4.1   | Instruments defining the rights of security holders, including indentures (4)                                                                                              |
|   |  4.2   | Warrant to purchase shares of the Company’s common stock dated December 19, 2008(2)                                                                                  |
|   |  4.3   | Letter Agreement (including Securities Purchase Agreement Standard Terms) dated December 19, 2008 between the Company and the United States Department of the Treasury (2) |
|   |  4.4   | Form of Indenture with respect to the Company’s 8.0% Convertible Senior Debentures Due 2029 (5)                                                                      |
|   |  4.5   | Specimen Convertible Senior Debenture Due 2029 (5)                                                                                                                         |
|   |  10.1  | 1993 Salary Continuation Agreements (6)                                                                                                                                    |
|   |  10.2  | Amendment One to 1993 Salary Continuation Agreement (7)                                                                                                                    |
|   |  10.3  | Form of 2006 Salary Continuation Agreement(8)                                                                                                                              |
|   |  10.4  | 1999 Stock Option Plan (3)                                                                                                                                                 |
|   |  10.5  | 1987 Stock Option Plan (6)                                                                                                                                                 |
|   |  10.6  | 2002 Stock Option Plan (9)                                                                                                                                                 |
|   |  10.7  | 2006 Stock Option Plan (10)                                                                                                                                                |
|   |  10.8  | 2004 Employee Stock Purchase Plan (12)                                                                                                                                     |
|   |  10.9  | Incentive Compensation Plan (6)                                                                                                                                            |
|   |  10.10 | Form of Security Federal Bank Salary Continuation Agreement (13)                                                                                                           |
|   |  10.11 | Form of Security Federal Split Dollar Agreement (13)                                                                                                                       |
|   |  10.12 | 2008 Equity Incentive Plan (11)                                                                                                                                            |
|   |  10.12 | Form of Compensation Modification Agreement (2)                                                                                                                            |
|   |  14    | Code of Ethics (14)                                                                                                                                                        |
|   |  25.0  | Form T-1: Statement of Eligibility of Trustee (5)                                                                                                                          |
|   |  31.1  | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act.                                                                       |
|   |  31.2  | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act.                                                                       |
|   |  32    | Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act.                                                                                                     |

| (1)  | Filed on June 26, 1998, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference.                                             |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Incorporated by reference to the Registrant’s Current Report on Form 8-K on December 23, 2008.                                                           |
| (3)  | Filed on March 2, 2000, as an exhibit to the Company’s Registration Statement on Form S-8 and incorporated herein by reference.                          |
| (4)  | Filed on August 12, 1987, as an exhibit to the Company’s Registration Statement on Form 8-A and incorporated herein by reference.                        |
| (5)       | Filed on July 13, 2009 as an exhibit to the Company’s Registration Statement on Form S-1 (File No. 333-160553) and incorporated herein by reference.     |
| (6)  | Filed on June 28, 1993, as an exhibit to the Company’s Annual Report on Form 10-KSB and incorporated herein by reference.                                |
| (7)  | Filed as an exhibit to the Company’s Quarterly Report on Form 10-QSB for the quarter ended September 30, 1993 and incorporated herein by reference. |
| (8)  | Filed on May 24, 2006 as an exhibit to the Company’s Current Report on Form 8-K dated May 18, 2006 and incorporated herein by reference.                 |
| (9)  | Filed on June 19, 2002, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference.                                             |

----

| (10)       | Filed on August 22, 2006, as an exhibit to the Company’s Registration Statement on Form S-8 (Registration Statement No. 333-136813) and incorporated herein by reference. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11)  | Filed on June 20, 2008, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference.                                                         |
| (12)  | Filed on June 18, 2004, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference                                                          |
| (13)       | Filed on May 24, 2006 as an exhibit to the Current Report on Form 8-K and incorporated herein by reference.                                                                |
| (14)  | Filed on June 27, 2008 as an exhibit to the Company’s Annual Report on Form 10-K and incorporated herein by reference.                                               |

----

|   |                           |   |   | SECURITY FEDERAL CORPORATION                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                           |   |   |                                                                                                                                                                                                                                                                                                                                           |
|   |                           |   |   |                                                                                                                                                                                                                                                                                                                                           |
|   |                           |   |   |                                                                                                                                                                                                                                                                                                                                           |
| Date:  | February 11, 2011              |   | By:    | /s/ Timothy W. Simmons                                                     |
|   | Timothy W. Simmons             |
|   | President                      |
|   | Duly Authorized Representative |

| Date:  | February 11, 2011              |   | By: | /s/ Roy G. Lindburg                                                              |
|--------|--------------------------------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Roy G. Lindburg                |
|   | CFO                            |
|   | Duly Authorized Representative |

|  46 |
|----------|