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

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

| 238 RICHLAND AVENUE      WEST, AIKEN, SOUTH CAROLINA      | 29801            |
|------------------------------------------------------------------------------------|-----------------------|
| (Address of      Principal Executive Office)                                  | (Zip      code)  |

| 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 |   | November      12, 2010      |   | 2,861,095 |

----

|          |                                                                                                                                            |   |          |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|
| PART      I.  | FINANCIAL      INFORMATION (UNAUDITED)                                                                                                     |   | PAGE      NO. |
| Item      1.  | Financial      Statements (Unaudited):                                                                                                     |   |          |
|          | Consolidated      Balance Sheets at September 30, 2010 and March 31, 2010                                                                  |   | 3             |
|          | Consolidated      Statements of Income for the Three and Six Months Ended September 30, 2010      and 2009                                 |   | 4             |
|          | Consolidated      Statements of Changes in Shareholders’ Equity and Comprehensive Income      (Loss) at September 30, 2010 and 2009  |   | 6             |
|          | Consolidated      Statements of Cash Flows for the Six Months Ended September 30, 2010 and      2009                                       |   | 7             |
|          | Notes      to Consolidated Financial Statements                                                                                            |   | 9             |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                      |   | 27            |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk                                                                            |   | 43            |
| Item      4.  | Controls      and Procedures                                                                                                               |   | 43            |
|          |                                                                                                                                            |   |          |
| PART      II. | OTHER      INFORMATION                                                                                                                     |   |          |
| Item      1.  | Legal      Proceedings                                                                                                                     |   | 44            |
| Item      1A. | Risk      Factors                                                                                                                          |   | 44            |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                           |   | 46            |
| Item      3.  | Defaults      Upon Senior Securities                                                                                                       |   | 46            |
| Item      4.  | [Removed      and Reserved]                                                                                                                |   | 46            |
| Item      5.  | Other      Information                                                                                                                     |   | 46            |
| Item      6.  | Exhibits                                                                                                                                   |   | 46            |
|          | Signatures                                                                                                                                      |   | 48            |
|          |                                                                                                                                            |   |          |

----

|                                                                                                                                                                                                                                                                                                                                                                           |   | September      30, 2010            |   | March      31, 2010     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|-------------------------|
| Assets:                                                                                                                                                                                                                                                                                                                                                                        |   | (Unaudited)                        |   | (Audited)               |
| Cash      And Cash Equivalents                                                                                                                                                                                                                                                                                                                                                 | $      | 16,335,069                         | $      | 8,804,645               |
| Investment      And Mortgage-Backed Securities:                                                                                                                                                                                                                                                                                                                                |   |                               |   |                    |
| Available      For Sale:  (Amortized cost of $300,100,823 at September 30, 2010 and                                               $284,831,441 at March 31, 2010)                          |   |  310,668,247                  |   |  292,261,039       |
| Held      To Maturity:  (Fair value of $16,507,548 at September 30, 2010 and                                              $19,854,106 at March 31, 2010)                                        |   |  15,255,128                   |   |  18,785,380        |
| Total      Investment And Mortgage-Backed Securities                                                                                                                                                                                                                                                                                                                           |   | 325,923,375                        |   | 311,046,419             |
| Loans      Receivable, Net:                                                                                                                                                                                                                                                                                                                                                    |   |                               |   |                    |
| Held      For Sale                                                                                                                                                                                                                                                                                                                                                             |   | 8,381,511                          |   | 3,161,463               |
| Held      For Investment:  (Net of allowance of $11,528,220 at September 30,      2010 and                                              $12,307,394 at March 31, 2010) |   |  528,792,925                  |   |  565,237,372       |
| Total      Loans Receivable, Net                                                                                                                                                                                                                                                                                                                                               |   | 537,174,436                        |   | 568,398,835             |
| Accrued      Interest Receivable:                                                                                                                                                                                                                                                                                                                                              |   |                               |   |                    |
| Loans                                                                                                                                                                                                                                                                                                                                                                          |   | 1,866,806                          |   | 1,787,471               |
| Mortgage-Backed      Securities                                                                                                                                                                                                                                                                                                                                                |   | 883,540                            |   | 964,380                 |
| Investments                                                                                                                                                                                                                                                                                                                                                                    |   | 702,572                            |   | 703,339                 |
| Premises      And Equipment, Net                                                                                                                                                                                                                                                                                                                                               |   |     20,523,368 |   | 20,720,484              |
| Federal      Home Loan Bank Stock, At Cost                                                                                                                                                                                                                                                                                                                                     |   | 11,720,000                         |   | 12,624,400              |
| Bank      Owned Life Insurance                                                                                                                                                                                                                                                                                                                                                 |   | 10,201,305                         |   | 10,001,305              |
| Repossessed      Assets Acquired In Settlement Of Loans                                                                                                                                                                                                                                                                                                                        |   | 15,597,726                         |   | 10,773,050              |
| Intangible      Assets, Net                                                                                                                                                                                                                                                                                                                                                    |   | 204,500                            |   | 249,500                 |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                       |   | 1,199,754                          |   | 1,199,754               |
| Prepaid      Federal Deposit Insurance Corporation (“FDIC”) Premium                                                                                                                                                                                                                                                                                                |   | 3,424,672                          |   | 3,987,622               |
| Other      Assets                                                                                                                                                                                                                                                                                                                                                              |   | 3,293,383                          |   | 4,740,454               |
| Total      Assets                                                                                                                                                                                                                                                                                                                                                              | $      | 949,050,506                        | $      | 956,001,658             |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                               |   |                    |
| Liabilities      And Shareholders’ Equity                                                                                                                                                                                                                                                                                                                                |   |                               |   |                    |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                   |   |                               |   |                    |
| Deposit      Accounts                                                                                                                                                                                                                                                                                                                                                          | $      | 697,739,490                        | $      | 694,252,437             |
| Advances      From Federal Home Loan Bank (“FHLB”)                                                                                                                                                                                                                                                                                                                 |   | 142,897,168                        |   | 164,003,882             |
| Other      Borrowed Money                                                                                                                                                                                                                                                                                                                                                      |   | 12,342,703                         |   | 12,060,470              |
| Advance      Payments By Borrowers For Taxes And Insurance                                                                                                                                                                                                                                                                                                                     |   | 595,677                            |   | 327,332                 |
| Mandatorily      Redeemable Financial Instrument                                                                                                                                                                                                                                                                                                                               |   | 1,748,312                          |   | 1,663,312               |
| Junior      Subordinated Debentures                                                                                                                                                                                                                                                                                                                                            |   | 5,155,000                          |   | 5,155,000               |
| Senior      Convertible Debentures                                                                                                                                                                                                                                                                                                                                             |   | 6,084,000                          |   | 6,084,000               |
| Other      Liabilities                                                                                                                                                                                                                                                                                                                                                         |   | 4,619,964                          |   | 4,594,606               |
| Total      Liabilities                                                                                                                                                                                                                                                                                                                                                         |   | 871,182,314                        |   | 888,141,039             |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                               |   |                    |
| Shareholders'      Equity:                                                                                                                                                                                                                                                                                                                                                     |   |                               |   |                    |
|          Serial Preferred Stock, $.01 Par Value; Authorized Shares 200,000; Issued      And Outstanding          Series      B 22,000 At September 30, 2010 And Series A 18,000 At March 31,      2010                                                                                                        |   |  22,000,000                   |   |  17,692,609        |
|          Common Stock, $.01 Par Value; Authorized Shares – 5,000,000; Issued And      Outstanding              Shares -3,062,028 And      2,861,095 Respectively, At September 30, 2010; And 2,662,028              And 2,461,095, Respectively, At March 31, 2010                  |   |   30,055                 |   |   26,055      |
|          Warrant Issued In Conjunction With Serial Preferred Stock                                                                                                                                                                                                                                                                                              |   | 400,000                            |   | 400,000                 |
|          Additional Paid-In Capital                                                                                                                                                                                                                                                                                                                             |   | 9,364,706                          |   | 5,352,144               |
|          Treasury Stock, (At Cost, 200,933 Shares, At September 30, 2010 And At      March 31, 2010)                                                                                                                                                                                                                                                            |   | (4,330,712)              |   | (4,330,712)   |
|          Accumulated Other Comprehensive Income                                                                                                                                                                                                                                                                                                                 |   | 6,554,930                          |   | 4,608,080               |
|          Retained Earnings, Substantially Restricted                                                                                                                                                                                                                                                                                                            |   | 43,849,213                         |   | 44,112,443              |
| Total      Shareholders' Equity                                                                                                                                                                                                                                                                                                                                                |   | 77,868,192                         |   | 67,860,619              |
| Total      Liabilities And Shareholders' Equity                                                                                                                                                                                                                                                                                                                                | $      | 949,050,506                        | $      | 956,001,658             |

----

|                                                               |   | Three      Months Ended September 30, |
|--------------------------------------------------------------------|--------|---------------------------------------|
|                                                               |   | 2010                                  |   | 2009 |
| Interest      Income:                                              |   |                                  |   |   |
| Loans                                                              | $      | 8,269,202                             | $ | 8,496,286 |
| Mortgage-Backed      Securities                                    |   | 2,092,227                             |   | 2,529,990 |
| Investment      Securities                                         |   | 668,183                               |   | 745,910 |
| Other                                                              |   | 1,303                                 |   | 116 |
| Total      Interest Income                                         |   | 11,030,915                            |   | 11,772,302 |
|                                                               |   |                                  |   |   |
| Interest      Expense:                                             |   |                                  |   |   |
| NOW      And Money Market Accounts                                 |   | 600,465                               |   | 638,562 |
| Statement      Savings Accounts                                    |   | 15,550                                |   |                    19,334 |
| Certificate      Accounts                                          |   | 2,027,971                             |   | 2,806,781 |
| Advances      And Other Borrowed Money                             |   | 1,496,323                             |   | 1,642,721 |
| Junior      Subordinated Debentures                                |   | 59,773                                |   | 60,283 |
|    Senior      Convertible Debentures               |   | 121,680                               |   | -- |
| Total      Interest Expense                                        |   | 4,321,762                             |   | 5,167,681 |
|                                                               |   |                                  |   |   |
| Net      Interest Income                                           |   | 6,709,153                             |   | 6,604,621 |
| Provision      For Loan Losses                                     |   | 2,150,000                             |   | 1,600,000 |
| Net      Interest Income After Provision For Loan Losses           |   | 4,559,153                             |   | 5,004,621 |
| Non-Interest      Income:                                          |   |                                  |   |   |
| Gain      On Sale Of Investments                                   |   | 495,895                               |   | 323,234 |
| Gain      On Sale Of Loans                                         |   | 577,480                               |   | 162,858 |
| Loss      On Sale Of Real Estate Owned                             |   | (139,122)                             |   | (37,921) |
| Service      Fees On Deposit Accounts                              |   | 295,932                               |   | 312,300 |
| Income      From Cash Value Of Life Insurance                      |   | 105,000                               |   | 90,000 |
| Commissions      From Insurance Agency                             |   | 118,139                               |   | 108,076 |
| Other      Agency Income                                           |   | 90,780                                |   | 119,044 |
| Trust      Income                                                  |   | 109,500                               |   | 105,000 |
| Other                                                              |   | 299,684                               |   | 200,635 |
| Total      Non-Interest Income                                     |   | 1,953,288                             |   | 1,383,226 |
|                                                               |   |                                  |   |   |
| General      And Administrative Expenses:                          |   |                                  |   |   |
| Salaries      And Employee Benefits                                |   | 3,000,691                             |   | 2,876,830 |
| Occupancy                                                          |   | 489,774                               |   | 499,819 |
| Advertising                                                        |   | 80,554                                |   | 81,375 |
| Depreciation      And Maintenance Of Equipment                     |   | 468,533                               |   | 440,369 |
| FDIC      Insurance Premiums                                       |   | 316,000                               |   | 351,000 |
| Amortization      of Intangibles                                   |   | 22,500                                |   | 22,500 |
| Mandatorily      Redeemable Financial Instrument Valuation Expense |   | 45,000                                |   | 122,000 |
| Other                                                              |   | 1,334,631                             |   | 980,265 |
| Total      General And Administrative Expenses                     |   | 5,757,683                             |   | 5,374,158 |
|                                                               |   |                                  |   |   |
| Income      Before Income Taxes                                    |   | 754,758                               |   | 1,013,689 |
| Provision      For Income Taxes                                    |   | 297,399                               |   | 431,609 |
| Net      Income                                                    |   | 457,359                               |   | 582,080 |
| Preferred      Stock Dividends                                     |   | 221,451                               |   | 225,000 |
| Accretion      Of Preferred Stock To Redemption Value              |   | --                                    |   | 18,277 |
| Net      Income Available To Common Shareholders                   | $      | 235,908                               | $ | 338,803 |
|                                                               |   |                                  |   |   |
| Basic      Net Income Per Common Share                             | $      | 0.10                                  | $ | 0.14 |
| Diluted      Net Income Per Common Share                           | $      | 0.09                                  | $ | 0.13 |
| Cash      Dividend Per Share On Common Stock                       | $      | 0.08                                  | $ | 0.08 |
| Basic      Weighted Average Shares Outstanding                     |   | 2,469,791                             |   | 2,461,092 |
| Diluted      Weighted Average Shares Outstanding                   |   | 2,550,097                             |   | 2,521,157 |

----

|                                                               |   | Six      Months Ended September 30, |
|--------------------------------------------------------------------|--------|-------------------------------------|
|                                                               |   | 2010                                |   | 2009 |
| Interest      Income:                                              |   |                                |   |   |
| Loans                                                              | $      | 16,638,040                          | $ | 17,196,423 |
| Mortgage-Backed      Securities                                    |   | 4,392,645                           |   | 5,377,260 |
| Investment      Securities                                         |   | 1,349,428                           |   | 1,262,907 |
| Other                                                              |   | 1,477                               |   | 330 |
| Total      Interest Income                                         |   | 22,381,590                          |   | 23,836,920 |
|                                                               |   |                                |   |   |
| Interest      Expense:                                             |   |                                |   |   |
| NOW      And Money Market Accounts                                 |   | 1,178,650                           |   | 1,323,158 |
| Statement      Savings Accounts                                    |   | 33,057                              |   | 39,452 |
| Certificate      Accounts                                          |   | 4,116,924                           |   | 6,081,486 |
| Advances      And Other Borrowed Money                             |   | 3,058,766                           |   | 3,335,335 |
| Junior      Subordinated Debentures                                |   | 117,670                             |   | 124,043 |
| Senior      Convertible Debentures                                 |   | 243,360                             |   | -- |
| Total      Interest Expense                                        |   | 8,748,427                           |   | 10,903,474 |
|                                                               |   |                                |   |   |
| Net      Interest Income                                           |   | 13,633,163                          |   | 12,933,446 |
| Provision      For Loan Losses                                     |   | 4,050,000                           |   | 3,000,000 |
| Net      Interest Income After Provision For Loan Losses           |   | 9,583,163                           |   | 9,933,446 |
| Non-Interest      Income:                                          |   |                                |   |   |
| Gain      On Sale Of Investments                                   |   | 695,406                             |   | 374,125 |
| Gain      On Sale Of Loans                                         |   | 846,157                             |   | 596,465 |
| Loss      On Sale of Real Estate Owned                             |   | (192,867)                           |   | (61,104) |
| Service      Fees On Deposit Accounts                              |   | 589,817                             |   | 588,682 |
| Income      From Cash Value Of Life Insurance                      |   | 200,000                             |   | 180,000 |
| Commissions      From Insurance Agency                             |   | 208,966                             |   | 247,330 |
| Other      Agency Income                                           |   | 185,738                             |   | 241,511 |
| Trust      Income                                                  |   | 219,000                             |   | 210,000 |
| Other                                                              |   | 579,368                             |   | 409,221 |
| Total      Non-Interest Income                                     |   | 3,331,585                           |   | 2,786,230 |
|                                                               |   |                                |   |   |
| General      And Administrative Expenses:                          |   |                                |   |   |
| Salaries      And Employee Benefits                                |   | 6,007,175                           |   | 5,821,265 |
| Occupancy                                                          |   | 1,003,966                           |   | 993,164 |
| Advertising                                                        |   | 201,348                             |   | 215,929 |
| Depreciation      And Maintenance Of Equipment                     |   | 924,568                             |   | 882,396 |
| FDIC      Insurance Premiums                                       |   | 628,048                             |   | 1,107,000 |
| Amortization      of Intangibles                                   |   | 45,000                              |   | 45,000 |
| Mandatorily      Redeemable Financial Instrument Valuation Expense |   | 85,000                              |   | 44,000 |
| Other                                                              |   | 2,401,561                           |   | 2,002,135 |
| Total      General And Administrative Expenses                     |   | 11,296,666                          |   | 11,110,889 |
|                                                               |   |                                |   |   |
| Income      Before Income Taxes                                    |   | 1,618,082                           |   | 1,608,787 |
| Provision      For Income Taxes                                    |   | 620,144                             |   | 654,540 |
| Net      Income                                                    |   | 997,938                             |   | 954,247 |
| Preferred      Stock Dividends                                     |   | 446,451                             |   | 450,000 |
| Accretion      Of Preferred Stock To Redemption Value              |   | 18,816                              |   | 36,356 |
| Net      Income Available To Common Shareholders                   | $      | 532,671                             | $ | 467,891 |
|                                                               |   |                                |   |   |
| Basic      Net Income Per Common Share                             | $      | 0.22                                | $ | 0.19 |
| Diluted      Net Income Per Common Share                           | $      | 0.21                                | $ | 0.19 |
| Cash      Dividend Per Share On Common Stock                       | $      | 0.16                                | $ | 0.16 |
| Basic      Weighted Average Shares Outstanding                     |   | 2,465,467                           |   | 2,460,614 |
| Diluted      Weighted Average Shares Outstanding                   |   | 2,554,167                           |   | 2,511,872 |

----

|                                                                                                                        |   |   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                                                                                                             |   | -                                |   | -                          |   | -                             |   | -                                                 |   |          -                                                 |   | -                                                     |   | 954,247                            |   | 954,247                 |
| Other      Comprehensive Income,   Net      Of Tax:                                                          |   |                             |   |                       |   |                          |   |                                              |   |                                                                                                    |   |                                                  |   |                               |   |                    |
| Unrealized      Holding Gains   On      Securities Available   For      Sale, Net Of Taxes    |   |   -                    |   |   -              |   |   -                 |   |   -                                     |   |            -                                     |   |   1,186,388                                 |   |   -                      |   |   1,186,388   |
| Reclassification      Adjustment   For      Gains Included In Net   Income,      Net Of Taxes |   |   -                    |   |   -              |   |   -                 |   |   -                                     |   |                  - |   |   (231,958)                                 |   |   -                      |   |   (231,958)   |
| Comprehensive      Income                                                                                                   |   | -                                |   | -                          |   | -                             |   | -                                                 |   |            -                                     |   | -                                                     |   | -                                  |   | 1,908,677               |
|          Accretion Of Preferred Stock To Redemption Value                                                    |   |  36,356                     |   |   -              |   |  -                       |   |  -                                           |   |           -                                           |   |  -                                               |   |  (36,356)                     |   |  -                 |
|          Employee Stock Purchase Plan Purchases                                                              |   |  -                          |   |  -                    |   |  15                      |   |  19,785                                      |   |           -                                           |   |  -                                               |   |  -                            |   |  19,800            |
| Stock      Compensation Expense                                                                                             |   | -                                |   | -                          |   | -                             |   | 16,562                                            |   |          -                                                 |   | -                                                     |   | -                                  |   | 16,562                  |
| Cash      Dividends On Preferred                                                                                            |   | -                                |   | -                          |   | -                             |   | -                                                 |   |          -                                                 |   | -                                                     |   | (450,000)                          |   | (450,000)               |
| Cash      Dividends On Common                                                                                               |   | -                                |   | -                          |   | -                             |   | -                                                 |   |          -                                                 |   | -                                                     |   | (393,775)                          |   | (393,775)               |
| Balance      At September 30, 2009                                                                                          | $      | 17,656,421                       | $      | 400,000                    | $      | 26,055                        | $      | 5,335,582                                         | $      | (4,330,712)                                                                                             | $      | 4,764,364                                             | $      | 44,341,852                         | $      | 68,193,562              |

|                                                                                                                        |   |   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                                                                                                             |   | -                                |   | -                          |   | -                             |   | -                                                 |   |          -                                                 |   | -                                                     |   | 997,938                            |   | 997,938                 |
| Other      Comprehensive Income,   Net      Of Tax:                                                          |   |                             |   |                       |   |                          |   |                                              |   |                                                                                                    |   |                                                  |   |                               |   |                    |
| Unrealized      Holding Gains   On      Securities Available   For      Sale, Net Of Taxes    |   |   -                    |   |   -              |   |   -                 |   |   -                                     |   |            -                                     |   |   2,378,002                                 |   |   -                      |   |   2,378,002   |
| Reclassification      Adjustment   For      Gains Included In Net   Income,      Net Of Taxes |   |   -                    |   |   -              |   |   -                 |   |   -                                     |   |                  - |   |   (431,152)                                 |   |   -                      |   |   (431,152)   |
| Comprehensive      Income                                                                                                   |   |                             |   |                       |   |                          |   |                                              |   |                                                                                                    |   |                                                  |   |                               |   | 2,944,788               |
|                                                                                                                        |   |                             |   |                       |   |                          |   |                                              |   |                                                                                                    |   |                                                  |   |                               |   |                    |
|          Preferred Stock Issuance                                                                            |   | 22,000,000                       |   | -                          |   | -                             |   | -                                                 |   |                -             |   | -                                                     |   | -                                  |   | 22,000,000              |
|          Preferred Stock Redemption                                                                          |   | (17,711,425)                     |   | -                          |   | -                             |   | -                                                 |   |                -             |   | -                                                     |   | (288,575)                          |   | (18,000,000)            |
|          Common Stock Issuance                                                                               |   | -                                |   | -                          |   | 4,000                         |   | 3,996,000                                         |   | -                                                                                                       |   | -                                                     |   | -                                  |   | 4,000,000               |
|          Accretion Of Preferred Stock To Redemption Value                                                    |   |  18,816                     |   |   -              |   |  -                       |   |  -                                           |   |           -                                           |   |  -                                               |   |  (18,816)                     |   |  -                 |
|          Employee Stock Purchase Plan Purchases                                                              |   |  -                          |   |  -                    |   | -                             |   |  -                                           |   |           -                                           |   |  -                                               |   |  -                            |   |  -                 |
| Stock      Compensation Expense                                                                                             |   | -                                |   | -                          |   | -                             |   | 16,562                                            |   |          -                                                 |   | -                                                     |   | -                                  |   | 16,562                  |
| Cash      Dividends On Preferred                                                                                            |   | -                                |   | -                          |   | -                             |   | -                                                 |   |          -                                                 |   | -                                                     |   | (560,000)                          |   | (560,000)               |
| Cash      Dividends On Common                                                                                               |   | -                                |   | -                          |   | -                             |   | -                                                 |   |          -                                                 |   | -                                                     |   | (393,777)                          |   | (393,777)               |
| Balance      At September 30, 2010                                                                                          | $      | 22,000,000                       | $      | 400,000                    | $      | 30,055                        | $      | 9,364,706                                         | $      | (4,330,712)                                                                                             | $      | 6,554,930                                             | $      | 43,849,213                         | $      | 77,868,192              |

----

|   |                                                                                                                     |   | Six      Months Ended September 30, |
|--------|--------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|
|   |                                                                                                                     |   | 2010                                |   | 2009 |
|   | Cash      Flows From Operating Activities:                                                                               |   |                                |   |   |
|   | Net      Income                                                                                                          | $      | 997,938                             | $ | 954,247 |
|   | Adjustments      To Reconcile Net Income To Net Cash Provided By Operating      Activities:                              |   |                                |   |   |
|   | Depreciation      Expense                                                                                                |   | 775,741                             |   | 763,450 |
|   | Amortization      Of Intangible Assets                                                                                   |   | 45,000                              |   | 45,000 |
|   | Stock      Option Compensation Expense                                                                                   |   | 16,562                              |   | 16,562 |
|   | Discount      Accretion And Premium Amortization                                                                         |   | 1,516,835                           |   | 831,551 |
|   | Provisions      For Losses On Loans                                                                                      |   | 4,050,000                           |   | 3,000,000 |
|   | Write      Down Of Goodwill                                                                                              |   | -                                   |   | 222,000 |
|   | Mandatorily      Redeemable Financial Instrument Valuation Expense                                                       |   | 85,000                              |   | 44,000 |
|   | Income      From Bank Owned Life Insurance                                                                               |   | (200,000)                           |   | (180,000) |
|   | Gain      On Sale Of Mortgage-Backed Securities Available For Sale                                                       |   | (629,974)                           |   | (107,373) |
|   | Gain      On Sale Of Investment Securities Available For Sale                                                            |   | (65,432)                            |   | (266,752) |
|   | Gain      On Sale Of Loans                                                                                               |   | (846,157)                           |   | (596,465) |
|   | Loss      On Sale Of Repossessed Assets Acquired In Settlement Of    Loans                                               |   | 192,867                             |   |              61,104 |
|   | Amortization      Of Deferred Fees On Loans                                                                              |   | (21,170)                            |   | (70,139) |
|   | Proceeds      From Sale Of Loans Held For Sale                                                                           |   | 35,253,220                          |   |          40,682,117 |
|   | Origination      Of Loans For Sale                                                                                       |   | (39,627,111)                        |   | (40,207,952) |
|   | (Increase)      Decrease In Accrued Interest Receivable:                                                                 |   |                                |   |   |
|   | Loans                                                                                                                    |   | (79,335)                            |   | 214,090 |
|   | Mortgage-Backed      Securities                                                                                          |   | 80,840                              |   | 115,680 |
|   | Investments                                                                                                              |   | 767                                 |   | (231,776) |
|   | Increase      In Advance Payments By Borrowers                                                                           |   | 268,345                             |   | 160,448 |
|   | Other,      Net                                                                                                          |   | 844,403                             |   | (1,660,083) |
|   | Net      Cash Provided By Operating Activities                                                                           |   | 2,658,339                           |   | 3,789,709 |
|   |                                                                                                                     |   |                                |   |   |
|   | Cash      Flows From Investing Activities:                                                                               |   |                                |   |   |
|   | Principal      Repayments On Mortgage-Backed Securities Held To Maturity                                                 |   | 2,121,289                           |   | 4,246,498 |
|   | Principal      Repayments On Mortgage-Backed Securities Available ForSale                                                |   | 29,493,553                          |   | 33,791,297 |
|   |              Purchase Of Investment Securities Available For Sale                     |   | (49,934,614)                        |   | (33,813,777) |
|   |              Purchase Of Mortgage-Backed Securities Available For Sale                |   | (43,358,531)                        |   | (37,755,206) |
|   |              Maturities Of Investment Securities Available For Sale                   |   | 17,840,133                          |   | 8,496,907 |
|   |              Maturities Of Investment Securities Held To Maturity                     |   | 1,388,855                           |   | 2,258,066 |
|   |              Proceeds From Sale Of Mortgage-Backed Securities Available For      Sale |   | 25,548,154                          |   | 10,209,062 |
|   |              Proceeds From Sale Of Investment Securities Available For    Sale        |   | 4,340,602                           |   | 7,686,569 |
|   |              Redemption Of FHLB Stock                                                 |   | 904,400                             |   | 38,300 |
|   |              Decrease In Loans To Customers                                           |   | 22,903,096                          |   | 7,662,060 |
|   |              Proceeds From Sale Of Repossessed Assets                                 |   | 4,494,978                           |   | 239,680 |
|   |              Purchase And Improvement Of Premises And Equipment                       |   | (578,625)                           |   | (389,685) |
|   | Net      Cash Provided By Investing Activities                                                                      |   | 15,163,290                          |   | 2,669,771 |
|   |                                                                                                                     |   |                                |   |   |

----

|   |                                                                                                                    |    | Six      Months Ended September 30, |
|--------|-------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------|
|   |                                                                                                                    |    | 2010                                |   | 2009 |
|   | Cash      Flows From Financing Activities:                                                                              |    |                                |   |   |
|   | Increase      In Deposit Accounts                                                                                       |    | 3,487,053                           |   | 701,211 |
|   | Proceeds      From FHLB Advances                                                                                        |    | 73,920,000                          |   | 157,120,000 |
|   | Repayment      Of FHLB Advances                                                                                         |    | (95,026,714)                        |   | (176,707,905) |
|   | Proceeds      From TAF Advances                                                                                         |    | -                                   |   | 52,000,000 |
|   | Repayment      Of TAF Advances                                                                                          |    | -                                   |   | (37,000,000) |
|   | Net      Proceeds (Repayment) Of Other Borrowings                                                                       |    | 282,233                             |   | (472,483) |
|   | Proceeds      From Common Stock Issuance                                                                                |    | 4,000,000                           |   | - |
|   | Proceeds      From Preferred Stock Issuance                                                                             |    | 22,000,000                          |   | - |
|   | Redemption      Of Preferred Stock                                                                                      |    | (18,000,000)                        |   | - |
|   | Dividends      To Preferred Shareholders                                                                                |    | (560,000)                           |   | (450,000) |
|   | Dividends      To Common Shareholders                                                                                   |    | (393,777)                           |   | (393,775) |
|   | Proceeds      From Employee Stock Purchases                                                                             |    | -                                   |   | 19,800 |
|   | Net      Cash Used By Financing Activities                                                                              |    | (10,291,205)                        |   | (5,183,152) |
|   |                                                                                                                    |    |                                |   |   |
|   | Net      Increase In Cash And Cash Equivalents                                                                          |    | 7,530,424                           |   | 1,276,328 |
|   | Cash      And Cash Equivalents At Beginning Of Period                                                                   |    | 8,804,645                           |   | 6,562,394 |
|   | Cash      And Cash Equivalents At End Of Period                                                                         | $       | 16,335,069                          | $ | 7,838,722 |
|   |                                                                                                                    |    |                                |   |   |
|   | Supplemental      Disclosure Of Cash Flows Information:                                                                 |    |                                |   |   |
|   | Cash      Paid During The Period For Interest                                                                           | $       | 8,809,748                           | $ | 11,094,059 |
|   | Cash      Paid During The Period For Income Taxes                                                                       | $       | 19,432                              | $ | 1,539,002 |
|   | Additions      To Repossessed Assets Acquired In Settlement of Loans                                               | $       | 9,512,521                           | $ | 962,892 |
|   | Increase      In Unrealized Gain On Securities Available For Sale,      Net      Of Taxes |  $ |  1,946,850                     |  $ |  954,430 |

----

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

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

----

----

| For      the Quarter Ended:                                                                          | September      30, |
|------------------------------------------------------------------------------------------------------|--------------------|
|                                                                                                 |               | 2010 |   | 2009 |   |
| Earnings      Available to Common Shareholders:                                                      |               |   |   |   |   |
|          Net Income                                                                   | $                  |    457,359 | $ |    582,080 |   |
| Preferred      Stock Dividends                                                                       |               |      221,451 |   |      225,000 |   |
| Deemed      Dividends On Preferred Stock From Net   Accretion      of Preferred Stock |               |   -- |   |           18,277 |   |
| Net      Income Available To Common Shareholders                                                     | $                  |      235,908 | $ |      338,803 |   |

| For the Six Months      Ended:                                                                       | September      30, |
|------------------------------------------------------------------------------------------------------|--------------------|
|                                                                                                 |               | 2010 |   | 2009 |   |
| Earnings      Available to Common Shareholders:                                                      |               |   |   |   |   |
|          Net Income                                                                   | $                  | 997,938 | $ |     954,247 |   |
| Preferred      Stock Dividends                                                                       |               |       446,451 |   |      450,000 |   |
| Deemed      Dividends On Preferred Stock From Net   Accretion      of Preferred Stock |               |           18,816 |   |           36,356 |   |
| Net      Income Available To Common Shareholders                                                     | $                  |           532,671 | $ |      467,891 |   |

----

|                                                                              | For      the Quarter Ended                                                                                                                                                                                                       |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                              | September      30, 2010                                                                                                                                                                                                          |
|                                                                              | Income      (Numerator) Amount                                                                                                                                                                                                   |   | Shares      (Denominator) |   | Per      Share |
|                                                                              |                                                                                                                                                                                                                             |   |   |   |   |
| Basic      EPS                                                                    |  $                                   235,908 |   | 2,469,791 | $ | 0.10 |
| Effect      of Diluted Securities:                                                |                                                                                                                                                                                                                             |   |   |   |   |
|     Mandatorily      Redeemable    Shares |  -                                                                                                                                                                                                                          |   |  80,306 |   |  (0.01) |
|                                                                              |                                                                                                                                                                                                                             |   |   |   |   |
| Diluted      EPS                                                                  | $235,908                                                                                                                                                                                                                         |   | 2,550,097 | $ | 0.09 |

|                                                                              | For      the Quarter Ended                                                                                                                                                                                                       |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                              | September      30, 2009                                                                                                                                                                                                          |
|                                                                              | Income      (Numerator) Amount                                                                                                                                                                                                   |   | Shares      (Denominator) |   | Per      Share |
|                                                                              |                                                                                                                                                                                                                             |   |   |   |   |
| Basic      EPS                                                                    |  $                                   338,803 |   | 2,461,092 | $ | 0.14 |
| Effect      of Diluted Securities:                                                |                                                                                                                                                                                                                             |   |   |   |   |
|     Mandatorily      Redeemable    Shares |  -                                                                                                                                                                                                                          |   |  60,065 |   |  (0.01) |
|                                                                              |                                                                                                                                                                                                                             |   |   |   |   |
| Diluted      EPS                                                                  | $                                    338,803 |   | 2,521,157 | $ | 0.13 |

|                                                                              | For      the Six Months Ended                                                                                                                                                                            |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                              | September      30, 2010                                                                                                                                                                                  |
|                                                                              | Income      (Numerator) Amount                                                                                                                                                                           |   | Shares      (Denominator) |   | Per      Share |
|                                                                              |                                                                                                                                                                                                     |   |   |   |   |
| Basic      EPS                                                                    | $                                532,671 |   | 2,465,467 | $ | 0.22 |
| Effect      of Diluted Securities:                                                |                                                                                                                                                                                                     |   |   |   |   |
|     Mandatorily      Redeemable    Shares |  -                                                                                                                                                                                                  |   |  88,700 |   |  (0.01) |
|                                                                              |                                                                                                                                                                                                     |   |   |   |   |
| Diluted      EPS                                                                  | $                                532,671 |   | 2,554,167 | $ | 0.21 |

|                                                                              | For      the Six Months Ended                                                                                                                                                                            |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                              | September      30, 2009                                                                                                                                                                                  |
|                                                                              | Income      (Numerator) Amount                                                                                                                                                                           |   | Shares      (Denominator) |   | Per      Share |
|                                                                              |                                                                                                                                                                                                     |   |   |   |   |
| Basic      EPS                                                                    | $                                467,891 |   | 2,460,614 | $ |           0.19 |
| Effect      of Diluted Securities:                                                |                                                                                                                                                                                                     |   |   |   |   |
|     Mandatorily      Redeemable    Shares |  -                                                                                                                                                                                                  |   |  51,258 |   |  - |
|                                                                              |                                                                                                                                                                                                     |   |   |   |   |
| Diluted      EPS                                                                  | $                              467,891             |   | 2,511,872 | $ | 0.19 |

----

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

|                                   | Three      Months EndedSeptember      30, 2010 |                                                 | Six      Months EndedSeptember      30, 2010 |
|----------------------------------------|------------------------------------------------|------------------------------------------------------|----------------------------------------------|
|                                   |    Shares                       |  Weighted      Average      Exercise      Price |                                         |    Shares |  Weighted      Average      Exercise Price |
| Balance,      Beginning of Period      | 90,900                                         | $22.57                                               |                                         | 90,900 | $22.57 |
| Options      granted                   | -                                              | -                                                    |                                         | - | - |
| Options      exercised                 | -                                              | -                                                    |                                         | - | - |
| Options      forfeited                 | -                                              | -                                                    |                                         | - | - |
| Balance,      End of  Period | 90,900                                         | $22.57                                               |                                         | 90,900 | $22.57 |
|                                   |                                           |                                                 |                                         |   |   |
| Options      Exercisable               | 50,400                                         | $21.93                                               |                                         | 50,400 | $21.93 |
|                                   |                                           |                                                 |                                         |   |   |
| Options      Available For Grant       | 50,000                                         |                                                 |                                         | 50,000 |   |

|                              | Three      Months EndedSeptember      30, 2009 |                                            | Six      Months EndedSeptember      30, 2009 |
|-----------------------------------|------------------------------------------------|-------------------------------------------------|----------------------------------------------|
|                              |    Shares                       |  Weighted      Average      Exercise Price |                                         |    Shares |  Weighted      Average      Exercise Price |
| Balance,      Beginning of Period | 100,500                                        | $22.01                                          |                                         | 100,500 | $22.01 |
| Options      granted              | -                                              | -                                               |                                         | - | - |
| Options      exercised            | -                                              | -                                               |                                         | - | - |
| Options      forfeited            | (9,600)                                        | 16.67                                           |                                         | (9,600) | 16.67 |
| Balance,      September 30, 2009  | 90,900                                         | $22.57                                          |                                         | 90,900 | $22.57 |
|                              |                                           |                                            |                                         |   |   |
| Options      Exercisable          | 50,400                                         | $21.93                                          |                                         | 50,400 | $21.93 |
|                              |                                           |                                            |                                         |   |   |
| 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              |   | 5,500                    |   | $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              |   | 14,000                   |   | $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 |
|----------------|---------------------|

| For      the Quarter Ended:           | September      30, 2010 |   | September      30, 2009                    |
|---------------------------------------|-------------------------|--------|--------------------------------------------|
|                                  |   Shares      |   | Weighted-      Average      Exercise Price |   |   Shares |   | Weighted-      Average      Exercise Price |
| Balance,      Beginning of the Period | 137,966                 | $      | 19.57                                      |   | 137,966 | $ | 19.57 |
| Granted                               | -                       |   | -                                          |   | - |   | - |
| Exercised                             | -                       |   | -                                          |   | - |   | - |
| Forfeited                             | -                       |   | -                                          |   | - |   | - |
| Balance,      End of Year             | 137,966                 | $      | 19.57                                      |   | 137,966 | $ | 19.57 |
|                                  |                    |   |                                       |   |   |   |   |

| For      the Six Months Ended:        | September      30, 2010 |   | September      30, 2009                    |
|---------------------------------------|-------------------------|--------|--------------------------------------------|
|                                  |   Shares      |   | Weighted-      Average      Exercise Price |   |   Shares |   | Weighted-      Average      Exercise Price |
| Balance,      Beginning of the Period | 137,966                 | $      | 19.57                                      |   | 137,966 | $ | 19.57 |
| Granted                               | -                       |   | -                                          |   | - |   | - |
| Exercised                             | -                       |   | -                                          |   | - |   | - |
| Forfeited                             | -                       |   | -                                          |   | - |   | - |
| Balance,      End of Year             | 137,966                 | $      | 19.57                                      |   | 137,966 | $ | 19.57 |
|                                  |                    |   |                                       |   |   |   |   |

----

| 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.            |

----

----

| 7.   | Carrying      Amounts and Fair Value of Financial Instruments,  Continued |
|----------------|---------------------------------------------------------------------------|

|   Assets:                                                                                                                                                                                                                                            | Quoted      Market Price In      Active Markets(Level      1)                                                                                                                   | Significant      OtherObservable      Inputs(Level      2)                                                 | Significant      Unobservable      Inputs(Level      3)                                                                                                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| FHLB      Securities                                                                                                                                                                                                                                           | $                   -                                                            | $                  14,410,977                  | $                           -                                          |
| Federal      Farm Credit Securities                                                                                                                                                                                                                            |     -                                                                                                                                                       | 2,304,060                                                                                                  |     -                                                                                                                                                                                     |
| Federal      National Mortgage      Association      (“FNMA”) and      Federal      Home Loan Mortgage      Corporation      (“FHLMC”) Bonds |     -                                                                                                                                                       |    9,024,802                                                                                |     -                                                                                                                                                                                     |
| Small      Business Administration   (“SBA”)      Bonds                                                                                                                                                                             |  -                                                                                                                                                                         |  63,150,495                                                                                           |   -                                                                                                                                                                                                 |
| Mortgage-Backed      Securities                                                                                                                                                                                                                                |     -                                                                                                                                                       | 221,702,163                                                                                                |     -                                                                                                                                                                                     |
| Equity      Securities                                                                                                                                                                                                                                         |     -                                                                                                                                                       | 75,750                                                                                                     |     -                                                                                                                                                                                     |
| Mortgage      Loans Held For Sale                                                                                                                                                                                                                              |                              - | 8,381,511                                                                                                  |                                   - |
| Total                                                                                                                                                                                                                                                          | $                     -                                                | $           319,049,758                             | $                          -                                                |
| Liabilities:                                                                                                                                                                                                                                                   |                                                                                                                                                                            |                                                                                                       |                                                                                                                                                                                                          |
| Mandatorily      Redeemable Financial   Instrument                                                                                                                                                                                              |  $                     -                                          |  $               1,748,312 |  $                          -                                          |
| Total                                                                                                                                                                                                                                                          | $                     -                                                | $               1,748,312       | $                          -                                                |

|   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      AtSeptember      30, 2010                                                             |
|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Intangible      Assets       | $                      - | $                      - | $         227,000 | $               227,000 |
| Goodwill                     |                                                                                                                                   |                                                                                                                                   |                                                           |                                                                                               |
| Impaired      Loans      (1) | -                                                                                                                                      | 23,448,777                                                                                                                             | 19,623,027                                                     | 43,071,804                                                                                         |
| Foreclosed      Assets       | -                                                                                                                                      | 15,597,726                                                                                                                             | -                                                              | 15,597,726                                                                                         |
| Total                        | $                      - | $      39,046,503                                                                                        | $     19,850,027                      | $         58,896,530                                  |
|                         |                                                                                                                                   |                                                                                                                                   |                                                           |                                                                                               |
| (1)                     | Impaired      loans are reported net of specific reserves of  $671,630                                                                 |

|  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       | -                                                                                                                                      | 10,773,050                                                                                                                             | -                                                                          | 10,773,050                                                                                                           |
| Total                        | $                      - | $      30,508,697                                                                                        | $      13,797,607                            | $             44,306,304                            |
|                         |                                                                                                                                   |                                                                                                                                   |                                                                       |                                                                                                                 |

----

|                                              |   |                    |
|---------------------------------------------------|--------|-------------------------|
|                                              |   | September      30, 2010 |   | March      31, 2010 |
|                                              |   | Carrying      Amount    |   | Estimated      Fair Value |   | Carrying      Amount |   | Estimated      Fair Value |
|                                              |   | (In      Thousands)     |
| Financial      Assets:                            |   |                    |   |   |   |   |   |   |
| Cash      And Cash Equivalents                    | $      | 16,335                  | $ | 16,335 | $ | 8,805 | $ | 8,805 |
| Investment      And Mortgage-Backed Securities    |   | 325,923                 |   | 327,176 |   | 311,046 |   | 312,115 |
| Loans      Receivable, Net                        |   | 537,174                 |   | 541,764 |   | 568,399 |   | 578,851 |
| FHLB      Stock                                   |   | 11,720                  |   | 11,720 |   | 12,624 |   | 12,624 |
|                                              |   |                    |   |   |   |   |   |   |
| Financial      Liabilities:                       |   |                    |   |   |   |   |   |   |
| Deposits:                                         |   |                    |   |   |   |   |   |   |
| Checking,      Savings, And Money Market Accounts | $      | 310,303                 | $ | 310,304 | $ | 301,983 | $ | 301,983 |
| Certificate      Accounts                         |   | 387,436                 |   | 391,441 |   | 392,270 |   | 398,206 |
| Advances      From FHLB                           |   | 156,845                 |   | 165,294 |   | 164,004 |   | 172,983 |
| Other      Borrowed Money                         |   | 12,343                  |   | 12,343 |   | 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 |
| Mandatorily      Redeemable Financial Instrument  |   | 1,748                   |   | 1,748 |   | 1,663 |   | 1,663 |

----

----

|                                |   | September      30, 2010   |
|-------------------------------------|--------|---------------------------|
|                                |   |  Amortized      Cost |   | Gross      Unrealized      Gains |   | Gross      Unrealized      Losses |   |   Fair      Value |
| FHLB      Securities                | $      | 14,227,269                | $ | 230,595 | $ | 46,887 | $ | 14,410,977 |
| Federal      Farm Credit Securities |   | 2,048,304                 |   | 255,756 |   | - |   | 2,304,060 |
| FNMA      and FHLMC Bonds           |   | 9,009,662                 |   | 19,899 |   | 4,759 |   | 9,024,802 |
| SBA      Bonds                      |   | 61,687,415                |   | 1,590,974 |   | 127,894 |   | 63,150,495 |
| Mortgage-Backed      Securities     |   | 213,025,235               |   | 8,730,638 |   | 53,710 |   | 221,702,163 |
| Equity      Securities              |   | 102,938                   |   | - |   | 27,188 |   | 75,750 |
|                                | $      | 300,100,823               | $ | 10,827,862 | $ | 260,438 | $ | 310,668,247 |

|                                        |   | 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      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 |

----

| September      30, 2010          |   | Amortized      Cost |   | Fair      Value                                                                               |
|----------------------------------|--------|---------------------|--------|-----------------------------------------------------------------------------------------------|
|                             |   |                |   |                                                                                          |
| Less      Than One Year          | $      | 654,188             | $      | 660,403                                                                                       |
| One      – Five Years      |   | 9,403,113           |   |               9,437,692 |
| Over      Five – Ten Years |   | 28,037,737          |   | 28,389,402                                                                                    |
| After      Ten Years             |   | 48,980,550          |   | 50,478,587                                                                                    |
| Mortgage-Backed      Securities  |   | 213,025,235         |   | 221,702,163                                                                                   |
|                             | $      | 300,100,823         | $      | 310,668,247                                                                                   |

| September 30, 2010              |   | Less      than 12 Months |   | 12      Months or More |   | Total     |
|---------------------------------|--------|--------------------------|--------|------------------------|--------|-----------|
|                            |   | FairValue                |   | UnrealizedLosses       |   | FairValue |   | Unrealized      Losses |   | FairValue |   | Unrealized      Losses |
| FHLB      Securities            | $      | 3,129,064                |   | 46,887                 | $      | -         | $ | - | $ | 3,129,064 | $ | 46,887 |
| Mortgage-Backed      Securities |   | 6,689,695                |   | 53,710                 |   | -         |   | - |   | 6,689,695 |   | 53,710 |
| FNMA      and FHLMC Bonds       |   | 2,007,700                |   | 4,759                  |   | -         |   | - |   | 2,007,700 |   | 4,759 |
| SBA      Bonds                  |   | 19,285,489               |   | 127,894                |   | -         |   | - |   | 19,285,489 |   | 127,894 |
| Equity      Securities          |   | -                        |   | -                      |   | 75,750    |   | 27,188 |   | 75,750 |   | 27,188 |
|                            | $      | 31,111,948               | $      | 233,250                | $      | 75,750    | $ | 27,188 | $ | 31,111,948 | $ | 260,438 |

| March 31, 2010                      |   | 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 |

----

|  September 30, 2010            |   |  Amortized      Cost    |    | Gross      Unrealized      Gains                                      |   | Gross      Unrealized      Losses                                                                                         |   |   Fair      Value                                                                                         |
|-------------------------------------|--------|------------------------------|---------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
| FHLB      Securities                | $      | 3,000,000                    | $       | 336,570                                                               | $      | -                                                                                                                         | $      | 3,336,570                                                                                                           |
| Federal      Farm Credit Securities |   | -                            |    | -                                                                     |   | -                                                                                                                         |   |                    - |
| SBA      Bonds                      |   | 4,094,915                    |    | 362,151                                                               |   | -                                                                                                                         |   | 4,457,066                                                                                                           |
| Mortgage-Backed      Securities     |   | 8,005,213                    |    | 553,699                                                               |   | -                                                                                                                         |   | 8,558,912                                                                                                           |
| Equity      Securities              |   | 155,000                      |    | -                                                                     |   | -                                                                                                                         |   | 155,000                                                                                                             |
| Total                               | $      | 15,255,128    |  $ |        1,252,420    | $      |                  -    | $      | 16,507,548                                                                                           |

|  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                          |   | -                                 |   | 4,774,099                   |
| 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                  |

----

| September      30, 2010           |   | Amortized      Cost                                                                                                                                     |   | Fair      Value |
|-----------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|
|                              |   |                                                                                                                                                    |   |            |
|  Less      Than One Year     | $      |                          - | $      | -               |
|  One      – Five Years |   | 4,052,864                                                                                                                                               |   | 4,449,257       |
| Over      Five – Ten Years  |   |                          - |   | -               |
| More      Than Ten Years          |   | 3,197,052                                                                                                                                               |   | 3,499,379       |
| Mortgage-Backed      Securities   |   | 8,005,212                                                                                                                                               |   | 8,558,912       |
|                              | $      | 15,255,128                                                                                                                                              | $      | 16,507,548      |

|                                  |   | September      30, 2010 |   | March      31, 2010 |
|---------------------------------------|--------|-------------------------|--------|---------------------|
| Residential      Real Estate          | $      | 113,227,642             | $      | 118,256,972         |
| Consumer                              |   | 66,313,906              |   | 68,526,203          |
| Commercial      Business              |   | 16,255,737              |   | 17,813,383          |
| Commercial      Real Estate           |   | 349,752,973             |   | 378,719,217         |
|  Loans      Held For Sale        |   | 8,381,511               |   | 3,161,463           |
|                                  |   | 553,931,769             |   | 586,477,238         |
|                                  |   |                    |   |                |
| Less:                                 |   |                    |   |                |
| Allowance      For Possible Loan Loss |   | 11,528,220              |   | 12,307,394          |
| Loans      In Process                 |   | 5,182,382               |   | 5,619,822           |
| Deferred      Loan Fees               |   | 46,731                  |   | 151,187             |
|                                  |   | 16,757,333              |   | 18,078,403          |
|                                  | $      | 537,174,436             | $      | 568,398,835         |

|                                                                                  |   | September      30, 2010 |   | March      31, 2010 |
|---------------------------------------------------------------------------------------|--------|-------------------------|--------|---------------------|
|                                                                                  |   |                    |   |                |
| Total      Loans Considered Impaired                                                  | $      | 43,743,434              | $      | 35,298,754          |
| Impaired      Loans For Which There Is A Related Specific Reserve For Loan      Loss: |   |                    |   |                |
|      Outstanding      Loan Balance                           | $      | 4,044,391               | $      | 10,885,245          |
|      Related      Specific Reserve                           | $      | 671,630                 | $      | 2,015,000           |
| Impaired      Loans With No Related Specific Reserve                                  | $      | 39,699,043              | $      | 24,413,509          |
| Average      Impaired Loans                                                           | $      | 40,708,504              | $      | 33,633,408          |

----

| ·   | statements      of our goals, intentions andexpectations; |
|--------------------|-----------------------------------------------------------|

| ·   | 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 andbenefits. |
|--------------------|-----------------------------------------------------------|

| ·   | 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 fundingsources; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 retaindeposits; |
|--------------------|-------------------------------------------------|

| ·   | further      increases in premiums for depositinsurance; |
|--------------------|----------------------------------------------------------|

| ·   | our      ability to control operating costs andexpenses; |
|--------------------|----------------------------------------------------------|

| ·   | 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 regulatoryactions; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to pay dividends on our commonstock; |
|--------------------|-------------------------------------------------------|

| ·   | 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 continue to comply with the      requirements 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) |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|--------------------|--------|-------------|--------------------------|--------|
|                                                                                                                   |   | September      30, 2010 |        |   | March      31,2010 |   |        | Amount                   |   |   | Percent |   |
| Cash      And Cash Equivalents                                                                                         |   | $                       | 16,335,069  |   |               | $      | 8,804,645   |                     |   | $ | 7,530,424 |   |   |   | 85.5 | % |
| Investment      And Mortgage-Backed   Securities      –    Available For Sale |   |                    | 310,668,247 |   |               |   | 292,261,039 |                     |   |   | 18,407,208 |   |   |   | 6.3 |   |
| Investment      And Mortgage-Backed   Securities      –    Held to Maturity   |   |                    | 15,255,128  |   |               |   | 18,785,380  |                     |   |   | (3,530,252 | ) |   |   | (18.8 | ) |
| Loan      Receivable, Net                                                                                              |   |                    | 537,174,436 |   |               |   | 568,398,835 |                     |   |   | (31,224,399 | ) |   |   | (5.5 | ) |
| Repossessed      Assets Acquired in   Settlement      of Loans                                          |   |                    | 15,597,726  |   |               |   | 10,773,050  |                     |   |   | 4,824,676 |   |   |   | 44.8 |   |
| Prepaid      FDIC Premiums                                                                                             |   |                    | 3,424,672   |   |               |   | 3,987,622   |                     |   |   | (562,950 | ) |   |   | (14.1 | ) |

----

|                                 |   |   | September      30, 2010 |        |   | March      31, 2010 |   |   | Increase      (Decrease) |   |
|--------------------------------------|--------|--------|-------------------------|-------------|--------|---------------------|--------|--------|--------------------------|--------|
|                                 |   |   | Balance                 |        |   | Weighted      Rate  |   |   | Balance                  |   |   | Weighted      Rate |   |   | Amount |   |   | Percent |   |
| Demand      Accounts:                |   |   |                    |        |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Checking                             |   |   | $                       | 108,694,344 |   |                |   | 0.16   | %                        |   | $ | 109,086,367 |   |   |   | 0.20 | % |   | $ | (392,023 | ) |   |   | (0.36 | )% |
| Money      Market                    |   |   |                    | 182,093,980 |   |                |   | 0.97   | %                        |   |   | 173,904,664 |   |   |   | 1.28 | % |   |   | 8,189,316 |   |   |   | 4.71 | % |
| Statement      Savings Accounts |   |   |                    | 19,515,623  |   |                |   | 0.30   | %                        |   |   |  18,991,543 |   |   |   | 0.39 | % |   |   | 524,080 |   |   |   | 2.76 | % |
| Total                                |   |   |                    | 310,303,947 |   |                |   | 0.64   | %                        |   |   | 301,982,574 |   |   |   | 0.83 | % |   |   | 8,321,373 |   |   |   | 2.76 | % |
|                                 |   |   |                    |        |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate      Accounts            |   |   |                    |        |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  0.00      – 1.99%        |   |   |                    | 171,523,273 |   |                |   |   |                     |   |   | 118,796,507 |   |   |   |   |   |   |   | 52,726,766 |   |   |   | 44.38 | % |
|  2.00      – 2.99%        |   |   |                    | 200,565,432 |   |                |   |   |                     |   |   | 255,352,355 |   |   |   |   |   |   |   | (54,786,923 | ) |   |   | (21.46 | )% |
|  3.00      – 3.99%        |   |   |                    | 3,909,293   |   |                |   |   |                     |   |   | 4,571,860 |   |   |   |   |   |   |   | (662,567 | ) |   |   | (14.49 | )% |
|  4.00      – 4.99%        |   |   |                    | 6,981,165   |   |                |   |   |                     |   |   | 8,818,487 |   |   |   |   |   |   |   | (1,837,322 | ) |   |   | (20.83 | )% |
|  5.00      – 5.99%        |   |   |                    | 4,456,380   |   |                |   |   |                     |   |   | 4,730,654 |   |   |   |   |   |   |   | (274,274 | ) |   |   | (5.80 | )% |
| Total                                |   |   |                    | 387,435,543 |   |                |   | 2.11   | %                        |   |   | 392,269,863 |   |   |   | 2.15 | % |   |   | (4,834,320 | ) |   |   | (1.23 | )% |
| Total      Deposits                  |   |   | $                       | 697,739,490 |   |                |   | 1.46   | %                        |   | $ | 694,252,437 |   |   |   | 1.58 | % |   | $ | 3,487,053 |   |   |   | 0.50 | % |

----

|                  |   |                    |                                            |                |        |                                                                                                  | Balance                  |
|-----------------------|--------|-------------------------|-------------------------------------------------|---------------------|-------------|-------------------------------------------------------------------------------------------------------|--------------------------|
|                  |   | September      30, 2010 |                                            | March      31, 2010 |        |                                                                                                  | Increase      (Decrease) |
| Fiscal      Year Due: |   | Balance                 | Rate                                            |                | Balance     | Rate                                                                                                  |                     |   | Balance |   | Percent |
| 2011                  | $      | 10,000,000              |        4.76% | $                   | 31,100,000  |     2.54%             |                     | $ | (21,100,000) |   |  (67.9%)   |
| 2012                  |   | 34,700,000              |       3.66        |                | 34,700,000  |            3.66                                |                     |   | - |   |            -       |
| 2013                  |   | 10,000,000              |       4.76        |                | 10,000,000  |            4.76                                |                     |   | - |   |            -       |
| 2014                  |   | 20,000,000              |       3.84        |                | 20,000,000  |            3.84                                |                     |   | - |   |            -       |
| 2015                  |   | 15,297,168              |       3.44        |                | 15,303,882  |            3.44                                |                     |   | (6,714) |   | (0.04)      |
| Thereafter            |   | 52,900,000              |       4.27        |                | 52,900,000  |            4.27                                |                     |   | - |   |        -       |
| Total      Advances   | $      | 142,897,168             |        4.04% | $                   | 164,003,882 |               3.71%             |                     | $ |  (21,106,714) |   | (12.9)% |

----

| As      of September 30, 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 |

| As      of March 31, 2010 |
|---------------------------|
| Borrow      Date          |   | Maturity      Date |   | Amount |   | Int.      Rate |   | Type |   | Call      Dates |
|                      |   |   |   |   |   |   |   |   |   |   |
| 06/24/05                  |   | 06/24/15 |   |   5,000,000 | 3 | 3.710% |   | 1      Time Call |   | 06/24/10 |
| 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 |

----

----

|                                                             |   | At      September 30, 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                                     |   | $                          | 3,554,719  |   |                   |   | 0.6    | %      |   | $      | 4,344,060        |   |   |   | 0.8 | % |   | $ | (789,341 | ) |   |   | (18.2 | )% |
|     Commercial      business                 |   |                       | 326,518    |   |                   |   | 0.1    |   |   |   | 699,182          |   |   |   | 0.1 |   |   |   | (372,664 | ) |   |   | (53.3 | ) |
| Commercial real      estate                                      |   |                       | 15,491,127 |   |                   |   | 2.7    |   |   |   | 25,479,420       |   |   |   | 4.4 |   |   |   | (9,988,293 | ) |   |   | (39.2 | ) |
| Consumer                                                         |   |                       | 694,894    |   |                   |   | 0.1    |   |   |   | 703,288          |   |   |   | 0.1 |   |   |   | (8,394 | ) |   |   | (1.2 | ) |
| Total non-performing      loans                                  |   |                       | 20,067,258 |   |                   |   | 3.5    |   |   |   | 31,225,950       |   |   |   | 5.4 |   |   |   | (11,158,692 | ) |   |   | (35.7 | ) |
|                                                             |   |                       |       |   |                   |   |   |   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      non-performing assets:                                |   |                       |       |   |                   |   |   |   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repossessed    assets                                            |   |                       | 14,370     |   |                   |   | 0.0    |   |   |   | 43,106           |   |   |   | 0.0 |   |   |   | (28,736 | ) |   |   | (66.7 | ) |
| Real estate    owned                                             |   |                       | 15,583,356 |   |                   |   | 2.7    |   |   |   | 10,729,944       |   |   |   | 1.9 |   |   |   | 4,853,412 |   |   |   | 45.2 |   |
| Total other non-performing      assets                           |   |                       | 15,597,726 |   |                   |   | 2.7    |   |   |   | 10,773,050       |   |   |   | 1.9 |   |   |   | 4,824,676 |   |   |   | 44.8 |   |
| Total      non-performing assets                                 |   | $                          | 35,664,984 |   |                   |   | 6.3    | %      |   | $      | 41,999,000       |   |   |   | 7.3 | % |   | $ | (6,334,016 | ) |   |   | (15.1 | )% |
|                                                             |   |                       |       |   |                   |   |   |   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      non-performing assets as a percentage of total assets |   |                       | 3.8        | %      |                   |   |   |   |   |   | 4.4              | %      |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                               |   | Three      Months Ended September 30, |        |
|------------------------------------|--------|---------------------------------------|-------------|
|                               |   | 2010                                  |        |   | 2009 |   |   |   |   |
|                               |   |  Average      Balance            |        |   |   Yield(1) |   |   |  Average      Balance |   |   |   Yield(1) |   |   | Decrease      In Interest And Dividend Income From 2009 |   |
| Loans      Receivable, Net         |   | $                                     | 543,930,014 |   |   |   | 6.08 | % |   | $ | 603,256,400 |   |   |   | 5.63 | % |   | $ | (908,336 | ) |
| Mortgage-Backed      Securities    |   |                                  | 229,668,165 |   |   |   | 3.64 |   |   |   | 236,591,334 |   |   |   | 4.28 |   |   |   | (1,751,052 | ) |
| Investment      Securities         |   |                                  | 96,556,897  |   |   |   | 2.77 |   |   |   | 72,513,078 |   |   |   | 4.11 |   |   |   | (310,908 | ) |
| Overnight      Time                |   |                                  | 3,690,431   |   |   |   | 0.14 |   |   |   | 1,148,770 |   |   |   | 0.04 |   |   |   | 4,748 |   |
| Total      Interest-Earning Assets |   | $                                     | 873,845,507 |   |   |   | 5.05 | % |   | $ | 913,509,582 |   |   |   | 5.15 | % |   | $ | (2,965,548 | ) |

|                                                                            |   | Three      Months Ended September 30, |        |
|---------------------------------------------------------------------------------|--------|---------------------------------------|-------------|
|                                                                            |   | 2010                                  |        |   | 2009 |   |   |   |   |
|                                                                            |   |  Average      Balance            |        |   |   Yield(1) |   |   |  Average      Balance |   |   |   Yield(1) |   |   | Decrease      In Interest Expense From 2009 |   |
| Now      And Money Market   Accounts                             |   | $                                     | 247,813,218 |   |   |   | 0.97 | % |   | $ | 223,306,302 |   |   |   | 1.14 | % |   | $ | (152,388 | ) |
| Statement      Savings Accounts                                                 |   |                                  | 19,393,381  |   |   |   | 0.32 |   |   |   | 17,364,194 |   |   |   | 0.45 |   |   |   | (15,136 | ) |
| Certificates      Accounts                                                      |   |                                  | 392,462,945 |   |   |   | 2.07 |   |   |   | 381,334,642 |   |   |   | 2.94 |   |   |   | (3,115,240 | ) |
| FHLB      Advances, TAF Advances   And      Other Borrowed Money |   |                                  | 158,094,069 |   |   |   | 3.79 |   |   |   | 226,204,895 |   |   |   | 2.90 |   |   |   | (585,592 | ) |
| Junior      Subordinated Debentures                                             |   |                                  | 5,155,000   |   |   |   | 4.64 |   |   |   | 5,155,000 |   |   |   | 4.68 |   |   |   | (2,040 | ) |
| Senior      Convertible Debentures                                              |   |                                  | 6,084,000   |   |   |   | 8.00 |   |   |   | - |   |   |   | - |   |   |   | 486,720 |   |
| Total      Interest-Bearing Liabilities                                         |   | $                                     | 829,002,613 |   |   |   | 2.09 | % |   | $ | 853,365,033 |   |   |   | 2.42 | % |   | $ | (3,383,676 | ) |

----

|                                                                                                                                                                                    |   | September      30, 2010 |   | September      30, 2009 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|-------------------------|
| Beginning      Balance                                                                                                                                                                  | $      | 11,485,185              | $      | 11,420,326              |
| Provision                                                                                                                                                                               |   | 2,150,000               |   | 1,600,000               |
| Charge-offs                                                                                                                                                                             |   | (2,122,268)             |   | (308,395)               |
| Recoveries                                                                                                                                                                              |   | 15,303                  |   | 11,990                  |
| Ending      Balance                                                                                                                                                                     | $      | 11,528,220              | $      | 12,723,921              |
|                                                                                                                                                                                    |   |                    |   |                    |
| Allowance      For Loan Losses As A Percentage Of Gross Loans Receivable, Held For      Investment At The End Of The Period                                                             |   | 2.13%                   |   | 2.10%                   |
| Allowance      For Loan Losses As A Percentage Of Impaired Loans At The End Of The      Period                                                                                          |   | 26.4%                   |   | 34.1%                   |
| Impaired      Loans                                                                                                                                                                     | $      | 43,743,434              | $      | 37,284,300              |
| 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 |   |   3.7%        |   |   6.1%        |
| Gross      Loans Receivable,  Held For Investment                                                                                                                             | $      | 540,321,145             | $      | 606,547,174             |
| Total      Loans Receivable, Net                                                                                                                                                        | $      | 537,174,436             | $      | 599,657,360             |

----

|                                                                | Three      Months Ended September 30, |          | Increase      (Decrease) |
|---------------------------------------------------------------------|---------------------------------------|---------------|--------------------------|
|                                                                |                                  | 2010          |                     |   | 2009 |   |   | Amounts |   |   | Percent |
| Gain      On Sale Of Investments                                    | $                                     | 495,895       |                     | $ | 323,234 |   | $ | 172,661 |   |   | 53.4% |
| Gain      On Sale Of Loans                                          |                                  | 577,480       |                     |   | 162,858 |   |   | 414,622 |   |   | 254.6 |
| Loss      on Sale of Real Estate Owned                              |                                  | (139,122)     |                     |   | (37,921) |   |   | (101,201) |   |   | (266.9) |
| Service      Fees On Deposit Accounts                               |                                  | 295,932       |                     |   | 312,300 |   |   | (16,368) |   |   | (5.2) |
| Income      From Cash Value Of   Life      Insurance |                                  |  105,000 |                     |   |  90,000 |   |   |  15,000 |   |   |  16.7 |
| Commissions      From Insurance Agency                              |                                  | 118,139       |                     |   | 108,076 |   |   | 10,063 |   |   | 9.3 |
| Other      Agency Income                                            |                                  | 90,780        |                     |   | 119,044 |   |   | (28,264) |   |   | (23.7) |
| Trust      Income                                                   |                                  | 109,500       |                     |   | 105,000 |   |   | 4,500 |   |   | 4.29 |
| Other                                                               |                                  | 299,684       |                     |   | 200,635 |   |   | 99,049 |   |   | 49.4 |
| Total      Non-Interest Income                                      | $                                     | 1,953,288     |                     | $ | 1,383,226 |   | $ | 570,062 |   |   | 41.2% |

|                                                                                     | Three      Months Ended September 30, |            | Increase      (Decrease) |
|------------------------------------------------------------------------------------------|---------------------------------------|-----------------|--------------------------|
|                                                                                     |                                  | 2010            |                     |   | 2009 |   |   | Amounts |   |   | Percent |
| Salaries      And Employee Benefits                                                      | $                                     | 3,000,691       |                     | $ | 2,876,830 |   | $ | 123,861 |   |   | 4.3% |
| Occupancy                                                                                |                                  | 489,774         |                     |   | 499,819 |   |   | (10,045) |   |   | (2.0) |
| Advertising                                                                              |                                  | 80,554          |                     |   | 81,375 |   |   | (821) |   |   | (1.0) |
| Depreciation      And Maintenance   Of      Equipment                     |                                  |  468,533   |                     |   |  440,369 |   |   |  28,164 |   |   |  6.4 |
| FDIC      Insurance Premiums                                                             |                                  | 316,000         |                     |   | 351,000 |   |   | (35,000) |   |   | (9.9) |
| Amortization      of Intangibles                                                         |                                  | 22,500          |                     |   | 22,500 |   |   | - |   |   |       - |
| Mandatorily      Redeemable Financial   Instrument      Valuation Expense |                                  |  45,000    |                     |   |  122,000 |   |   |  (77,000) |   |   |  (63.1) |
| Other                                                                                    |                                  | 1,334,631       |                     |   | 980,265 |   |   | 354,366 |   |   | 36.1 |
| Total      General And Administrative   Expenses                          |  $                               |  5,757,683 |                     |  $ |  5,374,158 |   |  $ |  383,525 |   |   |  7.1% |

----

|                               | Six      Months Ended September 30, |
|------------------------------------|-------------------------------------|
|                               | 2010                                |   | 2009 |   |   |   |
|                               |                                |   Average      Balance |   |    Yield(1) |   |   |   Average      Balance |   |    Yield(1) |   |   | Increase      (Decrease)      In Interest      And Dividend      Income From      2009 |
| Loans      Receivable, Net         | $                                   | 554,349,321 |   | 6.00%        |   | $ | 608,173,060 |   | 5.66%          | $ | (1,116,766) |
| Mortgage-Backed      Securities    |                                | 231,786,989 |   | 3.79 |   |   | 245,642,366 |   | 4.38 |   |   | (1,969,230) |
| Investments                        |                                | 90,432,143 |   | 2.98 |   |   | 69,495,259 |   | 3.63 |   |   | 173,042 |
| Overnight      Time                |                                | 1,766,992 |   | 0.17 |   |   | 879,746 |   | 0.08 |   |   | 2,294 |
| Total      Interest-Earning Assets | $                                   | 878,335,445 |   | 5.10%         |   | $ | 924,190,431 |   | 5.16%           |   | $ | (2,910,660) |
|                               |                                |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                            | Six      Months Ended September 30, |
|---------------------------------------------------------------------------------|-------------------------------------|
|                                                                            | 2010                                |   | 2009 |   |   |   |
|                                                                            |                                |   Average      Balance |   |    Yield(1) |   |   |   Average      Balance |   |    Yield(1) |   |   |  Decrease      In Interest      Expense      From 2009 |
| Now      And Money Market   Accounts                             |  $                             |  244,533,104 |   |          0.96% |   |  $ |  219,896,374 |   |   1.20% |   |  $ |  (289,016) |
|  Statement      Savings Accounts                                           |                                | 19,197,753 |   |            0.34 |   |   | 17,342,955 |   |                  0.45 |   |   | (12,790) |
| Certificates      Accounts                                                      |                                | 393,812,118 |   |            2.09 |   |   | 385,256,776 |   |                  3.16 |   |   | (3,929,124) |
| FHLB      Advances, TAF Advances   And      Other Borrowed Money |                                |  163,695,565 |   |  3.74 |   |   |  236,022,927 |   |             2.83 |   |   |  (553,138) |
| Junior      Subordinated Debentures                                             |                                | 5,155,000 |   | 4.57 |   |   | 5,155,000 |   |                 4.81 |   |   | (12,746) |
| Senior      Convertible Debentures                                              |                                | 6,084,000 |   | 8.00 |   |   | - |   | - |   |   | 486,720 |
| Total      Interest-Bearing Liabilities                                         | $                                   | 832,477,540 |   | 2.10% |   | $ | 863,674,032 |   | 2.52% |   | $ | (4,310,094) |

|                                                                                                                                                                                    |   | September      30, 2010 |   | September      30, 2009 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|-------------------------|
| Beginning      Balance                                                                                                                                                                  | $      | 12,307,394              | $      | 10,181,599              |
| Provision                                                                                                                                                                               |   | 4,050,000               |   | 3,000,000               |
| Charge-offs                                                                                                                                                                             |   | (4,874,893)             |   | (480,174)               |
| Recoveries                                                                                                                                                                              |   | 45,719                  |   | 22,496                  |
| Ending      Balance                                                                                                                                                                     | $      | 11,528,220              | $      | 12,723,921              |
|                                                                                                                                                                                    |   |                    |   |                    |
| Allowance      For Loan Losses As A Percentage Of Gross Loans Receivable, Held For      Investment At The End Of The Period                                                             |   |  2.13%             |   |  2.10%             |
| Allowance      For Loan Losses As A Percentage Of Impaired Loans At The End Of The      Period                                                                                          |   |  26.4%             |   |  34.1%             |
| Impaired      Loans                                                                                                                                                                     | $      | 43,743,434              | $      | 37,284,300              |
| 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 |   |   3.5%        |   |   6.1%        |
| Gross      Loans Receivable,  Held For Investment                                                                                                                             | $      | 540,321,145             | $      | 606,547,174             |
| Total      Loans Receivable, Net                                                                                                                                                        | $      | 537,174,436             | $      | 599,657,360             |

----

|                                                                | Six      Months Ended September 30, |          | Increase      (Decrease) |
|---------------------------------------------------------------------|-------------------------------------|---------------|--------------------------|
|                                                                |                                | 2010          |                     |   | 2009 |   |   | Amounts |   |   | Percent |
| Gain      On Sale Of Investments                                    | $                                   | 695,406       |                     | $ | 374,125 |   | $ | 321,281 |   |   | 85.9% |
| Gain      On Sale Of Loans                                          |                                | 846,157       |                     |   | 596,465 |   |   | 249,692 |   |   | 41.9 |
| Loss      on Sale of Real Estate Owned                              |                                | (192,867)     |                     |   | (61,104) |   |   | (131,763) |   |   | 215.6 |
| Service      Fees On Deposit Accounts                               |                                | 589,817       |                     |   | 588,682 |   |   | 1,135 |   |   | 0.2 |
| Income      From Cash Value Of   Life      Insurance |                                |  200,000 |                     |   |  180,000 |   |   |  20,000 |   |   |  11.1 |
| Commissions      From Insurance Agency                              |                                | 208,966       |                     |   | 247,330 |   |   | (38,364) |   |   | (15.5) |
| Other      Agency Income                                            |                                | 185,738       |                     |   | 241,511 |   |   | (55,773) |   |   | (23.1) |
| Trust      Income                                                   |                                | 219,000       |                     |   | 210,000 |   |   | 9,000 |   |   | 4.3 |
| Other                                                               |                                | 579,368       |                     |   | 409,221 |   |   | 170,147 |   |   | 41.6 |
| Total      Non-Interest Income                                      | $                                   | 3,331,585     |                     | $ | 2,786,230 |   | $ | 545,355 |   |   | 19.6% |

|                                                                                     | Six      Months Ended September 30, |             | Increase      (Decrease) |
|------------------------------------------------------------------------------------------|-------------------------------------|------------------|--------------------------|
|                                                                                     |                                | 2010             |                     |   | 2009 |   |   | Amounts |   |   | Percent |
| Salaries      And Employee Benefits                                                      | $                                   | 6,007,175        |                     | $ | 5,821,265 |   | $ | 185,910 |   |   | 3.2% |
| Occupancy                                                                                |                                | 1,003,966        |                     |   | 993,164 |   |   | 10,802 |   |   | 1.1 |
| Advertising                                                                              |                                | 201,348          |                     |   | 215,929 |   |   | (14,581) |   |   | (6.8) |
| Depreciation      And Maintenance   Of      Equipment                     |                                |  924,568    |                     |   |  882,396 |   |   |  42,172 |   |   |  4.8 |
| FDIC      Insurance Premiums                                                             |                                | 628,048          |                     |   | 1,107,000 |   |   | (478,952) |   |   | (43.3) |
| Amortization      of Intangibles                                                         |                                | 45,000           |                     |   | 45,000 |   |   | - |   |   | - |
| Mandatorily      Redeemable Financial   Instrument      Valuation Expense |                                |  85,000     |                     |   |  44,000 |   |   |  41,000 |   |   |  93.18 |
| Other                                                                                    |                                | 2,401,561        |                     |   | 2,002,135 |   |   | 399,426 |   |   | 20.00 |
| Total      General And Administrative   Expenses                          |  $                             |  11,296,666 |                     |  $ |  11,110,889 |   |  $ |  185,777 |   |   |  1.7% |

----

----

|     (Dollars      in thousands) |   WithinOneMonth |   |  After      OneThroughThreeMonths |   | AfterThreeThroughTwelveMonths |   |    WithinOne      Year |   |  GreaterThanOneYear |   |     Total |
|-----------------------------------------------------|----------------------------|--------|----------------------------------------|--------|-------------------------------|--------|---------------------------------------|--------|--------------------------|--------|-------------------------------|
| Unused      lines of credit                         | $3,426                     |   | $2,184                                 |   | $20,170                       |   | $25,780                               |   | $31,900                  |   | $57,680                       |
| Standby      letters of credit                      | 260                        |   | 125                                    |   | 503                           |   | 888                                   |   | 610                      |   | 1,498                         |
| Total                                               | $3,686                     |   | $2,309                                 |   | $20,673                       |   | $26,668                               |   | $32,510                  |   | $59,178                       |

----

----

| •          | 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 industryconditions. |
|---------------------------------|--------------------------------------------------|

| •          | 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  | Articles      of Amendment, including Certificate of Designation relating to the      Company’s Fixed Rate CumulativePerpetual      Preferred Stock Series B (3)  |
|   | 3.4  | Bylaws      (4)                                                                                                                                                    |
|   | 4.1  | Form of Stock      Certificate of the Company and other instruments defining the rights of      security holders, including      indentures (5)                         |
|   | 4.2  | Form      of Certificate for the Series A Preferred Shares (2)                                                                                                          |
|   | 4.3  | Form of Certificate      for the Series B Preferred Shares(3)                                                                                                      |

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|   | 4.4    | Warrant      to purchase shares of the Company’s common stock dated December 19, 2008      (2)                                                                                                                                                                                                                                                                                                |
|--------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 4.5    | Letter      Agreement (including Securities Purchase Agreement – Standard Terms,      attached as Exhibit A) dated December 19, 2008 between the Company and the      United States Department of the Treasury (2)                                                                                                                                                                            |
|   | 4.6    | Form      of Indenture with respect to the Company’s 8.0% Convertible Senior      Debentures Due 2029 (6)                                                                                                                                                                                                                                                                                |
|   | 4.7    | Specimen      Convertible Senior Debenture Due 2029 (6)                                                                                                                                                                                                                                                                                                                                             |
|   | 4.8    | Letter      Agreement dated September 29, 2010 between Security Federal Corporation      and the United States Department of the Treasury, including the Exchange      Agreement – Standard Terms, with respect to the exchange of the      Series A Fixed Rate Cumulative Perpetual Preferred Stock for the      Series B Fixed Rate Cumulative Perpetual Preferred Stock      (3) |
|   | 4.9    | Letter      Agreement dated September 29, 2010 between Security Federal Corporation      and the United States Department of the Treasury, including the Securities      Purchase Agreement – Standard Terms, with respect to the purchase of the      Series B Fixed Rate Cumulative Perpetual Preferred Stock      (3)                                                                 |
|   | 10.1   | 1993 Salary      Continuation Agreements (7)                                                                                                                                                                                                                                                                                                                                                   |
|   | 10.2   | Amendment One to      1993 Salary Continuation Agreements (8)                                                                                                                                                                                                                                                                                                                                  |
|   | 10.3   | Form      of 2006 Salary Continuation Agreement (9)                                                                                                                                                                                                                                                                                                                                                 |
|   | 10.4   | 1999 Stock Option      Plan (4)                                                                                                                                                                                                                                                                                                                                                                |
|   | 10.5   | 2002 Stock Option      Plan (10)                                                                                                                                                                                                                                                                                                                                                               |
|   | 10.6   | 2006 Stock Option      Plan (11)                                                                                                                                                                                                                                                                                                                                                               |
|   | 10.7   | 2008      Equity Incentive Plan (12)                                                                                                                                                                                                                                                                                                                                                                |
|   | 10.8   | Form      of incentive stock option agreement and non-qualified stock option      agreement pursuant to the 2006 Stock Option Plan (11)                                                                                                                                                                                                                                                             |
|   | 10.9   | 2004 Employee Stock      Purchase Plan (13)                                                                                                                                                                                                                                                                                                                                                    |
|   | 10.10  | Incentive      Compensation Plan (7)                                                                                                                                                                                                                                                                                                                                                           |
|   | 10.11  | Form of Security      Federal Bank Salary Continuation Agreement (14)                                                                                                                                                                                                                                                                                                                          |
|   | 10.12  | Form of Security      Federal Split Dollar Agreement (14)                                                                                                                                                                                                                                                                                                                                      |
|   | 10.13  | Form of Compensation      Modification Agreement (2)                                                                                                                                                                                                                                                                                                                                           |
|   | 13     | Annual      Report to Stockholders                                                                                                                                                                                                                                                                                                                                                                  |
|   | 14     | Code      of Ethics (14)                                                                                                                                                                                                                                                                                                                                                                            |
|   | 21     | Subsidiaries of      Registrant                                                                                                                                                                                                                                                                                                                                                                |
|   | 23     | Consent of Elliott      Davis, LLC                                                                                                                                                                                                                                                                                                                                                             |
|   | 31.1        | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act                                                                                                                                                                                                                                                                                                |
|   | 31.2   | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act                                                                                                                                                                                                                                                                                                |
|   | 32     | Certification      of Chief Executive Officer and Chief Financial Officer 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 filed on December      23, 2008.                                                                      |
|   | (3)        | Incorporated by reference to the Registrant’s Current      Report on Form 8-K filed on September 30, 2010.                                                                               |
|   | (4)   | Filed      on March 2, 2000, as an exhibit to the Company’s Registration Statement on      Form S-8 and incorporated herein by reference.                                                |
|   | (5)   | Filed      on August 12, 1987, as an exhibit to the Company’s Registration Statement      on Form 8-A and incorporated herein by reference.                                              |
|   | (6)   | 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.                      |
|   | (7)   | Filed      on June 28, 1993, as an exhibit to the Company’s Annual Report on Form      10-KSB and incorporated herein by reference.                                                      |
|   | (8)   | 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.                       |
|   | (9)   | 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 byreference.                                        |
|   | (10)  | Filed      on June 19, 2002, as an exhibit to the Company’s Proxy Statement and      incorporated herein by reference.                                                                   |
|   | (11)  | 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. |
|   | (12)  | Filed      on June 20, 2008, as an exhibit to the Company’s Proxy Statement and      incorporated herein by reference.                                                                   |
|   | (13)  | Filed      on June 18, 2004, as an exhibit to the Company’s Proxy Statement and      incorporated herein by reference.                                                                   |
|   | (14)  | Filed      on May 24, 2006 as an exhibit to the Current Report on Form 8-K and      incorporated herein by reference.                                                                          |
|   | (15)  | Filed on June 27,      2007, as an exhibit to the Company’s Annual Report on Form 10-K and      incorporated herein by reference.                                                   |

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|   |                                |   |             SECURITY FEDERAL CORPORATION |
|--------|-------------------------------------|--------|------------------------------------------------------------------------|
|   |                                |   |                                                                   |   |
|   |                                |   |                                                                   |   |
|   |                                |   |                                                                   |   |
| Date:  | November      15, 2010              |   | By:                                                                    | /s/Timothy      W. Simmons |
|   | Timothy      W. Simmons             |
|   | President                           |
|   | Duly      Authorized Representative |

| Date:  | November      15, 2010              |   | By: | /s/Roy      G. Lindburg |
|--------|-------------------------------------|--------|-----|-------------------------|
|   | Roy      G. Lindburg                |
|   | CFO                                 |
|   | Duly      Authorized Representative |

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