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

| CLASS:                                  |   | OUTSTANDING SHARES AT: |   | SHARES:   |
|-----------------------------------------|--------|------------------------|--------|-----------|
| Common Stock, par value $0.01 per share |   | August 13, 2012        |   | 2,944,001 |

----

|     |                                                                                                               |   |     |
|----------|--------------------------------------------------------------------------------------------------------------------|--------|----------|
| PART I.  | FINANCIAL INFORMATION (UNAUDITED)                                                                                  |   | PAGE NO. |
| Item 1.  | Financial Statements (Unaudited):                                                                                  |   |     |
|     |                                                                                                               |   |     |
|     | Consolidated Balance Sheets at June 30, 2012 and March 31, 2012                                                    |   | 1        |
|     |                                                                                                               |   |     |
|     | Consolidated Statements of Income for the Three Months Ended June 30, 2012 and 2011                                |   | 2        |
|     |                                                                                                               |   |     |
|     | Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2012 and 2011                  |   | 3        |
|     |                                                                                                               |   |     |
|     | Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended June 30, 2012 and 2011 |   | 4        |
|     |                                                                                                               |   |     |
|     | Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2012 and 2011                            |   | 5        |
|     |                                                                                                               |   |     |
|     | Notes to Consolidated Financial Statements                                                                         |   | 7        |
|     |                                                                                                               |   |     |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        |   | 26       |
|     |                                                                                                               |   |     |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                                                         |   | 37       |
|     |                                                                                                               |   |     |
| Item 4.  | Controls and Procedures                                                                                            |   | 37       |
|     |                                                                                                               |   |     |
| PART II. | OTHER INFORMATION                                                                                                  |   |     |
|     |                                                                                                               |   |     |
| Item 1.  | Legal Proceedings                                                                                                  |   | 38       |
|     |                                                                                                               |   |     |
| Item 1A. | Risk Factors                                                                                                       |   | 38       |
|     |                                                                                                               |   |     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                        |   | 38       |
|     |                                                                                                               |   |     |
| Item 3.  | Defaults Upon Senior Securities                                                                                    |   | 38       |
|     |                                                                                                               |   |     |
| Item 4.  | Mine Safety Disclosures                                                                                            |   | 38       |
|     |                                                                                                               |   |     |
| Item 5.  | Other Information                                                                                                  |   | 38       |
|     |                                                                                                               |   |     |
| Item 6.  | Exhibits                                                                                                           |   | 39       |
|     |                                                                                                               |   |     |
|     | Signatures                                                                                                         |   | 41       |

----

|                                                                                                                                                                                                                                                                                                                                                              |   | June 30, 2012 |          |   | March 31, 2012 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------------|--------|----------------|--------|
| Assets:                                                                                                                                                                                                                                                                                                                                                           |   | (Unaudited)   |          |   | (Audited)      |   |
| Cash And Cash Equivalents                                                                                                                                                                                                                                                                                                                                         |   | $             | 10,653,208    |   |           | $      | 9,331,372 |   |
| Certificates Of Deposits With Other Banks                                                                                                                                                                                                                                                                                                                         |   |          | 1,727,657     |   |           |   | 1,727,210 |   |
| Investment And Mortgage-Backed Securities:                                                                                                                                                                                                                                                                                                                        |   |          |          |   |           |   |   |   |
| Available For Sale:   (Amortized cost of $346,882,376 at June 30, 2012 and $343,421,858                                      at March 31, 2012)                |   |          | 358,337,230   |   |           |   | 353,954,857 |   |
| Held To Maturity:     (Fair value of $67,704,158 at June 30, 2012 and  $69,965,869                                      at March 31, 2012) |   |          | 65,089,398    |   |           |   | 67,676,210 |   |
| Total Investment And Mortgage-Backed Securities                                                                                                                                                                                                                                                                                                                   |   |          | 423,426,628   |   |           |   | 421,631,067 |   |
| Loans Receivable, Net:                                                                                                                                                                                                                                                                                                                                            |   |          |          |   |           |   |   |   |
| Held For Sale                                                                                                                                                                                                                                                                                                                                                     |   |          | 3,158,501     |   |           |   | 2,671,771 |   |
| Held For Investment: (Net of allowance of $12,684,327 at June 30, 2012 and $14,615,198                                        at March 31, 2012)                    |   |          | 409,908,394   |   |           |   | 425,838,835 |   |
| Total Loans Receivable, Net                                                                                                                                                                                                                                                                                                                                       |   |          | 413,066,895   |   |           |   | 428,510,606 |   |
| Accrued Interest Receivable:                                                                                                                                                                                                                                                                                                                                      |   |          |          |   |           |   |   |   |
| Loans                                                                                                                                                                                                                                                                                                                                                             |   |          | 1,422,592     |   |           |   | 1,718,252 |   |
| Mortgage-Backed Securities                                                                                                                                                                                                                                                                                                                                        |   |          | 953,180       |   |           |   | 987,911 |   |
| Investments                                                                                                                                                                                                                                                                                                                                                       |   |          | 1,038,772     |   |           |   | 793,655 |   |
| Premises And Equipment, Net                                                                                                                                                                                                                                                                                                                                       |   |          | 18,423,662    |   |           |   | 18,726,299 |   |
| Federal Home Loan Bank (“FHLB”) Stock, At Cost                                                                                                                                                                                                                                                                                                        |   |          | 6,928,496     |   |           |   | 8,471,100 |   |
| Bank Owned Life Insurance                                                                                                                                                                                                                                                                                                                                         |   |          | 10,941,305    |   |           |   | 10,836,305 |   |
| Repossessed Assets Acquired In Settlement Of Loans                                                                                                                                                                                                                                                                                                                |   |          | 13,745,651    |   |           |   | 14,160,099 |   |
| Intangible Assets, Net                                                                                                                                                                                                                                                                                                                                            |   |          | 86,976        |   |           |   | 99,477 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                          |   |          | 1,199,754     |   |           |   | 1,199,754 |   |
| Other Assets                                                                                                                                                                                                                                                                                                                                                      |   |          | 6,496,787     |   |           |   | 6,443,501 |   |
| Total Assets                                                                                                                                                                                                                                                                                                                                                      |   | $             | 910,111,563   |   |           | $      | 924,636,608 |   |
|                                                                                                                                                                                                                                                                                                                                                              |   |          |          |   |           |   |   |   |
| Liabilities And Shareholders’ Equity                                                                                                                                                                                                                                                                                                                        |   |          |          |   |           |   |   |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                      |   |          |          |   |           |   |   |   |
| Deposit Accounts                                                                                                                                                                                                                                                                                                                                                  |   | $             | 694,519,674   |   |           | $      | 696,201,056 |   |
| Advances From FHLB                                                                                                                                                                                                                                                                                                                                                |   |          | 108,165,616   |   |           |   | 122,069,802 |   |
| Other Borrowed Money                                                                                                                                                                                                                                                                                                                                              |   |          | 10,022,895    |   |           |   | 9,801,386 |   |
| Advance Payments By Borrowers For Taxes And Insurance                                                                                                                                                                                                                                                                                                             |   |          | 487,150       |   |           |   | 350,464 |   |
| Junior Subordinated Debentures                                                                                                                                                                                                                                                                                                                                    |   |          | 5,155,000     |   |           |   | 5,155,000 |   |
| Senior Convertible Debentures                                                                                                                                                                                                                                                                                                                                     |   |          | 6,084,000     |   |           |   | 6,084,000 |   |
| Other Liabilities                                                                                                                                                                                                                                                                                                                                                 |   |          | 3,940,053     |   |           |   | 4,203,014 |   |
| Total Liabilities                                                                                                                                                                                                                                                                                                                                                 |   | $             | 828,374,388   |   |           | $      | 843,864,722 |   |
|                                                                                                                                                                                                                                                                                                                                                              |   |          |          |   |           |   |   |   |
| Shareholders' Equity:                                                                                                                                                                                                                                                                                                                                             |   |          |          |   |           |   |   |   |
| Serial Preferred Stock, $.01 Par Value; Authorized Shares  – 200,000; Issued       And Outstanding Shares –  22,000 At June 30, 2012 And At March 31, 2012                                                                                                                                               |   | $             | 22,000,000    |   |           | $      | 22,000,000 |   |
| Common Stock, $.01 Par Value; Authorized Shares – 5,000,000; Issued -      3,144,934 And Outstanding Shares – 2,944,001 At June 30, 2012 And At       March 31, 2012                                                                                                                                |   |          |   31,449 |   |           |   |   31,449 |   |
| Warrant Issued In Conjunction With Serial Preferred Stock                                                                                                                                                                                                                                                                                                         |   |          | 400,000       |   |           |   | 400,000 |   |
| Additional Paid-In Capital                                                                                                                                                                                                                                                                                                                                        |   |          | 11,634,526    |   |           |   | 11,626,245 |   |
| Treasury Stock, (At Cost, 200,933 Shares At June 30, 2012 And March 31,       2012, Respectively)                                                                                                                                                                                                                                        |   |          | (4,330,712    | )      |           |   | (4,330,712 | ) |
| Accumulated Other Comprehensive Income                                                                                                                                                                                                                                                                                                                            |   |          | 7,105,373     |   |           |   | 6,533,573 |   |
| Retained Earnings                                                                                                                                                                                                                                                                                                                                                 |   |          | 44,896,539    |   |           |   | 44,511,331 |   |
| Total Shareholders' Equity                                                                                                                                                                                                                                                                                                                                        |   | $             | 81,737,175    |   |           | $      | 80,771,886 |   |
| Total Liabilities And Shareholders' Equity                                                                                                                                                                                                                                                                                                                        |   | $             | 910,111,563   |   |           | $      | 924,636,608 |   |

----

|                                                  |   | Three Months Ended June 30, |      |
|-------------------------------------------------------|--------|-----------------------------|-----------|
|                                                  |   | 2012                        |      |   | 2011 |   |
| Interest Income:                                      |   |                        |      |   |   |   |
| Loans                                                 |   | $                           | 6,086,191 |   |   | $ | 7,340,697 |   |
| Mortgage-Backed Securities                            |   |                        | 1,764,712 |   |   |   | 2,117,531 |   |
| Investment Securities                                 |   |                        | 622,536   |   |   |   | 771,454 |   |
| Other                                                 |   |                        | 1,966     |   |   |   | 469 |   |
| Total Interest Income                                 |   |                        | 8,475,405 |   |   |   | 10,230,151 |   |
|                                                  |   |                        |      |   |   |   |   |   |
| Interest Expense:                                     |   |                        |      |   |   |   |   |   |
| NOW And Money Market Accounts                         |   |                        | 291,585   |   |   |   | 446,880 |   |
| Statement Savings Accounts                            |   |                        | 10,901    |   |   |   | 12,674 |   |
| Certificate Accounts                                  |   |                        | 1,033,105 |   |   |   | 1,440,603 |   |
| Advances And Other Borrowed Money                     |   |                        | 1,133,300 |   |   |   | 1,269,056 |   |
| Junior Subordinated Debentures                        |   |                        | 28,311    |   |   |   | 57,847 |   |
| Senior Convertible Debentures                         |   |                        | 121,680   |   |   |   | 121,680 |   |
| Total Interest Expense                                |   |                        | 2,618,882 |   |   |   | 3,348,740 |   |
|                                                  |   |                        |      |   |   |   |   |   |
| Net Interest Income                                   |   |                        | 5,856,523 |   |   |   | 6,881,411 |   |
| Provision For Loan Losses                             |   |                        | 725,000   |   |   |   | 2,300,000 |   |
| Net Interest Income After Provision For Loan Losses   |   |                        | 5,131,523 |   |   |   | 4,581,411 |   |
| Non-Interest Income:                                  |   |                        |      |   |   |   |   |   |
| Gain On Sale Of Investments                           |   |                        | 103,659   |   |   |   | 171,224 |   |
| Gain On Sale Of Loans                                 |   |                        | 132,952   |   |   |   | 107,270 |   |
| Service Fees On Deposit Accounts                      |   |                        | 278,563   |   |   |   | 270,693 |   |
| Income From Cash Value Of Life Insurance              |   |                        | 105,000   |   |   |   | 105,000 |   |
| Commissions On Insurance                              |   |                        | 107,773   |   |   |   | 92,102 |   |
| Trust Income                                          |   |                        | 120,000   |   |   |   | 114,000 |   |
| Mandatorily Redeemable Financial Instrument Valuation |   |                        | -         |   |   |   | 50,000 |   |
| Check Card Fee Income                                 |   |                        | 204,860   |   |   |   | 202,392 |   |
| Other                                                 |   |                        | 130,929   |   |   |   | 158,613 |   |
| Total Non-Interest Income                             |   |                        | 1,183,736 |   |   |   | 1,271,294 |   |
|                                                  |   |                        |      |   |   |   |   |   |
| General And Administrative Expenses:                  |   |                        |      |   |   |   |   |   |
| Salaries And Employee Benefits                        |   |                        | 2,614,044 |   |   |   | 2,842,978 |   |
| Occupancy                                             |   |                        | 491,747   |   |   |   | 478,752 |   |
| Advertising                                           |   |                        | 81,944    |   |   |   | 85,680 |   |
| Depreciation And Maintenance Of Equipment             |   |                        | 404,594   |   |   |   | 412,625 |   |
| FDIC Insurance Premiums                               |   |                        | 185,628   |   |   |   | 292,205 |   |
| Amortization Of Intangibles                           |   |                        | 12,501    |   |   |   | 22,520 |   |
| Net Cost Of Operation Of Other Real Estate Owned      |   |                        | 642,151   |   |   |   | 36,610 |   |
| Other                                                 |   |                        | 865,599   |   |   |   | 989,154 |   |
| Total General And Administrative Expenses             |   |                        | 5,298,208 |   |   |   | 5,160,524 |   |
|                                                  |   |                        |      |   |   |   |   |   |
| Income Before Income Taxes                            |   |                        | 1,017,051 |   |   |   | 692,181 |   |
| Provision For Income Taxes                            |   |                        | 286,323   |   |   |   | 231,134 |   |
| Net Income                                            |   |                        | 730,728   |   |   |   | 461,047 |   |
| Preferred Stock Dividends                             |   |                        | 110,000   |   |   |   | 110,000 |   |
| Net Income Available To Common Shareholders           |   | $                           | 620,728   |   |   | $ | 351,047 |   |
|                                                  |   |                        |      |   |   |   |   |   |
| Basic Net Income Per Common Share                     |   | $                           | 0.21      |   |   | $ | 0.12 |   |
| Diluted Net Income Per Common Share                   |   | $                           | 0.21      |   |   | $ | 0.12 |   |
| Cash Dividend Per Share On Common Stock               |   | $                           | 0.08      |   |   | $ | 0.08 |   |
| Basic Weighted Average Shares Outstanding             |   |                        | 2,944,001 |   |   |   | 2,944,001 |   |
| Diluted Weighted Average Shares Outstanding           |   |                        | 2,944,001 |   |   |   | 2,944,001 |   |

----

|                                                                                                                                       |   | Three Months Ended June 30, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                                       |   | 2012                        |      |   | 2011 |   |
| Net Income                                                                                                                                 |   | $                           | 730,728   |   |   | $ | 461,047 |   |
| Other Comprehensive Income                                                                                                                 |   |                        |      |   |   |   |   |   |
| Unrealized Gains On Securities:                                                                                                            |   |                        |      |   |   |   |   |   |
|    Unrealized Holding Gains On Securities Available For Sale, Net Of Taxes Of $389,848                                      |   |                        | 636,069   |   |   |   | 2,813,659 |   |
|    Reclassification Adjustment For Gains Included In Net Income, Net Of      Taxes Of $39,390 |   |                        | (64,269   | ) |   |   | (106,158 | ) |
| Other Comprehensive Income                                                                                                                 |   |                        | 571,800   |   |   |   | 2,707,501 |   |
| Comprehensive Income                                                                                                                       |   | $                           | 1,302,528 |   |   | $ | 3,168,548 |   |

----

|                                                      |   |  Preferred Stock |       |   |  Warrants |   |           |  Common Stock |   |   |  AdditionalPaid – In Capital |   |   |  TreasuryStock |             |   |  Accumulated Other Comprehensive Income |   |       |  Retained Earnings |      |   |  Total |   |
|-----------------------------------------------------------|--------|-----------------------|------------|--------|----------------|--------|----------------|--------------------|--------|--------|----------------------------------------------|--------|--------|---------------------|------------------|--------|----------------------------------------------|--------|------------|-------------------------|-----------|--------|-------------|--------|
| Balance At March 31, 2011                                 |   | $                     | 22,000,000 |   |           | $      | 400,000        |               |   | $      | 30,884                                       |   |   | $                   | 10,176,375       |   |                                         | $      | (4,330,712 | )                       |      | $      | 3,637,675   |   |   | $ | 44,097,983 |   |   | $ | 76,012,205 |   |
| Net Income                                                |   |                  | -          |   |           |   | -              |               |   |   | -                                            |   |   |                | -                |   |                                         |   | -          |                    |      |   | -           |   |   |   | 461,047 |   |   |   | 461,047 |   |
| Other Comprehensive Income,   Net Of Tax   | -      |                  |       |   | -              |   |           |               | -      |   |                                         |   | -      |                |             |   |  -                                      |   |       |                    | 2,707,501 |   |        |   | - |   |   |   | 2,707,501 |   |
| Redemption Of Mandatorily Redeemable Financial Instrument |   |                  |   -   |   |           |   |    - |               |   |   |   565                                   |   |   |                |   1,416,747 |   |                                         |   |  -    |                    |      |   |   -    |   |   |   |   - |   |   |   |   1,417,312 |   |
| Stock Compensation Expense                                |   |                  | -          |   |           |   | -              |               |   |   | -                                            |   |   |                | -                |   |                                         |   | -          |                    |      |   | -           |   |   |   | 8,281 |   |   |   | 8,281 |   |
| Cash Dividends On Preferred                               |   |                  | -          |   |           |   | -              |               |   |   | -                                            |   |   |                | -                |   |                                         |   | -          |                    |      |   | -           |   |   |   | (110,000 | ) |   |   | (110,000 | ) |
| Cash Dividends On Common                                  |   |                  | -          |   |           |   | -              |               |   |   | -                                            |   |   |                | -                |   |                                         |   | -          |                    |      |   | -           |   |   |   | (235,520 | ) |   |   | (235,520 | ) |
| Balance At June 30, 2011                                  |   | $                     | 22,000,000 |   |           | $      | 400,000        |               |   | $      | 31,449                                       |   |   | $                   | 11,593,122       |   |                                         | $      | (4,330,712 | )                       |      | $      | 6,345,176   |   |   | $ | 44,221,791 |   |   | $ | 80,260,826 |   |

|                                                    |   | Preferred Stock |       |   |  Warrants |   |    | Common Stock |   |   | AdditionalPaid – In Capital |   | TreasuryStock |   |       | Accumulated Other Comprehensive Income |    |   | Retained Earnings |   |    |  Total |      |
|---------------------------------------------------------|--------|-----------------|------------|--------|----------------|--------|---------|--------------|--------|--------|----------------------------------------|--------|---------------|--------|------------|----------------------------------------|---------|--------|-------------------|--------|---------|-------------|-----------|
| Balance At March 31, 2012                               |   | $               | 22,000,000 |   |           | $      | 400,000 |         |   | $      | 31,449                                 |   |          | $      | 11,626,245 |                                   |    | $      | (4,330,712        | )      |    | $           | 6,533,573 |   |   | $ | 44,511,331 |   |   | $ | 80,771,886 |   |
| Net Income                                              |   |            | -          |   |           |   | -       |         |   |   | -                                      |   |          |   | -          |                                   |    |   | -                 |   |    |        | -         |   |   |   | 730,728 |   |   |   | 730,728 |   |
| Other Comprehensive Income,   Net Of Tax | -      |            |       |   | -              |   |    |         | -      |   |                                   |   | -             |   |       |                                   |  - |   |              |   | 571,800 |        |      |   | - |   |   |   | 571,800 |   |
| Stock Compensation Expense                              |   |            | -          |   |           |   | -       |         |   |   | -                                      |   |          |   | 8,281      |                                   |    |   | -                 |   |    |        | -         |   |   |   | - |   |   |   | 8,281 |   |
| Cash Dividends On Preferred                             |   |            | -          |   |           |   | -       |         |   |   | -                                      |   |          |   | -          |                                   |    |   | -                 |   |    |        | -         |   |   |   | (110,000 | ) |   |   | (110,000 | ) |
| Cash Dividends On Common                                |   |            | -          |   |           |   | -       |         |   |   | -                                      |   |          |   | -          |                                   |    |   | -                 |   |    |        | -         |   |   |   | (235,520 | ) |   |   | (235,520 | ) |
| Balance At June 30, 2012                                |   | $               | 22,000,000 |   |           | $      | 400,000 |         |   | $      | 31,449                                 |   |          | $      | 11,634,526 |                                   |    | $      | (4,330,712        | )      |    | $           | 7,105,373 |   |   | $ | 44,896,539 |   |   | $ | 81,737,175 |   |

----

|   |                                                                                     |   |   Three Months Ended June 30, |
|--------|------------------------------------------------------------------------------------------|--------|------------------------------------|
|   |                                                                                     |   | 2012                               |   | 2011 |
|   | Cash Flows From Operating Activities:                                                    |   |                               |   |   |
|   |      Net Income                                                      | $      | 730,728                            | $ | 461,047 |
|   |                                                                                     |   |                               |   |   |
|   | Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities:        |   |                               |   |   |
|   |   Depreciation And Amortization Expense                                             |   | 354,164                            |   | 368,806 |
|   |   Amortization Of Intangible Assets                                                 |   | 12,501                             |   | 22,520 |
|   |   Stock Option Compensation Expense                                                 |   | 8,281                              |   | 8,281 |
|   |   Discount Accretion And Premium Amortization                                       |   | 1,796,814                          |   | 1,065,030 |
|   |   Provisions For Losses On Loans                                                    |   | 725,000                            |   | 2,300,000 |
|   |   Gain On Sale of Investments Available For Sale                                    |   | (4,063)                            |   | (102,865) |
|   |   Gain On Sale of Mortgage-Backed Securities Available For Sale                     |   | (99,596)                           |   | (68,359) |
|   |   Gain On Sale Of Loans                                                             |   | (132,952)                          |   | (107,270) |
|   |   Gain On Sale Of Real Estate                                                       |   | (9,286)                            |   | (62,222) |
|   |   Write Down On Real Estate                                                         |   | 541,500                            |   | - |
|   |   Amortization Of Deferred Fees On Loans                                            |   | (1,645)                            |   | (6,406) |
|   |   Mandatorily Redeemable Financial Instrument Valuation                        |   | -                                  |   | (50,000) |
|   |       Income From Bank Owned Life Insurance                     |   | (105,000)                          |   | (105,000) |
|   |   Proceeds From Sale Of Loans Held For Sale                                         |   | 6,661,202                          |   | 11,132,175 |
|   |   Origination Of Loans For Sale                                                     |   | (7,014,980)                        |   | (9,910,939) |
|   |   (Increase) Decrease In Accrued Interest Receivable:                               |   |                               |   |   |
|   |   Loans                                                                             |   | 295,660                            |   | 118,001 |
|   |   Mortgage-Backed Securities                                                        |   | 34,731                             |   | 2,581 |
|   |   Investments                                                                       |   | (245,564)                          |   | (219,347) |
|   |    Increase In Advance Payments By Borrowers                                   |   | 136,686                            |   | 128,736 |
|   |    Other, Net                                                                  |   | (666,302)                          |   | (161,204) |
|   | Net Cash Provided By Operating Activities                                                |   | 3,017,879                          |   | 4,813,565 |
|   |                                                                                     |   |                               |   |   |
|   | Cash Flows From Investing Activities:                                                    |   |                               |   |   |
|   |     Principal Repayments On Mortgage-Backed Securities Available For Sale |   | 13,192,807                         |   | 11,555,205 |
|   |     Principal Repayments On Mortgage-Backed Securities Held To Maturity   |   | 440,472                            |   | 375,243 |
|   |     Purchase Of Investment Securities Available For Sale                  |   | (15,664,373)                       |   | (11,597,706) |
|   | Purchase Of Mortgage-Backed Securities Available For Sale                                |   | (15,566,323)                       |   | (8,913,028) |
|   | Purchase Of Investment Securities Held To Maturity                                       |   | -                                  |   | (1,990,350) |
|   | Purchase Of Mortgage-Backed Securities Held To Maturiy                                   |   | -                                  |   | (8,704,676) |
|   | Maturities Of Investment Securities Available For Sale                                   |   | 5,265,399                          |   | 3,547,649 |
|   | Maturities of Investment Securities Held To Maturity                                     |   | 2,000,000                          |   | 1,000,000 |
|   | Proceeds From Sale of Investment Securities Available For Sale                           |   | 1,723,299                          |   | 4,658,750 |
|   | Proceeds From Sale of Mortgage-Backed Securities Available For Sale                      |   | 6,041,858                          |   | 3,592,201 |
|   | Purchase Of FHLB Stock                                                                   |   | -                                  |   | (34,343) |
|   | Redemption Of FHLB Stock                                                                 |   | 1,542,604                          |   | 1,247,628 |
|   | Decrease In Loans To Customers                                                           |   | 14,054,080                         |   | 11,350,642 |
|   | Proceeds From Sale Of Repossessed Assets                                                 |   | 1,035,240                          |   | 2,739,952 |
|   | Purchase And Improvement Of Premises And Equipment                                       |   | (51,527)                           |   | (27,412) |
|   | Net Cash Provided By Investing Activities                                                |   | 14,013,536                         |   | 8,799,755 |
|   |                                                                                     |   |                               |   |   |
|   |                                                                                     |   |                               |   | (Continued) |
|   |                                                                                     |   |                               |   |   |

----

|                                                                                                                                                                                                                                         |   | Three Months Ended June 30, |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                                                                                                                                                                                                         |   | 2012                        |        |   | 2011 |   |
| Cash Flows From Financing Activities:                                                                                                                                                                                                        |   |                        |        |   |   |   |
| Decrease In Deposit Accounts                                                                                                                                                                                                                 |   | $                           | (1,681,382  | ) |   | $ | (6,164,151 | ) |
| Proceeds From FHLB Advances                                                                                                                                                                                                                  |   |                        | 18,800,000  |   |   |   | 34,400,000 |   |
| Repayment Of FHLB Advances                                                                                                                                                                                                                   |   |                        | (32,704,186 | ) |   |   | (39,154,103 | ) |
| Net Proceeds (Repayments) Of Other Borrowings                                                                                                                                                                                                |   |                        | 221,509     |   |   |   | (480,676 | ) |
| Dividends To Preferred Shareholders                                                                                                                                                                                                          |   |                        | (110,000    | ) |   |   | (110,000 | ) |
| Dividends To Common Shareholders                                                                                                                                                                                                             |   |                        | (235,520    | ) |   |   | (235,520 | ) |
| Net Cash Used By Financing Activities                                                                                                                                                                                                        |   |                        | (15,709,579 | ) |   |   | (11,744,450 | ) |
|                                                                                                                                                                                                                                         |   |                        |        |   |   |   |   |   |
| Increase In Cash And Cash Equivalents                                                                                                                                                                                                        |   |                        | 1,321,836   |   |   |   | 1,868,870 |   |
| Cash And Cash Equivalents At Beginning Of Period                                                                                                                                                                                             |   |                        | 9,331,372   |   |   |   | 7,835,638 |   |
| Cash And Cash Equivalents At End Of Period                                                                                                                                                                                                   |   | $                           | 10,653,208  |   |   | $ | 9,704,508 |   |
|                                                                                                                                                                                                                                         |   |                        |        |   |   |   |   |   |
| Supplemental Disclosure Of Cash Flows Information:                                                                                                                                                                                           |   |                        |        |   |   |   |   |   |
| Cash Paid During The Period For Interest                                                                                                                                                                                                     |   | $                           | 2,837,441   |   |   | $ | 3,476,818 |   |
| Cash Paid During The Period For Income Taxes                                                                                                                                                                                                 |   | $                           | 31,781      |   |   | $ | 456,321 |   |
| Additions To Repossessed Assets Acquired Through Foreclosure                                                                                                                                                                                 |   | $                           | 1,153,006   |   |   | $ | 1,897,773 |   |
| Change In Unrealized Gain or Loss On Securities Available For Sale,                           Net Of Taxes |   | $                           | 571,800     |   |   | $ | 2,707,501 |   |

----

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

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

----

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

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

|                                        |   | For the Quarter Ended June 30, |    |
|---------------------------------------------|--------|--------------------------------|---------|
|                                        |   | 2012                           |    |   | 2011 |   |
| Earnings Available To Common Shareholders:  |   |                           |    |   |   |   |
|    Net Income                |   | $                              | 730,728 |   |   | $ | 461,047 |   |
| Preferred Stock Dividends                   |   |                           | 110,000 |   |   |   | 110,000 |   |
| Net Income Available To Common Shareholders |   | $                              | 620,728 |   |   | $ | 351,047 |   |

----

|                                                     | For the Quarter Ended                                                                                                                                                                                    |
|----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     | June 30, 2012                                                                                                                                                                                            |
|                                                     | Income (Numerator) Amount                                                                                                                                                                                |   | Shares (Denominator) |   | Per Share |
|                                                     |                                                                                                                                                                                                     |   |   |   |   |
| Basic EPS                                                | $                                620,728 |   | 2,944,001 | $ | 0.21 |
| Effect Of Diluted Securities:                            |                                                                                                                                                                                                     |   |   |   |   |
|      Stock Options And Warrants | -                                                                                                                                                                                                        |   | - |   | - |
| Diluted EPS                                              | $                                620,728 |   | 2,944,001 | $ | 0.21 |

|                                                     | For the Quarter Ended                                                                                                                                                                                    |
|----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     | June 30, 2011                                                                                                                                                                                            |
|                                                     | Income (Numerator) Amount                                                                                                                                                                                |   | Shares (Denominator) |   | Per Share |
|                                                     |                                                                                                                                                                                                     |   |   |   |   |
| Basic EPS                                                | $                                351,047 |   | 2,944,001 | $ | 0.12 |
| Effect Of Diluted Securities:                            |                                                                                                                                                                                                     |   |   |   |   |
|      Stock Options And Warrants | -                                                                                                                                                                                                        |   | - |   | - |
| Diluted EPS                                              | $                                351,047 |   | 2,944,001 | $ | 0.12 |

|                         | June 30, 2012 | June 30, 2011                   |         |
|------------------------------|---------------|---------------------------------|--------------|
|  For the Quarter Ended  |  Shares  | Weighted Average Exercise Price |  Shares | Weighted Average Exercise Price |
| Balance, Beginning of Period | 72,900        | $22.62                          | 81,400       | $22.51 |
| Options Granted              | -             | -                               | -            | - |
| Options Exercised            | -             | -                               | -            | - |
| Options Forfeited            | -             | -                               | 7,000        | 21.72 |
| Balance, End Of Period       | 72,900        | $22.62                          | 74,400       | $22.59 |
|                         |          |                            |         |   |
| Options Exercisable          | 44,000        | $22.07                          | 49,900       | $21.91 |
|                         |          |                            |         |   |
| Options Available For Grant  | 50,000        |                            | 50,000       |   |

----

|  Grant Date |   |  Outstanding Options |   |  Option Price |   |  Expiration Date |
|------------------|--------|---------------------------|--------|--------------------|--------|-----------------------|
|             |   |                      |   |               |   |                  |
| 09/01/03         |   | 2,400                     |   | $24.00             |   | 08/31/13              |
|             |   |                      |   |               |   |                  |
| 12/01/03         |   | 3,000                     |   | $23.65             |   | 11/30/13              |
|             |   |                      |   |               |   |                  |
| 01/01/04         |   | 5,000                     |   | $24.22             |   | 12/31/13              |
|             |   |                      |   |               |   |                  |
| 03/08/04         |   | 7,000                     |   | $21.43             |   | 03/08/14              |
|             |   |                      |   |               |   |                  |
| 06/07/04         |   | 2,000                     |   | $24.00             |   | 06/07/14              |
|             |   |                      |   |               |   |                  |
| 01/01/05         |   | 19,000                    |   | $20.55             |   | 12/31/14              |
|             |   |                      |   |               |   |                  |
| 01/01/06         |   | 4,000                     |   | $23.91             |   | 01/01/16              |
|             |   |                      |   |               |   |                  |
| 08/24/06         |   | 6,000                     |   | $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         |   | 15,000                    |   | $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              |

----

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

----

----

|   Assets:                                                                                                                                                                  |   | Quoted Market Price In Active Markets(Level 1) |                  |   | Significant OtherObservable Inputs(Level 2) |    |                    | Significant Unobservable Inputs(Level 3) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|-----------------------|--------|---------------------------------------------|---------|-------------------------|------------------------------------------|--------|
| FHLB Securities                                                                                                                                                                      |   | $                                         |  -               |   |                                        | $  |  2,511,640         |                                     |   | $  |  - |   |
| Federal National Mortgage   Association (“FNMA”) and   Federal Home Loan Mortgage   Corporation (“FHLMC”) Bonds |   |                                           |      - |   |                                        |    |     1,000,790 |                                     |   |   |      - |   |
| Small Business Administration   (“SBA”) Bonds                                                                                                             |   |                                           | -                     |   |                                        |    | 89,401,019              |                                     |   |   |  - |   |
| Tax Exempt Municipal Securities                                                                                                                                                      |   |                                           | -                     |   |                                        |    | 31,969,427              |                                     |   |   | - |   |
| Mortgage-Backed Securities                                                                                                                                                           |   |                                           | -                     |   |                                        |    | 233,381,604             |                                     |   |   | - |   |
| Equity Securities                                                                                                                                                                    |   |                                           | -                     |   |                                        |    | 72,750                  |                                     |   |   | - |   |
| Total                                                                                                                                                                                |   | $                                         |  -               |   |                                        | $  |  358,337,230       |                                     |   | $  |  - |   |

|   Assets:        |   | Quoted Market Price In Active Markets(Level 1) |    |   | Significant OtherObservable Inputs(Level 2) |    |              | Significant Unobservable Inputs(Level 3) |   |
|----------------------------|--------|------------------------------------------------|---------|--------|---------------------------------------------|---------|-------------------|------------------------------------------|--------|
| FHLB Securities            |   | $                                         |  - |   |                                        | $  |  2,698,894   |                                     |   | $  |  - |   |
| FNMA and FHLMC Bonds       |   |                                           | -       |   |                                        |    | 2,921,851         |                                     |   |   | - |   |
| SBA Bonds                  |   |                                           | -       |   |                                        |    | 86,278,802        |                                     |   |   | - |   |
| Tax Exempt Municipal Bonds |   |                                           | -       |   |                                        |    | 24,125,725        |                                     |   |   | - |   |
| Mortgage-Backed Securities |   |                                           | -       |   |                                        |    | 237,853,835       |                                     |   |   | - |   |
| Equity Securities          |   |                                           | -       |   |                                        |    | 75,750            |                                     |   |   | - |   |
| Total                      |   | $                                              | -  |   |                                        | $  |  353,954,857 |                                     |   | $  |  - |   |

|  Assets:                |   |  Level 1                                                                                     |   |  Level 2                     |   |  Level 3 |   | Balance AtJune 30, 2012                                                |
|------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|---------------|--------|------------------------------------------------------------------------|
| Mortgage Loans Held For Sale | $      | -                                                                                                 | $      | 3,158,501                         | $      | -             | $      | 3,158,501                                                              |
| Impaired Loans (1)           |   | -                                                                                                 |   | -                                 |   | 42,586,079    |   | 42,586,079                                                             |
| Foreclosed Assets            |   | -                                                                                                 |   | -                                 |   | 13,745,651    |   | 13,745,651                                                             |
| Total                        | $      |                 - | $      |     3,158,501 | $      | 56,331,730    | $      |           59,490,231 |
|                         |   |                                                                                              |   |                              |   |          |   |                                                                   |

----

|  Assets:                |   |  Level 1                                                                                     |   |  Level 2 |   |  Level 3 |   | Balance AtMarch 31, 2012 |
|------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------------|--------|---------------|--------|--------------------------|
| Mortgage Loans Held For Sale | $      | -                                                                                                 | $      | 2,671,771     | $      | -             | $      | $2,671,771               |
| Impaired Loans (1)           |   | -                                                                                                 |   | -             |   | 39,160,338    |   | 39,160,338               |
| Foreclosed Assets            |   | -                                                                                                 |   | -             |   | 14,160,099    |   | 14,160,099               |
| Total                        | $      |                 - | $      | 2,671,771     | $      | 53,320,437    | $      | 55,992,208               |
|                         |   |                                                                                              |   |          |   |          |   |                     |

|                    |    | Fair ValueJune 30, 2012 |   |  Valuation Technique              |   | Significant Unobservable Inputs                       |   |  Range    |
|-------------------------|---------|-------------------------|--------|----------------------------------------|--------|-------------------------------------------------------|--------|----------------|
|  Impaired Loans    |  $ |  42,586,079        |   | Appraised Value/ Discounted Cash Flows |   | Appraisals And/ Or Sales Of Comparable Properties     |   |  0% - 98% |
|  Foreclosed Assets |    |  13,745,651        |   | Appraised Value/ Comparable Sales      |   | Appraisals And/ Or Sales OfComparable Properties/Bids |   |  0% - 91% |

----

|                                                                            | June 30, 2012 |
|---------------------------------------------------------------------------------|---------------|
|                                                                            |          |   | Fair Value |
|  (In Thousands)                                                            |          | Carrying Amount |   |  Total |   |  Level 1 |   |  Level 2 |   |  Level 3 |
| Financial Assets:                                                               |          |   |   |   |   |   |   |   |   |   |
| Cash And Cash Equivalents                                                       | $             | 10,653 | $ | 10,653 | $ | 10,653 | $ | - | $ | - |
| Certificates of Deposits With Other Banks                                       |          | 1,728 |   | 1,728 |   | 1,728 |   | - |   | - |
| Investment And Mortgage-Backed Securities                                       |          | 423,427 |   | 426,041 |   | - |   | 426,041 |   | - |
| Loans Receivable, Net                                                           |          | 413,067 |   | 411,970 |   | - |   | 411,970 |   | - |
| FHLB Stock                                                                      |          | 6,928 |   | 6,928 |   | 6,928 |   | - |   | - |
|                                                                            |          |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                                                          |          |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                       |          |   |   |   |   |   |   |   |   |   |
|    Checking, Savings, And Money Market   Accounts |          |  379,597 |   |  379,597 |   |  379,597 |   |  - |   |  - |
|    Certificate Accounts                                          |          | 314,922 |   | 317,069 |   | - |   | 317,069 |   | - |
| Advances From FHLB                                                              |          | 108,166 |   | 117,571 |   | - |   | 117,571 |   | - |
| Other Borrowed Money                                                            |          | 10,023 |   | 10,023 |   | 10,023 |   | - |   | - |
| Senior Convertible Debentures                                                   |          | 5,155 |   | 5,155 |   | - |   | 5,155 |   | - |
| Junior Subordinated Debentures                                                  |          | 6,084 |   | 6,084 |   | - |   | 6,084 |   | - |
|                                                                            |          |   |   |   |   |   |   |   |   |   |

|                                                           |   | March 31, 2012  |    |
|----------------------------------------------------------------|--------|-----------------|---------|
|                                                           |   | Carrying Amount |    |   | Estimated Fair Value |   |
|                                                           |   | In Thousands    |    |
| Financial Assets:                                              |   |            |    |   |   |   |
| Cash And Cash Equivalents                                      |   | $               | 9,331   |   |   | $ | 9,331 |   |
| Certificates of Deposits With Other Banks                      |   |            | 1,727   |   |   |   | 1,727 |   |
| Investment And Mortgage-Backed Securities                      |   |            | 421,631 |   |   |   | 423,921 |   |
| Loans Receivable, Net                                          |   |            | 428,511 |   |   |   | 427,212 |   |
| FHLB Stock                                                     |   |            | 8,471   |   |   |   | 8,471 |   |
|                                                           |   |            |    |   |   |   |   |   |
| Financial Liabilities:                                         |   |            |    |   |   |   |   |   |
| Deposits:                                                      |   |            |    |   |   |   |   |   |
|    Checking, Savings, And Money Market Accounts |   | $               | 371,295 |   |   | $ | 371,295 |   |
|    Certificate Accounts                         |   |            | 324,906 |   |   |   | 327,117 |   |
| Advances From FHLB                                             |   |            | 122,070 |   |   |   | 131,679 |   |
| Other Borrowed Money                                           |   |            | 9,801   |   |   |   | 9,801 |   |
| Senior Convertible Debentures                                  |   |            | 6,084   |   |   |   | 6,084 |   |
| Junior Subordinated Debentures                                 |   |            | 5,155   |   |   |   | 5,155 |   |

----

----

|                               |   | June 30, 2012        |            |
|------------------------------------|--------|----------------------|-----------------|
|                               |   |  Amortized Cost |            |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   |  Fair value |   |
|                               |   |                 |            |   |   |   |   |   |   |   |   |   |
|     FHLB Securities |   | $               |  2,440,263 |   |   | $  |  71,377 |   |   | $ |  - |   |   | $  |  2,511,640 |   |
| FNMA and FHLMC Bonds               |   |                 | 1,000,000       |   |   |   | 790 |   |   |   | - |   |   |   | 1,000,790 |   |
| SBA Bonds                          |   |                 | 87,773,083      |   |   |   | 1,730,497 |   |   |   | 102,561 |   |   |   | 89,401,019 |   |
| Tax Exempt Municipal Bonds         |   |                 | 30,632,658      |   |   |   | 1,398,464 |   |   |   | 61,695 |   |   |   | 31,969,427 |   |
| Mortgage-Backed Securities         |   |                 | 224,933,434     |   |   |   | 8,589,965 |   |   |   | 141,795 |   |   |   | 233,381,604 |   |
| Equity Securities                  |   |                 | 102,938         |   |   |   | - |   |   |   | 30,188 |   |   |   | 72,750 |   |
|                               |   | $                    | 346,882,376     |   |   | $ | 11,791,093 |   |   | $ | 336,239 |   |   | $ | 358,337,230 |   |
|                               |   |                 |            |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | March 31, 2012 |        |
|----------------------------------------|--------|----------------|-------------|
|                                   |   | Amortized Cost |        |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair value |   |
|                                   |   |           |        |   |   |   |   |   |   |   |   |   |
| FHLB Securities                        |   | $              | 2,634,234   |   |   | $ | 64,660 |   |   | $ | - |   |   | $ | 2,698,894 |   |
|    FNMA And FHLMC Bonds |   |           | 2,926,566   |   |   |   | 560 |   |   |   | 5,275 |   |   |   | 2,921,851 |   |
| SBA Bonds                              |   |           | 85,064,224  |   |   |   | 1,357,490 |   |   |   | 142,912 |   |   |   | 86,278,802 |   |
| Tax Exempt Municipal Bonds             |   |           | 23,231,375  |   |   |   | 971,739 |   |   |   | 77,389 |   |   |   | 24,125,725 |   |
| Mortgage-Backed Securities             |   |           | 229,462,521 |   |   |   | 8,486,387 |   |   |   | 95,073 |   |   |   | 237,853,835 |   |
| Equity Securities                      |   |           | 102,938     |   |   |   | - |   |   |   | 27,188 |   |   |   | 75,750 |   |
|                                   |   | $              | 343,421,858 |   |   | $ | 10,880,836 |   |   | $ | 347,837 |   |   | $ | 353,954,857 |   |

----

|                        |   | Amortized Cost |        |   | Fair Value |    |
|-----------------------------|--------|----------------|-------------|--------|------------|---------|
|                        |   |           |        |   |       |    |
| Less Than One Year          |   | $         |  -     |   |       | $  |  - |   |
| One – Five Years      |   |           | 11,294,504  |   |       |    | 11,549,597 |   |
| Over Five – Ten Years |   |           | 49,782,758  |   |       |    | 50,761,034 |   |
| After Ten Years             |   |           | 60,871,680  |   |       |    | 62,644,995 |   |
| Mortgage-Backed Securities  |   |           | 224,933,434 |   |       |    | 233,381,604 |   |
|                        |   | $              | 346,882,376 |   |       | $       | 358,337,230 |   |

|                       |   | June 30, 2012       |             |
|----------------------------|--------|---------------------|------------------|
|                       |   | Less than 12 Months |             |   | 12 Months or More |   |   | Total |   |
|                       |   | FairValue           |             |   | UnrealizedLosses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
| SBA Bonds                  |   | $              |  10,726,866 |   |   | $  |  102,561 |   | $ |   |  - |   | $ |   |  - |   |   | $  |  10,726,866 |   |   | $  |  102,561 |   |
| Tax Exempt Municipal Bond  |   |                | 8,577,089        |   |   |   | 61,695 |   |   |   | - |   |   |   | - |   |   |   | 8,577,089 |   |   |   | 61,695 |   |
| Mortgage-Backed Securities |   |                | 21,961,960       |   |   |   | 141,795 |   |   |   | - |   |   |   | - |   |   |   | 21,961,960 |   |   |   | 141,795 |   |
| Equity Securities          |   |                | -                |   |   |   | - |   |   |   | 72,750 |   |   |   | 30,188 |   |   |   | 72,750 |   |   |   | 30,188 |   |
|                       |   | $                   | 41,265,915       |   |   | $ | 306,051 |   |  $ |   | 72,750 |   | $  |   | 30,188 |   |   | $ | 41,338,665 |   |   | $ | 336,239 |   |

|                             |   | March 31, 2012      |            |
|----------------------------------|--------|---------------------|-----------------|
|                             |   | Less than 12 Months |            |   | 12 Months or More |   |   | Total |   |
|                             |   | FairValue           |            |   | UnrealizedLosses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
| FNMA And FHLMC Bonds   |   | $                   |  1,921,291 |   |   | $  |  5,275 |   | $ |   |  - |   | $ |   |  - |   |   | $  |  1,921,291 |   |   | $  |  5,275 |   |
| SBA Bonds                        |   |                | 12,508,821      |   |   |   | 142,912 |   |   |   | - |   |   |   | - |   |   |   | 12,508,821 |   |   |   | 142,912 |   |
| Tax Exempt Municipal Bond        |   |                | 3,390,580       |   |   |   | 77,389 |   |   |   | - |   |   |   | - |   |   |   | 3,390,580 |   |   |   | 77,389 |   |
| Mortgage-Backed Securities       |   |                | 23,053,784      |   |   |   | 95,073 |   |   |   | - |   |   |   | - |   |   |   | 23,053,784 |   |   |   | 95,073 |   |
| Equity Securities                |   |                | -               |   |   |   | - |   |   |   | 75,750 |   |   |   | 27,188 |   |   |   | 75,750 |   |   |   | 27,188 |   |
|                             |   | $                   | 40,874,476      |   |   | $ | 320,649 |   | $  |   | 75,750 |   |  $ |   | 27,188 |   |   | $ | 40,950,226 |   |   | $ | 347,837 |   |

----

|   June 30, 2012      |   |  Amortized Cost |       |   | Gross Unrealized Gains |   |      | Gross Unrealized Losses |   |    |  Fair Value |   |
|--------------------------------|--------|----------------------|------------|--------|------------------------|--------|-----------|-------------------------|--------|---------|------------------|--------|
| FHLB Securities                |   | $                    | 10,547,804 |   |                   | $      | 196,752   |                    |   | $  | -                |   |   | $ | 10,744,556 |   |
| Federal Farm Credit Securities |   |                 | 1,999,540  |   |                   |   | 13,720    |                    |   |    | -                |   |   |   | 2,013,260 |   |
| FNMA and FHLMC Bonds           |   |                 | 5,985,244  |   |                   |   | 46,006    |                    |   |    | -                |   |   |   | 6,031,250 |   |
| SBA Bonds                      |   |                 | 3,251,636  |   |                   |   | 356,074   |                    |   |    | -                |   |   |   | 3,607,710 |   |
| Mortgage-Backed Securities     |   |                 | 43,150,174 |   |                   |   | 2,002,208 |                    |   |    | -                |   |   |   | 45,152,382 |   |
| Equity Securities              |   |                 | 155,000    |   |                   |   | -         |                    |   |    | -                |   |   |   | 155,000 |   |
| Total                          |   | $                    | 65,089,398 |   |                   | $      | 2,614,760 |                    |   |  $ | -                |   |   | $ | 67,704,158 |   |

|                             |   |           |       |
|----------------------------------|--------|----------------|------------|
|                             |   | Amortized Cost |       |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   |  Fair Value |   |
|    March 31, 2012 |   |           |       |   |   |   |   |   |   |   |   |   |
| FHLB Securities                  |   | $              | 11,554,627 |   |   | $ | 221,726 |   |   | $ | 13,517 |   |   | $ | 11,762,836 |   |
| FFCB Securities                  |   |           | 1,999,516  |   |   |   | 6,534 |   |   |   | 23,410 |   |   |   | 1,982,640 |   |
| FNMA and FHLMC Bonds             |   |           | 6,983,004  |   |   |   | 19,863 |   |   |   | 49,147 |   |   |   | 6,953,720 |   |
| SBA Bonds                        |   |           | 3,251,151  |   |   |   | 305,430 |   |   |   | - |   |   |   | 3,556,581 |   |
| Mortgage-Backed Securities       |   |           | 43,732,912 |   |   |   | 1,822,180 |   |   |   | - |   |   |   | 45,555,092 |   |
| Equity Securities                |   |           | 155,000    |   |   |   | - |   |   |   | - |   |   |   | 155,000 |   |
|                             |   | $              | 67,676,210 |   |   | $ | 2,375,733 |   |   | $ | 86,074 |   |   | $ | 69,965,869 |   |

|                         |   | Amortized Cost |       |   | Fair Value |   |
|------------------------------|--------|----------------|------------|--------|------------|--------|
|                         |   |           |       |   |       |   |
|  Less Than One Year     |   | $              | 1,000,000  |   |       | $      | 1,045,040 |   |
|  One – Five Years |   |           | 5,368,392  |   |       |   | 5,505,044 |   |
| Over Five – Ten Years  |   |           | 7,990,319  |   |       |   | 8,039,860 |   |
| More Than Ten Years          |   |           | 7,580,513  |   |       |   | 7,961,832 |   |
| Mortgage-Backed Securities   |   |           | 43,150,174 |   |       |   | 45,152,382 |   |
|                         |   | $              | 65,089,398 |   |       | $      | 67,704,158 |   |
|                         |   |           |       |   |       |   |   |   |

----

|                 |   | March 31, 2012      |       |
|----------------------|--------|---------------------|------------|
|                 |   | Less than 12 Months |       |   | 12 Months or More |   |   | Total |   |
|                 |   | FairValue           |       |   | UnrealizedLosses |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
| FHLB Securities      |   | $                   | 4,532,636  |   |   | $ | 13,517 |   |   | $  | - |   |   | $  | - |   |   | $ | 4,532,636 |   |   | $ | 13,517 |   |
| FFCB Securities      |   |                | 976,590    |   |   |   | 23,410 |   |   |   | - |   |   |   | - |   |   |   | 976,590 |   |   |   | 23,410 |   |
| FNMA And FHLMC Bonds |   |                | 4,939,150  |   |   |   | 49,147 |   |   |   | - |   |   |   | - |   |   |   | 4,939,150 |   |   |   | 49,147 |   |
|                 |   | $                   | 10,448,376 |   |   | $ | 86,074 |   |   | $ | - |   |   | $  | - |   |   | $ | 10,448,376 |   |   | $ | 86,074 |   |

|                                                              |   | June 30, 2012 |        |   | March 31, 2012 |   |
|-------------------------------------------------------------------|--------|---------------|-------------|--------|----------------|--------|
| Residential Real Estate                                           |   | $             | 95,674,036  |   |           | $      | 97,807,917 |   |
| Consumer                                                          |   |          | 57,310,488  |   |           |   | 58,685,000 |   |
| Commercial Business                                               |   |          | 8,893,669   |   |           |   | 9,552,575 |   |
| Commercial Real Estate                                            |   |          | 262,203,015 |   |           |   | 276,317,897 |   |
|    Total Loans Held For Investment                 |   |          | 424,081,208 |   |           |   | 442,363,389 |   |
|                                                              |   |          |        |   |           |   |   |   |
|  Loans Held For Sale                                         |   |          | 3,158,501   |   |           |   | 2,671,771 |   |
|       Total Loans Receivable, Gross |   |          | 427,239,709 |   |           |   | 445,035,160 |   |
|                                                              |   |          |        |   |           |   |   |   |
| Less:                                                             |   |          |        |   |           |   |   |   |
| Allowance For Possible Loan Loss                                  |   |          | 12,684,327  |   |           |   | 14,615,198 |   |
| Loans In Process                                                  |   |          | 1,472,379   |   |           |   | 1,886,652 |   |
| Deferred Loan Fees                                                |   |          | 16,108      |   |           |   | 22,704 |   |
|                                                              |   |          | 14,172,814  |   |           |   | 16,524,554 |   |
|       Total Loans Receivable, Net   |   | $             | 413,066,895 |   |           | $      | 428,510,606 |   |

----

|                    |   | June 30, 2012           |        |
|-------------------------|--------|-------------------------|-------------|
|                    |   | Credit Quality Measures |        |
|                    |   | Pass                    |        |   | Caution |   |   | Special Mention |   |   | Substandard |   |   | Total Loans |   |
| Residential Real Estate |   | $                       | 87,436,807  |   |   | $ | 225,553 |   |   | $ | 295,572 |   |   | $ | 7,716,104 |   |   | $ | 95,674,036 |   |
| Consumer                |   |                    | 55,352,127  |   |   |   | 177,115 |   |   |   | 103,146 |   |   |   | 1,678,100 |   |   |   | 57,310,488 |   |
| Commercial Business     |   |                    | 7,932,730   |   |   |   | 395,763 |   |   |   | 177,500 |   |   |   | 387,676 |   |   |   | 8,893,669 |   |
| Commercial Real Estate  |   |                    | 181,617,951 |   |   |   | 18,860,609 |   |   |   | 17,022,335 |   |   |   | 44,702,120 |   |   |   | 262,203,015 |   |
| Total                   |   | $                       | 332,339,615 |   |   | $ | 19,659,040 |   |   | $ | 17,598,553 |   |   | $ | 54,484,000 |   |   | $ | 424,081,208 |   |

|                    |   | March 31, 2012          |        |
|-------------------------|--------|-------------------------|-------------|
|                    |   | Credit Quality Measures |        |
|                    |   | Pass                    |        |   | Caution |   |   | Special Mention |   |   | Substandard |   |   | Total Loans |   |
| Residential Real Estate |   | $                       | 88,536,685  |   |   | $  | - |   |   | $ | 573,887 |   |   | $ | 8,697,345 |   |   | $ | 97,807,917 |   |
| Consumer                |   |                    | 57,113,676  |   |   |   | 159,805 |   |   |   | 27,604 |   |   |   | 1,383,915 |   |   |   | 58,685,000 |   |
| Commercial Business     |   |                    | 8,608,378   |   |   |   | 446,815 |   |   |   | - |   |   |   | 497,382 |   |   |   | 9,552,575 |   |
| Commercial Real Estate  |   |                    | 190,230,745 |   |   |   | 21,874,264 |   |   |   | 19,783,230 |   |   |   | 44,429,658 |   |   |   | 276,317,897 |   |
| Total                   |   | $                       | 344,489,484 |   |   | $  | 22,480,884 |   |   | $ | 20,384,721 |   |   | $ | 55,008,300 |   |   | $ | 442,363,389 |   |

|   June 30, 2012                |   | 30-59 Days Past Due |       |   | 60-89 Days Past Due |   |      | 90 Day or More Past Due |   |   | Total Past Due |   |   |  Current |       |   | Total Loans Receivable |   |
|------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|-----------|-------------------------|--------|--------|----------------|--------|--------|---------------|------------|--------|------------------------|--------|
| Residential   Real Estate |   | $                   | 1,463,721  |   |                | $      | 166,352   |                    |   | $      | 3,353,517      |   |   | $             | 4,983,590  |   |                   | $      | 90,690,446 |   |   | $ | 95,674,036 |   |
| Consumer                                 |   |                | 935,040    |   |                |   | 188,277   |                    |   |   | 549,203        |   |   |          | 1,672,520  |   |                   |   | 55,637,968 |   |   |   | 57,310,488 |   |
| Commercial   Business     |   |                | 230,448    |   |                |   | 224,071   |                    |   |   | 45,888         |   |   |          | 500,407    |   |                   |   | 8,393,262 |   |   |   | 8,893,669 |   |
| Commercial   Real Estate  |   |                | 21,559,130 |   |                |   | 2,466,893 |                    |   |   | 24,292,887     |   |   |          | 48,318,910 |   |                   |   | 213,884,105 |   |   |   | 262,203,015 |   |
| Total                                    |   | $                   | 24,188,339 |   |                | $      | 3,045,593 |                    |   | $      | 28,241,495     |   |   | $             | 55,475,427 |   |                   | $      | 368,605,781 |   |   | $ | 424,081,208 |   |
|                                     |   |                |       |   |                |   |      |                    |   |   |           |   |   |          |       |   |                   |   |   |   |   |   |   |   |

|   March 31, 2012               |   | 30-59 Days Past Due |       |   | 60-89 Days Past Due |   |      | 90 Days or More Past Due |   |   | Total Past Due |   |   |  Current |       |   | Total Loans Receivable |   |
|------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|-----------|--------------------------|--------|--------|----------------|--------|--------|---------------|------------|--------|------------------------|--------|
| Residential   Real Estate |   | $                   | 2,778,235  |   |                | $      | 742,345   |                     |   | $      | 3,638,929      |   |   | $             | 7,159,509  |   |                   | $      | 90,648,408 |   |   | $ | 97,807,917 |   |
| Consumer                                 |   |                | 659,028    |   |                |   | 352,421   |                     |   |   | 620,358        |   |   |          | 1,631,807  |   |                   |   | 57,053,193 |   |   |   | 58,685,000 |   |
| Commercial   Business     |   |                | 174,420    |   |                |   | 209,418   |                     |   |   | 20,808         |   |   |          | 404,646    |   |                   |   | 9,147,929 |   |   |   | 9,552,575 |   |
| Commercial   Real Estate  |   |                | 18,332,136 |   |                |   | 4,682,891 |                     |   |   | 18,378,165     |   |   |          | 41,393,192 |   |                   |   | 234,924,705 |   |   |   | 276,317,897 |   |
| Total                                    |   | $                   | 21,943,819 |   |                | $      | 5,987,075 |                     |   | $      | 22,658,260     |   |   | $             | 50,589,154 |   |                   | $      | 391,774,235 |   |   | $ | 442,363,389 |   |

----

|                                            |   | At June 30, 2012 |       |   | At March 31, 2012 |   |   |  $ |   |   |        | %      |   |
|-------------------------------------------------|--------|------------------|------------|--------|-------------------|--------|--------|---------|--------|--------|-------------|--------|--------|
|                                            |   | Amount           |       |   | Percent (1)       |   |   | Amount  |   |   | Percent (1) |   |   | Increase (Decrease) |   |   | Increase (Decrease) |   |
| Non-accrual loans:                              |   |             |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |
|     Residential real estate |   | $                | 3,353,517  |   |              |   | 0.8    | %       |   | $      | 3,638,929   |   |   |   | 0.8 | % |   | $ | (285,412 | ) |   |   | 7.8 | % |
|     Commercial business     |   |             | 45,888     |   |              |   | 0.1    |    |   |   | 20,808      |   |   |   | - |   |   |   | 25,080 |   |   |   | 120.5 |   |
|     Commercial real estate  |   |             | 24,292,887 |   |              |   | 5.7    |    |   |   | 18,378,165  |   |   |   | 4.2 |   |   |   | 5,914,722 |   |   |   | 32.2 |   |
|     Consumer                |   |             | 549,203    |   |              |   | 0.1    |    |   |   | 620,358     |   |   |   | 0.1 |   |   |   | (71,155 | ) |   |   | 11.5 |   |
| Total non-accrual loans                         |   | $                | 28,241,495 |   |              |   | 6.7    | %       |   | $      | 22,658,260  |   |   |   | 5.1 | % |   | $ | 5,583,235 |   |   |   | 24.6 | % |
|                                            |   |             |       |   |              |   |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                     |   | For the Three Months Ended June 30, 2012 |      |
|--------------------------|--------|------------------------------------------|-----------|
| Allowance ForLoan Losses |   | Residential Real Estate                  |      |   | Consumer |   |   | Commercial Business |   |   | Commercial Real Estate |   |   | Total |   |
| Beginning Balance        |   | $                                        | 1,928,625 |   |   | $ | 1,498,111 |   |   | $ | 644,855 |   |   | $  | 10,543,607 |   |   | $ | 14,615,198 |   |
| Provision                |   |                                     | 319,110   |   |   |   | (134,166 | ) |   |   | 16,574 |   |   |   | 523,482 |   |   |   | 725,000 |   |
| Charge-Offs              |   |                                     | (226,972  | ) |   |   | (120,427 | ) |   |   | (188,730 | ) |   |   | (2,285,896 | ) |   |   | (2,822,025 | ) |
| Recoveries               |   |                                     | 9,759     |   |   |   | 8,281 |   |   |   | 525 |   |   |   | 147,589 |   |   |   | 166,154 |   |
| Ending Balance           |   | $                                        | 2,030,522 |   |   | $ | 1,251,799 |   |   | $ | 473,224 |   |   | $ | 8,928,782 |   |   | $ | 12,684,327 |   |

|                     |   | For the Three Months Ended June 30, 2011 |      |
|--------------------------|--------|------------------------------------------|-----------|
| Allowance ForLoan Losses |   | Residential Real Estate                  |      |   | Consumer |   |   | Commercial Business |   |   | Commercial Real Estate |   |   | Total |   |
| Beginning Balance        |   | $                                        | 1,702,864 |   |   | $ | 1,122,055 |   |   | $ | 924,149 |   |   | $  | 8,752,732 |   |   | $ | 12,501,800 |   |
| Provision                |   |                                     | 231,632   |   |   |   | 24,893 |   |   |   | (211,990 | ) |   |   | 2,255,465 |   |   |   | 2,300,000 |   |
| Charge-Offs              |   |                                     | (171,039  | ) |   |   | (54,738 | ) |   |   | (72,811 | ) |   |   | (1,023,274 | ) |   |   | (1,321,862 | ) |
| Recoveries               |   |                                     | -         |   |   |   | 10,557 |   |   |   | 12,078 |   |   |   | - |   |   |   | 22,635 |   |
| Ending Balance           |   | $                                        | 1,763,457 |   |   | $ | 1,102,767 |   |   | $ | 651,426 |   |   | $ | 9,984,923 |   |   | $ | 13,502,573 |   |

|                    |   | Allowance For Loan Losses             |
|-------------------------|--------|---------------------------------------|
|  June 30, 2012     |   | Individually Evaluated For Impairment |   | Collectively Evaluated For Impairment |   |  Total |
| Residential Real Estate | $      | 34,917                                | $ | 1,995,605 | $ | 2,030,522 |
| Consumer                |   | -                                     |   | 1,251,799 |   | 1,251,799 |
| Commercial Business     |   | -                                     |   | 473,224 |   | 473,224 |
| Commercial Real Estate  |   | 9,624                                 |   | 8,919,158 |   | 8,928,782 |
| Total                   | $      | 44,541                                | $ | 12,639,786 | $ | 12,684,327 |

----

|                    |   | Allowance For Loan Losses             |
|-------------------------|--------|---------------------------------------|
|  March 31, 2012    |   | Individually Evaluated For Impairment |   | Collectively Evaluated For Impairment |   |  Total |
| Residential Real Estate | $      | 155,000                               | $ | 1,773,625 | $ | 1,928,625 |
| Consumer                |   | 19,568                                |   | 1,478,543 |   | 1,498,111 |
| Commercial Business     |   | 148,610                               |   | 496,245 |   | 644,855 |
| Commercial Real Estate  |   | 1,313,670                             |   | 9,229,937 |   | 10,543,607 |
| Total                   | $      | 1,636,848                             | $ | 12,978,350 | $ | 14,615,198 |

|                    |   | Loans Receivable                      |
|-------------------------|--------|---------------------------------------|
|  June 30, 2012     |   | Individually Evaluated For Impairment |   | Collectively Evaluated For Impairment |   |  Total |
| Residential Real Estate | $      | 3,405,599                             | $ | 92,268,437 | $ | 95,674,036 |
| Consumer                |   | 449,577                               |   | 56,860,911 |   | 57,310,488 |
| Commercial Business     |   | 14,143                                |   | 8,879,526 |   | 8,893,669 |
| Commercial Real Estate  |   | 38,761,301                            |   | 223,441,714 |   | 262,203,015 |
| Total                   | $      | 42,630,620                            | $ | 381,450,588 | $ | 424,081,208 |

|                    |   | Loans Receivable                      |
|-------------------------|--------|---------------------------------------|
|  March 31, 2012    |   | Individually Evaluated For Impairment |   | Collectively Evaluated For Impairment |   |  Total |
| Residential Real Estate | $      | 3,544,061                             | $ | 94,263,856 | $ | 97,807,917 |
| Consumer                |   | 1,849,046                             |   | 56,835,954 |   | 58,685,000 |
| Commercial Business     |   | 172,362                               |   | 9,380,213 |   | 9,552,575 |
| Commercial Real Estate  |   | 35,231,717                            |   | 241,086,180 |   | 276,317,897 |
| Total                   | $      | 40,797,186                            | $ | 401,566,203 | $ | 442,363,389 |

----

|                                                 |   | June 30, 2012       |       |
|------------------------------------------------------|--------|---------------------|------------|
| Impaired Loans                                       |   | Recorded Investment |       |   | Unpaid Principal Balance |   |   | RelatedAllowance |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
|                                                 |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance   recorded: |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                              |   | $                   | 2,570,235  |   |   | $ | 2,625,235 |   |   | $ | - |   |   | $ | 2,385,897 |   |   | $ | 19,202 |   |
| Consumer Loans                                       |   |                | 449,577    |   |   |   | 513,577 |   |   |   | - |   |   |   | 1,139,528 |   |   |   | 3,498 |   |
| Commercial Business                                  |   |                | 14,143     |   |   |   | 14,143 |   |   |   | - |   |   |   | 18,948 |   |   |   | 161 |   |
| Commercial Real Estate                               |   |                | 38,506,851 |   |   |   | 43,446,649 |   |   |   | - |   |   |   | 32,966,362 |   |   |   | 211,447 |   |
|                                                 |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                          |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                              |   |                | 835,364    |   |   |   | 1,547,364 |   |   |   | 34,917 |   |   |   | 1,088,933 |   |   |   | - |   |
| Consumer Loans                                       |   |                | -          |   |   |   | - |   |   |   | - |   |   |   | 9,784 |   |   |   | - |   |
| Commercial Business                                  |   |                | -          |   |   |   | - |   |   |   | - |   |   |   | 74,305 |   |   |   | - |   |
| Commercial Real Estate                               |   |                | 254,450    |   |   |   | 700,374 |   |   |   | 9,624 |   |   |   | 4,030,147 |   |   |   | - |   |
|                                                 |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                              |   |                | 3,405,599  |   |   |   | 4,172,599 |   |   |   | 34,917 |   |   |   | 3,474,830 |   |   |   | 19,202 |   |
| Consumer Loans                                       |   |                | 449,577    |   |   |   | 513,577 |   |   |   | - |   |   |   | 1,149,312 |   |   |   | 3,498 |   |
| Commercial Business                                  |   |                | 14,143     |   |   |   | 14,143 |   |   |   | - |   |   |   | 93,253 |   |   |   | 161 |   |
| Commercial Real Estate                               |   |                | 38,761,301 |   |   |   | 44,147,023 |   |   |   | 9,624 |   |   |   | 36,996,509 |   |   |   | 211,447 |   |
|    Total                              |   | $                   | 42,630,620 |   |   | $ | 48,847,342 |   |   | $ | 44,541 |   |   | $ | 41,713,904 |   |   |   | 234,308 |   |

|                                                 |   | March 31, 2012      |       |
|------------------------------------------------------|--------|---------------------|------------|
| Impaired Loans                                       |   | Recorded Investment |       |   | Unpaid Principal Balance |   |   | RelatedAllowance |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
|                                                 |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |
| With No Related Allowance   Recorded: |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                              |   | $                   | 2,201,560  |   |   | $ | 2,456,960 |   |   | $ | - |   |   | $ | 2,066,066 |   |   | $ | 65,818 |   |
| Consumer Loans                                       |   |                | 1,829,478  |   |   |   | 1,879,478 |   |   |   | - |   |   |   | 2,398,298 |   |   |   | 86,180 |   |
| Commercial Business                                  |   |                | 23,752     |   |   |   | 47,752 |   |   |   | - |   |   |   | 294,894 |   |   |   | 1,677 |   |
| Commercial Real Estate                               |   |                | 27,425,873 |   |   |   | 29,175,328 |   |   |   | - |   |   |   | 24,020,047 |   |   |   | 1,186,679 |   |
|                                                 |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With An Allowance Recorded:                          |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                              |   |                | 1,342,501  |   |   |   | 1,954,501 |   |   |   | 155,000 |   |   |   | 586,109 |   |   |   | 6,137 |   |
| Consumer Loans                                       |   |                | 19,568     |   |   |   | 60,668 |   |   |   | 19,568 |   |   |   | 28,181 |   |   |   | - |   |
| Commercial Business                                  |   |                | 148,610    |   |   |   | 148,610 |   |   |   | 148,610 |   |   |   | 207,135 |   |   |   | 5,608 |   |
| Commercial Real Estate                               |   |                | 7,805,844  |   |   |   | 9,945,912 |   |   |   | 1,313,670 |   |   |   | 4,687,210 |   |   |   | 228,483 |   |
|                                                 |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                |   |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential Real Estate                              |   |                | 3,544,061  |   |   |   | 4,411,461 |   |   |   | 155,000 |   |   |   | 2,652,175 |   |   |   | 71,955 |   |
| Consumer Loans                                       |   |                | 1,849,046  |   |   |   | 1,940,146 |   |   |   | 19,568 |   |   |   | 2,426,479 |   |   |   | 86,180 |   |
| Commercial Business                                  |   |                | 172,362    |   |   |   | 196,362 |   |   |   | 148,610 |   |   |   | 502,029 |   |   |   | 7,285 |   |
| Commercial Real Estate                               |   |                | 35,231,717 |   |   |   | 39,121,240 |   |   |   | 1,313,670 |   |   |   | 28,707,257 |   |   |   | 1,415,162 |   |
|    Total                              |   | $                   | 40,797,186 |   |   | $ | 45,669,209 |   |   | $ | 1,636,848 |   |   | $ | 34,287,940 |   |   | $ | 1,580,582 |   |

----

----

| ·   | 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 affected by deterioration in the housing and commercial real estate markets; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

| ·   | results of examinations of the Company by the Board of Governors of the Federal Reserve System (“Federal Reserve”), and our bank subsidiary by the Federal Deposit Insurance Corporation and the South Carolina State Board of Financial Institutions,  or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits, which could adversely affect our liquidity and earnings; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| ·   | difficulties in reducing risk 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 have acquired or 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 impact of new legislation such as the Jumpstart Our Business Startups Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act (including the Basel III regulatory capital reforms), and the implementing regulations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

| ·   | Future legislative changes and our ability to comply with the requirements of the U.S. Department of Treasury’s Community Development Capital Initiative; and other economic, competitive, governmental, regulatory, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | technological factors affecting our operations, pricing, products and services and the other risks described elsewhere in this document. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                    |   |         |               |   |           |   |               | Increase (Decrease) |   |
|---------------------------------------------------------------------------------------------------------|--------|--------------|--------------------|--------|----------------|--------|--------------------|---------------------|--------|
|                                                                                                    |   | June 30,2012 |               |   | March 31, 2012 |   |               | Amount              |   |   | Percent |   |
| Cash And Cash Equivalents                                                                               |   | $            | 10,653,208         |   |           | $      | 9,331,372          |                |   | $ | 1,321,836 |   |   |   | 14.2 | % |
| Investment And Mortgage-   Backed Securities –   Available For Sale |   |         |   358,337,230 |   |           |   |   353,954,857 |                |   |   |   4,382,373 |   |   |   |   1.2 |   |
| Investment And Mortgage-   Backed Securities – Held   To Maturity   |   |         |   65,089,398  |   |           |   |   67,676,210  |                |   |   | (2,586,812 | ) |   |   | (3.8 | ) |
| Loans Receivable, Net                                                                                   |   |         | 413,066,895        |   |           |   | 428,510,606        |                |   |   | (15,443,711 | ) |   |   | (3.6 | ) |
| Repossessed Assets   Acquired In   Settlement of Loans                    |   |         |   13,745,651  |   |           |   |   14,160,099  |                |   |   | (414,448 | ) |   |   | (2.9 | ) |
| FHLB Stock                                                                                              |   |         | 6,928,496          |   |           |   | 8,471,100          |                |   |   | (1,542,604 | ) |   |   | (18.2 | ) |

----

|                            |   |          |        |   |           |   |       | Balance             |   |
|---------------------------------|--------|---------------|-------------|--------|----------------|--------|------------|---------------------|--------|
|                            |   | June 30, 2012 |        |   | March 31, 2012 |   |       | Increase (Decrease) |   |
|                            |   | Balance       |        |   | Weighted Rate  |   |       | Balance             |   |   | Weighted Rate |   |   | Amount |   |   | Percent |   |
| Demand Accounts:                |   |          |        |   |           |   |       |                |   |   |   |   |   |   |   |   |   |   |
| Checking                        |   | $             | 125,339,394 |   |           |   | 0.24       | %                   |   | $ | 124,750,127 |   |   |   | 0.11 | % |   | $ | 589,267 |   |   |   | 0.5 | % |
| Money Market                    |   |          | 232,066,933 |   |           |   | 0.37       |                |   |   | 224,195,659 |   |   |   | 0.55 |   |   |   | 7,871,274 |   |   |   | 3.5 |   |
| Statement Savings Accounts |   |          | 22,190,874  |   |           |   |  0.20 |                |   |   | 22,348,787 |   |   |   |  0.20 |   |   |   | (157,913 | ) |   |   | (0.7 | ) |
| Total                           |   |          | 379,597,201 |   |           |   | 0.32       |                |   |   | 371,294,573 |   |   |   | 0.38 |   |   |   | 8,302,628 |   |   |   | 2.2 |   |
|                            |   |          |        |   |           |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate Accounts            |   |          |        |   |           |   |       |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  0.00 – 1.99%        |   |          | 271,185,754 |   |           |   |       |                |   |   | 267,556,217 |   |   |   |   |   |   |   | 3,629,537 |   |   |   | 1.4 |   |
|  2.00 – 2.99%        |   |          | 36,736,773  |   |           |   |       |                |   |   | 49,260,643 |   |   |   |   |   |   |   | (12,523,870 | ) |   |   | (25.4 | ) |
|  3.00 – 3.99%        |   |          | 2,889,920   |   |           |   |       |                |   |   | 2,936,931 |   |   |   |   |   |   |   | (47,011 | ) |   |   | (1.6 | ) |
|  4.00 – 4.99%        |   |          | 3,140,997   |   |           |   |       |                |   |   | 4,021,999 |   |   |   |   |   |   |   | (881,002 | ) |   |   | (21.9 | ) |
|  5.00 – 5.99%        |   | 969,029       |        |   |           |   |       |                |   | 1,130,693 |   |   |   |   |   |   |   | (161,664 | ) |   |   | (14.3 | ) |
| Total                           |   |          | 314,922,473 |   |           |   | 1.28       |                |   |   | 324,906,483 |   |   |   | 1.36 |   |   |   | (9,984,010 | ) |   |   | (3.1 | ) |
| Total Deposits                  |   | $             | 694,519,674 |   |           |   | 0.75       | %                   |   | $ | 696,201,056 |   |   |   | 0.84 | % |   | $ | (1,681,382 | ) |   |   | (0.2 | )% |

----

|             |   |          |        |   |           |   |   | Balance  |   |
|------------------|--------|---------------|-------------|--------|----------------|--------|--------|----------|--------|
|             |   | June 30, 2012 |        |   | March 31, 2012 |   |   | Decrease |   |
| Fiscal Year Due: |   | Balance       |        |   | Rate           |   |   | Balance  |   |   | Rate |   |   | Balance |   |   | Percent |   |
| 2013             |   | $        | 10,000,000  |   |           |   | 3.59   | %        |   | $  | 18,900,000 |   |   |   | 2.70 | % |   | $  | (8,900,000 | ) |   |   | (47.1 | )% |
| 2014             |   |          | 25,000,000  |   |           |   | 3.62   | %        |   |   | 30,000,000 |   |   |   | 3.45 | % |   |   | (5,000,000 | ) |   |   | (16.7 | ) |
| 2015             |   |          | 20,265,616  |   |           |   | 3.02   | %        |   |   | 20,269,802 |   |   |   | 3.01 | % |   |   | (4,186 | ) |   |   | (0.0 | ) |
| 2016             |   |          | 20,000,000  |   |           |   | 4.12   | %        |   |   | 20,000,000 |   |   |   | 4.12 | % |   |   | - |   |   |   | - |   |
| 2017             |   |          | 15,000,000  |   |           |   | 4.66   | %        |   |   | 15,000,000 |   |   |   | 4.66 | % |   |   | - |   |   |   | - |   |
| Thereafter       |   |          | 17,900,000  |   |           |   | 4.10   | %        |   |   | 17,900,000 |   |   |   | 4.10 | % |   |   | - |   |   |   | - |   |
| Total Advances   |   | $             | 108,165,616 |   |           |   | 3.82   | %        |   | $ | 122,069,802 |   |   |   | 3.62 | % |   | $ | (13,904,186 | ) |   |   | (11.4 | )% |

| As of June 30, 2012 |
|---------------------|
| Borrow Date         |   | Maturity Date |   | Amount |   | Int. Rate |   | Type |   | Call Dates |
|                |   |   |   |   |   |   |   |   |   |   |
| 11/23/05            |   | 11/23/15 | $ |   5,000,000 |   | 3.933% |   | Multi-Call |   | 05/23/08 and quarterly thereafter |
| 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 |
| 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 |
| 08/28/08            |   | 08/28/13 |   |   5,000,000 |   | 3.113% |   | Multi-Call |   | 08/30/10 and quarterly thereafter |

----

----

|                          |   | Three Months Ended June 30, |        |
|-------------------------------|--------|-----------------------------|-------------|
|                          |   | 2012                        |        |   | 2011 |   |   |   |   |
|                          |   |   Average Balance |        |   |    Yield(1) |   |   |   Average Balance |   |   |    Yield(1) |   |   | Increase (Decrease) In Interest And Dividend Income From 2012 |   |
| Loans Receivable, Net         |   | $                           | 421,119,301 |   |   |   | 5.78 | % |   | $ | 478,684,580 |   |   |   | 6.13 | % |   | $ | (1,254,506 | ) |
| Mortgage-Backed Securities    |   |                        | 267,376,698 |   |   |   | 2.64 |   |   |   | 255,019,833 |   |   |   | 3.32 |   |   |   | (352,819 | ) |
| Investment Securities (2)     |   |                        | 150,290,654 |   |   |   | 1.84 |   |   |   | 125,443,555 |   |   |   | 2.79 |   |   |   | (180,755 | ) |
| Other                         |   |                        | 3,789,448   |   |   |   | 0.21 |   |   |   | 1,678,564 |   |   |   | 0.11 |   |   |   | 1,497 |   |
| Total Interest-Earning Assets |   | $                           | 842,576,101 |   |   |   | 4.06 | % |   | $ | 860,826,532 |   |   |   | 4.80 | % |   | $ | (1,786,583 | ) |
|                          |   |                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                    |   | Three Months Ended June 30, |        |
|---------------------------------------------------------|--------|-----------------------------|-------------|
|                                                    |   | 2012                        |        |   | 2011 |   |   |   |   |
|                                                    |   |  Average Balance       |        |   |   Yield(1) |   |   |  Average Balance |   |   |   Yield(1) |   |   | DecreaseIn Interest Expense From 2012 |   |
| Now And Money Market   Accounts          |   | $                           | 308,429,997 |   |   |   | 0.38 | % |   | $ | 272,301,916 |   |   |   | 0.66 | % |   | $ | (155,295 | ) |
| Statement Savings Accounts                              |   |                        | 22,352,998  |   |   |   | 0.20 |   |   |   | 20,674,668 |   |   |   | 0.25 |   |   |   | (1,773 | ) |
| Certificate Accounts                                    |   |                        | 317,538,322 |   |   |   | 1.30 |   |   |   | 350,442,766 |   |   |   | 1.64 |   |   |   | (407,498 | ) |
| FHLB Advances And Other   Borrowed Money |   |                        | 124,084,189 |   |   |   | 3.65 |   |   |   | 146,271,812 |   |   |   |  3.47 |   |   |   | (135,756 | ) |
| Junior Subordinated   Debentures         |   |                        | 5,155,000   |   |   |   |  2.20 |   |   |   | 5,155,000 |   |   |   |  4.49 |   |   |   | (29,536 | ) |
| Senior Convertible Debentures                           |   |                        | 6,084,000   |   |   |   | 8.00 |   |   |   | 6,084,000 |   |   |   | 8.00 |   |   |   | - |   |
| Total Interest-Bearing   Liabilities     |   | $                           | 783,644,506 |   |   |   | 1.34 | % |   | $ | 800,930,162 |   |   |   | 1.67 | % |   | $ | (729,858 | ) |

----

|                                                                                                                                                                                                    |   | June 30, 2012 |        |   | June 30, 2011 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|---------------|--------|
| Beginning Balance                                                                                                                                                                                       |   | $             | 14,615,198  |   |          | $      | 12,501,800 |   |
| Provision                                                                                                                                                                                               |   |          | 725,000     |   |          |   | 2,300,000 |   |
| Charge-offs                                                                                                                                                                                             |   |          | (2,822,025  | )      |          |   | (1,321,862 | ) |
| Recoveries                                                                                                                                                                                              |   |          | 166,154     |   |          |   | 22,635 |   |
| Ending Balance                                                                                                                                                                                          |   | $             | 12,684,327  |   |          | $      | 13,502,573 |   |
|                                                                                                                                                                                                    |   |          |        |   |          |   |   |   |
| Allowance For Loan Losses As A Percentage Of Gross Loans Receivable   Held For Investment Net Of Deferred Fees And  Loans In Process At   The End Of The Period |   |          | 3.00        | %      |          |   | 2.83 | % |
| Allowance For Loan Losses As A Percentage Of Impaired Loans At The   End Of The Period                                                                                                   |   |          | 29.75       | %      |          |   | 41.53 | % |
| Nonaccrual Loans And 90 Days Or More Past Due Loans As A   Percentage Of Gross Loans Receivable Held For Investment At The   End Of The Period                            |   |          | 6.68        | %      |          |   | 2.51 | % |
| Loans Receivable, Net                                                                                                                                                                                   |   | $             | 413,066,895 |   |          | $      | 467,814,641 |   |

|                                                                   |   | Three Months Ended June 30, |      |   | Increase (Decrease) |   |
|------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------|--------|
|                                                                   |   | 2012                        |      |   | 2011                |   |   | Amounts |   |   | Percent |   |
| Gain On Sale Of Investments                                            |   | $                           | 103,659   |   |                | $      | 171,224 |   |   | $ | (67,565 | ) |   |   | (39.5 | )% |
| Gain On Sale Of Loans                                                  |   |                        | 132,952   |   |                |   | 107,270 |   |   |   | 25,682 |   |   |   | 23.9 |   |
| Service Fees On Deposit Accounts                                       |   |                        | 278,563   |   |                |   | 270,693 |   |   |   | 7,870 |   |   |   | 2.9 |   |
| Income From Cash Value Of   Life Insurance              |   |                        | 105,000   |   |                |   | 105,000 |   |   |   | - |   |   |   | - |   |
| Commissions On Insurance                                               |   |                        | 107,773   |   |                |   | 92,102 |   |   |   | 15,671 |   |   |   | 17.0 |   |
| Trust Income                                                           |   |                        | 120,000   |   |                |   | 114,000 |   |   |   | 6,000 |   |   |   | 5.3 |   |
| Mandatorily Redeemable Financial   Instrument Valuation |   |                        | -         |   |                |   | 50,000 |   |   |   | (50,000 | ) |   |   | (100.0 | ) |
| Check Card Fee Income                                                  |   |                        | 204,860   |   |                |   | 202,392 |   |   |   | 2,468 |   |   |   | 1.2 |   |
| Other                                                                  |   |                        | 130,929   |   |                |   | 158,613 |   |   |   | (27,684 | ) |   |   | (17.5 | ) |
| Total Non-Interest Income                                              |   | $                           | 1,183,736 |   |                | $      | 1,271,294 |   |   | $ | (87,558 | ) |   |   | (6.9 | )% |

----

|                                                        |   | Three Months Ended June 30, |      |   | Increase (Decrease) |   |
|-------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------|--------|
|                                                        |   | 2012                        |      |   | 2011                |   |   | Amounts |   |   | Percent |   |
| Salaries And Employee Benefits                              |   | $                           | 2,614,044 |   |                | $      | 2,842,978 |   |   | $ | (228,934 | ) |   |   | (8.1 | )% |
| Occupancy                                                   |   |                        | 491,747   |   |                |   | 478,752 |   |   |   | 12,995 |   |   |   | 2.7 |   |
| Advertising                                                 |   |                        | 81,944    |   |                |   | 85,680 |   |   |   | (3,736 | ) |   |   | (4.4 | ) |
| Depreciation And Maintenance   Of Equipment  |   |                        | 404,594   |   |                |   |  412,625 |   |   |   | (8,031 | ) |   |   | (2.0 | ) |
| FDIC Insurance Premiums                                     |   |                        | 185,628   |   |                |   | 292,205 |   |   |   | (106,577 | ) |   |   | (36.5 | ) |
| Net Cost Of Operation Of Real Estate   Owned |   |                        | 642,151   |   |                |   | 36,610 |   |   |   | 605,541 |   |   |   | 1,654.1 |   |
| Amortization of Intangibles                                 |   |                        | 12,501    |   |                |   | 22,520 |   |   |   | (10,019 | ) |   |   | (44.5 | ) |
| Other                                                       |   |                        | 865,599   |   |                |   | 989,154 |   |   |   | (123,555 | ) |   |   | (12.5 | ) |
| Total General And Administrative Expenses                   |   | $                           | 5,298,208 |   |                | $      | 5,160,524 |   |   | $ | 137,684 |   |   |   | 2.7 | % |

----

----

|     (Dollars in thousands) |   |  WithinOneMonth |   |   | After OneThroughThreeMonths |   |   | AfterThreeThroughTwelveMonths |   |   |   WithinOne Year |   |   | GreaterThanOneYear |   |   |    Total |   |
|------------------------------------------------|--------|----------------------|--------|--------|-----------------------------|--------|--------|-------------------------------|--------|--------|----------------------------|--------|--------|--------------------|--------|--------|-------------------------|--------|
| Unused lines of credit                         |   | $                    | 559    |   |                        | $      | 1,057  |                          |   | $      | 2,952                      |   |   | $                  | 4,568  |   |                    | $      | 27,148 |   |   | $ | 31,716 |   |
| Standby letters of credit                      |   |                 | 615    |   |                        |   | 253    |                          |   |   | 420                        |   |   |               | 1,288  |   |                    |   | 413 |   |   |   | 1,701 |   |
| Total                                          |   | $                    | 1,174  |   |                        | $      | 1,310  |                          |   | $      | 3,372                      |   |   | $                  | 5,856  |   |                    | $      | 27,561 |   |   | $ | 33,417 |   |

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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 CumulativePerpetual Preferred Stock Series B (2)                                                                                                                                                                                                                                                                                                                                                                                   |
|   | 3.3               | Amended and Restated Bylaws (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 4.1               | Form of Stock Certificate of the Company and other instruments defining the rights of security holders,including indentures (4)                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 4.2                    | Form of Stock Certificate for the Series B Preferred Shares (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 4.3                    | Warrant to purchase shares of the Company’s common stock dated December 19, 2008 (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | 4.4                    | Form of Indenture with respect to the Company’s 8.0% Convertible Senior Debentures Due2029 (6)                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 4.5                    | Specimen Convertible Senior Debenture Due 2029 (6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 4.6                    | 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 (2)                                                                                                                                                                     |
|   | 4.7                    | 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 (2)                                                                                                                                                                                                                                |
|   | 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 (10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | 10.5              | 2002 Stock Option Plan (11)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | 10.6              | 2006 Stock Option Plan (12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | 10.7                   | 2008 Equity Incentive Plan (13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 10.8                   | Form of incentive stock option agreement and non-qualified stock option agreement pursuant to the 2006 Stock Option Plan (12)                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | 10.9    | 2004 Employee Stock Purchase Plan (14)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10.10             | Incentive Compensation Plan (7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 10.11             | Form of Security Federal Bank Salary Continuation Agreement (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 10.12             | Form of Security Federal Split Dollar Agreement (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 10.13        | Form of Compensation Modification Agreement (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 14                     | Code of Ethics (15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | 25                | Form T-1; Statement Eligibility of Trustee (6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | 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                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | 101               | The following materials from Security Federal Corporation’s Quarterly Report on Form 10-Q for the quarter ended  June 30, 2012, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income; (d) Consolidated Statements of Changes in Shareholders’Equity and Comprehensive Income; (e) Consolidated Statements of Cash Flows; and (f) Notes to Consolidated Financial Statements (16) |

|   | (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 Company’s Current Report on Form 8-K filed on September 30, 2010. |
|--------|-----------|----------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated by reference to the Company’s Current Report on Form 8-K filed on December 19, 2011. |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (4) | Filed on August 12, 1987, as an exhibit to the Company’s Registration Statement on Form 8-A and incorporated herein by reference. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Incorporated by reference to the Company’s Current Report on Form 8-K filed on December 23, 2008. |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (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. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (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 by reference. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Filed on March 2, 2000, as an exhibit to the Company's Registration Statement on Form S-8 and incorporated herein by reference |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Filed on January 3, 2003, as an exhibit to the Company's Registration Statement on Form S-8 and incorporated herein by reference. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | 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. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Filed on November 12, 2008, as an exhibit to the Company's Registration Statement on Form S-8 and incorporated herein by reference. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Filed on June 18, 2004, as an exhibit to the Company’s Proxy Statement and incorporated herein by reference. |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (15) | Filed on June 29, 2006, as an exhibit to the Company’s Annual Report on Form 10-K and incorporated herein by reference. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                       |      | SECURITY FEDERAL CORPORATION                                                                                                                                                                                                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                       |      |                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                       |      |                                                                                                                                                                                                                                                                                                                                                    |
| Date:       August  14, 2012          | By:  | /s/ J. Chris Verenes                                                      |
|                                                                                                                       |      | J. Chris Verenes                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                       |      | President & Chief Executive Officer                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                       |      | Duly Authorized Representative                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                       |      |                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                       |      |                                                                                                                                                                                                                                                                                                                                                    |
| Date:       August 14, 2012                                                                  | By:       | /s/Roy G. Lindburg                                                        |
|                                                                                                                       |      | Roy G. Lindburg                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                       |      | CFO                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                       |      | Duly Authorized Representative                                                                                                                                                                                                                                                                                                                          |

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|   | 31.1 | Certifications of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
|--------|------|-------------------------------------------------------------------------------------------------|

|   | 31.2 | Certifications of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act |
|--------|------|-------------------------------------------------------------------------------------------------|

|   | 32 | Certifications of the Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------|

|   | 101 | The following materials from Security Federal Corporation’s Quarterly Report on Form 10-Q for the quarter ended  June 30, 2012, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Balance  Sheets; (b) Consolidated Statements of Income; (c) Consolidated Statements of Comprehensive Income; (d) Consolidated Statements of Changes in Shareholders’Equity; (e) Consolidated Statements of Cash Flows; and (f) Notes to Consolidated Financial Statements |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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