----

|                                                                                                  |   |                   |
|-------------------------------------------------------------------------------------------------------|--------|------------------------|
| Letter      from the President                                                                        |   | 2                      |
| Selected      Consolidated Financial and Other Data                                                   |   | 3                      |
| Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |   | 5                      |
| Report      of Independent Registered Public Accounting Firm                                          |   | F-2                    |
| Consolidated      Statements of Financial Condition                                                   |   | F-3                    |
| Consolidated      Statements of Income                                                                |   | F-4                    |
| Consolidated      Statements of Equity                                                                |   | F-5                    |
| Consolidated      Statements of Cash Flows                                                            |   | F-6                    |
| Notes      to Consolidated Financial Statements                                                       |   | F-7                    |
| Stockholder      Information                                                                          |   | Inside      Back Cover |
| Directors      and Officers                                                                           |   | Inside      Back Cover |

----

----

|                                                 |   |                        |   |   |   |   |   |   |   |
|------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                 |   | At      December 31,        |   |
|                                                 |   |                        |   |   |   |   |   |   |   |
|                                                 |   | 2008                        |   |   | 2007   |   |   | 2006   |   |
|                                                 |   | (Dollars      in thousands) |   |
| Selected      Financial Condition Data:              |   |                        |   |   |   |   |   |   |   |
|                                                 |   |                        |   |   |   |   |   |   |   |
| Total      assets                                    |   | $                           | 21,798 |   |   | $      | 18,427 |   |   | $ | 18,209 |   |
| Cash      and cash equivalents                       |   |                        | 594    |   |   |   | 136    |   |   |   | 149 |   |
| Interest      earning deposits in other institutions |   |                        | 4,800  |   |   |   | 2,750  |   |   |   | 1,600 |   |
| Loans      receivable, net                           |   |                        | 10,041 |   |   |   | 9,001  |   |   |   | 8,778 |   |
| Available-for-sale      securities                   |   |                        | 5,284  |   |   |   | 5,991  |   |   |   | 7,187 |   |
| Deposits                                             |   |                        | 16,226 |   |   |   | 12,890 |   |   |   | 12,797 |   |
| Equity                                               |   |                        | 5,505  |   |   |   | 5,483  |   |   |   | 5,374 |   |

|                                                     |   | For      the Year Ended December 31, |   |
|----------------------------------------------------------|--------|--------------------------------------|--------|
|                                                     |   |                                 |   |   |   |   |   |   |   |
|                                                     |   | 2008                                 |   |   | 2007 |   |   | 2006 |   |
|                                                     |   | (Dollars      in thousands)          |   |
| Selected      Operating Data:                            |   |                                 |   |   |   |   |   |   |   |
|                                                     |   |                                 |   |   |   |   |   |   |   |
| Interest      and dividend income                        |   | $                                    | 924    |   |   | $ | 945 |   |   | $ | 847 |   |
| Interest      expense                                    |   |                                 | 441    |   |   |   | 487 |   |   |   | 363 |   |
| Net      interest income                                 |   |                                 | 483    |   |   |   | 458 |   |   |   | 484 |   |
| Provision      for loan losses                           |   |                                 | 4      |   |   |   | 8 |   |   |   | 5 |   |
| Net      interest income after provision for loan losses |   |                                 | 479    |   |   |   | 450 |   |   |   | 479 |   |
| Non-interest      income                                 |   |                                 | 5      |   |   |   | 2 |   |   |   | 2 |   |
| Non-interest      expense                                |   |                                 | 564    |   |   |   | 449 |   |   |   | 462 |   |
|                                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before income tax expense             |   |                                 | (80    | ) |   |   | 3 |   |   |   | 19 |   |
| Credit      for income tax                               |   |                                 | (9     | ) |   |   | (3 | ) |   |   | (2 | ) |
|                                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                   |   | $                                    | (71    | ) |   | $ | 6 |   |   | $ | 21 |   |

----

|                                                                               |   | At      or For the Years Ended December 31, |    |
|------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                               |   | 2008                                        |    |   | 2007 |   |   | 2006 |   |
|                                                                               |   |                                        |    |   |   |   |   |   |   |
| Selected      Financial Ratios and Other Data:                                     |   |                                        |    |   |   |   |   |   |   |
|                                                                               |   |                                        |    |   |   |   |   |   |   |
| Performance      Ratios:                                                           |   |                                        |    |   |   |   |   |   |   |
| Return      on assets (ratio of net income (loss) to average total    assets)      |   |                                        | (0.38   | )% |   |   | 0.03 | % |   |   | 0.12 | % |
| Return      on equity (ratio of net income (loss) to average equity)               |   |                                        | (1.30   | )% |   |   | 0.11 | % |   |   | 0.40 | % |
| Interest rate spread      (1)                                                      |   |                                        | 1.75    | % |   |   | 1.45 | % |   |   | 1.93 | % |
| Net interest margin      (2)                                                       |   |                                        | 2.69    | % |   |   | 2.54 | % |   |   | 2.87 | % |
| Efficiency ratio      (3)                                                          |   |                                        | 115.57  | % |   |   | 97.61 | % |   |   | 95.06 | % |
| Non-interest      expense to average total assets                                  |   |                                        | 3.01    | % |   |   | 2.45 | % |   |   | 2.70 | % |
| Average      interest-earnings assets to average interest-bearing      liabilities |   |                                        | 138.26  | % |   |   | 140.35 | % |   |   | 143.82 | % |
| Loans      to deposits                                                             |   |                                        | 61.88   | % |   |   | 69.83 | % |   |   | 68.59 | % |
|                                                                               |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Asset      Quality Ratios:                                                         |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Non-performing      assets to total assets                                         |   |                                        | — | % |   |   | — | % |   |   | — | % |
| Non-performing      loans to total loans                                           |   |                                        | — | % |   |   | — | % |   |   | — | % |
| Allowance      for loan losses to non-performing loans                             |   |                                        | N/A     |   |   |   | N/A |   |   |   | N/A |   |
| Allowance      for loan losses to total loans                                      |   |                                        | 0.22    | % |   |   | 0.20 | % |   |   | 0.11 | % |
|                                                                               |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Capital      Ratio:                                                                |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Average      equity to average assets                                              |   |                                        | 29.15   | % |   |   | 29.18 | % |   |   | 30.89 | % |
| Equity      to total assets at end of period                                       |   |                                        | 25.27   | % |   |   | 29.76 | % |   |   | 29.51 | % |
| Total      capital to risk-weighted assets                                         |   |                                        | 65.50   | % |   |   | 85.30 | % |   |   | 82.30 | % |
| Tier      1 capital to risk-weighted assets                                        |   |                                        | 65.30   | % |   |   | 85.00 | % |   |   | 82.10 | % |
| Tier      1 capital to average assets                                              |   |                                        | 25.00   | % |   |   | 30.00 | % |   |   | 30.00 | % |
|                                                                               |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                                   |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Number      of full service offices                                                |   |                                        | 1       |   |   |   | 1 |   |   |   | 1 |   |

|   | (1) | Represents      the difference between the weighted-average yield on interest-earnings      assets and the weighted-average cost of interest-bearing liabilities for      the period. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | The      net interest margin represents net interest income as a percent of average      interest-earning assets for the period.                                                      |
|   | (3) | The      efficiency ratio represents non-interest expense divided by the sum of net      interest income and non-interestincome.                                                      |

----

----

----

|   |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Highlights      of our business strategy are as follows: |
|   |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | ●                                                  | Continuing      to Emphasize Residential Real Estate Lending. Historically, we have      emphasized one- to four-family, fixed-rate residential lending within our      market area. As of December 31, 2008, $9.7 million, or 96.7%, of our total      loan portfolio consisted of one- to four-family residential mortgage      loans. During the years ended December 31, 2008 and 2007, we originated      $2.4 million and $964,000, respectively, of one- to four-family      residential mortgage loans. In addition, to a lesser extent, we originate      construction/permanent loans and second mortgage loans. We intend to      continue to emphasize residential real estate lending, although we will      expand and diversify the types of loans we originate for our portfolio. We      intend to implement a program to originate adjustable-rate residential      mortgage loans. In addition, we expect to sell a portion of our fixed-rate      residential loan originations in the secondary market. We believe our      focus on residential real estate lending, which carries a lower credit      risk than commercial real estate and consumer loans, contributes to our      high asset quality.                                                                                                                                                                                                                                                                             |
|   |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | ●                                                  | Grow      andDiversify      our Loan Portfolio by Originating Commercial Real Estate Loans,      Construction Loans, and Consumer Loans. Our business plan      anticipates that we will emphasize the origination of commercial real      estate loans. These loans provide higher returns than loans secured by      one- to four-family real estate. Commercial real estate loans, however,      involve a greater degree of credit risk than one- to four-family      residential mortgage loans. Because      payments on these loans are often dependent on the successful operation or      management of the properties or business, repayment of such loans may be      subject to adverse conditions in the real estate market or the economy. We      have recently hired a commercial loan officer with experience in      commercial real estate lending. We also intend to increase our      originations of construction loans, and a variety of consumer loans,      including second mortgage and home equity lines of credit, and to a lesser      extent automobile, boat and recreational vehicle loans. As of December 31,      2008, $209,000, or 2.1%, of our loan portfolio consisted of second      mortgage loans. At that date, our commercial real estate loans totaled      $100,000 or 1.00% of our loan portfolio, commercial business loans totaled      $200,000 or 2.0% of our loan portfolio, and other loans totaled $28,000 or      0.3% of our loan portfolio. |
|   |                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                     | Continue      to Maintain Strong Asset Quality. We believe that maintaining high      asset quality is a key to long-term financial success. We have sought to      grow our loan portfolio while keeping nonperforming assets to a minimum.      We use underwriting standards that we believe are conservative, and we      diligently monitor collection efforts. At December 31, 2008, we did not      have any nonperforming loans in our loan portfolio. Although we intend to      diversify our lending activities by emphasizing commercial real estate      loans, construction loans and consumer loans after the stock offering, we      intend to maintain our conservative approach to underwriting      loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

|   | ● | Building      Core and Other Deposits. We currently offer NOW accounts, savings      accounts and certificates of deposit. At December 31, 2008, certificates      of deposit represented 67.8% of our total deposits. We intend to introduce      new commercial checking accounts and focus on growing transaction deposit      accounts after the conversion. Checking accounts, NOW accounts and savings      accounts are generally lower-cost sources of funds than certificate of      deposits and are less sensitive to withdrawal when interest rates      fluctuate. As we grow our commercial loan portfolio, we expect to attract      core deposits from our new commercial loan      customers. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ● | Offering      New Products and Services. We are currently developing new products      for our customers, including debit cards and on-line banking. We began      offering debit cards in the fourth quarter of 2008. We anticipate      implementing an online banking program in 2009. We expect that these new      products will help to maintain and increase our deposit base and will      attract business and retail customers.                                                                                                                                                                                                                                                                      |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ● | Expanding      Market Presence through New Offices. We intend to pursue      opportunities to expand our franchise in our market area by opening      additional banking offices and, possibly, through acquisitions of other      financial institutions and banking related businesses. Our business plan      contemplates opening a new branch office in St. Joseph, Missouri in 2010.      The costs anticipated to be incurred to open a new branch office are      expected to be approximately $1.0 million. We have no current plans,      understandings or agreements with respect to any      acquisitions.                                                                                        |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ● | Maintaining      a Strong Capital Position. Our policy has always been to protect      the safety and soundness of our institution through conservative risk      management, sound operations and a strong capital position. We have      consistently maintained capital in excess of regulatory requirements. Our      equity to total assets ratio was 25.3% at December 31,      2008.                                                                                                                                                                                                                                                                                                                    |

----

----

----

|                                                                    |   | Years      Ended December 31, |   |
|-------------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                    |   | 2008                          |   |   | 2007 |   |
|                                                                    |   | AverageOutstandingBalance     |   |   | Interest |   |   | Yield/Cost |   |   | AverageOutstandingBalance |   |   | Interest |   |   | Yield/      Cost |   |
|                                                                    |   | (Dollars      in thousands)   |   |
| Interest-earning      assets:                                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                   |   | $                             | 9,873  |   |   | $ | 616 |   |   |   | 6.24 | % |   | $ | 8,740 |   |   | $ | 547 |   |   |   | 6.26 | % |
| Available      for sale securities                                      |   |                          | 5,053  |   |   |   | 231 |   |   |   | 4.57 |   |   |   | 6,673 |   |   |   | 302 |   |   |   | 4.53 |   |
| FHLB      stock                                                         |   |                          | 82     |   |   |   | 5 |   |   |   | 6.10 |   |   |   | 143 |   |   |   | 6 |   |   |   | 4.20 |   |
| Interest-earning      deposits                                          |   |                          | 2,922  |   |   |   | 72 |   |   |   | 2.46 |   |   |   | 2,501 |   |   |   | 90 |   |   |   | 3.60 |   |
| Total      interest-earning assets                                      |   |                          | 17,930 |   |   |   | 924 |   |   |   | 5.15 |   |   |   | 18,057 |   |   |   | 945 |   |   |   | 5.23 |   |
| Non-interest-earning      assets                                        |   |                          | 815    |   |   |   |   |   |   |   |   |   |   |   | 276 |   |   |   |   |   |   |   |   |   |
| Total      assets                                                       |   | $                             | 18,745 |   |   |   |   |   |   |   |   |   |   | $ | 18,333 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                      |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      deposits                                                   |   | $                             | 2,332  |   |   |   | 29 |   |   |   | 1.24 |   |   | $ | 2,227 |   |   |   | 27 |   |   |   | 1.21 |   |
| Money      market/NOW accounts                                          |   |                          | 298    |   |   |   | 3 |   |   |   | 1.01 |   |   |   | 221 |   |   |   | 2 |   |   |   | 0.90 |   |
| Certificates      of deposit                                            |   |                          | 10,338 |   |   |   | 409 |   |   |   | 3.96 |   |   |   | 10,418 |   |   |   | 458 |   |   |   | 4.40 |   |
| Total      deposits                                                     |   |                          | 12,968 |   |   |   | 441 |   |   |   | 3.40 |   |   |   | 12,866 |   |   |   | 487 |   |   |   | 3.79 |   |
| Total      interest-bearing liabilities                                 |   |                          | 12,968 |   |   |   |   |   |   |   |   |   |   |   | 12,866 |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing      liabilities                                   |   |                          | 313    |   |   |   |   |   |   |   |   |   |   |   | 118 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                  |   |                          | 13,281 |   |   |   |   |   |   |   |   |   |   |   | 12,984 |   |   |   |   |   |   |   |   |   |
| Equity                                                                  |   |                          | 5,464  |   |   |   |   |   |   |   |   |   |   |   | 5,349 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and retained earnings                            |   | $                             | 18,745 |   |   |   |   |   |   |   |   |   |   | $ | 18,333 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                |   |                          |   |   |   | $ | 483 |   |   |   |   |   |   |   |   |   |   | $ | 458 |   |   |   |   |   |
| Net interest rate      spread (1)                                       |   |                          |   |   |   |   |   |   |   |   | 1.75 | % |   |   |   |   |   |   |   |   |   |   | 1.45 | % |
| Net interest-earning      assets (2)                                    |   | $                             | 4,962  |   |   |   |   |   |   |   |   |   |   | $ | 5,191 |   |   |   |   |   |   |   |   |   |
| Net interest margin      (3)                                            |   |                          |   |   |   |   |   |   |   |   | 2.69 | % |   |   |   |   |   |   |   |   |   |   | 2.54 | % |
| Average      of interest-earning assets to interest-bearing liabilities |   |                          |   |   |   |   |   |   |   |   | 138.26 | % |   |   |   |   |   |   |   |   |   |   | 140.35 | % |

|   | (1) | Represents      the difference between the weighted-average yield on interest-earning      assets and the weighted-average cost of interest-bearings liabilities for      the period. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | Net      interest-earning assets represent the net effect of total interest-earning      deposits and total interest-bearing liabilities.                                             |
|   | (3) | The      net interest margin represents net interest income as a percent of average      interest-earning assets for theperiod.                                                       |

----

|                                      |   |                                            |   |   |                        |   |    |   |   |
|-------------------------------------------|--------|-------------------------------------------------|--------|--------|-----------------------------|--------|---------|--------|--------|
|                                      |   | Years      Ended December 31,2008      vs. 2007 |   |
|                                      |   | Increase      (Decrease) Dueto                  |   |   | TotalIncrease(Decrease)Rate |   |
|                                      |   | Volume                                          |   |   | Rate                        |   |
|                                      |   | (Dollars      in thousands)                     |   |
|                                      |   |                                            |   |   |                        |   |    |   |   |
| Interest-earning      assets:             |   |                                            |   |   |                        |   |    |   |   |
| Loans                                     |   | $                                               | 71     |   |                        | $      | (2      | )      |   | $ | 69 |   |
| Available      for sale securities        |   |                                            | (73    | )      |                        |   | 3       |   |   |   | (70 | ) |
| FHLB      stock                           |   |                                            | (3     | )      |                        |   | 2       |   |   |   | (1 | ) |
| Interest-earning      deposits            |   |                                            | 15     |   |                        |   | (33     | )      |   |   | (18 | ) |
| Total      interest-earning assets        |   |                                            | 10     |   |                        |   | (30     | )      |   |   | (20 | ) |
|                                      |   |                                            |   |   |                        |   |    |   |   |   |   |   |
| Interest-bearing      liabilities:        |   |                                            |   |   |                        |   |    |   |   |   |   |   |
| Savings      deposits                     |   |                                            | 1      |   |                        |   | — |   |   |   | 1 |   |
| NOW      accounts                         |   |                                            | 1      |   |                        |   | — |   |   |   | 1 |   |
| Certificates      of deposit              |   |                                            | (4     | )      |                        |   | (44     | )      |   |   | (48 | ) |
| Total      deposits                       |   |                                            | (2     | )      |                        |   | (44     | )      |   |   | (46 | ) |
| Total      interest-bearing liabilities   |   |                                            | (2     | )      |                        |   | (44     | )      |   |   | (46 | ) |
| Change      in net interest income (loss) |   | $                                               | 12     |   |                        | $      | 14      |   |   | $ | 26 |   |

----

|    |                                                                                                                                                                                                             |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | We      maintain relatively high levels of short-term liquid assets. At December      31, 2008, our short-term liquid assets totaled $5.4    million;                                                            |
|    |                                                                                                                                                                                                             |
| ● | We      lengthen the weighted average maturity of our liabilities through retail      deposit pricing strategies;                                                                                                |
|    |                                                                                                                                                                                                             |
| ● | We      invest in shorter- to medium-term securities and in securities with      step-up rate features providing for increased interest rates prior to      maturity according to a pre-determined schedule; and |
|    |                                                                                                                                                                                                             |
| ● | We      maintain high levels ofcapital.                                                                                                                                                                          |

----

|                                                     |   |                        |              |                                          |                            |                                                        |    |   |   |    |   |   |   |   |   |    |   |
|----------------------------------------------------------|--------|-----------------------------|-------------------|-----------------------------------------------|---------------------------------|-------------------------------------------------------------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
| Change      inInterest      Rates(basis      points) (1) |   | EstimatedNPV      (2)       |              | Estimated      Increase(Decrease)      in NPV |                            | NPV      as a Percentage ofPresent      Value of Assets (3) |    |
|                                                     |   |                        | NPV      Ratio(4) |                                          | Change      inBasis      Points |                                                        |
|                                                     |   | Amount                      |              | Percent                                       |                            |                                                        |    |
|                                                     |   | (Dollars      in thousands) |              |
| +300                                                     |   |                        | $                 | 5,185                                         |                            | $                                                           | (789    | )      |   | (13     | )%     |   | 24.09  | %      |   | (209    | )      |
| +200                                                     |   |                        |              | 5,574                                         |                            |                                                        | (400    | )      |   | (7      | )      |   | 25.25  |   |   | (93     | )      |
| +100                                                     |   |                        |              | 5,839                                         |                            |                                                        | (135    | )      |   | (2      | )      |   | 25.94  |   |   | (24     | )      |
| +50                                                      |   |                        |              | 5,917                                         |                            |                                                        | (58     | )      |   | (1      | )      |   | 26.10  |   |   | (8      | )      |
| 0                                                        |   |                        |              | 5,974                                         |                            |                                                        | — |   |   | — |   |   | 26.18  |   |   | — |   |
| -50                                                      |   |                        |              | 5,996                                         |                            |                                                        | 22      |   |   | — |   |   | 26.15  |   |   | (3      | )      |
| -100                                                     |   |                        |              | 6,008                                         |                            |                                                        | 33      |   |   | 1       |   |   | 26.11  |   |   | (7      | )      |

----

| (1) |   | Assumes      an instantaneous uniform change in interest rates at all      maturities.                                         |
|-----|--------|--------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | NPV      is the discounted present value of expected cash flows from assets,      liabilities and off-balance sheet contracts. |
| (3) |   | Present      value of assets represents the discounted present value of incoming cash      flows on interest-earning assets.   |
| (4) |   | NPV      Ratio represents NPV divided by the present value of    assets.                                                       |

----

----

----

----

|                                                         |   |       |
|--------------------------------------------------------------|--------|------------|
| Contents                                                     |   |       |
|                                                         |   |       |
| Report      of Independent Registered Public Accounting Firm |   | F-      2  |
|                                                         |   |       |
| Consolidated      Financial Statements                       |   |       |
|                                                         |   |       |
| Balance      Sheets                                          |   | F -      3 |
|                                                         |   |       |
| Statements      of Income                                    |   | F -      4 |
|                                                         |   |       |
| Statements      of Equity                                    |   | F -      5 |
|                                                         |   |       |
| Statements      of Cash Flows                                |   | F -      6 |
|                                                         |   |       |
| Notes      to Consolidated Financial Statements              |   | F -      7 |

----

|                                           |   |
|------------------------------------------------|--------|
|                                                |   |
| 120      W. 12th      Street, Suite 1200       |
| Kansas      City, MO 64105-1936                |
| 816.221.6300 Fax      816.221.6380 www.bkd.com |

----

|   |              |
|--------|-------------------|
|   | /s/ BKD,      llp |

|   |   |
|--------|--------|
|        |        |

----

|                                                                                                                          |   |   |       |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                                                                          |   | 2008   |       |   | 2007   |   |
|                                                                                                                          |   |   |       |   |   |   |
| Assets                                                                                                                        |   |   |       |   |   |   |
|                                                                                                                          |   |   |       |   |   |   |
| Cash      and due from banks                                                                                                  |   | $      | 594,352    |   |   | $      | 136,272 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                |   |   | 594,352    |   |   |   | 136,272 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Interest-earning      deposits in other institutions                                                                          |   |   | 4,800,000  |   |   |   | 2,750,000 |   |
| Available-for-sale      securities                                                                                            |   |   | 5,284,222  |   |   |   | 5,991,162 |   |
| Loans,      net of allowance for loan losses of $22,000 and $18,000 at December 31,      2008 and 2007, respectively          |   |   | 10,041,270 |   |   |   | 9,000,862 |   |
| Premises      and equipment, net                                                                                              |   |   | 394,334    |   |   |   | 254,720 |   |
| Federal      Home Loan Bank Stock, at cost                                                                                    |   |   | 22,200     |   |   |   | 142,500 |   |
| Interest      receivable                                                                                                      |   |   | 86,738     |   |   |   | 85,603 |   |
| Deferred      Income Taxes                                                                                                    |   |   | —    |   |   |   | 26,561 |   |
| Prepaid      Income Taxes                                                                                                     |   |   | 9,654      |   |   |   | — |   |
| Prepaid      conversion costs                                                                                                 |   |   | 503,109    |   |   |   | — |   |
| Other                                                                                                                         |   |   | 61,711     |   |   |   | 39,797 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Total      assets                                                                                                             |   | $      | 21,797,590 |   |   | $      | 18,427,477 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Liabilities      and Equity                                                                                                   |   |   |       |   |   |   |   |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Liabilities                                                                                                                   |   |   |       |   |   |   |   |   |
| Deposits                                                                                                                      |   |   |       |   |   |   |   |   |
| Savings,      NOW and money market                                                                                            |   | $      | 3,086,110  |   |   | $      | 2,266,323 |   |
| Time                                                                                                                          |   |   | 11,003,904 |   |   |   | 10,623,315 |   |
| Subscription      Proceeds                                                                                                    |   |   | 2,136,104  |   |   |   | — |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Total      deposits                                                                                                           |   |   | 16,226,118 |   |   |   | 12,889,638 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Advances      from borrowers for taxes and insurance                                                                          |   |   | 12,061     |   |   |   | 10,635 |   |
| Interest      payable                                                                                                         |   |   | 4,167      |   |   |   | 6,549 |   |
| Deferred      Income Taxes                                                                                                    |   |   | 2,815      |   |   |   | — |   |
| Other      liabilities                                                                                                        |   |   | 47,020     |   |   |   | 38,071 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Total      liabilities                                                                                                        |   |   | 16,292,181 |   |   |   | 12,944,893 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Equity                                                                                                                        |   |   |       |   |   |   |   |   |
| Retained      earnings                                                                                                        |   |   | 5,428,846  |   |   |   | 5,499,689 |   |
| Accumulated      other comprehensive income (loss):                                                                           |   |   |       |   |   |   |   |   |
| Unrealized      gain (loss) on available-for-sale securities net of income taxes of      $(19,298) in 2008 and $8,100 in 2007 |   |   | 76,563     |   |   |   | (17,105 | ) |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Total      equity                                                                                                             |   |   | 5,505,409  |   |   |   | 5,482,584 |   |
|                                                                                                                          |   |   |       |   |   |   |   |   |
| Total      liabilities and equity                                                                                             |   | $      | 21,797,590 |   |   | $      | 18,427,477 |   |

----

|                                                     |   |   |    |   |   |   |    |   |   |
|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                     |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|                                                     |   |   |    |   |   |   |    |   |   |
| Interest      Income                                     |   |   |    |   |   |   |    |   |   |
| Interest      and fees on loans                          |   | $      | 616,392 |   |   | $      | 547,484 |   |   | $ | 415,746 |   |
| Available-for-sale      securities                       |   |   | 230,516 |   |   |   | 301,842 |   |   |   | 334,012 |   |
| Interest-earning      deposits                           |   |   | 71,993  |   |   |   | 89,316  |   |   |   | 91,528 |   |
| Federal      Home Loan Bank dividends                    |   |   | 4,796   |   |   |   | 6,163   |   |   |   | 5,455 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      interest income                               |   |   | 923,697 |   |   |   | 944,805 |   |   |   | 846,741 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest      Expense                                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Deposits                                                 |   |   | 440,564 |   |   |   | 486,954 |   |   |   | 362,865 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      Interest Income                                 |   |   | 483,133 |   |   |   | 457,851 |   |   |   | 483,876 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Provision      for loan losses                           |   |   | 4,000   |   |   |   | 8,000   |   |   |   | 5,000 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      Interest Income After Provision for Loan Losses |   |   | 479,133 |   |   |   | 449,851 |   |   |   | 478,876 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Noninterest      Income                                  |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Other                                                    |   |   | 5,176   |   |   |   | 2,156   |   |   |   | 1,884 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      noninterest income                            |   |   | 5,176   |   |   |   | 2,156   |   |   |   | 1,884 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Noninterest      Expense                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Salaries      and employee benefits                      |   |   | 366,652 |   |   |   | 279,680 |   |   |   | 286,376 |   |
| Net      occupancy expense                               |   |   | 72,158  |   |   |   | 57,897  |   |   |   | 62,006 |   |
| Deposit      insurance premium                           |   |   | 1,780   |   |   |   | 1,523   |   |   |   | 1,438 |   |
| Depreciation                                             |   |   | 12,316  |   |   |   | 7,415   |   |   |   | 4,971 |   |
| Other                                                    |   |   | 111,472 |   |   |   | 102,289 |   |   |   | 107,104 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      noninterest expense                           |   |   | 564,378 |   |   |   | 448,804 |   |   |   | 461,895 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Income      (Loss) Before Income Taxes                   |   |   | (80,069 | )      |   |   | 3,203   |   |   |   | 18,865 |   |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Credit      for Income Taxes                             |   |   | (9,226  | )      |   |   | (2,792  | )      |   |   | (2,253 | ) |
|                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Net      Income (Loss)                                   |   | $      | (70,843 | )      |   | $      | 5,995   |   |   | $ | 21,118 |   |

----

|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |
|--------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|-----------|-------------------------------------------------|--------|--------|-------------------|--------|
|                                                                                                         |   | ComprehensiveIncome |    |   | Retained      Earnings |   |      | AccumulatedOtherComprehensiveIncome      (Loss) |   |   | Total      Equity |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |
| Balance,      January 1, 2006                                                                                |   | $                   | — |   |                   |   | 5,472,576 |                                            |   | $      | (135,245          | )      |   | $ | 5,337,331 |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Net      income                                                                                              |   |                | 21,118  |   |                   |   | 21,118    |                                            |   |   | —           |   |   |   | 21,118 |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Change      in unrealized appreciation of available-for-sale securities, net of income      taxes of $7,500  |   |                | 15,940  |   |                   |   | —   |                                            |   |   | 15,940            |   |   |   | 15,940 |   |
|                                                                                                         |   | $                   | 37,058  |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Balance,      December 31, 2006                                                                              |   |                |    |   |                   |   | 5,493,694 |                                            |   |   | (119,305          | )      |   | $ | 5,374,389 |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Net      income                                                                                              |   |                | 5,995   |   |                   |   | 5,995     |                                            |   |   | —           |   |   |   | 5,995 |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Change      in unrealized appreciation of available-for-sale securities, net of income      taxes of $48,100 |   |                | 102,200 |   |                   |   | —   |                                            |   |   | 102,200           |   |   |   | 102,200 |   |
|                                                                                                         |   | $                   | 108,195 |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Balance,      December 31, 2007                                                                              |   |                |    |   |                   |   | 5,499,689 |                                            |   |   | (17,105           | )      |   |   | 5,482,584 |   |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Net      loss                                                                                                |   |                | (70,843 | )      |                   |   | (70,843   | )                                               |   |   | —           |   |   |   | (70,843 | ) |
|                                                                                                         |   |                |    |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Change      in unrealized appreciation of available-for-sale securities, net of income      taxes of $27,398 |   |                | 93,688  |   |                   |   | —   |                                            |   |   | 93,668            |   |   |   | 93,668 |   |
|                                                                                                         |   | $                   | 22,845  |   |                   |   |      |                                            |   |   |              |   |   |   |   |   |
| Balance,      December 31, 2008                                                                              |   |                |    |   |                   | $      | 5,428,846 |                                            |   | $      | 76,563            |   |   | $ | 5,505,409 |   |

----

|                                                                                        |   |   |       |   |   |   |       |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                                        |   | 2008   |       |   | 2007   |   |       | 2006   |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |
| Operating      Activities                                                                   |   |   |       |   |   |   |       |   |   |
| Net      income (loss)                                                                      |   | $      | (70,843    | )      |   | $      | 5,995      |   |   | $ | 21,118 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |       |   |   |   |       |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |   | 22,792     |   |   |   | 7,415      |   |   |   | 4,971 |   |
| Amortization      and accretion of securities                                               |   |   | 1,409      |   |   |   | 8,924      |   |   |   | 10,467 |   |
| Provision      for loan losses                                                              |   |   | 4,000      |   |   |   | 8,000      |   |   |   | 5,000 |   |
| Loss      on disposal of premises and equipment                                             |   |   | 50         |   |   |   | 3,795      |   |   |   | — |   |
| Deferred      income taxes                                                                  |   |   | 1,978      |   |   |   | (6,467     | )      |   |   | (2,253 | ) |
| Changes      in:                                                                            |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      receivable                                                                    |   |   | (1,135     | )      |   |   | (14,422    | )      |   |   | (2,090 | ) |
| Prepaid      income taxes                                                                   |   |   | (9,654     | )      |   |   | —    |   |   |   | — |   |
| Other      assets                                                                           |   |   | (21,914    | )      |   |   | (24,573    | )      |   |   | 1,447 |   |
| Other      liabilities and interest payable                                                 |   |   | 6,567      |   |   |   | 18,702     |   |   |   | (163 | ) |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                                    |   |   | (66,750    | )      |   |   | 7,369      |   |   |   | 38,497 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Investing      Activities                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      increase in loans                                                                  |   |   | (1,042,989 | )      |   |   | (230,293   | )      |   |   | (3,597,727 | ) |
| Purchases      of securities                                                                |   |   | (1,996,250 | )      |   |   | (205,000   | )      |   |   | — |   |
| Net      purchases of interest-earning deposits                                             |   |   | (2,050,000 | )      |   |   | (1,150,000 | )      |   |   | (275,000 | ) |
| Proceeds      from maturities of securities                                                 |   |   | 2,000,000  |   |   |   | 500,000    |   |   |   | 1,000,000 |   |
| Proceeds      from membership stock repurchase                                              |   |   | 120,300    |   |   |   | —    |   |   |   | — |   |
| Principal      reductions of mortgage backed securities                                     |   |   | 821,428    |   |   |   | 1,042,449  |   |   |   | 1,006,898 |   |
| Proceeds      from disposal of property and equipment                                       |   |   | —    |   |   |   | —    |   |   |   | 13,754 |   |
| Purchases      of property and equipment                                                    |   |   | (162,456   | )      |   |   | (69,156    | )      |   |   | (31,234 | ) |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash used in investment activities                                                 |   |   | (2,309,967 | )      |   |   | (112,000   | )      |   |   | (1,883,309 | ) |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Financing      Activities                                                                   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      increase (decrease) in savings, NOW                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| and      money market accounts                                                              |   |   | 819,787    |   |   |   | (406,189   | )      |   |   | (571,946 | ) |
| Net      increase in time deposits                                                          |   |   | 380,589    |   |   |   | 498,582    |   |   |   | 2,315,870 |   |
| Net      increase in prepaid conversion costs                                               |   |   | (503,109   | )      |   |   | —    |   |   |   | — |   |
| Net      increase in subscription proceeds deposits                                         |   |   | 2,136,104  |   |   |   | —    |   |   |   | — |   |
| Net      increase (decrease) in advances from borrowers for taxes and      insurance        |   |   | 1,426      |   |   |   | (646       | )      |   |   | 5,231 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash provided by financing activities                                              |   |   | 2,834,797  |   |   |   | 91,747     |   |   |   | 1,749,155 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Increase      (Decrease) in Cash and Cash Equivalents                                       |   |   | 458,080    |   |   |   | (12,884    | )      |   |   | (95,657 | ) |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      and Cash Equivalents, Beginning of Year                                           |   |   | 136,272    |   |   |   | 149,156    |   |   |   | 244,813 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      and Cash Equivalents, End of Year                                                 |   | $      | 594,352    |   |   | $      | 136,272    |   |   | $ | 149,156 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Supplemental      Cash Flows Information                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      paid                                                                          |   | $      | 436,895    |   |   | $      | 489,419    |   |   | $ | 381,545 |   |
|                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
| Income      taxes paid (net of refunds)                                                     |   | $      | 924        |   |   | $      | 2,334      |   |   | $ | 1,046 |   |

----

|   |         |                                                                        |
|--------|--------------|-----------------------------------------------------------------------------|
|   | Note      1: | Nature      of Operations and Summary of Significant Accounting    Policies |

| Nature      of Operations        |
|----------------------------------|
|                             |
|                             | Midwest      Federal Savings and Loan Association (The Association) was incorporated in      1923 for the purpose of providing and servicing loans and customer deposit      accounts. The Association has been operating pursuant to a Federal Charter      since 1932, and is currently regulated by the Office of Thrift      Supervision. |
|                             |   |
|                             | The      Association provides a variety of financial services to individual      customers located in northwest Missouri. The primary deposit products of      the Association include time deposits, passbook savings accounts and      demand deposits. Mortgage loans to individuals are the primary lending      product of the Association. The Association also participates in home      mortgage pools through the Federal Home Loan Mortgage Corporation      (“Freddie Mac”). The Association is subject to competition from other      financial institutions. The Association is subject to the regulation of      certain federal and state agencies and undergoes periodic examinations by      those regulatory authorities. |
|                             |   |
| Principles      of Consolidation |
|                             |
|                             | The      consolidated financial statements include the accounts of Midwest Federal      Savings and Loan Association as well as its wholly owned subsidiary, MFS      Financial Services, Inc., an insurance agency, which is currently      inactive. All significant intercompany balances and transactions have been      eliminated in consolidation. |
|                             |   |
| Operating      Segment           |
|                             |
|                             | The      Association provides community banking services, including such products      and services as loans, time deposits, savings accounts, mortgage      originations and insurance services. These activities are reported as a      single operating segment. |
|                             |   |
| Use      of Estimates            |
|                             |
|                             | The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America requires      management to make estimates and assumptions that affect the reported      amounts of assets and liabilities and disclosure of contingent assets and      liabilities at the date of the financial statements, and the reported      amounts of revenues and expenses during the reporting period. Actual      results could differ from thoseestimates. |

----

|   |         |                                                                                      |
|--------|--------------|-------------------------------------------------------------------------------------------|
|   | Note      1: | Nature      of Operations and Summary of Significant Accounting Policies      (Continued) |

| Use      of Estimates (Continued) |
|-----------------------------------|
|                              |
|                              | Material      estimates that are particularly susceptible to significant change relate      to the determination of the allowance for loan losses. In connection with      the determination of the allowance for loan losses, management obtains      independent appraisals for significant properties. |
|                              |   |
| Cash      Equivalents             |
|                              |
|                              | The      Association considers all liquid investments with original maturities of      three months or less to be cash equivalents. |
|                              |   |
| Securities                        |
|                              |   |
|                              | Available-for-sale      securities, which include any security for which the Association has no      immediate plan to sell, but which may be sold in the future, are carried      at fair value. Realized gains and losses, based on amortized cost of the      specific security, are included in other income. Unrealized gains and      losses are recorded, net of related income tax effects, in other      comprehensive income. Premiums and discounts are amortized and accreted,      respectively, to interest income using a method which approximates the      level-yield method over the period to maturity. |
|                              |   |
|                              | Amortization      of premiums and accretion of discounts are recorded as interest income      from securities. Realized gains and losses are recorded as net security      gains (losses). Gains and losses on sales of securities are determined on      the specific-identification method. |
|                              |   |
| Loans                             |
|                              |
|                              | Loans      that management has the intent and ability to hold for the foreseeable      future or until maturity or payoffs are reported at their outstanding      principal balances adjusted for any charge-offs, the allowance for loan      losses, any deferred fees or costs on originated loans and unamortized      premiums or discounts on purchased loans. Interest income is reported on      the interest method and includes amortization of net deferred loan fees      and costs over the loan term. Generally, loans are placed on non-accrual      status at ninety days past due and interest is considered a loss, unless      the loan is well-secured and in the process of collection. When interest      accrual is discontinued, all unpaid accrued interest is reversed against      interest income. The interest on these loans is generally accounted for on      a cost recovery basis, meaning interest is not recognized until the full      past due balance has been collected. Loans may be returned to accrual      status when all the principal and interest amounts contractually due are      brought current, and future payments are reasonably    assured. |

----

|   |         |                                                                                      |
|--------|--------------|-------------------------------------------------------------------------------------------|
|   | Note      1: | Nature      of Operations and Summary of Significant Accounting Policies      (Continued) |

| Allowance      for Loan Losses |
|--------------------------------|
|                           |
|                           | The      allowance for loan losses is established in an amount that represents the      amount of reasonably estimable known and inherent losses in the portfolio,      and is established through a provision for loan losses charged to income.      Loan losses are charged against the allowance when management believes the      uncollectibility of a loan balance is confirmed. Subsequent recoveries, if      any, are credited to the allowance. |
|                           |   |
|                           | The      allowance for loan losses is evaluated on a regular basis by management      and is based upon management’s periodic review of the collectibility of      the loans in light of historical experience, the composition and volume of      the loan portfolio, adverse situations that may affect the borrower’s      ability to repay, estimated value of any underlying collateral and      prevailing economic conditions. This evaluation is inherently subjective      as it requires estimates that are susceptible to significant revision as      more information becomes available. |
|                           |   |
|                           | A      loan is considered impaired when, based on current information and events,      it is probable that the Association will be unable to collect the      scheduled payments of principal or interest when due according to the      contractual terms of the loan agreement. Factors considered by management      in determining impairment include payment status, collateral value and the      probability of collecting scheduled principal and interest payments when      due. Loans that experience insignificant payment delays and payment      shortfalls generally are not classified as impaired. Management determines      the significance of payment delays and payment shortfalls on a      case-by-case basis, taking into consideration all of the circumstances      surrounding the loan and the borrower, including the length of the delay,      the reasons for the delay, the borrower’s prior payment record and the      amount of the shortfall in relation to the principal and interest owed.      Impairment is measured on a loan-by-loan basis for commercial loans by      either the present value of expected future cash flows discounted at the      loan’s effective interest rate, the loan’s obtainable market price or the      fair value of the collateral if the loan is collateral      dependent. |
|                           |   |
|                           | Large      groups of smaller balance homogenous loans are collectively evaluated for      impairment. Accordingly, the Association does not separately identify      individual consumer and residential loans for impairment      measurements. |
|                           |   |
| Premises      and Equipment    |
|                           |
|                           | Depreciable      assets are stated at cost less accumulated depreciation. Depreciation is      charged to expense on the straight-line method, over the estimated useful      lives of the assets. |

----

|   |         |                                                                                      |
|--------|--------------|-------------------------------------------------------------------------------------------|
|   | Note      1: | Nature      of Operations and Summary of Significant Accounting Policies      (Continued) |

| Federal      Home Loan Bank Stock    |
|--------------------------------------|
|                                 |
|                                 | Federal      Home Loan Bank stock is a required investment for institutions that are      members of the Federal Home Loan Bank system. The required investment in      the common stock is based on a predetermined formula. |
|                                 |   |
| Income      Taxes                    |
|                                 |
|                                 | Deferred      tax assets and liabilities are recognized for the tax effects of      differences between the financial statement and tax bases of assets and      liabilities. A valuation allowance is established to reduce deferred tax      assets if it is more likely than not that a deferred tax asset will not be      realized. |
|                                 |   |
| Current      Accounting Developments |
|                                 |
|                                 | On      January 1, 2008, the Association adopted SFAS No. 157, Fair      Value Measurements (SFAS No. 157), which defines fair value,      establishes a comprehensive framework for measuring fair value under GAAP,      and expands disclosures about fair value measurements. Specifically, SFAS      No. 157 sets forth a definition of fair value and establishes a hierarchy      prioritizing the inputs to valuation techniques, giving the highest      priority to quoted prices in active markets for identical assets and      liabilities and the lowest priority to unobservable value inputs. The      adoption and application of SFAS No. 157 did not have a material impact on      the Association’s 2008 consolidated financial  statements. |
|                                 |   |
|                                 | In      February 2007, the FASB issued Statement No. 159, The      Fair Value Option for Financial Assets and Financial Liabilities-Including      an Amendment to FASB Statement No. 115. This standard permits an      entity to choose to measure many financial instruments and certain other      items at fair value. Most of the provisions in Statement 159 are elective;      however, the amendment to FASB Statement No. 115, Accounting      for Certain Investments in Debt and Equity Securities, applies to      all entities with available-for-sale and trading securities. Some      requirements apply differently to entities that do not report net income.      The FASB’s stated objective in issuing this standard is as follows: “to      improve financial reporting by providing entities with the opportunity to      mitigate volatility in reported earnings caused by measuring related      assets and liabilities differently without having to apply complex hedge      accounting provisions.” |

----

|   |         |                                                                                      |
|--------|--------------|-------------------------------------------------------------------------------------------|
|   | Note      1: | Nature      of Operations and Summary of Significant Accounting Policies      (Continued) |

| Current      Accounting Developments (Continued) |
|--------------------------------------------------|
|                                             |
|                                             | The      fair value option established by Statement 159 permits all entities to      choose to measure eligible items at fair value at specified election      dates. A business entity will report unrealized gains and losses on items      for which the fair value option has been elected in earnings (or another      performance indicator if the business entity does not report earnings) at      each subsequent reporting date. The fair value option: (a) may be applied      instrument by instrument, with a few exceptions, such as investments      otherwise accounted for by the equity method; (b) is irrevocable (unless a      new election date occurs); and (c) is applied only to entire instruments      and not to portions of instruments. Statement 159 is effective as of the      beginning of an entity’s first fiscal year that begins after November 15,      2007. The Association did not elect to apply the provisions of FASB      Statement No. 159 to any of its financial instruments upon adoption or      during the year ended December 31, 2008. |
|                                             |   |
|                                             |  In      December 2007, the FASB issued Statement No. 141R (revised 2007), Business      Combinations, which replaced Statement No. 141. Statement No. 141R retains      the fundamental requirements of Statement No. 141, but revises certain      principles, including the definition of a business combination, the      recognition, and measurement of assets acquire and liabilities assumed in      a business combination, the accounting for goodwill, and financial      statement disclosure. This statement is effective for annual periods      beginning after December 15, 2008. The Association is evaluating the      impact, if any, the adoption of FASB Statement No. 141R will have on the      Association’s consolidated financialstatements. |

|   | Note      2: | Securities |
|--------|--------------|------------|

|   |                                |   | AmortizedCost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | ApproximateFair      Value |   |
|--------|-------------------------------------|--------|---------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------------------------|--------|
|   | Available-For-Sale      Securities: |   |          |      |   |                 |   |   |                  |   |   |                       |   |
|   | December      31, 2008:             |   |          |      |   |                 |   |   |                  |   |   |                       |   |
|   | U.S.      Government Agencies       |   | $             | 1,999,905 |   |                 | $      | 43,540 |                  |   | $      | —                    |   |   | $ | 2,043,445 |   |
|   | Municipal      securities           |   |          | 205,000   |   |                 |   | 813    |                  |   |   | —                    |   |   |   | 205,813 |   |
|   | Mortgage-backed      securities     |   |          | 2,987,021 |   |                 |   | 50,959 |                  |   |   | 3,016                      |   |   |   | 3,034,964 |   |
|   |                                |   |          |      |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
|   |                                |   | $             | 5,191,926 |   |                 | $      | 95,312 |                  |   | $      | 3,016                      |   |   | $ | 5,284,222 |   |

----

|   |         |                        |
|--------|--------------|-----------------------------|
|   | Note      2: | Securities      (Continued) |

|   |                            |   | AmortizedCost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | ApproximateFair      Value |   |
|--------|---------------------------------|--------|---------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------------------------|--------|
|   | December      31, 2007:         |   |          |      |   |                 |   |   |                  |   |   |                       |   |
|   | U.S.      Government agencies   |   | $             | 1,999,569 |   |                 | $      | 23,280 |                  |   | $      | 1,909                      |   |   | $ | 2,020,940 |   |
|   | Municipal      securities       |   |          | 205,000   |   |                 |   | 1,823  |                  |   |   | —                    |   |   |   | 206,823 |   |
|   | Mortgage-backed      securities |   |          | 3,811,798 |   |                 |   | 7,093  |                  |   |   | 55,492                     |   |   |   | 3,763,399 |   |
|   |                            |   |          |      |   |                 |   |   |                  |   |   |                       |   |   |   |   |   |
|   |                            |   | $             | 6,016,367 |   |                 | $      | 32,196 |                  |   | $      | 57,401                     |   |   | $ | 5,991,162 |   |

|   | All      mortgage-backed securities at December 31, 2008 and 2007, were issued by      government-sponsored enterprises.                                                                                                                                                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                              |
|   | Interest      receivable for investments totaled $57,517 and $53,239 at December 31,      2008 and 2007, respectively.                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                              |
|   | The      amortized cost and fair value of available-for-sale securities, by      contractual maturity, are shown below. Expected maturities will differ      from contractual maturities because issuers may have the right to call or      prepay obligations with or without call or prepayment      penalties. |

|   |                            |   |   | AmortizedCost |   |   | FairValue |   |
|--------|---------------------------------|--------|--------|---------------|--------|--------|-----------|--------|
|   |                            |   |   |          |   |   |      |   |
|   | Within      one year            |   | $      | 105,000       |   | $      | 105,389   |   |
|   | One      to five years          |   |   | 1,099,905     |   |   | 1,139,179 |   |
|   | After      ten years            |   |   | 1,000,000     |   |   | 1,004,690 |   |
|   | Mortgage-backed      securities |   |   | 2,987,021     |   |   | 3,034,964 |   |
|   |                            |   |   |          |   |   |      |   |
|   | Totals                          |   | $      | 5,191,926     |   | $      | 5,284,222 |   |

|   | Certain      investments in debt securities are reported in the financial statements at      an amount less than their historical cost. Total fair value of these      investments at December 31, 2008 and 2007, was $437,489 and $4,304,986,      which is approximately 8% and 72%, respectively, of the Association’s      available-for-sale investment portfolio. These declines primarily resulted      from increases in market interestrates. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |         |                        |
|--------|--------------|-----------------------------|
|   | Note      2: | Securities      (Continued) |

|   | Based      on evaluation of available evidence, including recent changes in market      interest rates, management believes the declines in fair value for these      securities are temporary.                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                 |
|   | Should      the impairment of any of these securities become other than temporary, the      cost basis of the investment will be reduced and the resulting loss      recognized in net income in the period the other-than-temporary impairment      is identified.  |
|   |                                                                                                                                                                                                                                                                 |
|   | The      following table shows the Association’s investments’ gross unrealized      losses and fair value, aggregated by investment category and length of      time that individual securities have been in a continuous unrealized loss      position. |

|   |                                       | December      31, 2008 |                     |   |   |                   |   |   |            |
|--------|--------------------------------------------|------------------------|--------------------------|--------|--------|------------------------|--------|--------|-----------------|
|   |                                       |                   | Less      Than 12 Months |   |   | 12      Months or More |   | Total  |            |
|   | Description      ofSecurities              |                   | Fair      Value          |   |   | UnrealizedLosses       |   |   | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
|   |                                       |                   |                     |   |   |                   |   |   |            |   |   |   |   |   |   |   |   |   |   |
|   | Mortgage-backed      securities            |                   | $                        | 1,025  |   |                   | $      | 1      |            |   | $ | 436,464 |   |   | $ | 3,015 |   |   | $ | 437,489 |   |   | $ | 3,016 |   |
|   |                                       |                   |                     |   |   |                   |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total      temporarily impaired securities |                   | $                        | 1,025  |   |                   | $      | 1      |            |   | $ | 436,464 |   |   | $ | 3,015 |   |   | $ | 437,789 |   |   | $ | 3,016 |   |

|   |                                       |   | December      31, 2007   |    |   |                   |   |    |            |   |
|--------|--------------------------------------------|--------|--------------------------|---------|--------|------------------------|--------|---------|-----------------|--------|
|   |                                       |   | Less      Than 12 Months |    |   | 12      Months or More |   |    | Total           |   |
|   | Description      ofSecurities              |   | Fair      Value          |    |   | UnrealizedLosses       |   |    | Fair      Value |   |   | UnrealizedLosses |   |   | Fair      Value |   |   | UnrealizedLosses |   |
|   |                                       |   |                     |    |   |                   |   |    |            |   |   |   |   |   |   |   |   |   |   |
|   | U.S.      government                       |   | $                        | — |   |                   | $      | — |            |   | $ | 1,497,660 |   |   | $ | 1,909 |   |   | $ | 1,497,660 |   |   | $ | 1,909 |   |
|   |                                       |   |                     |    |   |                   |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Mortgage-backed      securities            |   | $                        | — |   |                   | $      | — |            |   | $ | 2,807,326 |   |   | $ | 55,492 |   |   | $ | 2,807,326 |   |   | $ | 55,492 |   |
|   |                                       |   |                     |    |   |                   |   |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total      temporarily impaired securities |   | $                        | — |   |                   | $      | — |            |   | $ | 4,304,986 |   |   | $ | 57,401 |   |   | $ | 4,304,986 |   |   | $ | 57,401 |   |

----

|   |         |                                     |
|--------|--------------|------------------------------------------|
|   | Note      3: | Loans      and Allowance for Loan Losses |

|   |                                                |   |   |       |   |   |   |
|--------|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|
|   |                                                |   | 2008   |       |   | 2007   |   |
|   | Residential      real estate                        |   |   |       |   |   |   |
|   | One-to-four      family residential                 |   | $      | 9,738,689  |   |   | $      | 8,652,503 |   |
|   | Construction                                        |   |   | —    |   |   |   | 280,400 |   |
|   | Commercial      real estate                         |   |   | 100,000    |   |   |   | — |   |
|   | Commercial                                          |   |   | 199,971    |   |   |   | 65,826 |   |
|   | Consumer                                            |   |   | 28,089     |   |   |   | 25,031 |   |
|   |                                                |   |   |       |   |   |   |   |   |
|   | Total      loans                                    |   |   | 10,066,749 |   |   |   | 9,023,760 |   |
|   |                                                |   |   |       |   |   |   |   |   |
|   | Less                                                |   |   |       |   |   |   |   |   |
|   | Net      deferred loan fees, premiums and discounts |   |   | 3,479      |   |   |   | 4,898 |   |
|   | Allowance      for loan losses                      |   |   | 22,000     |   |   |   | 18,000 |   |
|   |                                                |   |   |       |   |   |   |   |   |
|   | Net      loans                                      |   | $      | 10,041,270 |   |   | $      | 9,000,862 |   |

|   | Interest      receivable for loans totaled $29,221 and $32,364 at December 31, 2008 and      2007, respectively. Activity      in the allowance for loan losses was asfollows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                              |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                              |   |   |   |   |   |   |   |   |   |
|   | Balance,      beginning of year   |   | $      | 18,000 |   |   | $      | 10,000 |   |   | $ | 5,000 |   |
|   |                              |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Provision      charged to expense |   |   | 4,000  |   |   |   | 8,000  |   |   |   | 5,000 |   |
|   |                              |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance,      end of year         |   | $      | 22,000 |   |   | $      | 18,000 |   |   | $ | 10,000 |   |

|   | The      Association had no nonaccrual loans or loans past due ninety days or more      still accruing interest at December 31, 2008 and  2007. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |         |                        |
|--------|--------------|-----------------------------|
|   | Note      4: | Premises      and Equipment |

|   | Major      classifications of premises and equipment, stated at cost, are as      follows: |
|--------|--------------------------------------------------------------------------------------------|

|   |                               |   |   |    |   |   |   |
|--------|------------------------------------|--------|--------|---------|--------|--------|--------|
|   |                               |   | 2008   |    |   | 2007   |   |
|   |                               |   |   |    |   |   |   |
|   | Land                               |   | $      | 132,401 |   |   | $      | 132,401 |   |
|   | Buildings      and improvements    |   |   | 386,839 |   |   |   | 247,714 |   |
|   | Furniture      and fixtures        |   |   | 201,068 |   |   |   | 175,950 |   |
|   |                               |   |   | 720,308 |   |   |   | 556,065 |   |
|   | Less      accumulated depreciation |   |   | 325,974 |   |   |   | 301,345 |   |
|   |                               |   |   |    |   |   |   |   |   |
|   | Net      premises and equipment    |   | $      | 394,334 |   |   | $      | 254,720 |   |

|   | Note      5: | Interest-bearing      Deposits |
|--------|--------------|--------------------------------|

|   | Interest-bearing      time deposits in denominations of $100,000 or more were $2,063,052 on      December 31, 2008, and $1,573,245 on December 31, 2007. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                     |
|   | At      December 31, 2008, the scheduled maturities of time deposits are as      follows:                                                                |

|   |   |   |       |   |
|--------|--------|--------|------------|--------|
| 2009   |   | $      | 6,236,083  |   |
| 2010   |   |   | 2,054,824  |   |
| 2011   |   |   | 922,691    |   |
| 2012   |   |   | 246,603    |   |
| 2013   |   |   | 1,543,703  |   |
|   |   |   |       |   |
|   |   | $      | 11,003,904 |   |

----

|   |         |                                       |
|--------|--------------|--------------------------------------------|
|   | Note      5: | Interest-bearing      Deposits (Continued) |

|   | Major      categories of interest expense are asfollows: |
|--------|----------------------------------------------------------|

|   |                          |   | December      31, |    |
|--------|-------------------------------|--------|-------------------|---------|
|   |                          |   | 2008              |    |   | 2007 |   |   | 2006 |   |
|   |                          |   |              |    |   |   |   |   |   |   |
|   | Certificates      of deposits |   | $                 | 409,263 |   |   | $ | 456,207 |   |   | $ | 326,741 |   |
|   | Savings                       |   |              | 28,740  |   |   |   | 28,745 |   |   |   | 33,866 |   |
|   | Now      accounts             |   |              | 2,561   |   |   |   | 2,002 |   |   |   | 2,258 |   |
|   |                          |   |              |    |   |   |   |   |   |   |   |   |   |
|   |                          |   | $                 | 440,564 |   |   | $ | 486,954 |   |   | $ | 362,865 |   |

|   | Note      6: | Income      Taxes |
|--------|--------------|-------------------|

|   | The      Association and its subsidiary file separate federal income tax returns on      a calendar year basis. The Association conformed to certain provisions of      the Internal Revenue Code, which permitted it a special tax deduction. The      deduction was limited generally to 8% of otherwise taxable income and      subject to certain limitations based on aggregate loans and savings      account balances at the end of the year. If the qualifying deductions are      used for purposes other than absorbing loan losses, they will be subject      to federal income tax at the then current corporate rate. The Association      did not meet these conditions for the periods ended December 31, 2008,      2007, or 2006. The      provision (credit) for income taxes includes these    components: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                             |   | 2008   |    |   | 2007   |   |   | 2006   |   |
|--------|----------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|   |                             |   |   |    |   |   |   |   |   |   |
|   | Taxes      currently payable     |   | $      | (11,204 | )      |   | $      | 3,675  |   |   | $ | — |   |
|   | Deferred      income taxes       |   |   | 1,978   |   |   |   | (6,467 | )      |   |   | (2,253 | ) |
|   |                             |   |   |    |   |   |   |   |   |   |   |   |   |
|   | Income      tax expense (credit) |   | $      | (9,226  | )      |   | $      | (2,792 | )      |   | $ | (2,253 | ) |

----

|   |         |                          |
|--------|--------------|-------------------------------|
|   | Note      6: | Income      Taxes (Continued) |

|   | A      reconciliation of income tax expense at the statutory rate to the      Association’s actual income tax expense is shown  below: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                            |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|--------|---------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|   |                                                                            |   |   |    |   |   |   |    |   |   |
|   |                                                                            |   |   |    |   |   |   |    |   |   |
|   | Computed      at the statutory rate (15% for 2008 and 34% for 2007 and    2006) |   | $      | (12,010 | )      |   | $      | 1,080   |   |   | $ | 6,414 |   |
|   | Increase      (decrease) resulting from:                                        |   |   |    |   |   |   |    |   |   |   |   |   |
|   | Tax      exempt dividends                                                       |   |   | (74     | )      |   |   | (214    | )      |   |   | (190 | ) |
|   | Nondeductible      expenses                                                     |   |   | 128     |   |   |   | 333     |   |   |   | 216 |   |
|   | State      income taxes                                                         |   |   | (4,764  | )      |   |   | (164    | )      |   |   | (687 | ) |
|   | Graduated      rates                                                            |   |   | — |   |   |   | (3,644  | )      |   |   | (4,685 | ) |
|   | Change      to effective rate applied to deferred taxes                         |   |   | 8,446   |   |   |   | — |   |   |   | — |   |
|   | Other                                                                           |   |   | (952    | )      |   |   | (183    | )      |   |   | (3,321 | ) |
|   |                                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
|   | Actual      tax expense (credit)                                                |   | $      | (9,226  | )      |   | $      | (2,792  | )      |   | $ | (2,253 | ) |

|   | The      tax effects of temporary differences related to deferred taxes shown on      the balance sheetswere: |
|--------|---------------------------------------------------------------------------------------------------------------|

|   |                                                    |   | 2008   |    |   | 2007   |   |
|--------|---------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|   | Deferred      tax assets:                               |   |   |    |   |   |   |
|   | Allowance      for loan losses                          |   | $      | 4,840   |   |   | $      | 7,380 |   |
|   | Accrued      compensated absences                       |   |   | 2,340   |   |   |   | 3,929 |   |
|   | Bond      premium amortization                          |   |   | 2,766   |   |   |   | 5,100 |   |
|   | Accrued      audit fees                                 |   |   | 638     |   |   |   | — |   |
|   | Net      operating loss carryforward                    |   |   | 6,647   |   |   |   | — |   |
|   | Prepaid      expenses                                   |   |   | — |   |   |   | 3,190 |   |
|   | Unrealized      losses on available-for-sale securities |   |   | — |   |   |   | 8,100 |   |
|   |                                                    |   |   |    |   |   |   |   |   |
|   |                                                    |   |   | 17,231  |   |   |   | 27,699 |   |
|   | Deferred      tax liabilities:                          |   |   |    |   |   |   |   |   |
|   | Unrealized      gain on available-for-sale securities   |   |   | (19,298 | )      |   |   | — |   |
|   | Other                                                   |   |   | (748    | )      |   |   | (1,138 | ) |
|   |                                                    |   |   | (20,046 | )      |   |   | (1,138 | ) |
|   |                                                    |   |   |    |   |   |   |   |   |
|   | Net      deferred tax asset (liability)                 |   | $      | (2,815  | )      |   | $      | 26,561 |   |

----

|   |         |                          |
|--------|--------------|-------------------------------|
|   | Note      6: | Income      Taxes (Continued) |

|   | Retained      earnings, at December 31, 2008 and 2007, include approximately $839,000      for which no deferred federal income tax liability has been recognized.      These amounts represent an allocation of income to bad debt deductions for      tax purposes only. Reduction of amounts so allocated for purposes other      than tax bad debt losses or adjustments arising from carryback of net      operating losses would create income for tax purposes only, which would be      subject to the then-current corporate income tax rate. The deferred income      tax liabilities on the preceding amounts that would have been recorded if      they were expected to reverse into taxable income in the foreseeable      future were approximately $325,000 at December 31, 2008 and 2007. As of      December 31, 2008 the Association had a net operations loss carryforward      totaling approximately $34,000 that expires in 2028.                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      June 2006, the FASB issued Interpretation No. 48, Accounting      for Uncertainty in Income Taxes - an interpretation of SFAS No. 109      (FIN 48). FIN 48 prescribes a recognition threshold and measurement      attribute for the financial statement recognition and measurement of a tax      position taken or expected to be taken in a tax return. The interpretation      also provides guidance on derecognition, classification, interest and      penalties, accounting in interim periods, disclosure and transition. FIN      48 is effective for fiscal years beginning after December 15, 2006. The      Association adopted FIN 48 as of January 1, 2007, and the adoption had no      significant impact on the Association’s consolidated financial statements.      The Association and subsidiary file income tax returns in the U.S. federal      jurisdiction and the state jurisdiction of Missouri. With few exceptions,      the Association is no longer subject to U.S. federal or state income tax      examinations by tax authorities for years before  2005. |

|   | Note      6: | Regulatory      Matters |
|--------|--------------|-------------------------|

|   | The      Association is subject to various regulatory capital requirements      administered by the federal banking agencies. Failure to meet minimum      capital requirements can initiate certain mandatory and possibly      additional discretionary actions by regulators that, if undertaken, could      have a direct material effect on the Association’s consolidated financial      statements. Under capital adequacy guidelines and the regulatory framework      for prompt corrective action, the Association must meet specific capital      guidelines that involve quantitative measures of the Association’s assets,      liabilities and certain off-balance-sheet items as calculated under      regulatory accounting practices. The Association’s capital amounts and      classification are also subject to qualitative judgments by the regulators      about components, risk weightings and other factors. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Quantitative      measures established by regulation to ensure capital adequacy require the      Association to maintain minimum amounts and ratios (set forth in the table      below). Management believes, as of December 31, 2008 and 2007, that the      Association meets all capital adequacy requirements to which it is      subject.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

|   |         |                                |
|--------|--------------|-------------------------------------|
|   | Note      7: | Regulatory      Matters (Continued) |

|   | As      of December 31, 2008, the most recent notification from The Office of      Thrift Supervision (OTS) categorized the Association as well capitalized      under the regulatory framework for prompt corrective action. To be      categorized as well capitalized, the Association must maintain minimum      total risk-based, Tier I risk-based and Tier I leverage ratios as set      forth in the table. There are no conditions or events since that      notification that management believes have changed the Association’s      category. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | The      Association’s actual capital amounts and ratios are also presented in the      table.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

|                                                    |   | Actual |      |   | For      Capital AdequacyPurposes |   |   | To      Be Well CapitalizedUnder      Prompt CorrectiveAction      Provisions |   |
|---------------------------------------------------------|--------|--------|-----------|--------|-----------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|
|                                                    |   | Amount |      |   | Ratio                             |   |   | Amount                                                                        |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |
| As      of December 31, 2008:                           |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |
| Total      capital(to      risk-weighted assets)        |   | $      | 5,451,000 |   |                              |   | 65.5   | %                                                                             |   | $ | 665,000 |   |   |   | 8.0 | % |   | $ | 832,000 |   |   |   | 10.0 | % |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital(to      risk-weighted assets)       |   |   | 5,429,000 |   |                              |   | 65.3   | %                                                                             |   |   | N/A |   |   |   | N/A |   |   |   | 499,000 |   |   |   | 6.0 | % |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital(to      average assets)             |   |   | 5,429,000 |   |                              |   | 25.0   | %                                                                             |   |   | 869,000 |   |   |   | 4.0 | % |   |   | 1,086,000 |   |   |   | 5.0 | % |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible      capital(to      adjusted tangible assets) |   |   | 5,429,000 |   |                              |   | 25.0   | %                                                                             |   |   | 326,000 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | N/A |   |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As      of December 31, 2007:                           |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      capital(to      risk-weighted assets)        |   | $      | 5,518,000 |   |                              |   | 85.3   | %                                                                             |   | $ | 518,000 |   |   |   | 8.0 | % |   | $ | 647,000 |   |   |   | 10.0 | % |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital(to      risk-weighted assets)       |   |   | 5,500,000 |   |                              |   | 85.0   | %                                                                             |   |   | N/A |   |   |   | N/A |   |   |   | 388,000 |   |   |   | 6.0 | % |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier      I capital(to      average assets)             |   |   | 5,500,000 |   |                              |   | 30.0   | %                                                                             |   |   | 733,000 |   |   |   | 4.0 | % |   |   | 916,000 |   |   |   | 5.0 | % |
|                                                    |   |   |      |   |                              |   |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible      capital(to      adjusted tangible assets) |   |   | 5,500,000 |   |                              |   | 30.0   | %                                                                             |   |   | 275,000 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | N/A |   |

|   | The      Association is subject to certain restrictions on the amount of dividends      that it may declare without prior regulatory approval. At December 31,      2008, approximately $4,995,000 of retained earnings were available for      dividend declaration without prior regulatory  approval. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |         |                                |
|--------|--------------|-------------------------------------|
|   | Note      7: | Regulatory      Matters (Continued) |

|                                        |   |             |      |   |   |   |
|---------------------------------------------|--------|------------------|-----------|--------|--------|--------|
|                                        |   | December      31 |      |
|                                        |   | 2008             |      |   | 2007   |   |
| GAAP      Capital (Consolidated)            |   |             |      |   |   |   |
| Adjustment      for regulatory capital:     |   | $                | 5,505,000 |   |   | $      | 5,483,000 |   |
| Reverse      the effect of SFAS No 115      |   |             | (76,000   | )      |   |   | 17,000 |   |
| Tangible      Capital                       |   |             | 5,429,000 |   |   |   | 5,500,000 |   |
| Tier      1 capital (core capital)          |   |             | 5,429,000 |   |   |   | 5,500,000 |   |
| Qualifying      general valuation allowance |   |             | 22,000    |   |   |   | 18,000 |   |
| Risk-based      capital                     |   |             | 5,451,000 |   |   |   | 5,518,000 |   |

|   | Note      8: | Related      Party Transactions |
|--------|--------------|---------------------------------|

|   |                                  |   |   |    |   |   |   |
|--------|---------------------------------------|--------|--------|---------|--------|--------|--------|
|   |                                  |   | 2008   |    |   | 2007   |   |
|   |                                  |   |   |    |   |   |   |
|   | Balance,      beginning of year       |   | $      | 240,653 |   |   | $      | 245,868 |   |
|   | New      loans                        |   |   | — |   |   |   | — |   |
|   | Repayments      and reclassifications |   |   | (6,208  | )      |   |   | (5,215 | ) |
|   |                                  |   | $      | 234,445 |   |   | $      | 240,653 |   |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
|   | Note      9:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Employee      Benefit Plan |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |
|   | The      Association participates in a multi-employer defined benefit pension plan.      The Plan provides benefits to all of the Association’s eligible employees.      The Plan is funded through Association contributions to a nationwide plan      for savings and loan associations. The Association made payments or      contributions of $61,996, $51,507 and $34,230 during the years ended      December 31, 2008, 2007 and 2006, respectively. The Association’s policy      is to fund all current and prior period service costs as notified by the      Financial Institutions Retirement Fund executive  committee. |

|   | Note      10:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Fair      Value of Financial Instruments |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                     |
|   | Effective      January 1, 2008, the Association adopted Statements of Financial      Accounting Standards No. 157, Fair      Value Measurements (FAS 157). SFAS No. 157 defines fair value as      the price that would be received to sell an asset or paid to transfer a      liability in an orderly transaction between market participants. A fair      value measurement assumes that the transaction to sell the asset or      transfer the liability occurs in the principal market for the asset or      liability or, in the absence of a principal market, the most advantageous      market for the asset or liability. The price in the principal (or most      advantageous) market used to measure the fair value of the assets or      liability shall not be adjusted for transaction costs. An orderly      transaction is a transaction that assumes exposure to the market for a      period prior to the measurement date to allow for marketing activities      that are usual and customary for transactions involving such assets and      liabilities; it is not a forced transaction. Market participants are      buyers and sellers in the principal market that are (i) independent, (ii)      knowledgeable, (iii) able to transact, and (iv) willing to      transact.                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                     |
|   | SFAS      No. 157 requires the use of valuation techniques that are consistent with      the market approach, the income approach, and/or the cost approach. The      market approach uses prices and other relevant information generated by      market transactions involving identical or comparable assets and      liabilities. The income approach uses valuation techniques to convert      future amounts, such as cash flows or earnings, to a single present amount      on a discounted basis. The cost approach is based on the amount that      currently would be required to replace the service capacity of an asset      (replacement cost). Valuation techniques should be consistently applied.      Inputs to valuation techniques refer to the assumptions that market      participants would use in pricing the asset or liability. Inputs may be      observable, meaning those that reflect the assumptions market participants      would use in pricing the asset or liability developed based on market data      obtained from independent sources, or unobservable, meaning those that      reflect the reporting entity’s own assumptions about the assumptions      market participants would use in pricing the asset or liability developed      based on the best information available in the circumstances. In that      regard, SFAS 157 establishes a fair value hierarchy for valuation inputs      that gives the highest priority to quoted prices in active markets for      identical assets or liabilities and the lowest priority to unobservable      inputs. The fair value hierarchy is asfollows: |

----

|   |          |                                                |
|--------|---------------|-----------------------------------------------------|
|   | Note      10: | Fair      Value of Financial Instruments(Continued) |

|                                                                                                                                         | Level      1: | Inputs      to the valuation methodology are quoted prices, unadjusted, for identical      assets or liabilities in active markets. A quoted price in an active      market provides the most reliable evidence of fair value and shall be used      to measure fair value whenever available.                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                         |          |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                         | Level      2: | Inputs      to the valuation methodology include quoted prices for similar assets or      liabilities in active markets; inputs to the valuation methodology include      quoted prices for identical or similar assets or liabilities in markets      that are not active; or inputs to the valuation methodology that are      derived principally from or can be corroborated by observable market data      by correlation or other means. |
|                                                                                                                                         |          |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                         | Level      3: | Inputs      to the valuation methodology are unobservable and significant to the fair      value measurements. Level 3 assets and liabilities include financial      instruments whose value is determined using discounted cash flow      methodologies, as well as instruments for which the determination of fair      value requires significant management judgment or estimation.                                                        |
|                                                                                                                                         |          |                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| The      following table presents the balances of assets measured at fair value on      a recurring basis by level as of December 31,  2008: |

|   | Description                        |   | Total  |      |   | Quoted      Pricesin      ActiveMarkets      ForIdentical      Assets(Level      1) |   |    | SignificantOtherObservableInputs      (Level 2) |   |   | SignificantUnobservableInputs      (Level 3) |   |
|--------|------------------------------------|--------|--------|-----------|--------|-------------------------------------------------------------------------------------|--------|---------|-------------------------------------------------|--------|--------|----------------------------------------------|--------|
|   | Assets:                            |   |   |      |   |                                                                                |   |    |                                            |   |   |                                         |   |
|   |                               |   |   |      |   |                                                                                |   |    |                                            |   |   |                                         |   |
|   | Available-for-sale      securities |   | $      | 5,284,222 |   |                                                                                | $      | — |                                            |   | $      | 5,284,222                                    |   |   | $ | — |   |

|   | Securities      available-for-sale are recorded at fair value on a recurring basis. Fair      value measurement is based upon quoted prices, if available. If quoted      prices are not available, fair values are measured using independent      pricing models or other model-based valuation techniques such as the      present value of future cash flows, adjusted for the securities credit      rating, prepaying assumptions and other factors such as credit loss      assumptions. Level 2 securities include U.S. government agency securities,      mortgage-backed securities (including pools and collateralized mortgage      obligations), municipal bonds, and corporate-debt    securities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | SFAS      No. 107, Disclosures      about Fair value of Financial Instruments, requires disclosure of      the fair value of financial assets and liabilities, including assets that      are not measured and reported at fair value under FAS No. 157 on a      recurring and non-recurring basis. In the table below, the following      methods were used to estimate the fair value of all other financial      instruments:                                                                                                                                                                                                                                                                                |

----

|   |          |                                                |
|--------|---------------|-----------------------------------------------------|
|   | Note      10: | Fair      Value of Financial Instruments(Continued) |

|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 | The      carrying amount approximates fair value.                                                                                                                                                                                                                                                                                                                                                                              |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Securities                                           |
|                                                 |
|                                                 | Fair      values equal quoted market prices, if available. If quoted market prices      are not available, fair value is estimated based on quoted market prices      of similar securities.                                                                                                                                                                                                                                   |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Loans                                                |
|                                                 |
|                                                 | The      fair value of loans is estimated by discounting the future cash flows      using the current rates at which similar loans would be made to borrowers      with similar credit ratings and for the same remaining maturities. Loans      with similar characteristics were aggregated for purposes of the      calculations. The carrying amount of accrued interest approximates its      fair value.                 |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Deposits                                             |
|                                                 |
|                                                 | Deposits      include savings accounts, NOW accounts and certain money market deposits.      The carrying amount approximates fair value. The fair value of      fixed-maturity time deposits is estimated using a discounted cash flow      calculation that applies the rates currently offered for deposits of      similar remaining maturities. The carrying amount of accrued interest      approximates its fair value. |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Advances      From Borrowers for Taxes and Insurance |
|                                                 |
|                                                 | The      carrying amount approximates fair value.                                                                                                                                                                                                                                                                                                                                                                              |
|                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                 | The      following table presents estimated fair values of the Association’s      financial instruments in accordance with FAS 107, not previously disclosed      at December 31, 2008 and2007.                                                                                                                                                                                                                          |

----

|   |          |                                                |
|--------|---------------|-----------------------------------------------------|
|   | Note      10: | Fair      Value of Financial Instruments(Continued) |

|   |                                                 |   |                   |       |   |                   |   |       |           |   |   |            |   |
|--------|------------------------------------------------------|--------|------------------------|------------|--------|------------------------|--------|------------|----------------|--------|--------|-----------------|--------|
|   |                                                 |   | December      31, 2008 |       |   | December      31, 2007 |   |
|   |                                                 |   | CarryingAmount         |       |   | Fair      Value        |   |       | CarryingAmount |   |   | Fair      Value |   |
|   | Financial      assets                                |   |                   |       |   |                   |   |       |           |   |   |            |   |
|   | Cash      and cash equivalents                       |   | $                      | 594,352    |   |                   | $      | 594,352    |           |   | $      | 136,272         |   |   | $ | 136,272 |   |
|   | Interest-earning      deposits                       |   |                   | 4,800,000  |   |                   |   | 4,800,000  |           |   |   | 2,750,000       |   |   |   | 2,750,000 |   |
|   | Available-for-sale      securities                   |   |                   | 5,284,222  |   |                   |   | 5,284,222  |           |   |   | 5,991,162       |   |   |   | 5,991,162 |   |
|   | Loans,      net of allowance for loan losses         |   |                   | 10,041,270 |   |                   |   | 10,054,233 |           |   |   | 9,000,862       |   |   |   | 8,988,054 |   |
|   | Federal      Home Loan                               |   |                   |       |   |                   |   |       |           |   |   |            |   |   |   |   |   |
|   | Bank      stock                                      |   |                   | 22,200     |   |                   |   | 22,200     |           |   |   | 142,500         |   |   |   | 142,500 |   |
|   | Interest      receivable                             |   |                   | 86,738     |   |                   |   | 86,738     |           |   |   | 85,603          |   |   |   | 85,603 |   |
|   | Financial      liabilities                           |   |                   |       |   |                   |   |       |           |   |   |            |   |   |   |   |   |
|   | Deposits                                             |   |                   | 16,226,118 |   |                   |   | 16,386,691 |           |   |   | 12,889,638      |   |   |   | 12,984,735 |   |
|   | Advances      from borrowers for taxes and insurance |   |                   | 12,061     |   |                   |   | 12,061     |           |   |   | 10,635          |   |   |   | 10,635 |   |
|   | Interest      payable                                |   |                   | 4,167      |   |                   |   | 4,167      |           |   |   | 6,549           |   |   |   | 6,549 |   |

|   |          |                                                                         |
|--------|---------------|------------------------------------------------------------------------------|
|   | Note      11: | Significant      Estimates, Concentrations, and Current Economic  Conditions |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                         |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|
|   | Note      11:                                                                                                                                                                                                                                                                                                                                                                                                                   | Significant      Estimates, Concentrations, and Current Economic Conditions      (Continued) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                         |
|   | Given      the volatility of current economic conditions, the values of assets and      liabilities recorded in the financial statements could change rapidly,      resulting in material future adjustments in asset values, the allowance      for loan losses, and capital that could negatively impact the      Association’s ability to meet regulatory capital requirements and maintain      sufficient liquidity. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                         |
|   | Note      12:                                                                                                                                                                                                                                                                                                                                                                                                                   | Commitments      and Credit Risk Mortgage                                                    |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Commitments      to originate loans are agreements to lend to a customer as long as there      is no violation of any condition established in the contract. Commitments      generally have fixed expiration dates or other termination clauses and may      require payment of a fee. Since a portion of the commitments may expire      without being drawn upon, the total commitment amounts do not necessarily      represent future cash requirements. Each customer’s creditworthiness is      evaluated on a case-by-case basis. The amount of collateral obtained, if      deemed necessary, is based on management’s credit evaluation of the      counterparty. Collateral held varies, but may include accounts receivable,      inventory, property, plant and equipment, commercial real estate and      residential real estate. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | At      December 31, 2008 and 2007, the Association had no outstanding commitments      to originate mortgageloans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

|   |          |                |
|--------|---------------|---------------------|
|   | Note      13: | Other      Expenses |

|   |                              |   |   |    |   |   |   |    |   |   |
|--------|-----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|   |                              |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|   |                              |   |   |    |   |   |   |    |   |   |
|   | Audits      and supervisory exams |   | $      | 17,742  |   |   | $      | 25,098  |   |   | $ | 19,678 |   |
|   | Marketing                         |   |   | 23,062  |   |   |   | 23,317  |   |   |   | 32,432 |   |
|   | Franchise      and other taxes    |   |   | 16,937  |   |   |   | 13,105  |   |   |   | 13,175 |   |
|   | Insurance                         |   |   | 9,295   |   |   |   | 8,284   |   |   |   | 10,125 |   |
|   | Dues                              |   |   | 1,584   |   |   |   | 4,375   |   |   |   | 4,060 |   |
|   | Supplies                          |   |   | 9,911   |   |   |   | 3,867   |   |   |   | 6,494 |   |
|   | Legal                             |   |   | 3,600   |   |   |   | 3,600   |   |   |   | 3,600 |   |
|   | Travel                            |   |   | 2,084   |   |   |   | 2,629   |   |   |   | 2,852 |   |
|   | Other                             |   |   | 27,257  |   |   |   | 18,014  |   |   |   | 14,688 |   |
|   |                              |   |   |    |   |   |   |    |   |   |   |   |   |
|   |                              |   | $      | 111,472 |   |   | $      | 102,289 |   |   | $ | 107,104 |   |

|   | Note      14:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Plan      of Conversion |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                    |
|   | On      July 9, 2008, the Association’s Board of Directors approved a plan (the      “Plan”) to convert from a federally-chartered mutual savings association      to a federally-chartered stock savings association, subject to approval by      its members. The Plan, which included a formation of a holding company,      St. Joseph Bancorp, Inc., to own all of the outstanding stock of the      Association, was approved by the Office of Thrift Supervision (OTS) and      included the filing of a registration statement with the Securities and      Exchange Commission, which occurred on November 21,  2008.  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The      Plan called for the common stock of the holding company to be offered to      various parties in a subscription offering at a price based on an      independent appraisal of the Association, which was determined to be $10      per share. Shares that were not purchased in the subscription offering      were offered in a community offering. The Association may not declare or      pay a cash dividend if the effect thereof would cause its net worth to be      reduced below either the amount required for the liquidation account      discussed below or the regulatory capital requirements imposed by the      OTS.    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | At      the time of conversion, the Association established a liquidation account      in an amount equal to its retained earnings as reflected in the latest      balance sheet used in the final conversion prospectus. The liquidation      account will be maintained for the benefit of eligible account holders who      continue to maintain their deposit accounts in the Association after      conversion. In the event, eligible depositors who continue to maintain      accounts shall be entitled to receive a distribution from the liquidation      account before any liquidation may be made with respect to common      stock. |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
|   | Note      14:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Plan      of Conversion (Continued) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                |
|   | All      costs incurred by the Association related to the Plan are being      capitalized and are included in the line “Prepaid conversion costs” in the      accompanying balance sheet. Conversion costs totaled $503,109 at December      31, 2008.                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | On      January 30, 2009, St. Joseph Bancorp, Inc. announced it completed its      initial public stock offering in connection with the Plan. The Company      issued a total of 376,918 shares of its common stock for an aggregate of      $3,769,180 in total offering proceeds. The common stock is quoted on the      OTC Bulletin Board under the symbol “SJBA”. Included in the Association’s      total deposits is $2,136,104 of proceeds received from the offering      through December 31,2008. |

|   | Note      15:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Subsequent      Event |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  |
|   | On      February 27, 2009, the Federal Deposit Insurance Corporation (FDIC)      adopted an interim rule imposing a 20 basis point special assessment on      the deposits of insured financial institutions as of June 30, 2009, to be      collected on September 30, 2009. The interim rule also permits the Board      to impose additional emergency special assessments after June 30, 2009, of      up to 10 basis points. The interim rule is available for comment for 30      days from the above date, at which time a final ruling will be    made. |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Annual      MeetingThe      Annual Meeting of Stockholders will be held at 3:00 p.m. on May 27, 2009      at the executive office of Midwest Federal Savings & Loan Association,      1901 Frederick Avenue, St. Joseph, Missouri 64501. Stock      ListingThe      Company’s Common Stock trades on the Over the Counter Bulletin Board under      the symbol “SJBA”. Trading commenced February 2, 2009. Special      CounselLuse      Gorman Pomerenk & Schick, P.C.5335      Wisconsin Avenue, N.W., Suite 400Washington,      D.C. 20015 Independent      Registered Public Accounting FirmBKD,      LLP120      West 12th Street, Suite 1200Kansas      City, MO 64105-1936 |   | Transfer      AgentRegistrar      and Transfer Company10      Commerce DriveCranford,      New Jersey 07016 If      you have any questions concerning your stockholder account, please call      our transfer agent, noted above, at (800) 368-5948. This is the number to      call if you require a change of address, records or information about lost      certificates. Annual      Report on Form 10-KA      copy of the Company’s Form 10-K for the fiscal year ended December 31,      2008 will be furnished without charge to stockholders upon written request      to the Secretary, St. Joseph Bancorp, Inc., 1901 Frederick Avenue, St.      Joseph, Missouri 64501. |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                              |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Officers                                                                                                                                                          |
| Ralph      E. SchankChairman      of the BoardPresident      & Chief Executive Officer Billy      D. ColeExecutive      Vice President Kirby      O. BroonerSales      & Risk Management, Brooner & AssociatesConstruction,      Inc. George      T. Hopkins, IIIBuilding      Development Supervisor, City of St.Joseph,      Missouri James      L. Rockwell, Jr.Retired John      R. WrayRealtor,      Prudential Summers Realtors |   | Ralph      E. SchankPresident      and Chief Executive Officer Billy      D. ColeExecutive      Vice President Barbara      V. ElderVice      President |