| UNITED      STATES                       |
|-----------------------------------------------|
|                                          |
| SECURITIES      AND EXCHANGE COMMISSION  |
|                                          |
| WASHINGTON,      DC  20549     |

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

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

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

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

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

|   | CLASS:                            |   | OUTSTANDING      SHARES AT: |   | SHARES:                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Common      Stock, par value      $0.01 per share                                                                                                                        |   | October      31, 2008       |   |                    2,525,264                                                                                                           |

----

|          |                                                                                                                                |   |          |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|
| PART      I.  | FINANCIAL      INFORMATION (UNAUDITED)                                                                                              |   | PAGE      NO. |
|          |                                                                                                                                |   |          |
| Item      1.  | Financial      Statements (Unaudited):                                                                                              |   |          |
|          |                                                                                                                                |   |          |
|          | Consolidated      Balance Sheets at September 30, 2008 and March 31, 2008                                                           |   | 1             |
|          |                                                                                                                                |   |          |
|          | Consolidated      Statements of Income for the Three and Six Months Ended September      30,      2008 and 2007                     |   | 2             |
|          |                                                                                                                                |   |          |
|          | Consolidated      Statements of Shareholders’ Equity and Comprehensive Income (Loss)      at      September 30, 2008 and 2007 |   | 4             |
|          |                                                                                                                                |   |          |
|          | Consolidated      Statements of Cash Flows for the Six Months Ended September 30,      2008 and 2007                                |   | 5             |
|          |                                                                                                                                |   |          |
|          | Notes      to Consolidated Financial Statements                                                                                     |   | 7             |
|          |                                                                                                                                |   |          |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                               |   | 16            |
|          |                                                                                                                                |   |          |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk                                                                     |   | 31            |
|          |                                                                                                                                |   |          |
| Item      4.  | Controls      and Procedures                                                                                                        |   | 31            |
|          |                                                                                                                                |   |          |
|          |                                                                                                                                |   |          |
| PART      II. | OTHER      INFORMATION                                                                                                              |   |          |
|          |                                                                                                                                |   |          |
| Item      1.  | Legal      Proceedings                                                                                                              |   | 32            |
|          |                                                                                                                                |   |          |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                    |   | 36            |
|          |                                                                                                                                |   |          |
| Item      3.  | Defaults      Upon Senior Securities                                                                                                |   | 36            |
|          |                                                                                                                                |   |          |
| Item      4.  | Submission      of Matters to Vote of Security Holders                                                                              |   | 36            |
|          |                                                                                                                                |   |          |
| Item      5.  | Other      Information                                                                                                              |   | 37            |
|          |                                                                                                                                |   |          |
| Item      6.  | Exhibits                                                                                                                            |   | 37            |
|          |                                                                                                                                |   |          |
|          | Signatures                                                                                                                          |   | 38            |
|          |                                                                                                                                |   |          |

----

|                                                                                                                                                                                                                                                                                                                                                                         |   | September      30, 2008            |   | March      31, 2008                                                                               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|---------------------------------------------------------------------------------------------------|
| Assets:                                                                                                                                                                                                                                                                                                                                                                      |   | (Unaudited)                        |   | (Audited)                                                                                         |
| Cash      And Cash Equivalents                                                                                                                                                                                                                                                                                                                                               | $      | 10,378,350                         | $      | 10,539,054                                                                                        |
| Investment      And Mortgage-Backed Securities:                                                                                                                                                                                                                                                                                                                              |   |                               |   |                                                                                              |
| Available      For Sale:(Amortized      cost of $252,584,045      at September 30, 2008 and                                       $240,295,683 at March 31, 2008)                                       |   |  252,105,624                  |   |  244,157,872                                                                                 |
| Held      To Maturity:(Fair      value of      $11,287,530 at September 30, 2008 and                                       $20,506,250 at March      31, 2008)                                               |   |  11,155,000                   |   |  20,154,618                                                                                  |
| Total      Investment And Mortgage-Backed Securities                                                                                                                                                                                                                                                                                                                         |   | 263,260,624                        |   | 264,312,490                                                                                       |
| Loans      Receivable, Net:                                                                                                                                                                                                                                                                                                                                                  |   |                               |   |                                                                                              |
| Held      For Sale                                                                                                                                                                                                                                                                                                                                                           |   | 1,568,689                          |   | 2,295,721                                                                                         |
| Held      For Investment:(Net of      allowance of      $8,263,335 at      September 30,      2008 and                                                $8,066,762 at March 31, 2008) |   |  577,563,488                  |   |  515,635,984                                                                                 |
| Total      Loans Receivable, Net                                                                                                                                                                                                                                                                                                                                             |   | 579,132,177                        |   | 517,931,705                                                                                       |
| Accrued      Interest Receivable:                                                                                                                                                                                                                                                                                                                                            |   |                               |   |                                                                                              |
| Loans                                                                                                                                                                                                                                                                                                                                                                        |   | 1,830,362                          |   | 1,952,866                                                                                         |
| Mortgage-Backed      Securities                                                                                                                                                                                                                                                                                                                                              |   | 894,092                            |   | 822,379                                                                                           |
| Investments                                                                                                                                                                                                                                                                                                                                                                  |   | 498,220                            |   | 764,746                                                                                           |
| Premises      And Equipment, Net                                                                                                                                                                                                                                                                                                                                             |   |     22,088,985 |   | 21,544,380                                                                                        |
| Federal      Home Loan Bank Stock, At Cost                                                                                                                                                                                                                                                                                                                                   |   | 11,935,700                         |   | 9,497,100                                                                                         |
| Bank      Owned Life Insurance                                                                                                                                                                                                                                                                                                                                               |   | 9,461,305                          |   | 8,310,813                                                                                         |
| Repossessed      Assets Acquired In Settlement Of Loans                                                                                                                                                                                                                                                                                                                      |   | 657,240                            |   |                767,096 |
| Intangible      Assets, Net                                                                                                                                                                                                                                                                                                                                                  |   | 397,500                            |   | 442,500                                                                                           |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                     |   | 1,197,954                          |   | 1,197,954                                                                                         |
| Other      Assets                                                                                                                                                                                                                                                                                                                                                            |   | 3,730,848                          |   | 1,947,403                                                                                         |
| Total      Assets                                                                                                                                                                                                                                                                                                                                                            | $      | 905,463,357                        | $      | 840,030,486                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                               |   |                                                                                              |
| Liabilities      And Shareholders’ Equity                                                                                                                                                                                                                                                                                                                              |   |                               |   |                                                                                              |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                 |   |                               |   |                                                                                              |
| Deposit      Accounts                                                                                                                                                                                                                                                                                                                                                        | $      | 605,163,592                        | $      | 590,850,208                                                                                       |
| Advances      From Federal Home Loan Bank                                                                                                                                                                                                                                                                                                                                    |   | 230,626,259                        |   | 178,234,007                                                                                       |
| Other      Borrowed Money                                                                                                                                                                                                                                                                                                                                                    |   | 13,589,213                         |   | 12,784,094                                                                                        |
| Advance      Payments By Borrowers For Taxes And Insurance                                                                                                                                                                                                                                                                                                                   |   | 798,933                            |   | 620,467                                                                                           |
| Mandatorily      Redeemable Financial Instrument                                                                                                                                                                                                                                                                                                                             |   | 1,477,312                          |   | 1,417,312                                                                                         |
| Junior      Subordinated Debentures                                                                                                                                                                                                                                                                                                                                          |   | 5,155,000                          |   | 5,155,000                                                                                         |
| Other      Liabilities                                                                                                                                                                                                                                                                                                                                                       |   | 2,778,753                          |   | 3,472,985                                                                                         |
| Total      Liabilities                                                                                                                                                                                                                                                                                                                                                       |   | 859,589,062                        |   | 792,534,073                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                         |   |                               |   |                                                                                              |
| Shareholders'      Equity:                                                                                                                                                                                                                                                                                                                                                   |   |                               |   |                                                                                              |
| Serial      Preferred Stock, $.01 Par Value; Authorized Shares – 200,000; Issued               And Outstanding Shares – None                                                                                                                                                                                                                      |   |  -                            |   |  -                                                                                           |
| Common      Stock, $.01 Par Value; Authorized Shares – 5,000,000; Issued And               Outstanding Shares -2,657,598 And      2,527,713, Respectively, At September          30, 2008; And 2,649,027And 2,532,192, Respectively, At March 31,      2008                                                                              |   |   26,011                 |   |   25,925                                                                                |
| Additional      Paid-In Capital                                                                                                                                                                                                                                                                                                                                              |   | 5,238,123                          |   | 5,072,086                                                                                         |
| Treasury      Stock, (At Cost, 129,885 and 116,835 Shares, at September 30, 2008                and      March 31, 2008, Respectively)                                                                                                                                                                                     |   |  (3,046,772)                  |   |  (2,769,446)                                                                                 |
| Accumulated      Other Comprehensive Income (Loss)                                                                                                                                                                                                                                                                                                                           |   | (297,674)                          |   | 2,395,537                                                                                         |
| Retained      Earnings, Substantially Restricted                                                                                                                                                                                                                                                                                                                             |   | 43,954,607                         |   | 42,772,311                                                                                        |
| Total      Shareholders' Equity                                                                                                                                                                                                                                                                                                                                              |   | 45,874,295                         |   | 47,496,413                                                                                        |
| Total      Liabilities And Shareholders' Equity                                                                                                                                                                                                                                                                                                                              | $      | 905,463,357                        | $      | 840,030,486                                                                                       |

----

|                                                               |   | Three      Months Ended September 30,                                                                                    |
|--------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|
|                                                               |   | 2008                                                                                                                     |   | 2007 |
| Interest      Income:                                              |   |                                                                                                                     |   |   |
| Loans                                                              | $      | 8,941,511                                                                                                                | $ | 9,416,586 |
| Mortgage-Backed      Securities                                    |   | 2,621,098                                                                                                                |   | 1,557,696 |
| Investment      Securities                                         |   | 777,828                                                                                                                  |   | 1,663,976 |
| Other                                                              |   | 3,899                                                                                                                    |   | 8,305 |
| Total      Interest Income                                         |   | 12,344,336                                                                                                               |   | 12,646,563 |
|                                                               |   |                                                                                                                     |   |   |
| Interest      Expense:                                             |   |                                                                                                                     |   |   |
| NOW      And Money Market Accounts                                 |   | 966,696                                                                                                                  |   | 1,672,887 |
| Passbook      Accounts                                             |   |                    30,059 |   |                    41,134 |
| Certificate      Accounts                                          |   | 3,569,709                                                                                                                |   | 3,627,239 |
| Advances      And Other Borrowed Money                             |   | 2,240,394                                                                                                                |   | 2,053,365 |
| Junior      Subordinated Debentures                                |   | 74,852                                                                                                                   |   | 92,252 |
| Total      Interest Expense                                        |   | 6,881,710                                                                                                                |   | 7,486,877 |
|                                                               |   |                                                                                                                     |   |   |
| Net      Interest Income                                           |   | 5,462,626                                                                                                                |   | 5,159,686 |
| Provision      For Loan Losses                                     |   | 275,000                                                                                                                  |   | 150,000 |
| Net      Interest Income After Provision For Loan Losses           |   | 5,187,626                                                                                                                |   | 5,009,686 |
| Non-Interest      Income:                                          |   |                                                                                                                     |   |   |
| Gain      On Sale Of Investments                                   |   | 25,035                                                                                                                   |   | - |
| Gain      On Sale Of Loans                                         |   | 109,035                                                                                                                  |   | 105,450 |
| Service      Fees On Deposit Accounts                              |   | 276,240                                                                                                                  |   | 323,423 |
| Income      From Cash Value Of Life Insurance                      |   | 92,746                                                                                                                   |   | 87,164 |
| Commissions      From Insurance Agency                             |   | 164,138                                                                                                                  |   | 173,488 |
| Other      Agency Income                                           |   | 76,081                                                                                                                   |   | 26,910 |
| Trust      Income                                                  |   | 105,000                                                                                                                  |   | 139,850 |
| Other                                                              |   | 212,328                                                                                                                  |   | 193,085 |
| Total      Non-Interest Income                                     |   | 1,060,603                                                                                                                |   | 1,049,370 |
|                                                               |   |                                                                                                                     |   |   |
| General      And Administrative Expenses:                          |   |                                                                                                                     |   |   |
| Salaries      And Employee Benefits                                |   | 2,831,272                                                                                                                |   | 2,627,272 |
| Occupancy                                                          |   | 493,366                                                                                                                  |   | 445,602 |
| Advertising                                                        |   | 106,856                                                                                                                  |   | 87,148 |
| Depreciation      And Maintenance Of Equipment                     |   | 414,910                                                                                                                  |   | 337,091 |
| FDIC      Insurance Premiums                                       |   | 191,535                                                                                                                  |   | 14,870 |
| Amortization      of Intangibles                                   |   | 22,500                                                                                                                   |   | 22,500 |
| Mandatorily      Redeemable Financial Instrument Valuation Expense |   | 60,000                                                                                                                   |   | - |
| Other                                                              |   | 954,950                                                                                                                  |   | 846,518 |
| Total      General And Administrative Expenses                     |   | 5,075,389                                                                                                                |   | 4,381,001 |
|                                                               |   |                                                                                                                     |   |   |
| Income      Before Income Taxes                                    |   | 1,172,840                                                                                                                |   | 1,678,055 |
| Provision      For Income Taxes                                    |   | 388,002                                                                                                                  |   | 550,479 |
| Net      Income                                                    | $      | 784,838                                                                                                                  | $ | 1,127,576 |
|                                                               |   |                                                                                                                     |   |   |
| Basic      Net Income Per Common Share                             | $      | 0.31                                                                                                                     | $ | 0.43 |
| Diluted      Net Income Per Common Share                           | $      | 0.31                                                                                                                     | $ | 0.43 |
| Cash      Dividend Per Share On Common Stock                       | $      | 0.08                                                                                                                     | $ | 0.07 |
| Basic      Weighted Average Shares Outstanding                     |   | 2,524,758                                                                                                                |   | 2,602,072 |
| Diluted      Weighted Average Shares Outstanding                   |   | 2,539,756                                                                                                                |   | 2,610,567 |

----

|                                                               |   | Six      Months Ended September 30, |
|--------------------------------------------------------------------|--------|-------------------------------------|
|                                                               |   | 2008                                |   | 2007 |
| Interest      Income:                                              |   |                                |   |   |
| Loans                                                              | $      | 17,483,246                          | $ | 18,208,165 |
| Mortgage-Backed      Securities                                    |   | 5,016,481                           |   | 3,099,406 |
| Investment      Securities                                         |   | 1,666,729                           |   | 3,217,496 |
| Other                                                              |   | 9,077                               |   | 27,902 |
| Total      Interest Income                                         |   | 24,175,533                          |   | 24,552,969 |
|                                                               |   |                                |   |   |
| Interest      Expense:                                             |   |                                |   |   |
| NOW      And Money Market Accounts                                 |   | 1,890,787                           |   | 3,327,726 |
| Passbook      Accounts                                             |   | 63,562                              |   | 82,949 |
| Certificate      Accounts                                          |   | 7,232,635                           |   | 6,870,088 |
| Advances      And Other Borrowed Money                             |   | 4,252,158                           |   | 3,951,698 |
| Junior      Subordinated Debentures                                |   | 148,971                             |   | 183,077 |
| Total      Interest Expense                                        |   | 13,588,113                          |   | 14,415,538 |
|                                                               |   |                                |   |   |
| Net      Interest Income                                           |   | 10,587,420                          |   | 10,137,431 |
| Provision      For Loan Losses                                     |   | 500,000                             |   | 300,000 |
| Net      Interest Income After Provision For Loan Losses           |   | 10,087,420                          |   | 9,837,431 |
| Non-Interest      Income:                                          |   |                                |   |   |
| Gain      On Sale Of Investments                                   |   | 126,440                             |   | - |
| Gain      On Sale Of Loans                                         |   | 227,718                             |   | 281,571 |
| Service      Fees On Deposit Accounts                              |   | 557,393                             |   | 650,745 |
| Income      From Cash Value Of Life Insurance                      |   | 178,492                             |   | 149,201 |
| Commissions      From Insurance Agency                             |   | 333,130                             |   | 319,161 |
| Other      Agency Income                                           |   | 123,018                             |   | 56,168 |
| Trust      Income                                                  |   | 210,000                             |   | 238,625 |
| Other                                                              |   | 425,619                             |   | 414,497 |
| Total      Non-Interest Income                                     |   | 2,181,810                           |   | 2,109,968 |
|                                                               |   |                                |   |   |
| General      And Administrative Expenses:                          |   |                                |   |   |
| Salaries      And Employee Benefits                                |   | 5,615,507                           |   | 5,197,551 |
| Occupancy                                                          |   | 990,686                             |   | 868,113 |
| Advertising                                                        |   | 247,677                             |   | 189,421 |
| Depreciation      And Maintenance Of Equipment                     |   | 841,834                             |   | 656,616 |
| FDIC      Insurance Premiums                                       |   | 347,345                             |   | 30,197 |
| Amortization      of Intangibles                                   |   | 45,000                              |   | 45,000 |
| Mandatorily      Redeemable Financial Instrument Valuation Expense |   | 60,000                              |   | - |
| Other                                                              |   | 1,749,330                           |   | 1,645,548 |
| Total      General And Administrative Expenses                     |   | 9,897,379                           |   | 8,632,446 |
|                                                               |   |                                |   |   |
| Income      Before Income Taxes                                    |   | 2,371,851                           |   | 3,314,953 |
| Provision      For Income Taxes                                    |   | 785,108                             |   | 1,091,346 |
| Net      Income                                                    | $      | 1,586,743                           | $ | 2,223,607 |
|                                                               |   |                                |   |   |
| Basic      Net Income Per Common Share                             | $      | 0.63                                | $ | 0.85 |
| Diluted      Net Income Per Common Share                           | $      | 0.62                                | $ | 0.85 |
| Cash      Dividend Per Share On Common Stock                       | $      | 0.16                                | $ | 0.14 |
| Basic      Weighted Average Shares Outstanding                     |   | 2,528,122                           |   | 2,609,576 |
| Diluted      Weighted Average Shares Outstanding                   |   | 2,539,135                           |   | 2,616,718 |

----

|                                                                                                                                                              |   |   Common      Stock |   |  AdditionalPaid      – In Capital |   |   Treasury Stock                                                 |   | Accumulated      Other      Comprehensive      Income      (Loss) |   |   Retained      Earnings |   |    Total |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|---------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|------------------------------------|--------|-------------------------|
| Balance      At March 31, 2007                                                                                                                                    | $      | 25,814                        | $      | 4,850,029                                         | $      |  (651,220)                                                                 | $      | (747,316)                                                         | $      | 39,215,901                         | $      | 42,693,208              |
| Net      Income                                                                                                                                                   |   | -                             |   | -                                                 |   | -                                                                               |   | -                                                                 |   | 2,223,607                          |   | 2,223,607               |
|    Other      Comprehensive Income,      Net      Of Tax:                                                            |   |                          |   |                                              |   |                                                                            |   |                                                              |   |                               |   |                    |
|    Unrealized      Holding Gains      On      Securities Available            For Sale |   |   -                 |   |   -                                     |   |   -                                                                   |   |   334,013                                               |   |   -                      |   |   334,013     |
| Comprehensive      Income                                                                                                                                         |   | -                             |   | -                                                 |   | -                                                                               |   | -                                                                 |   | -                                  |   | 2,557,620               |
|     Purchase      Of Treasury Stock           At Cost, 22,199 shares                                                 |   |  -                       |   |  -                                           |   |  (543,323)                                                                 |   |  -                                                           |   |  -                            |   |  (543,323)         |
|          Employee Stock Purchase Plan            Purchases                                                           |   |  24                      |   |  48,094                                      |   |  -                                                                         |   |  -                                                           |   |  -                            |   |  48,118            |
|          Exercise Of Stock Options                                                                                                                 |   | 63                            |   | 104,958                                           |   |           -    |   | -                                                                 |   | -                                  |   | 105,021                 |
|          Stock Compensation Expense                                                                                                                |   | -                             |   | 5,995                                             |   | -                                                                               |   | -                                                                 |   | -                                  |   | 5,995                   |
| Cash      Dividends                                                                                                                                               |   | -                             |   | -                                                 |   | -                                                                               |   | -                                                                 |   | (364,796)                          |   | (364,796)               |
| Balance      At September 30, 2007                                                                                                                                | $      | 25,901                        | $      | 5,009,076                                         | $      | (1,194,543)                                                                     | $      | (413,303)                                                         | $      | 41,074,712                         | $      | 44,501,843              |

|                                                                                                                                                             |   |   Common      Stock |   |  AdditionalPaid      – In Capital |   |   Treasury Stock                               |   | Accumulated      Other      Comprehensive      Income      (Loss) |   |   Retained      Earnings |   |    Total |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|---------------------------------------------------|--------|---------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|------------------------------------|--------|-------------------------|
| Balance      At March 31, 2008                                                                                                                                   | $      | 25,925                        | $      | 5,072,086                                         | $      |  (2,769,446)                                             | $      | 2,395,537                                                         | $      | 42,772,311                         | $      | 47,496,413              |
| Net      Income                                                                                                                                                  |   | -                             |   | -                                                 |   | -                                                             |   | -                                                                 |   | 1,586,743                          |   | 1,586,743               |
|         Other Comprehensive Income,           Net Of Tax:                                                                     |   |                          |   |                                              |   |                                                          |   |                                                              |   |                               |   |                    |
|         Unrealized Holding Losses          On Securities Available          For Sale, Net Of Taxes             |   |   -                 |   |   -                                     |   |   -                                                 |   |   (2,614,818)                                           |   |   -                      |   |   (2,614,818) |
|         Reclassification Adjustment     For      Gains Included In Net     Income,      Net Of Taxes |   |   -                 |   |   -                                     |   |   -                                                 |   |   (78,393)                                              |   |   -                      |   |   (78,393)    |
| Comprehensive      Loss                                                                                                                                          |   | -                             |   | -                                                 |   | -                                                             |   | -                                                                 |   | -                                  |   | (1,106,468)             |
|          Purchase Of Treasury Stock           At Cost, 13,050 shares                                                     |   |  -                       |   |  -                                           |   |  (277,326)                                               |   |  -                                                           |   |  -                            |   |  (277,326)         |
|          Employee Stock Purchase Plan            Purchases                                                          |   |  26                      |   |  49,948                                      |   |  -                                                       |   |  -                                                           |   |  -                            |   |  49,974            |
|          Exercise Of Stock Options                                                                                                                |   | 60                            |   | 99,960                                            |   |           - |   | -                                                                 |   | -                                  |   | 100,020                 |
|          Stock Compensation Expense                                                                                                               |   | -                             |   | 16,129                                            |   | -                                                             |   | -                                                                 |   | -                                  |   | 16,129                  |
| Cash      Dividends                                                                                                                                              |   | -                             |   | -                                                 |   | -                                                             |   | -                                                                 |   | (404,447)                          |   | (404,447)               |
| Balance      At September 30, 2008                                                                                                                               | $      | 26,011                        | $      | 5,238,123                                         | $      | (3,046,772)                                                   | $      | (297,674)                                                         | $      | 43,954,607                         | $      | 45,874,295              |

----

|   |                                                                                     |   |        Six      Months Ended September 30,                                        |
|--------|------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
|   |                                                                                     |   | 2008                                                                                   |   | 2007 |
|   | Cash      Flows From Operating Activities:                                               |   |                                                                                   |   |   |
|   | Net      Income                                                                          | $      | 1,586,743                                                                              | $ | 2,223,607 |
|   | Adjustments      To Reconcile Net Income To Net Cash Provided By Operating Activities:   |   |                                                                                   |   |   |
|   | Depreciation      Expense                                                                |   | 742,265                                                                                |   | 520,001 |
|   | Amortization      Of Intangible Assets                                                   |   | 45,000                                                                                 |   | 45,000 |
|   | Stock      Option Compensation Expense                                                   |   | 16,129                                                                                 |   | 5,995 |
|   | Discount      Accretion And Premium Amortization                                         |   | 192,595                                                                                |   | 112,308 |
|   | Provisions      For Losses On Loans And Real Estate                                      |   | 500,000                                                                                |   | 300,000 |
|   | Mandatorily      Redeemable Financial Instrument Valuation Expense                       |   | 60,000                                                                                 |   |   |
|   | Loss      On Sale Of Mortgage-Backed Securities Available For Sale                       |   | 22,204                                                                                 |   | - |
|   | Gain      On Sale Of Investment Securities Available For Sale                            |   | (148,644)                                                                              |   | - |
|   | Gain      On Sale Of Loans                                                               |   | (227,718)                                                                              |   | (281,571) |
|   | Gain      On Sale Of Real Estate                                                         |   |              (13,694) |   |              (23,404) |
|   | Amortization      Of Deferred Fees On Loans                                              |   | (49,285)                                                                               |   | (54,515) |
|   | Proceeds      From Sale Of Loans Held For Sale                                           |   |          17,669,670                       |   |       17,446,108 |
|   | Origination      Of Loans For Sale                                                       |   | (16,714,920)                                                                           |   | (16,983,431) |
|   | (Increase)      Decrease In Accrued Interest Receivable:                                 |   |                                                                                   |   |   |
|   | Loans                                                                                    |   | 122,504                                                                                |   | (423,578) |
|   | Mortgage-Backed      Securities                                                          |   | (71,713)                                                                               |   | (21,452) |
|   | Investments                                                                              |   | 266,526                                                                                |   | (260,535) |
|   | Increase      In Advance Payments By Borrowers                                           |   | 178,466                                                                                |   | 421,994 |
|   | Other,      Net                                                                          |   | (805,278)                                                                              |   | 532,044 |
|   | Net      Cash Provided By Operating Activities                                           |   | 3,325,850                                                                              |   | 3,558,571 |
|   |                                                                                     |   |                                                                                   |   |   |
|   | Cash      Flows From Investing Activities:                                               |   |                                                                                   |   |   |
|   | Principal      Repayments On Mortgage-Backed Securities Available ForSale                |   | 23,333,383                                                                             |   | 18,400,859 |
|   | Purchase      Of Investment Securities Available For Sale                                |   | (8,184,620)                                                                            |   | (22,552,547) |
|   | Purchase      Of Mortgage-Backed Securities Available For Sale                           |   | (48,075,466)                                                                           |   | (17,778,773) |
|   | Maturities      Of Investment Securities Available For Sale                              |   | 10,442,949                                                                             |   | 7,682,194 |
|   | Maturities      Of Investment Securities Held To Maturity                                |   | 9,000,000                                                                              |   | 10,000,000 |
|   | Proceeds      From Sale Of Mortgage-Backed  Securities Available For      Sale |   | 2,993,520                                                                              |   | - |
|   | Proceeds      From Sale Of Investment Securities Available For Sale                      |   | 7,135,335                                                                              |   | - |
|   | Purchase      Of FHLB Stock                                                              |   | (5,800,200)                                                                            |   | (5,496,400) |
|   | Redemption      Of FHLB Stock                                                            |   | 3,361,600                                                                              |   | 4,358,300 |
|   | Increase      In Loans To Customers                                                      |   | (62,580,669)                                                                           |   | (52,144,992) |
|   | Proceeds      From Sale Of Repossessed Assets                                            |   | 346,000                                                                                |   | 137,279 |
|   | Purchase      And Improvement Of Premises And Equipment                                  |   | (1,286,870)                                                                            |   | (3,483,550) |
|   |     Purchase      Of Bank Owned Life Insurance                       |   | (1,150,492)                                                                            |   | (2,349,201) |
|   | Net      Cash Used By Investing Activities                                               |   | (70,465,530)                                                                           |   | (63,226,831) |
|   |                                                                                     |   |                                                                                   |   |   |
|   | Cash      Flows From Financing Activities:                                               |   |                                                                                   |   |   |
|   | Increase      In Deposit Accounts                                                        |   | 14,313,384                                                                             |   | 31,861,129 |
|   | Proceeds      From FHLB Advances                                                         |   | 173,800,000                                                                            |   | 203,400,000 |
|   | Repayment      Of FHLB Advances                                                          |   | (121,407,748)                                                                          |   | (177,307,594) |
|   | Net      Proceeds Of Other Borrowings                                                    |   | 805,119                                                                                |   | 846,525 |
|   | Dividends      To Shareholders                                                           |   | (404,447)                                                                              |   | (364,796) |
|   | Purchase      Of Treasury Stock                                                          |   | (277,326)                                                                              |   | (543,323) |
|   | Proceeds      From Employee Stock Purchases                                              |   | 49,974                                                                                 |   | 48,118 |
|   | Proceeds      From Exercise of Stock Options                                             |   | 100,020                                                                                |   | 105,021 |
|   | Net      Cash Provided By Financing Activities                                           |   | 66,978,976                                                                             |   | 58,045,080 |
|   |                                                                                     |   |                                                                                   |   |   |

----

|   |                                                                                                                                                                                                                                                                                                          |    |        Six      Months Ended September 30, |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                          |    | 2008                                            |   | 2007 |
|   |                                                                                                                                                                                                                                                                                                          |    |                                            |   |   |
|   | Net      Decrease In Cash And Cash Equivalents                                                                                                                                                                                                                                                                |    | (160,704)                                       |   | (1,623,180) |
|   | Cash      And Cash Equivalents At Beginning Of Period                                                                                                                                                                                                                                                         |    | 10,539,054                                      |   | 13,438,129 |
|   | Cash      And Cash Equivalents At End Of Period                                                                                                                                                                                                                                                               | $       | 10,378,350                                      | $ | 11,814,949 |
|   |                                                                                                                                                                                                                                                                                                          |    |                                            |   |   |
|   | Supplemental      Disclosure Of Cash Flows Information:                                                                                                                                                                                                                                                       |    |                                            |   |   |
|   | Cash      Paid During The Period For Interest                                                                                                                                                                                                                                                                 | $       | 13,886,219                                      | $ | 14,266,412 |
|   | Cash      Paid During The Period For Income Taxes                                                                                                                                                                                                                                                             | $       | 1,232,822                                       | $ | 1,304,290 |
|   | Additions      To Repossessed Acquired Through Foreclosure                                                                                                                                                                                                                                                    | $       | 222,450                                         | $ | 611,833 |
|   |    (Increase)      Decrease In Unrealized Net Loss On Securities Available For      Sale,                              Net      Of Taxes |  $ |  (2,693,211)                               |  $ |  334,013 |

----

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

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

----

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

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

|                                                                              |   | For      the Quarter Ended     |    |
|-----------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                              |   | September      30, 2008        |    |
|                                                                              |   | Income      (Numerator) Amount |    |   | Shares      (Denominator) |   |   | Per      Share |   |
|                                                                              |   |                           |    |   |   |   |   |   |   |
| Basic      EPS                                                                    |   | $                              | 784,838 |   |   |   | 2,524,758 |   |   | $ | 0.31 |   |
| Effect      of Diluted Securities:                                                |   |                           |    |   |   |   |   |   |   |   |   |   |
|     Mandatorily      Redeemable    Shares |   |                           | -       |   |   |   | 14,998 |   |   |   | - |   |
| Stock Options                                                                     |   |                           | -       |   |   |   | - |   |   |   | - |   |
| Diluted      EPS                                                                  |   | $                              | 784,838 |   |   |   | 2,539,756 |   |   | $ | 0.31 |   |

|                               |   | For      the Quarter Ended     |      |
|------------------------------------|--------|--------------------------------|-----------|
|                               |   | September      30, 2007        |      |
|                               |   | Income      (Numerator) Amount |      |   | Shares      (Denominator) |   |   | Per      Share |   |
|                               |   |                           |      |   |   |   |   |   |   |
| Basic      EPS                     |   | $                              | 1,127,576 |   |   |   | 2,602,072 |   |   | $ | 0.43 |   |
| Effect      of Diluted Securities: |   |                           |      |   |   |   |   |   |   |   |   |   |
| Stock Options                      |   |                           | -         |   |   |   | 8,495 |   |   |   | - |   |
| Diluted      EPS                   |   | $                              | 1,127,576 |   |   |   | 2,610,567 |   |   | $ | 0.43 |   |

----

|                                                                              |   | For      the Six Months Ended  |      |
|-----------------------------------------------------------------------------------|--------|--------------------------------|-----------|
|                                                                              |   | September      30, 2008        |      |
|                                                                              |   | Income      (Numerator) Amount |      |   | Shares      (Denominator) |   |   | Per      Share |   |
|                                                                              |   |                           |      |   |   |   |   |   |   |
| Basic      EPS                                                                    |   | $                              | 1,586,743 |   |   |   | 2,528,122 |   |   | $ | 0.63 |   |
| Effect      of Diluted Securities:                                                |   |                           |      |   |   |   |   |   |   |   |   |   |
|     Mandatorily      Redeemable    Shares |   |                           | -         |   |   |   | 11,013 |   |   |   | (0.01 | ) |
| Stock Options                                                                     |   |                           | -         |   |   |   | - |   |   |   | - |   |
| Diluted      EPS                                                                  |   | $                              | 1,586,743 |   |   |   | 2,539,135 |   |   | $ | 0.62 |   |

|                               |   | For      the Six Months Ended  |      |
|------------------------------------|--------|--------------------------------|-----------|
|                               |   | September      30, 2007        |      |
|                               |   | Income      (Numerator) Amount |      |   | Shares      (Denominator) |   |   | Per      Share |   |
|                               |   |                           |      |   |   |   |   |   |   |
| Basic      EPS                     |   | $                              | 2,223,607 |   |   |   | 2,609,576 |   |   | $ | 0.85 |   |
| Effect      of Diluted Securities: |   |                           |      |   |   |   |   |   |   |   |   |   |
| Stock Options                      |   |                           | -         |   |   |   | 7,142 |   |   |   | - |   |
| Diluted      EPS                   |   | $                              | 2,223,607 |   |   |   | 2,616,718 |   |   | $ | 0.85 |   |

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

|                                   | Three      Months EndedSeptember      30, 2008 |                                                 | Six      Months EndedSeptember      30, 2008 |
|----------------------------------------|------------------------------------------------|------------------------------------------------------|----------------------------------------------|
|                                   |  Shares                                   |  Weighted      Average      Exercise      Price |                                         |  Shares | Weighted      Average      Exercise      Price |
| Balance,      Beginning of Period/Year |  113,600                                  |  $21.58                                         |                                         |  111,100 |  $21.55 |
| Options      granted                   | 2,000                                          | 22.91                                                |                                         | 4,500 | 22.91 |
| Options      exercised                 | (6,000)                                        | 16.67                                                |                                         | (6,000) | 16.67 |
| Options      forfeited                 | (9,100)                                        | 20.32                                                |                                         | (9,100) | 20.32 |
| Balance,      September 30, 2008       | 100,500                                        | $22.01                                               |                                         | 100,500 | $22.01 |
|                                   |                                           |                                                 |                                         |   |   |
| Options      Exercisable               | 60,000                                         |                                                 |                                         | 60,000 |   |
|                                   |                                           |                                                 |                                         |   |   |
| Options      Available For Grant       | 50,000                                         |                                                 |                                         | 50,000 |   |

----

|                         | For      Awards Granted During The      Three Month Period Ended September      30, |   | For      Awards Granted During The      Six Month Period Ended September      30, |
|------------------------------|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|
|                         | 2008                                                                                |   | 2007                                                                              |   | 2008 |   | 2007 |
| Awards      granted          | 2,000                                                                               |   | 3,000                                                                             |   | 4,500 |   | 3,000 |
| Dividend      Yield          | 1.79%                                                                               |   | 1.52%                                                                             |   | 1.76-1.79% |   | 1.52% |
| Expected      Volatility     | 17.62%                                                                              |   | 23.90%                                                                            |   | 17.62-18.10% |   | 23.90% |
| Risk-free      interest rate | 3.88%                                                                               |   | 5.03%                                                                             |   | 3.69-3.88% |   | 5.03% |
| Expected      life           | 9.00                                                                                |   | 9.00                                                                              |   | 9.00 |   | 9.00 |

|  Grant      Date |   | Outstanding      Options |   |  Option      Price |   |  Expiration      Date |
|-----------------------|--------|--------------------------|--------|-------------------------|--------|----------------------------|
|                  |   |                     |   |                    |   |                       |
| 10/19/99              |   | 9,600                    |   | $16.67                  |   | 09/30/05      to 09/30/09  |
|                  |   |                     |   |                    |   |                       |
| 09/01/03              |   | 2,400                    |   | $24.00                  |   | 08/31/13                   |
|                  |   |                     |   |                    |   |                       |
| 12/01/03              |   | 3,000                    |   | $23.65                  |   | 11/30/13                   |
|                  |   |                     |   |                    |   |                       |
| 01/01/04              |   | 5,500                    |   | $24.22                  |   | 12/31/13                   |
|                  |   |                     |   |                    |   |                       |
| 03/08/04              |   | 13,000                   |   | $21.43                  |   | 03/08/14                   |
|                  |   |                     |   |                    |   |                       |
| 06/07/04              |   | 2,000                    |   | $24.00                  |   | 06/07/14                   |
|                  |   |                     |   |                    |   |                       |
| 01/01/05              |   | 20,500                   |   | $20.55                  |   | 12/31/14                   |
|                  |   |                     |   |                    |   |                       |
| 01/01/06              |   | 4,000                    |   | $23.91                  |   | 01/01/16                   |
|                  |   |                     |   |                    |   |                       |
| 08/24/06              |   | 14,000                   |   | $23.03                  |   | 08/24/16                   |
|                  |   |                     |   |                    |   |                       |
| 05/24/07              |   | 2,000                    |   | $24.34                  |   | 05/24/17                   |
|                  |   |                     |   |                    |   |                       |
| 07/09/07              |   | 1,000                    |   | $24.61                  |   | 07/09/17                   |
|                  |   |                     |   |                    |   |                       |
| 10/01/07              |   | 2,000                    |   | $24.28                  |   | 10/01/17                   |
|                  |   |                     |   |                    |   |                       |
| 01/01/08              |   | 17,000                   |   | $23.49                  |   | 01/01/18                   |
|                  |   |                     |   |                    |   |                       |
| 05/19/08              |   | 2,500                    |   | $22.91                  |   | 05/19/18                   |
|                  |   |                     |   |                    |   |                       |
| 07/01/08              |   | 2,000                    |   | $22.91                  |   | 07/01/18                   |

----

| Level      1 | Quoted      prices in active markets for identical assets or liabilities. 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 | Observable      inputs other than Level 1 prices such as quoted prices for similar assets      or liabilities; quoted prices in markets that are not active; or other      inputs that are observable or can be corroborated by observable market      data for substantially the full term of the assets or liabilities. 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 | Unobservable      inputs that are supported by little or no market activity and that are      significant to the fair value of the assets or liabilities. Level 3 assets      and liabilities include financial instruments whose value is determined      using pricing models, discounted cash flow methodologies, or similar      techniques, as well as instruments for which the determination of fair      value requires significant management judgment or estimation. For example,      this category generally includes certain private equity investments,      retained residual interests in securitizations, residential mortgage      servicing rights, and highly-structured or long-term derivative      contracts.                                                                                                                                         |

|    Assets:                                                                                | Quoted      Market Price In      Active Markets(Level      1)                                                                                                                                                                          | Significant      Other Observable      Inputs(Level      2)                                                                                                                  | Significant      Unobservable      Inputs(Level      3)                                                                                                                                           |
|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Available-For-Sale  Investment      And  Mortgage-      Backed  Securities |    $                                   - |    $                     252,105,624                 |   $                             -      |
| Mortgage      Loans Held  For      Sale                                                        |                                       -  |                           1,568,689        |                                 - |
| Total                                                                                                    | $                                   -                   | $                     253,674,313                                   | $                             -                  |
| Liabilities:                                                                                             |                                                                                                                                                                                                                                   |                                                                                                                                                                         |                                                                                                                                                                                              |
| Mandatorily  Redeemable      Financial  Instrument                                   |   $                                    - |   $                         1,477,312 |   $                             -      |
| Total                                                                                                    | $                                    -             | $                         1,477,312             | $                             -                  |

----

----

----

|  September 30,      2008       |   | Amortized      Cost |        |   | Gross      Unrealized      Gains |   |      | Gross      Unrealized      Losses |   |    |  Fair      Value |   |
|-------------------------------------|--------|---------------------|-------------|--------|----------------------------------|--------|-----------|-----------------------------------|--------|---------|-----------------------|--------|
| FHLB      Securities                |   | $                   | 26,956,378  |   |                             | $      | 73,710    |                              |   | $       | 239,242               |   |   | $ | 26,790,846 |   |
| Federal      Farm Credit Securities |   |                | 11,558,833  |   |                             |   | 28,685    |                              |   |    | 182,130               |   |   |   | 11,405,388 |   |
| FNMA      Bonds                     |   |                | 2,000,000   |   |                             |   | -         |                              |   |    | 44,060                |   |   |   | 1,955,940 |   |
| Mortgage-Backed      Securities     |   |                | 211,965,896 |   |                             |   | 1,213,905 |                              |   |    | 1,308,101             |   |   |   | 211,871,700 |   |
| Equity      Securities              |   |                | 102,938     |   |                             |   | -         |                              |   |    | 21,188                |   |   |   | 81,750 |   |
| Total                               |   | $                   | 252,584,045 |   |                             | $      | 1,316,300 |                              |   | $       | 1,794,721             |   |   | $ | 252,105,624 |   |
|  March 31,      2008           |   | Amortized      Cost |        |   | Gross      Unrealized      Gains |   |      | Gross      Unrealized      Losses |   |    |  Fair      Value |   |
| FHLB      Securities                |   | $                   | 31,891,456  |   |                             | $      | 625,583   |                              |   | $  | -                     |   |   | $ | 32,517,039 |   |
| Federal      Farm Credit Securities |   |                | 14,849,646  |   |                             |   | 323,594   |                              |   |    | -                     |   |   |   | 15,173,240 |   |
| FNMA      Bonds                     |   |                | 2,997,470   |   |                             |   | 7,840     |                              |   |    | -                     |   |   |   | 3,005,310 |   |
| Mortgage-Backed      Securities     |   |                | 190,454,173 |   |                             |   | 3,023,143 |                              |   |    | 104,283               |   |   |   | 193,373,033 |   |
| Equity      Securities              |   |                | 102,938     |   |                             |   | -         |                              |   |    | 13,688                |   |   |   | 89,250 |   |
| Total                               |   | $                   | 240,295,683 |   |                             | $      | 3,980,160 |                              |   | $       | 117,971               |   |   | $ | 244,157,872 |   |

----

|  September 30,      2008       |   | Amortized      Cost |       |   | Gross      Unrealized      Gains |   |     | Gross      Unrealized      Losses |   |    |  Fair      Value |   |
|-------------------------------------|--------|---------------------|------------|--------|----------------------------------|--------|----------|-----------------------------------|--------|---------|-----------------------|--------|
| FHLB      Securities                |   | $                   | 10,000,000 |   |                             | $      | 124,400  |                              |   | $  | -                     |   |   | $ | 10,124,400 |   |
| Federal      Farm Credit Securities |   |                | 1,000,000  |   |                             |   | 8,130    |                              |   |    | -                     |   |   |   | 1,008,130 |   |
| Equity      Securities              |   |                | 155,000    |   |                             |   | -        |                              |   |    | -                     |   |   |   | 155,000 |   |
| Total                               |   | $                   | 11,155,000 |   |                             | $      | 132,530  |                              |   | $  | -                     |   |   | $ | 11,287,530 |   |
|  March 31,      2008           |   | Amortized      Cost |       |   | Gross      Unrealized      Gains |   |     | Gross      Unrealized      Losses |   |    |  Fair      Value |   |
| FHLB      Securities                |   |                | 17,999,618 |   |                             | $      | 320,072  |                              |   | $  | -                     |   |   | $ | 18,319,690 |   |
| Federal      Farm Credit Securities |   |                | 2,000,000  |   |                             |   | 31,560   |                              |   |    | -                     |   |   |   | 2,031,560 |   |
| Equity      Securities              |   |                | 155,000    |   |                             |   | -        |                              |   |    | -                     |   |   |   | 155,000 |   |
| Total                               |   | $                   | 20,154,618 |   |                             | $      | $351,632 |                              |   | $  | -                     |   |   | $ | 20,506,250 |   |

|                                       |   | September      30, 2008 |   | March      31, 2008 |
|--------------------------------------------|--------|-------------------------|--------|---------------------|
| Residential      Real Estate               | $      | 134,309,185             | $      | 131,863,466         |
| Consumer                                   |   | 67,424,761              |   | 66,832,377          |
| Commercial      Business & Real Estate |   | 392,472,000             |   | 333,386,661         |
|  Loans      Held For Sale             |   | 1,568,689               |   | 2,295,721           |
|                                       |   | 595,774,635             |   | 534,378,225         |
|                                       |   |                    |   |                |
| Less:                                      |   |                    |   |                |
| Allowance      For Possible Loan Loss      |   | 8,263,335               |   | 8,066,762           |
| Loans      In Process                      |   | 8,067,762               |   | 8,064,728           |
| Deferred      Loan Fees                    |   | 311,361                 |   | 315,030             |
|                                       |   | 16,642,458              |   | 16,446,520          |
|                                       | $      | 579,132,177             | $      | 517,931,705         |

----

|                                                                                                                   |   |   |                                |               |   |                    |   |   | Increase      (Decrease) |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------------------|--------|-------------------------|--------|--------|--------------------------|
|                                                                                                                   |   |   | September      30, 2008             |               |   | March      31, 2008     |   |   |  Amount             |   |  Percent |
| Cash      And Cash Equivalents                                                                                         |   | $      | 10,378,350                |          | $      | 10,539,054              |   | $      | (160,704)                |   | (1.5)% |
| Investment      And Mortgage-   Backed      Securities –   Available      For Sale |   |   |   252,105,624   |               |   |   244,157,872 |   |   |   7,947,752    |   |           3.3      |
| Investment      And Mortgage-   Backed      Securities – Held   To      Maturity   |   |   |   11,155,000    |               |   |   20,154,618  |   |   |   (8,999,618)  |   |           (44.7)     |
| Loan      Receivable, Net                                                                                              |   |   | 579,132,177               |               |   | 517,931,705             |   |   | 61,200,472               |   |         11.8      |
|           Premises And Equipment,   Net                                             |   |   |  22,088,985          |               |   |  21,544,380        |   |   |  544,605            |   |          2.5      |
| FHLB      Stock, At Cost                                                                                               |   |   | 11,935,700                |               |   | 9,497,100               |   |   | 2,438,600                |   |       25.7      |
|          Bank Owned Life Insurance                                                                      |   |   | 9,461,305                 |               |   | 8,310,813               |   |   | 1,150,492                |   |        13.8      |
| Repossessed      Assets  Acquired      in Settlement of Loans                                                |   |   |  657,240                  |               |   |  767,096           |   |   |  (109,856)          |   |          (14.3)    |
| Other      Assets                                                                                                      |   |   | 3,730,848                 |               |   | 1,947,403               |   |   | 1,783,445                |   |           91.6     |

----

|                      |   |   |                    |   |   |                |   |   | Balance                  |   |
|---------------------------|--------|--------|-------------------------|--------|--------|---------------------|--------|--------|--------------------------|--------|
|                      |   |   | September      30, 2008 |   |   | March      31, 2008 |   |   | Increase      (Decrease) |   |
|                      |   |   | Balance                 |   |   | Weighted      Rate  |   |   | Balance                  |   |   | Weighted      Rate |   |   | Amount |   |   | Percent |   |
| Demand      Accounts:     |   |   |                    |   |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |
| Checking                  |   | $      | 97,575,051              |   |   |                | 0.46   | %      |                     | $      | 100,585,610 |   |   |   | 0.47 | % |   | $ | (3,010,559 | ) |   |   | (3.0 | )% |
| Money      Market         |   |   | 141,649,832             |   |   |                | 3.18   |   |                     |   | 143,225,218 |   |   |   | 2.84 |   |   |   | (1,575,386 | ) |   |   | (1.1 | ) |
| Regular      Savings      |   |   | 15,947,644              |   |   |                | 0.73   |   |                     |   | 15,966,557 |   |   |   | 0.97 |   |   |   | (18,913 | ) |   |   | (0.1 | ) |
| Total                     |   |   | 255,172,527             |   |   |                | 1.99   |   |                     |   | 259,777,385 |   |   |   | 1.87 |   |   |   | (4,604,858 | ) |   |   | (1.8 | ) |
|                      |   |   |                    |   |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate      Accounts |   |   |                    |   |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 0.00      – 1.99%   |   |   | 1,037,847               |   |   |                |   |   |                     |   | - |   |   |   |   |   |   |   | 1,037,847 |   |   |   | 100.0 |   |
| 2.00      – 2.99%   |   |   | 41,830,427              |   |   |                |   |   |                     |   | 14,047,109 |   |   |   |   |   |   |   | 27,783,318 |   |   |   | 197.8 |   |
| 3.00      – 3.99%   |   |   | 88,843,982              |   |   |                |   |   |                     |   | 59,526,823 |   |   |   |   |   |   |   | 29,317,159 |   |   |   | 49.3 |   |
| 4.00      – 4.99%   |   |   | 163,340,645             |   |   |                |   |   |                     |   | 68,149,323 |   |   |   |   |   |   |   | 95,191,322 |   |   |   | 139.7 |   |
| 5.00      – 5.99%   |   |   | 54,938,164              |   |   |                |   |   |                     |   | 189,349,568 |   |   |   |   |   |   |   | (134,411,404 | ) |   |   | (71.0 | ) |
| Total                     |   |   | 349,991,065             |   |   |                | 4.08   |   |                     |   | 331,072,823 |   |   |   | 4.75 |   |   |   | 18,918,242 |   |   |   | 5.7 |   |
| Total      Deposits       |   | $      | 605,163,592             |   |   |                | 3.20   | %      |                     | $      | 590,850,208 |   |   |   | 3.46 | % |   | $ | 14,313,384 |   |   |   | 2.4 | % |
|                      |   |   |                    |   |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                  |   |                    |        |   |                |   |                               | Balance  |   |
|-----------------------|--------|-------------------------|-------------|--------|---------------------|--------|------------------------------------|----------|--------|
|                  |   | September      30, 2008 |        |   | March      31, 2008 |   |                               | Increase |   |
| Fiscal      Year Due: |   | Balance                 |        |   | Rate                |   |                               | Balance  |   |   | Rate |   |   | Balance |   |   | Percent |   |
| 2009                  |   | $                       | 92,700,000  |   |                |   | 2.69%                         |     |   | $ | 42,300,000 |   |   |   | 3.28% |   |   | $ | 50,400,000 |   |   |   | 119.1% |   |
| 2010                  |   |                    | 10,000,000  |   |                |   | 4.88      |     |   |   | 10,000,000 |   |   |   | 4.88    |   |   |   | - |   |   |   |   - |   |
| 2011                  |   |                    | 15,000,000  |   |                |   | 4.87           |     |   |   | 15,000,000 |   |   |   | 4.87   |   |   |   | - |   |   |   |      - |   |
| 2012                  |   |                    | 24,700,000  |   |                |   | 4.56           |     |   |   | 24,700,000 |   |   |   | 4.56   |   |   |   | - |   |   |   |      - |   |
| 2013                  |   |                    | 10,000,000  |   |                |   | 4.76           |     |   |   | 10,000,000 |   |   |   | 4.76   |   |   |   | - |   |   |   |  - |   |
| Thereafter            |   |                    | 78,226,259  |   |                |   | 4.18           |     |   |   | 76,234,007 |   |   |   | 4.25   |   |   |   | 1,992,252 |   |   |   | 2.6   |   |
| Total      Advances   |   | $                       | 230,626,259 |   |                |   | 3.72%                              |     |   | $ | 178,234,007 |   |   |   | 4.18% |   |   | $ | 52,392,252 |   |   |   | 29.4% |   |

| As      of September 30, 2008 |
|-------------------------------|
| Borrow      Date              |   | Maturity      Date |   | Amount |   | Int.      Rate |   | Type |   | Call      Dates |
|                          |   |   |   |   |   |   |   |   |   |   |
| 02/20/04                      |   | 02/20/14 | $ |   5,000,000 |   | 3.225% |   | 1      Time Call |   | 02/20/09 |
| 06/24/05                      |   | 06/24/15 |   |   5,000,000 | 3 | 3.710% |   | 1      Time Call |   | 06/24/10 |
| 11/10/05                      |   | 11/10/15 |   |   5,000,000 |   | 4.400% |   | 1      Time Call |   | 11/10/09 |
| 11/23/05                      |   | 11/23/15 |   |   5,000,000 |   | 3.933% |   | Multi-Call |   | 05/25/08      and quarterly thereafter |
| 11/29/05                      |   | 11/29/13 |   |   5,000,000 |   | 4.320% |   | 1      Time Call |   | 05/29/09 |
| 12/14/05                      |   | 12/14/11 |   |   5,000,000 |   | 4.640% |   | 1      Time Call |   | 09/14/09 |
| 01/12/06                      |   | 01/12/16 |   |   5,000,000 |   | 4.450% |   | 1      Time Call |   | 01/12/11 |
| 03/01/06                      |   | 03/03/14 |   |   5,000,000 |   | 4.720% |   | 1      Time Call |   | 03/03/10 |
| 06/02/06                      |   | 06/02/16 |   |   5,000,000 |   | 5.160% |   | 1      Time Call |   | 06/02/11 |
| 07/11/06                      |   | 07/11/16 |   |   5,000,000 |   | 4.800% |   | Multi-Call |   | 07/11/08      and quarterly thereafter |
| 10/25/06                      |   | 10/25/11 |   |   5,000,000 |   | 4.830% |   | 1      Time Call |   | 10/27/08 |
| 11/29/06                      |   | 11/29/16 |   |   5,000,000 |   | 4.025% |   | Multi-Call |   | 05/29/08      and quarterly thereafter |
| 01/19/07                      |   | 07/21/14 |   |   5,000,000 |   | 4.885% |   | 1      Time Call |   | 07/21/11 |
| 03/09/07                      |   | 03/09/12 |   |   4,700,000 |   | 4.286% |   | Multi-Call |   | 06/09/08      and quarterly thereafter |
| 05/24/07                      |   | 05/24/17 |   |   7,900,000 |   | 4.375% |   | Multi-Call |   | 05/27/08      and quarterly thereafter |
| 06/29/07                      |   | 06/29/12 |   |   5,000,000 |   | 4.945% |   | 1      Time Call |   | 06/29/09 |
| 07/25/07                      |   | 07/25/17 |   |   5,000,000 |   | 4.396% |   | Multi-Call |   | 07/25/08      and quarterly thereafter |
| 11/16/07                      |   | 11/16/11 |   |   5,000,000 |   | 3.745% |   | Multi-Call |   | 11/17/08      and quarterly thereafter |
| 08/28/08                      |   | 08/28/13 |   |   5,000,000 |   | 3.113% |   | Multi-Call |   | 08/30/10      and quarterly thereafter |
| 08/28/08                      |   | 08/28/18 |   |   5,000,000 |   | 3.385% |   | 1      Time Call |   | 08/28/11 |

----

| As      of March 31, 2008 |
|---------------------------|
| Borrow      Date          |   | Maturity      Date |   | Amount |   | Int.      Rate |   | Type |   | Call      Dates |
|                      |   |   |   |   |   |   |   |   |   |   |
| 02/20/04                  |   | 02/20/14 | $ |   5,000,000 |   | 3.225% |   | 1      Time Call |   | 02/20/09 |
| 04/16/04                  |   | 04/16/14 |   |   3,000,000 |   | 3.330% |   | 1      Time Call |   | 04/16/08 |
| 06/24/05                  |   | 06/24/15 |   |   5,000,000 | 3 | 3.710% |   | 1      Time Call |   | 06/24/10 |
| 07/22/05                  | 0 | 07/22/15 |   |   5,000,000 |   | 3.790% |   | 1      Time Call |   | 07/22/08 |
| 11/10/05                  |   | 11/10/15 |   |   5,000,000 |   | 4.400% |   | 1      Time Call |   | 11/10/09 |
| 11/23/05                  |   | 11/23/15 |   |   5,000,000 |   | 3.933% |   | Multi-Call |   | 05/25/08      and quarterly thereafter |
| 11/29/05                  |   | 11/29/13 |   |   5,000,000 |   | 4.320% |   | 1      Time Call |   | 05/29/09 |
| 12/14/05                  |   | 12/14/11 |   |   5,000,000 |   | 4.640% |   | 1      Time Call |   | 09/14/09 |
| 01/12/06                  |   | 01/12/16 |   |   5,000,000 |   | 4.450% |   | 1      Time Call |   | 01/12/11 |
| 03/01/06                  |   | 03/03/14 |   |   5,000,000 |   | 4.720% |   | 1      Time Call |   | 03/03/10 |
| 06/02/06                  |   | 06/02/16 |   |   5,000,000 |   | 5.160% |   | 1      Time Call |   | 06/02/11 |
| 07/11/06                  |   | 07/11/16 |   |   5,000,000 |   | 4.800% |   | Multi-Call |   | 07/11/08      and quarterly thereafter |
| 10/25/06                  |   | 10/25/11 |   |   5,000,000 |   | 4.830% |   | 1      Time Call |   | 10/27/08 |
| 11/29/06                  |   | 11/29/16 |   |   5,000,000 |   | 4.025% |   | Multi-Call |   | 05/29/08      and quarterly thereafter |
| 01/19/07                  |   | 07/21/14 |   |   5,000,000 |   | 4.885% |   | 1      Time Call |   | 07/21/11 |
| 03/09/07                  |   | 03/09/12 |   |   4,700,000 |   | 4.286% |   | Multi-Call |   | 06/09/08      and quarterly thereafter |
| 05/24/07                  |   | 05/24/17 |   |   7,900,000 |   | 4.375% |   | Multi-Call |   | 05/27/08      and quarterly thereafter |
| 06/29/07                  |   | 06/29/12 |   |   5,000,000 |   | 4.945% |   | 1      Time Call |   | 06/29/09 |
| 07/25/07                  |   | 07/25/17 |   |   5,000,000 |   | 4.396% |   | Multi-Call |   | 07/25/08      and quarterly thereafter |
| 11/16/07                  |   | 11/16/11 |   |   5,000,000 |   | 3.745% |   | Multi-Call |   | 11/17/08      and quarterly thereafter |
|                      |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                  |   | At      September 30, 2008 |      |   | At      March 31, 2008 |   |   | $      Increase |   |   | %      Increase  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|------------------------|--------|--------|-----------------|--------|--------|------------------|--------|
|                                                                                                                                                  |   | Amount                     |      |   | Percent      (1)       |   |   | Amount          |   |   | Percent      (1) |   |   | (Decrease) |   |   | (Decrease) |   |
| Loans      90 days or more past due or non-accrual loans:                                                                                             |   |                       |      |   |                   |   |   |            |   |   |             |   |   |   |   |   |   |   |
| 1-4  family real      estate                                                                                                                |   | $                          | 1,100,144 |   |                   |   | 0.2    | %               |   | $      | 609,336          |   |   |   | 0.1 | % |   | $ | 490,808 |   |   |   | 80.5 | % |
| Real estate      construction                                                                                                                         |   |                       | 1,561,532 |   |                   |   | 0.3    |            |   |   | −          |   |   |   | 0.0 |   |   |   | 1,561,532 |   |   |   | 100.0 |   |
| Consumer                                                                                                                                              |   |                       | 611,106   |   |                   |   | 0.1    |            |   |   | 415,796          |   |   |   | 0.1 |   |   |   | 195,310 |   |   |   | 47.0 |   |
| Commercial business & real      estate                                                                                                            |   |                       | 5,503,299 |   |                   |   | 0.9    |            |   |   | 4,994,249        |   |   |   | 0.9 |   |   |   | 509,050 |   |   |   | 10.2 |   |
| Total non-performing      loans                                                                                                                       |   |                       | 8,776,081 |   |                   |   | 1.5    |            |   |   | 6,019,381        |   |   |   | 1.1 |   |   |   | 2,746,700 |   |   |   | 45.8 |   |
|                                                                                                                                                  |   |                       |      |   |                   |   |   |            |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      non-performing assets                                                                                                                      |   |                       |      |   |                   |   |   |            |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repossessed    assets                                                                                                                                 |   |                       | 10,000    |   |                   |   | 0.0    |            |   |   | 6,000            |   |   |   | 0.0 |   |   |   | 4,000 |   |   |   | 66.7 |   |
| Real estate    owned                                                                                                                                  |   |                       | 647,240   |   |                   |   | 0.1    |            |   |   | 761,096          |   |   |   | 0.1 |   |   |   | (113,856 | ) |   |   | (15.0 | ) |
| Total other non-performing      assets                                                                                                                |   |                       | 657,240   |   |                   |   | 0.1    |            |   |   | 767,096          |   |   |   | 0.1 |   |   |   | (109,856 | ) |   |   | (14.3 | ) |
|                                                                                                                                                  |   |                       |      |   |                   |   |   |            |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      non-performing assets                                                                                                            |   | $                          | 9,433,321 |   |                   |   | 1.6    | %               |   | $      | 6,786,477        |   |   |   | 1.3 | % |   | $ | 2,646,844 |   |   |   | 39.0 | % |
|                                                                                                                                                  |   |                       |      |   |                   |   |   |            |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Total non-performing assets as a                 percentage of total assets |   |                       | 1.0       | %      |                   |   |   |            |   |   | 0.8              | %      |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                               |   | Three      Months Ended September 30, |        |
|------------------------------------|--------|---------------------------------------|-------------|
|                               |   | 2008                                  |        |   | 2007 |   |   |   |   |
|                               |   | Average      Balance                  |        |   |  Yield |   |   | Average      Balance |   |   |  Yield |   |   | Increase      (Decrease) In      Interest And Dividend      Income From      2007 |   |
| Loans      Receivable, Net         |   | $                                     | 556,454,581 |   |   |   | 6.43 | % |   | $ | 475,966,703 |   |   |   | 7.91 | % |   | $ | (475,075 | ) |
| Mortgage-Backed      Securities    |   |                                  | 215,390,697 |   |   |   | 4.87 |   |   |   | 133,221,287 |   |   |   | 4.68 |   |   |   | 1,063,402 |   |
| Investments                        |   |                                  | 68,201,340  |   |   |   | 4.56 |   |   |   | 130,132,175 |   |   |   | 5.11 |   |   |   | (886,148 | ) |
| Overnight      Time                |   |                                  | 1,443,202   |   |   |   | 1.08 |   |   |   | 1,058,156 |   |   |   | 3.14 |   |   |   | (4,406 | ) |
| Total      Interest-Earning Assets |   | $                                     | 841,489,820 |   |   |   | 5.87 | % |   | $ | 740,378,321 |   |   |   | 6.83 | % |   | $ | (302,227 | ) |
|                               |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                              |   | Three      Months Ended September 30, |        |
|-------------------------------------------------------------------|--------|---------------------------------------|-------------|
|                                                              |   | 2008                                  |        |   | 2007 |   |   |   |   |
|                                                              |   |  Average      Balance            |        |   |   Yield |   |   |  Average      Balance |   |   |   Yield |   |   | Increase      (Decrease) In      Interest Expense From      2007 |   |
| Now      And Money Market   Accounts               |   | $                                     | 199,983,451 |   |   |   | 1.93 | % |   | $ | 205,810,833 |   |   |   | 3.25 | % |   | $ | (706,191 | ) |
| Passbook      Accounts                                            |   |                                  | 16,248,617  |   |   |   | 0.74 |   |   |   | 16,655,588 |   |   |   | 0.99 |   |   |   | (11,075 | ) |
| Certificates      Accounts                                        |   |                                  | 336,056,478 |   |   |   | 4.25 |   |   |   | 284,506,447 |   |   |   | 5.10 |   |   |   | (57,530 | ) |
| FHLB      Advances And Other   Borrowed      Money |   |                                  | 242,974,148 |   |   |   | 3.69 |   |   |   | 181,321,298 |   |   |   | 4.53 |   |   |   | 187,029 |   |
| Junior      Subordinated   Debentures              |   |                                  | 5,155,000   |   |   |   | 5.81 |   |   |   | 5,155,000 |   |   |   | 7.16 |   |   |   | (17,400 | ) |
| Total      Interest-Bearing   Liabilities          |   | $                                     | 800,417,694 |   |   |   | 3.44 | % |   | $ | 693,449,166 |   |   |   | 4.32 | % |   | $ | (605,167 | ) |

----

|                                                                                                                                                                                      |   | September      30, 2008 |        |   | September      30, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|-------------------------|--------|
| Beginning      Balance                                                                                                                                                                    |   | $                       | 8,246,496   |   |                    | $      | 7,430,692 |   |
| Provision                                                                                                                                                                                 |   |                    | 275,000     |   |                    |   | 150,000 |   |
| Charge-offs                                                                                                                                                                               |   |                    | (261,404    | )      |                    |   | (39,290 | ) |
| Recoveries                                                                                                                                                                                |   |                    | 3,243       |   |                    |   | 22,809 |   |
| Ending      Balance                                                                                                                                                                       |   | $                       | 8,263,335   |   |                    | $      | 7,564,211 |   |
|                                                                                                                                                                                      |   |                    |        |   |                    |   |   |   |
| Allowance      For Loan Losses As A Percentage Of Gross Loans Receivable   And      Loans Held For Sale At The End Of The Period                                           |   |                    | 1.41        | %      |                    |   | 1.52 | % |
| Allowance      For Loan Losses As A Percentage Of Impaired Loans At The   End      Of The Period                                                                           |   |                    | 84.41       | %      |                    |   | 780.91 | % |
| Impaired      Loans                                                                                                                                                                       |   |                    | 9,790,084   |   |                    |   | 968,641 |   |
| Nonaccrual      Loans And 90 Days Or More Past Due Loans As A   Percentage      Of Loans Receivable And Loans Held For Sale At The   End      Of The Period |   |                    | 1.55        | %      |                    |   | 0.40 | % |
| Loans      Receivable, Net                                                                                                                                                                |   | $                       | 579,132,177 |   |                    | $      | 487,144,939 |   |

----

|                                                                |   | Three      Months Ended September 30, |      |   | Increase      (Decrease) |   |
|---------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------|--------|
|                                                                |   | 2008                                  |      |   | 2007                     |   |   | Amounts |   |   | Percent |   |
| Gain      On Sale Of Investments                                    |   | $                                     | 25,035    |   |                     | $      | - |   |   | $ | 25,035 |   |   |   | 100.0 | % |
| Gain      On Sale Of Loans                                          |   |                                  | 109,035   |   |                     |   | 105,450 |   |   |   | 3,585 |   |   |   | 3.4 |   |
| Service      Fees On Deposit Accounts                               |   |                                  | 276,240   |   |                     |   | 323,423 |   |   |   | (47,183 | ) |   |   | (14.6 | ) |
| Income      From Cash Value Of   Life      Insurance |   |                                  | 92,746    |   |                     |   | 87,164 |   |   |   |  5,582 |   |   |   | 6.4 |   |
| Commissions      From Insurance Agency                              |   |                                  | 164,138   |   |                     |   | 173,488 |   |   |   | (9,350 | ) |   |   | (5.4 | ) |
| Other      Agency Income                                            |   |                                  | 76,081    |   |                     |   | 26,910 |   |   |   | 49,171 |   |   |   | 182.7 |   |
| Trust      Income                                                   |   |                                  | 105,000   |   |                     |   | 139,850 |   |   |   | (34,850 | ) |   |   | (24.9 | ) |
| Other                                                               |   |                                  | 212,328   |   |                     |   | 193,085 |   |   |   | 19,243 |   |   |   | 10.0 |   |
| Total      Non-Interest Income                                      |   | $                                     | 1,060,603 |   |                     | $      | 1,049,370 |   |   | $ | 11,233 |   |   |   | 1.1 | % |

|                                                                                     |   | Three      Months Ended September 30, |      |   | Increase |   |
|------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|----------|--------|
|                                                                                     |   | 2008                                  |      |   | 2007     |   |   | Amounts |   |   | Percent |   |
| Salaries      And Employee Benefits                                                      |   | $                                     | 2,831,272 |   |     | $      | 2,627,272 |   |   | $ | 204,000 |   |   |   | 7.8 | % |
| Occupancy                                                                                |   |                                  | 493,366   |   |     |   | 445,602 |   |   |   | 47,764 |   |   |   | 10.7 |   |
| Advertising                                                                              |   |                                  | 106,856   |   |     |   | 87,148 |   |   |   | 19,708 |   |   |   | 22.6 |   |
| Depreciation      And Maintenance   Of      Equipment                     |   |                                  | 414,910   |   |     |   | 337,091 |   |   |   | 77,819 |   |   |   |  23.1 |   |
| FDIC      Insurance Premiums                                                             |   |                                  | 191,535   |   |     |   | 14,870 |   |   |   | 176,665 |   |   |   | 1,188.1 |   |
| Amortization      of Intangibles                                                         |   |                                  | 22,500    |   |     |   | 22,500 |   |   |   | - |   |   |   | - |   |
| Mandatorily      Redeemable Financial   Instrument      Valuation Expense |   |                                  | 60,000    |   |     |   | - |   |   |   | 60,000 |   |   |   | 100.0 |   |
| Other                                                                                    |   |                                  | 954,950   |   |     |   | 846,518 |   |   |   | 108,432 |   |   |   | 12.8 |   |
| Total      General And Administrative   Expenses                          |   | $                                     | 5,075,389 |   |     | $      | 4,381,001 |   |   | $ | 694,388 |   |   |   | 15.8 | % |

----

----

|                               |   | Six      Months Ended September 30, |        |
|------------------------------------|--------|-------------------------------------|-------------|
|                               |   | 2008                                |        |   | 2007 |   |   |   |   |
|                               |   |  Average      Balance          |        |   |   Yield |   |   |  Average      Balance |   |   |   Yield |   |   | Increase      (Decrease) In      Interest And Dividend      Income From      2007 |   |
| Loans      Receivable, Net         |   | $                                   | 541,857,885 |   |   |   | 6.45 | % |   | $ | 461,466,930 |   |   |   | 7.89 | % |   | $ | (724,919 | ) |
| Mortgage-Backed      Securities    |   |                                | 207,702,241 |   |   |   | 4.83 |   |   |   | 133,869,199 |   |   |   | 4.63 |   |   |   | 1,917,075 |   |
| Investments                        |   |                                | 68,879,433  |   |   |   | 4.84 |   |   |   | 128,795,008 |   |   |   | 5.00 |   |   |   | (1,550,767 | ) |
| Overnight      Time                |   |                                | 1,216,422   |   |   |   | 1.49 |   |   |   | 1,229,756 |   |   |   | 4.54 |   |   |   | (18,825 | ) |
| Total      Interest-Earning Assets |   | $                                   | 819,655,981 |   |   |   | 5.90 | % |   | $ | 725,360,893 |   |   |   | 6.77 | % |   | $ | (377,436 | ) |
|                               |   |                                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                              |   | Six      Months Ended September 30, |        |
|-------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                              |   | 2008                                |        |   | 2007 |   |   |   |   |
|                                                              |   |  Average      Balance          |        |   |   Yield |   |   |  Average      Balance |   |   |   Yield |   |   | Increase      (Decrease) In      Interest Expense From 2007 |   |
| Now      And Money Market   Accounts               |   | $                                   | 203,195,729 |   |   |   | 1.86 | % |   | $  | 206,568,748 |   |   |   | 3.22 | % |   | $ | (1,436,939 | ) |
| Passbook      Accounts                                            |   |                                | 16,331,323  |   |   |   | 0.78 |   |   |   | 16,885,120 |   |   |   | 0.98 |   |   |   | (19,387 | ) |
| Certificates      Accounts                                        |   |                                | 329,316,486 |   |   |   | 4.39 |   |   |   | 272,917,219 |   |   |   | 5.03 |   |   |   | 362,547 |   |
| FHLB      Advances And Other   Borrowed      Money |   |                                | 223,931,674 |   |   |   |  3.80 |   |   |   | 176,912,171 |   |   |   |  4.47 |   |   |   | 300,460 |   |
| Junior      Subordinated   Debentures              |   |                                | 5,155,000   |   |   |   |  5.78 |   |   |   | 5,155,000 |   |   |   |  7.10 |   |   |   | (34,106 | ) |
| Total      Interest-Bearing   Liabilities          |   | $                                   | 777,930,212 |   |   |   | 3.49 | % |   | $  | 678,438,258 |   |   |   | 4.25 | % |   | $ | (827,425 | ) |

----

|                                                                                                                                                                                      |   | September      30, 2008 |        |   | September      30, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-------------|--------|-------------------------|--------|
| Beginning      Balance                                                                                                                                                                    |   | $                       | 8,066,762   |   |                    | $      | 7,296,791 |   |
| Provision                                                                                                                                                                                 |   |                    | 500,000     |   |                    |   | 300,000 |   |
| Charge-offs                                                                                                                                                                               |   |                    | (311,590    | )      |                    |   | (68,411 | ) |
| Recoveries                                                                                                                                                                                |   |                    | 8,163       |   |                    |   | 35,831 |   |
| Ending      Balance                                                                                                                                                                       |   | $                       | 8,263,335   |   |                    | $      | 7,564,211 |   |
|                                                                                                                                                                                      |   |                    |        |   |                    |   |   |   |
| Allowance      For Loan Losses As A Percentage Of Gross Loans Receivable   And      Loans Held For Sale At The End Of The Period                                           |   |                    | 1.41        | %      |                    |   | 1.52 | % |
| Allowance      For Loan Losses As A Percentage Of Impaired Loans At The   End      Of The Period                                                                           |   |                    | 84.41       | %      |                    |   | 780.91 | % |
| Impaired      Loans                                                                                                                                                                       |   |                    | 9,790,084   |   |                    |   | 968,641 |   |
| Nonaccrual      Loans And 90 Days Or More Past Due Loans As A   Percentage      Of Loans Receivable And Loans Held For Sale At The   End      Of The Period |   |                    | 1.55        | %      |                    |   | 0.40 | % |
| Loans      Receivable, Net                                                                                                                                                                |   | $                       | 579,132,177 |   |                    | $      | 487,144,939 |   |

----

|                                                                |   | Six      Months Ended September 30, |      |   | Increase      (Decrease) |   |
|---------------------------------------------------------------------|--------|-------------------------------------|-----------|--------|--------------------------|--------|
|                                                                |   | 2008                                |      |   | 2007                     |   |   | Amounts |   |   | Percent |   |
| Gain      On Sale Of Investments                                    |   | $                                   | 126,440   |   |                     | $      | - |   |   | $ | 126,440 |   |   |   | 100.0 | % |
| Gain      On Sale Of Loans                                          |   |                                | 227,718   |   |                     |   | 281,571 |   |   |   | (53,853 | ) |   |   | (19.1 | ) |
| Service      Fees On Deposit Accounts                               |   |                                | 557,393   |   |                     |   | 650,745 |   |   |   | (93,352 | ) |   |   | (14.3 | ) |
| Income      From Cash Value Of   Life      Insurance |   |                                | 178,492   |   |                     |   | 149,201 |   |   |   | 29,291 |   |   |   | 19.6 |   |
| Commissions      From Insurance Agency                              |   |                                | 333,130   |   |                     |   | 319,161 |   |   |   | 13,969 |   |   |   | 4.4 |   |
| Other      Agency Income                                            |   |                                | 123,018   |   |                     |   | 56,168 |   |   |   | 66,850 |   |   |   | 119.0 |   |
| Trust      Income                                                   |   |                                | 210,000   |   |                     |   | 238,625 |   |   |   | (28,625 | ) |   |   | (12.0 | ) |
| Other                                                               |   |                                | 425,619   |   |                     |   | 414,497 |   |   |   | 11,122 |   |   |   | 2.7 |   |
| Total      Non-Interest Income                                      |   | $                                   | 2,181,810 |   |                     | $      | 2,109,968 |   |   | $ | 71,842 |   |   |   | 3.4 | % |

|                                                                                     |   | Six      Months Ended September 30, |      |   | Increase |   |
|------------------------------------------------------------------------------------------|--------|-------------------------------------|-----------|--------|----------|--------|
|                                                                                     |   | 2008                                |      |   | 2007     |   |   | Amounts |   |   | Percent |   |
| Salaries      And Employee Benefits                                                      |   | $                                   | 5,615,507 |   |     | $      | 5,197,551 |   |   | $ | 417,956 |   |   |   | 8.0 | % |
| Occupancy                                                                                |   |                                | 990,686   |   |     |   | 868,113 |   |   |   | 122,573 |   |   |   | 14.1 |   |
| Advertising                                                                              |   |                                | 247,677   |   |     |   | 189,421 |   |   |   | 58,256 |   |   |   | 30.8 |   |
| Depreciation      And Maintenance   Of      Equipment                     |   |                                | 841,834   |   |     |   | 656,616 |   |   |   | 185,218 |   |   |   | 28.2 |   |
| FDIC      Insurance Premiums                                                             |   |                                | 347,345   |   |     |   | 30,197 |   |   |   | 317,148 |   |   |   | 1,050.3 |   |
| Amortization      of Intangibles                                                         |   |                                | 45,000    |   |     |   | 45,000 |   |   |   | - |   |   |   | - |   |
| Mandatorily      Redeemable Financial   Instrument      Valuation Expense |   |                                | 60,000    |   |     |   | - |   |   |   | 60,000 |   |   |   | 100.0 |   |
| Other                                                                                    |   |                                | 1,749,330 |   |     |   | 1,645,548 |   |   |   | 103,782 |   |   |   | 6.3 |   |
| Total      General And Administrative   Expenses                          |   | $                                   | 9,897,379 |   |     | $      | 8,632,446 |   |   | $ | 1,264,933 |   |   |   | 14.7 | % |

----

----

|     (Dollars      in thousands) |   |  WithinOneMonth |   |   | After      OneThroughThreeMonths |   |   | AfterThreeThroughTwelveMonths |   |   |   WithinOne      Year |   |   | GreaterThanOneYear |   |   |    Total |   |
|-----------------------------------------------------|--------|----------------------|--------|--------|----------------------------------|--------|--------|-------------------------------|--------|--------|---------------------------------|--------|--------|--------------------|--------|--------|-------------------------|--------|
| Unused      lines of credit                         |   | $                    | 2,625  |   |                             | $      | 2,531  |                          |   | $      | 35,920                          |   |   | $                  | 41,076 |   |                    | $      | 36,409 |   |   | $ | 77,485 |   |
| Standby      letters of credit                      |   |                 | 78     |   |                             |   | 229    |                          |   |   | 363                             |   |   |               | 670    |   |                    |   | 28 |   |   |   | 698 |   |
| Total                                               |   | $                    | 2,703  |   |                             | $      | 2,760  |                          |   | $      | 36,283                          |   |   | $                  | 41,746 |   |                    | $      | 36,437 |   |   | $ | 78,183 |   |

----

----

| ·          | Changes      in economic conditions, particularly a further economic slowdown in Aiken, Richland, and Lexington Counties in South      Carolina and Columbia County in Georgia,      could hurt our business. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | loan      delinquencies may increase; |
|---------------|---------------------------------------|

| o   | problem      assets and foreclosures mayincrease; |
|---------------|---------------------------------------------------|

| o   | demand      for our products and services may decline;and |
|---------------|-----------------------------------------------------------|

| o   | collateral      for loans made by us, especially real estate, may decline in value, in      turn reducing a customer’s borrowing power and reducing the value of      assets and collateral securing ourloans. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·          | Further      downturns in the real estate markets in our primary market area could hurt      our business. |
|--------------------------------|------------------------------------------------------------------------------------------------------------|

| ·          | We      may suffer losses in our loan portfolio despite our underwriting      practices. |
|--------------------------------|------------------------------------------------------------------------------------------|

----

|  ·           | We      may be required to make further increases in our provisions for loan      losses and to charge off additional loans in the future, which could      adversely affect our results ofoperations. |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      the quarter ended September 30, 2008 we recorded a provision for loan      losses of $275,000 compared to $150,000 for the quarter ended September      30, 2007, an increase of $125,000. We are experiencing increasing loan      delinquencies and credit losses.  Generally, our non-performing      loans and assets reflect operating difficulties of individual borrowers      resulting from weakness in the local economy.  In addition,      slowing housing sales have been a contributing factor to the increase in      non-performing loans as well as the increase in      delinquencies.  At September 30, 2008 our total non-performing      loans had increased to $9.8 million compared to $6.8 million at September      30, 2007.  If current trends in the housing and real estate      markets continue, we expect that we will continue to experience increased      delinquencies and credit losses.  Moreover, if a recession      occurs we expect that it would negatively impact economic conditions in      our market areas and that we could experience significantly higher      delinquencies and credit losses.  An increase in our credit      losses or our provision for loan losses would adversely affect our      financial condition and results ofoperations. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·          | If      external funds were not available, this could adversely impact our growth      and prospects. |
|--------------------------------|-------------------------------------------------------------------------------------------------------|

----

| ·          | We      may elect or be compelled to seek additional capital in the future, but      that capital may not be available when it is  needed. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | We      potentially face increased regulation of our industry. Compliance with      such regulation may increase our costs and limit our ability to pursue      business opportunities. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | The      process we use to estimate losses inherent in our credit exposure requires      difficult, subjective and complex judgments, including forecasts of      economic conditions and how these economic conditions might impair the      ability of our borrowers to repay their loans.  The level of      uncertainty concerning economic conditions may adversely affect the      accuracy of our estimates which may, in turn, impact the reliability of      the process. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | Competition      in our industry could intensify as a result of the increasing      consolidation of financial services companies in connection with current      market conditions. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·    | We      may be required to pay significantly higher FDIC premiums because market      developments have significantly depleted the insurance fund of the FDIC      and reduced the ratio of reserves to insured  deposits. |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·          | Authority      for the Federal Reserve to pay interest on depository institution      balances;                                                                        |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                                                                                                                                        |
| ·     | Mortgage      loss mitigation and homeowner protection;                                                                                                                |
|                      |                                                                                                                                                                        |
| ·          | Temporary      increase in Federal Deposit Insurance Corporation (“FDIC”) insurance      coverage from $100,000 to $250,000 through December 31, 2009;      and |

| ·     | Authority      to the Securities and Exchange Commission (the “SEC”) to suspend      mark-to-market accounting requirements for any issuer or class of category      of transactions. |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Period                                      |   | (a)      Total Number      of Shares      Purchased |   |   | (b)      Average Price      Paid per      Share |   |   | (c)      Total Number of Shares      Purchased as Part      of Publicly Announced      Program |   |   | (d)      Maximum Number of      Shares that May Yet      Be Purchased Under      the Program |   |
|---------------------------------------------|--------|-----------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
| July      1 – July 31, 2008           |   |                                                | 5,300  |   |                                            | $      | 20.60  |                                                                                           |   |   | 5,300                                                                                        |   |   |   | 124,965 |   |
| August      1 – August 31, 2008       |   |                                                | 2,575  |   |                                            | $      | 20.35  |                                                                                           |   |   | 2,575                                                                                        |   |   |   | 122,390 |   |
| September      1 – September 30, 2008 |   |                                                | 1,275  |   |                                            | $      | 20.29  |                                                                                           |   |   | 1,275                                                                                        |   |   |   | 121,115 |   |
| Total                                       |   |                                                | 9,150  |   |                                            | $      | 20.49  |                                                                                           |   |   | 9,150                                                                                        |   |   |   | 121,115 |   |

----

|   | 3.1          | Articles      Of Incorporation, as amended (1)                                       |
|--------|------------------------|------------------------------------------------------------------------------------------------|
|   | 3.2          | Bylaws      (2)                                                                      |
|   | 4            | Instruments      defining the rights of security holders, including indentures (3)   |
|   | 10.1         | 1993      Salary Continuation Agreements (4)                                         |
|   | 10.2    | Amendment      One to 1993 Salary Continuation Agreement (5)                         |
|   | 10.3         | Form      of 2006 Salary Continuation Agreement(6)                                   |
|   | 10.4              | 1999      Stock Option Plan (2)                                                           |
|   | 10.5                   | 1987      Stock Option Plan (4)                                                                |

|   | 10.6 | 2002      Stock Option Plan (7) |
|--------|------|---------------------------------|

|   | 10.7              | 2004      Employee Stock Purchase Plan (8)                                                                      |
|--------|-------------------|-----------------------------------------------------------------------------------------------------------------|
|   | 10.8         | Incentive      Compensation Plan (4)                                                                       |
|   | 10.9         | Form      of Security Federal Bank Salary Continuation Agreement (9)                                       |
|   | 10.10   | Form      of Security Federal Split Dollar Agreement (9)                                                   |
|   | 14           | Code      of Ethics (10)                                                                                   |
|   | 31.1    | Certification      of the Chief Executive Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act.  |
|   | 31.2         | Certification      of the Chief Financial Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act.  |
|   | 32           | Certifications      Pursuant to Section 906 of the Sarbanes-Oxley  Act.                                    |

| (1) | Filed      on June 26, 1998, as an exhibit to the Company’s Proxy Statement and      incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed      on March 2, 2000, as an exhibit to the Company’s Registration Statement on      Form S-8 and incorporated herein byreference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Filed      on August 12, 1987, as an exhibit to the Company’s Registration Statement      on Form 8-A and incorporated herein by  reference. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed      on June 28, 1993, as an exhibit to the Company’s Annual Report on Form      10-KSB and incorporated herein byreference. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | 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. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | 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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Filed      on June 19, 2002, as an exhibit to the Company’s Proxy Statement and      incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (8) | Filed      on June 18, 2004, as an exhibit to the Company’s Proxy Statement and      incorporated herein by reference. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Filed      on May 24, 2006 as an exhibit to the Current Report on Form 8-K and      incorporated herein by reference. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (10)   | Filed      on June 27, 2007 as an exhibit to the Company’s Annual Report on Form 10-K      and incorporated herein byreference. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                                                                                                                                                                                     |   | SECURITY      FEDERAL CORPORATION |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|
|   |                                                                                                                                                                                     |   |                              |
|   |                                                                                                                                                                                     |   |                              |
| Date:  |                   November 14,      2008                    |   | By:                     |  /s/ Timothy      W.      Simmons                                           |
|   | Timothy      W. Simmons                                                                                                                                                                  |
|   | President                                                                                                                                                                                |
|   |                                                                                                                                                                                     |

| Date:  |                 November 14,      2008                 |   | By:   | /s/Roy      G.      Lindburg                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Roy      G. Lindburg                                                                                                                                                                     |
|   | CFO                                                                                                                                                                                      |
|   |                                                                                                                                                                                     |

----

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

----

| 1.   | I      have reviewed this Quarterly Report on Form 10-Q of Security Federal      Corporation; |
|----------------|-----------------------------------------------------------------------------------------------|

| 2.   | Based      on my knowledge, this report does not contain any untrue statement of a      material fact or omit to state a material fact necessary to make the      statements made, in light of the circumstances under which such statements      were made, not misleading with respect to the period covered by this      report; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based      on my knowledge, the financial statements, and other financial information      included in this report, fairly present in all material respects the      financial condition, results of operations and cash flows of the      registrant as of, and for, the period presented in this      report; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The      registrant’s other certifying officer(s) and I are responsible for      establishing and maintaining disclosure controls and procedures (as      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant      and have: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)                  | Designed      such disclosure controls and procedures, or caused such disclosure      controls and procedures to be designed under our supervision, to ensure      that material information relating to the registrant, including its      consolidated subsidiaries, is made known to us by others within those      entities, particularly during the period in which this report is being      prepared; |
|----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)                  | Evaluated      the effectiveness of the registrant’s disclosure controls and procedures      and presented in this report our conclusions about the effectiveness of      the disclosure controls and procedures as of the end of the period covered      by this report based on such evaluation;and |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)                  | Disclosed      in this report any change in the registrant’s internal control over      financial reporting that occurred during the registrant’s most recent      fiscal quarter (the registrant’s fourth fiscal quarter in the case of an      annual report) that has materially affected, or is reasonably likely to      materially affect, the registrant’s internal control over financial      reporting; and |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The      registrant’s other certifying officer(s) and I have disclosed, based on      our most recent evaluation of internal control over financial reporting,      to the registrant’s auditors and the audit committee of the registrant’s      board of directors (or persons performing the equivalent      functions): |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)                  | All      significant deficiencies and material weaknesses in the design or      operation of internal control over financial reporting which are      reasonably likely to adversely affect the registrant’s ability to record,      process, summarize and report financial information;  and |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)                 | Any      fraud, whether or not material, that involves management or other      employees who have a significant role in the registrant’s internal control      over financial reporting. |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date: November 14,      2008  |                                                                                                                                                                                                                                                                                                                                  |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                                  |
|                               |                                                                                                                                                                                                                                                                                                                                  |
|                               | /s/Timothy      W.      Simmons                                                  |
|                               | Timothy      W. Simmons                                                                                                                                                                                                                                                                                                               |
|                               | President      and Chief Executive Officer                                                                                                                                                                                                                                                                                            |
|                               |                                                                                                                                                                                                                                                                                                                                  |

----

----

| 1.   | I      have reviewed this Quarterly Report on Form 10-Q of Security Federal      Corporation; |
|----------------|-----------------------------------------------------------------------------------------------|

| 2.   | Based      on my knowledge, this report does not contain any untrue statement of a      material fact or omit to state a material fact necessary to make the      statements made, in light of the circumstances under which such statements      were made, not misleading with respect to the period covered by this      report; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based      on my knowledge, the financial statements, and other financial information      included in this report, fairly present in all material respects the      financial condition, results of operations and cash flows of the      registrant as of, and for, the period presented in this      report; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The      registrant’s other certifying officer(s) and I are responsible for      establishing and maintaining disclosure controls and procedures (as      defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant      and have: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)                  | Designed      such disclosure controls and procedures, or caused such disclosure      controls and procedures to be designed under our supervision, to ensure      that material information relating to the registrant, including its      consolidated subsidiaries, is made known to us by others within those      entities, particularly during the period in which this report is being      prepared; |
|----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)                  | Evaluated      the effectiveness of the registrant’s disclosure controls and procedures      and presented in this report our conclusions about the effectiveness of      the disclosure controls and procedures as of the end of the period covered      by this report based on such evaluationand |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)                  | Disclosed      in this report any change in the registrant’s internal control over      financial reporting that occurred during the registrant’s most recent      fiscal quarter (the registrant’s fourth fiscal quarter in the case of an      annual report) that has materially affected, or is reasonably likely to      materially affect, the registrant’s internal control over financial      reporting; and |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The      registrant’s other certifying officer(s) and I have disclosed, based on      our most recent evaluation of internal control over financial reporting,      to the registrant’s auditors and the audit committee of the registrant’s      board of directors (or persons performing the equivalent      functions): |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)                  | All      significant deficiencies and material weaknesses in the design or      operation of internal control over financial reporting which are      reasonably likely to adversely affect the registrant’s ability to record,      process, summarize and report financial information;  and |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)                  | Any      fraud, whether or not material, that involves management or other      employees who have a significant role in the registrant’s internal control      over financial reporting. |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:      November 14, 2008  |                                                                                                                                                                                                                                                             |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                             |
|                               |                                                                                                                                                                                                                                                             |
|                               | /s/Roy      G.      Lindburg                                       |
|                               | Roy      G. LindburgChief      Financial Officer                                                                                                                                                                                                                 |

----

----

| 1.   | the      Report fully complies with the requirements of Section 13(a) and 15(d) of      the Securities Exchange Act of 1934, as amended,  and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | the      information contained in the Report fairly presents, in all material      respects, the Company’s financial condition and results of operations as      of the dates and for the periods presented in the financial statements      included in the Report. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  /s/Timothy      W.      Simmons                                     |   | /s/Roy      G.      Lindburg                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Timothy      W. Simmons                                                                                                                                                                                                                                       |   | Roy      G. Lindburg                                                                                                                                                                                                                                                   |
| Chief      Executive Officer                                                                                                                                                                                                                                  |   | Chief      Financial Officer                                                                                                                                                                                                                                           |

----