----

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| 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 Balance Sheets                                                                 |   | F-3               |
| Consolidated Statements of Operations                                                       |   | F-4               |
| Consolidated Statements of Stockholders’ 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 |

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|  /s/ Ralph Schank |   |
|------------------------|--------|

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|                                            |   | At December 31,        |   |
|-------------------------------------------------|--------|------------------------|--------|
|                                            |   |                   |   |   |   |   |   |   |   |
|                                            |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
|                                            |   | (Dollars in thousands) |   |
| Selected Financial Condition Data:              |   |                   |   |   |   |   |   |   |   |
|                                            |   |                   |   |   |   |   |   |   |   |
| Total assets                                    |   | $                      | 33,783 |   |   | $ | 23,241 |   |   | $ | 21,798 |   |
| Cash due from banks                             |   |                   | 1,736  |   |   |   | 1,311 |   |   |   | 594 |   |
| Interest earning deposits in other institutions |   |                   | 11,915 |   |   |   | 4,196 |   |   |   | 4,800 |   |
| Loans, net                                      |   |                   | 15,376 |   |   |   | 12,828 |   |   |   | 10,041 |   |
| Available-for-sale securities                   |   |                   | 3,475  |   |   |   | 4,260 |   |   |   | 5,284 |   |
| Deposits                                        |   |                   | 26,308 |   |   |   | 15,279 |   |   |   | 16,226 |   |
| Stockholders’ equity                      |   |                   | 7,384  |   |   |   | 7,868 |   |   |   | 5,505 |   |

|                                    |   | For the Years Ended December 31, |   |
|-----------------------------------------|--------|----------------------------------|--------|
|                                    |   |                             |   |   |   |   |   |   |   |
|                                    |   | 2010                             |   |   | 2009 |   |   | 2008 |   |
|                                    |   | (Dollars in thousands)           |   |
| Selected Operating Data:                |   |                             |   |   |   |   |   |   |   |
|                                    |   |                             |   |   |   |   |   |   |   |
| Interest income                         |   | $                                | 1,056  |   |   | $ | 1,032 |   |   | $ | 924 |   |
| Interest expense                        |   |                             | 405    |   |   |   | 418 |   |   |   | 441 |   |
| Net interest income                     |   |                             | 651    |   |   |   | 614 |   |   |   | 483 |   |
| Provision for loan losses               |   |                             | 39     |   |   |   | 41 |   |   |   | 4 |   |
| Net interest income after provision for |   |                             |   |   |   |   |   |   |   |   |   |   |
| loan losses                             |   |                             | 612    |   |   |   | 573 |   |   |   | 479 |   |
| Non-interest income                     |   |                             | 21     |   |   |   | 7 |   |   |   | 5 |   |
| Non-interest expense                    |   |                             | 1,120  |   |   |   | 893 |   |   |   | 564 |   |
|                                    |   |                             |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                |   |                             | (487   | ) |   |   | (313 | ) |   |   | (80 | ) |
| Credit for income taxes                 |   |                             | (20    | ) |   |   | (16 | ) |   |   | (9 | ) |
|                                    |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net loss                                |   | $                                | (467   | ) |   | $ | (297 | ) |   | $ | (71 | ) |

----

|                                                         |   | At or For the Years Ended December 31, |    |
|--------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                         |   | 2010                                   |    |   | 2009 |   |   | 2008 |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |
| Selected Financial Ratios and Other Data:                    |   |                                   |    |   |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |
| Performance Ratios:                                          |   |                                   |    |   |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |
| Return on assets (ratio of net loss to average total assets) |   |                                   | (1.73   | )% |   |   | (1.30 | )% |   |   | (0.38 | )% |
| Return on equity (ratio of net loss to average equity)       |   |                                   | (6.07   | )% |   |   | (4.61 | )% |   |   | (1.30 | )% |
| Interest rate spread (1)                                     |   |                                   | 1.92    | % |   |   | 2.16 | % |   |   | 1.75 | % |
| Net interest margin (2)                                      |   |                                   | 2.49    | % |   |   | 2.82 | % |   |   | 2.69 | % |
| Efficiency ratio (3)                                         |   |                                   | 166.67  | % |   |   | 143.80 | % |   |   | 115.57 | % |
| Non-interest expense to average total assets                 |   |                                   | 4.14    | % |   |   | 3.90 | % |   |   | 3.01 | % |
| Average interest-earning assets to average interest-bearing  |   |                                   |    |   |   |   |   |   |   |   |   |   |
| liabilities                                                  |   |                                   | 136.64  | % |   |   | 134.37 | % |   |   | 138.26 | % |
| Loans to deposits                                            |   |                                   | 58.45   | % |   |   | 83.96 | % |   |   | 61.88 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                                        |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Non-performing assets to total assets                        |   |                                   | — | % |   |   | — | % |   |   | — | % |
| Non-performing loans to total loans                          |   |                                   | — | % |   |   | — | % |   |   | — | % |
| Allowance for loan losses to non-performing loans            |   |                                   | — | % |   |   | — | % |   |   | — | % |
| Allowance for loan losses to total loans                     |   |                                   | 0.66    | % |   |   | 0.49 | % |   |   | 0.22 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Capital Ratio:                                               |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Average equity to average assets                             |   |                                   | 28.42   | % |   |   | 28.12 | % |   |   | 29.15 | % |
| Equity to total assets at end of period                      |   |                                   | 21.86   | % |   |   | 33.85 | % |   |   | 25.25 | % |
| Total capital to risk-weighted assets                        |   |                                   | 50.56   | % |   |   | 74.61 | % |   |   | 65.50 | % |
| Tier 1 capital to risk-weighted assets                       |   |                                   | 49.77   | % |   |   | 73.92 | % |   |   | 65.30 | % |
| Tier 1 capital to average assets                             |   |                                   | 19.81   | % |   |   | 30.66 | % |   |   | 25.00 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Other Data:                                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Number of full service offices                               |   |                                   | 2       |   |   |   | 1 |   |   |   | 1 |   |

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|                                                               |   | Years Ended December 31,    |   |
|--------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                               |   | 2010                        |   |   | 2009 |   |
|                                                               |   | Average Outstanding Balance |   |   | Interest |   |   | Yield/Cost |   |   | Average Outstanding Balance |   |   | Interest |   |   | Yield/ Cost |   |
|                                                               |   | (Dollars in thousands)      |   |
|                                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                           |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                              |   | $                           | 14,047 |   |   | $ | 823 |   |   |   | 5.86 | % |   | $ | 11,410 |   |   | $ | 692 |   |   |   | 6.06 | % |
| Available-for-sale securities                                      |   |                        | 3,853  |   |   |   | 149 |   |   |   | 3.87 |   |   |   | 5,635 |   |   |   | 235 |   |   |   | 4.17 |   |
| FHLB stock                                                         |   |                        | 27     |   |   |   | 1 |   |   |   | 3.70 |   |   |   | 25 |   |   |   | - |   |   |   | 0.00 |   |
| Interest-earning deposits                                          |   |                        | 8,197  |   |   |   | 83 |   |   |   | 1.01 |   |   |   | 4,716 |   |   |   | 105 |   |   |   | 2.23 |   |
| Total interest-earning assets                                      |   |                        | 26,124 |   |   |   | 1,056 |   |   |   | 4.04 |   |   |   | 21,786 |   |   |   | 1,032 |   |   |   | 4.74 |   |
| Non-interest-earning assets                                        |   |                        | 944    |   |   |   |   |   |   |   |   |   |   |   | 1,104 |   |   |   |   |   |   |   |   |   |
| Total assets                                                       |   | $                           | 27,068 |   |   |   |   |   |   |   |   |   |   | $ | 22,890 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                                                   |   | $                           | 6,570  |   |   |   | 89 |   |   |   | 1.35 |   |   | $ | 3,386 |   |   |   | 35 |   |   |   | 1.03 |   |
| Money market/NOW accounts                                          |   |                        | 594    |   |   |   | 1 |   |   |   | 0.17 |   |   |   | 1,124 |   |   |   | 2 |   |   |   | 0.18 |   |
| Certificates of deposit                                            |   |                        | 11,955 |   |   |   | 315 |   |   |   | 2.63 |   |   |   | 11,703 |   |   |   | 381 |   |   |   | 3.26 |   |
| Total deposits                                                     |   |                        | 19,119 |   |   |   | 405 |   |   |   | 2.12 |   |   |   | 16,213 |   |   |   | 418 |   |   |   | 2.58 |   |
| Non-interest-bearing liabilities                                   |   |                        | 255    |   |   |   |   |   |   |   |   |   |   |   | 241 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                  |   |                        | 19,374 |   |   |   |   |   |   |   |   |   |   |   | 16,454 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                         |   |                        | 7,694  |   |   |   |   |   |   |   |   |   |   |   | 6,436 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                   |   | $                           | 27,068 |   |   |   |   |   |   |   |   |   |   | $ | 22,890 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                |   |                        |   |   |   | $ | 651 |   |   |   |   |   |   |   |   |   |   | $ | 614 |   |   |   |   |   |
| Net interest rate spread (1)                                       |   |                        |   |   |   |   |   |   |   |   | 1.92 | % |   |   |   |   |   |   |   |   |   |   | 2.16 | % |
| Net interest-earning assets (2)                                    |   | $                           | 7,005  |   |   |   |   |   |   |   |   |   |   | $ | 5,573 |   |   |   |   |   |   |   |   |   |
| Net interest margin (3)                                            |   |                        |   |   |   |   |   |   |   |   | 2.49 | % |   |   |   |   |   |   |   |   |   |   | 2.82 | % |
| Average of interest-earning assets to interest-bearing liabilities |   |                        |   |   |   |   |   |   |   |   | 136.64 | % |   |   |   |   |   |   |   |   |   |   | 134.37 | % |

----

|                          |   | Years Ended December 31,2010 vs. 2009 |   |
|-------------------------------|--------|---------------------------------------|--------|
|                          |   |                                  |   |   |   |   |   |  Total |   |
|                          |   |   Increase (Decrease) Due to     |   |   |  Increase |   |
|                          |   | Volume                                |   |   | Rate |   |   | (Decrease) |   |
|                          |   |   (Dollars in thousands)    |   |
| Interest-earning assets:      |   |                                  |   |   |   |   |   |   |   |
| Loans                         |   | $                                     | 152    |   |   | $ | (21 | ) |   | $ | 131 |   |
| Available-for-sale securities |   |                                  | (72    | ) |   |   | (14 | ) |   |   | (86 | ) |
| FHLB stock                    |   |                                  | -      |   |   |   | 1 |   |   |   | 1 |   |
| Interest-earning deposits     |   |                                  | 57     |   |   |   | (79 | ) |   |   | (22 | ) |
| Total interest-earning assets |   |                                  | 137    |   |   |   | (113 | ) |   |   | 24 |   |
|                          |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities: |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Savings deposits              |   |                                  | 38     |   |   |   | 16 |   |   |   | 54 |   |
| NOW accounts                  |   |                                  | (1     | ) |   |   | - |   |   |   | (1 | ) |
| Certificates of deposit       |   |                                  | 8      |   |   |   | (74 | ) |   |   | (66 | ) |
| Total deposits                |   |                                  | 45     |   |   |   | (58 | ) |   |   | (13 | ) |
| Change in net interest income |   | $                                     | 92     |   |   | $ | (55 | ) |   | $ | 37 |   |

----

|   | ● | We maintain relatively high levels of short-term liquid assets.  At December 31, 2010, our short-term liquid assets totaled $13.7 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 of capital. |
|--------|---------|-------------------------------------|

----

| Change in                    |   |                      |   |   |  Estimated Increase |   |    |          |  NPV as a Percentage of Present Value of Assets (3) |   |
|------------------------------|--------|---------------------------|--------|--------|--------------------------|--------|---------|---------------|----------------------------------------------------------|--------|
| Interest Rates               |   |  Estimated           |   |   |  (Decrease) in NPV  |   |    | NPV Ratio     |                                                     |   |  Change in |   |
|  (basis points) (1)     |   |    NPV (2) |   |   |  Amount             |   |    |  Percent |                                                     |   | (4) |   |   |  Basis Points |   |
|  (Dollars in thousands) |   |
|                         |   |                      |   |   |                     |   |    |          |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| +300                         |   | $                         | 6,903  |   |                     | $      | (712    | )             |                                                     |   | (9 | )% |   |   | 20.82 | % |   |   | (122 | ) |
| +200                         |   |                      | 7,186  |   |                     |   | (429    | )             |                                                     |   | (6 | ) |   |   | 21.35 |   |   |   | (69 | ) |
| +100                         |   |                      | 7,459  |   |                     |   | (156    | )             |                                                     |   | (2 | ) |   |   | 21.83 |   |   |   | (21 | ) |
| +50                          |   |                      | 7,553  |   |                     |   | (63     | )             |                                                     |   | (1 | ) |   |   | 21.97 |   |   |   | (7 | ) |
| 0                            |   |                      | 7,615  |   |                     |   | — |          |                                                     |   | — |   |   |   | 22.04 |   |   |   | — |   |
| -50                          |   |                      | 7,597  |   |                     |   | (19     | )             |                                                     |   | — |   |   |   | 21.92 |   |   |   | (12 | ) |
| -100                         |   |                      | 7,665  |   |                     |   | 50      |          |                                                     |   | 1 |   |   |   | 22.03 |   |   |   | (1 | ) |

----

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

----

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| Annual Meeting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The Annual Meeting of Stockholders will be held at 3:00 p.m. on May 25, 2011 at the executive office of Midwest Federal Savings & Loan Association, 1901 Frederick Avenue, St. Joseph, Missouri 64501.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| Stock Listing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The market for our common stock is illiquid.  Our common stock is intermittently quoted on the OTC Electronic Bulletin Board under the symbol “SJBA”. The approximate number of holders of record of St. Joseph Bancorp’s common stock as of March 31, 2011 was 110.  Certain shares of St. Joseph Bancorp are held in “nominee” or “street” name and accordingly, the number of beneficial owners of such shares is not known or included in the foregoing number.  However, we are not aware of any transactions in St. Joseph Bancorp common stock subsequent to our initial public offering in January 2009 at $10 per share. The Board of Directors has the authority to declare cash dividends on shares of common stock, subject to statutory and regulatory requirements.  However, no decision has been made with respect to the payment of cash dividends and no dividends have been paid to date.  In determining whether and in what amount to pay a cash dividend, the Board is expected to take into account a number of factors, including capital requirements, our consolidated financial condition and results of operations, tax considerations, statutory and regulatory limitations and general economic conditions.  No assurances can be given that any cash dividends will be paid or that, if paid, will not be reduced or eliminated in the future. Dividend payments by St. Joseph Bancorp are dependent in part on dividends it receives from Midwest Federal Savings, because St. Joseph Bancorp will have no source of income other than dividends from Midwest Federal Savings, earnings from the investment of proceeds from the sale of shares of common stock retained by St. Joseph Bancorp, and interest payments with respect to St. Joseph Bancorp’s loan to the Employee Stock Ownership Plan.  Federal law imposes limitations on dividends by Federal stock savings banks. |
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| Special Counsel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Luse Gorman Pomerenk & Schick, P.C.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 5335 Wisconsin Avenue, N.W., Suite 400                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Washington, D.C. 20015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| BKD, LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 1201 Walnut Street, Suite 1700Kansas City, MO 64106-2246                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Transfer Agent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Registrar and Transfer Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10 Commerce Drive                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Cranford, New Jersey 07016                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| Annual Report on Form 10-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| A copy of the Company’s Form 10-K for the fiscal year ended December 31, 2010 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. Schank                                                          |   | Ralph E. Schank                       |
| Chairman of the Board                                                    |   | President and Chief Executive Officer |
| President & Chief Executive Officer                                  |   |                                  |
|                                                                     |   | Billy D. Cole                         |
| Billy D. Cole                                                            |   | Executive Vice President              |
| Executive Vice President                                                 |   |                                  |
|                                                                     |   | Barbara V. Elder                      |
| Kirby O. Brooner                                                         |   | Vice President                        |
| Sales & Risk Management, Brooner & Associates Construction, Inc. |   |                                  |
|                                                                     |   |                                  |
| George T. Hopkins, III                                                   |   |                                  |
| Building Development Supervisor, City of St. Joseph, Missouri            |   |                                  |
|                                                                     |   |                                  |
| John R. Wray                                                             |   |                                  |
| Realtor, Prudential Summers Realtors                                     |   |                                  |

----

----

| Report of Independent Registered Public Accounting Firm |   | F- 2   |
|---------------------------------------------------------|--------|--------|
|                                                    |   |   |
| Consolidated Financial Statements                       |   |   |
|                                                    |   |   |
| Consolidated Balance Sheets                             |   | F - 3  |
|                                                    |   |   |
| Consolidated Statements of Operations                   |   | F - 4  |
|                                                    |   |   |
| Consolidated Statements of Stockholders’ Equity   |   | F - 5  |
|                                                    |   |   |
| Consolidated 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     |

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

----

| Assets                                                                                                           |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                                                             |   |   |   |   |   |   |
| Cash and due from banks                                                                                          |   | $ | 1,736,072 |   |   | $ | 1,311,198 |   |
| Interest-earning deposits in other institutions                                                                  |   |   | 11,915,446 |   |   |   | 4,196,227 |   |
| Available-for-sale securities                                                                                    |   |   | 3,475,406 |   |   |   | 4,260,289 |   |
| Loans, net of allowance for loan losses of $103,000 and $63,500 at December 31, 2010 and 2009, respectively |   |   | 15,375,849 |   |   |   | 12,827,709 |   |
| Premises and equipment, net                                                                                      |   |   | 1,057,746 |   |   |   | 421,452 |   |
| Federal Home Loan Bank stock, at cost                                                                            |   |   | 26,700 |   |   |   | 26,200 |   |
| Interest receivable                                                                                              |   |   | 100,803 |   |   |   | 82,325 |   |
| Prepaid income taxes                                                                                             |   |   | - |   |   |   | 2,877 |   |
| Other                                                                                                            |   |   | 95,421 |   |   |   | 112,631 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total assets                                                                                                     |   | $ | 33,783,443 |   |   | $ | 23,240,908 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders’ Equity                                                                       |
|                                                                                                             |   |   |   |   |   |   |   |
| Liabilities                                                                                                      |   |   |   |   |   |   |   |   |
| Deposits                                                                                                         |   |   |   |   |   |   |   |   |
| Savings, NOW and money market                                                                                    |   | $ | 13,569,249 |   |   | $ | 4,055,699 |   |
| Time                                                                                                             |   |   | 12,738,747 |   |   |   | 11,222,929 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total deposits                                                                                                   |   |   | 26,307,996 |   |   |   | 15,278,628 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Advances from borrowers for taxes and insurance                                                                  |   |   | 21,232 |   |   |   | 23,799 |   |
| Interest payable                                                                                                 |   |   | 520 |   |   |   | 1,274 |   |
| Deferred income taxes                                                                                            |   |   | 3,889 |   |   |   | 16,405 |   |
| Other liabilities                                                                                                |   |   | 44,273 |   |   |   | 42,607 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                |   |   | 26,377,910 |   |   |   | 15,362,713 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Temporary Equity                                                                                                 |   |   |   |   |   |   |   |   |
| ESOP shares subject to mandatory redemption                                                                      |   |   | 21,105 |   |   |   | 10,050 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                                       |   |   |   |   |   |   |   |   |
| Common stock, $.01 par value, 4,000,000 shares authorized, 376,918 shares issued and outstanding                 |   |   | 3,739 |   |   |   | 3,739 |   |
| Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued or outstanding                         |   |   | - |   |   |   | - |   |
| Additional paid-in capital                                                                                       |   |   | 2,660,524 |   |   |   | 2,660,021 |   |
| Retained earnings                                                                                                |   |   | 4,663,575 |   |   |   | 5,131,632 |   |
| Accumulated other comprehensive income:                                                                          |   |   |   |   |   |   |   |   |
| Unrealized gain on available-for-sale securities, net of income taxes                                            |   |   | 56,590 |   |   |   | 72,753 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total stockholders’ equity                                                                                 |   |   | 7,384,428 |   |   |   | 7,868,145 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                                                 |   | $ | 33,783,443 |   |   | $ | 23,240,908 |   |

----

|                                                |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|-----------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Interest Income                                     |   |   |      |   |   |   |      |   |   |
| Interest and fees on loans                          |   | $      | 822,788   |   |   |   | 691,872   |   |   |   | 616,392 |   |
| Available-for-sale securities                       |   |   | 149,099   |   |   |   | 235,278   |   |   |   | 230,516 |   |
| Interest-earning deposits                           |   |   | 83,320    |   |   |   | 104,184   |   |   |   | 71,993 |   |
| Federal Home Loan Bank dividends                    |   |   | 663       |   |   |   | 367       |   |   |   | 4,796 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Total interest income                               |   |   | 1,055,870 |   |   |   | 1,031,701 |   |   |   | 923,697 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Interest Expense                                    |   |   |      |   |   |   |      |   |   |   |   |   |
| Deposits                                            |   |   | 405,183   |   |   |   | 417,578   |   |   |   | 440,564 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Net Interest Income                                 |   |   | 650,687   |   |   |   | 614,123   |   |   |   | 483,133 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Provision for Loan Losses                           |   |   | 39,500    |   |   |   | 41,500    |   |   |   | 4,000 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Net Interest Income After Provision for Loan Losses |   |   | 611,187   |   |   |   | 572,623   |   |   |   | 479,133 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Non-interest Income                                 |   |   |      |   |   |   |      |   |   |   |   |   |
| Other                                               |   |   | 20,870    |   |   |   | 6,634     |   |   |   | 5,176 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Non-interest Expense                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Salaries and employee benefits                      |   |   | 571,031   |   |   |   | 427,899   |   |   |   | 366,652 |   |
| Net occupancy expense                               |   |   | 106,196   |   |   |   | 80,919    |   |   |   | 72,158 |   |
| Depreciation                                        |   |   | 39,192    |   |   |   | 9,888     |   |   |   | 12,316 |   |
| Legal expense                                       |   |   | 45,092    |   |   |   | 54,529    |   |   |   | 3,600 |   |
| Audit fees and exams                                |   |   | 145,202   |   |   |   | 175,232   |   |   |   | 17,742 |   |
| Franchise and special taxes                         |   |   | 30,338    |   |   |   | 21,571    |   |   |   | 16,937 |   |
| Marketing expense                                   |   |   | 53,833    |   |   |   | 38,049    |   |   |   | 23,062 |   |
| Other                                               |   |   | 128,638   |   |   |   | 84,316    |   |   |   | 51,911 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Total non-interest expense                          |   |   | 1,119,522 |   |   |   | 892,403   |   |   |   | 564,378 |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Loss Before Income Taxes                            |   |   | (487,465  | )      |   |   | (313,146  | )      |   |   | (80,069 | ) |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Credit for Income Taxes                             |   |   | (20,413   | )      |   |   | (15,932   | )      |   |   | (9,226 | ) |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Net Loss                                            |   | $      | (467,052  | )      |   | $      | (297,214  | )      |   | $ | (70,843 | ) |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic and Diluted Loss Per Common Share             |   | $      | (1.34     | )      |   | $      | (0.86     | )      |   |   | N/A |   |
|                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic Weighted Average Shares Outstanding           |   |   | 348,272   |   |   |   | 347,016   |   |   |   | N/A |   |

----

|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          | Accumulated   |      |                |   |    |
|---------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------------|--------|---------|------------|--------|--------|-------------------|--------|---------------|---------------|-----------|---------------------|--------|---------|
|                                                                                                    |   |          |     |   |         |   |    | Additional |   |   |              |   |          | Other         |      |                | Total  |    |
|                                                                                                    |   | Comprehensive |     |   |         |   | Paid-in |       |   |   |              |   | Comprehensive |          |      | Stockholders’ |   |
|                                                                                                    |   | Income        |     |   | Common Stock |   |    | Capital    |   |   | Retained Earnings |   |          | Income (Loss) |      |                | Equity |    |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |
| Balance, January 1, 2008                                                                                |   |          |     |   | $            | -      |    |       | $      | -      |              |   | $             | 5,499,689     |      |                | $      | (17,105 | ) |   | $ | 5,482,584 |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |
| Net loss                                                                                                |   | $             | (70,843  | )      |         |   | -       |       |   |   | -                 |   |          |          | (70,843   | )                   |   |    | - |   |   |   | (70,843 | ) |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Change in unrealized depreciation of available-for-sale securities, net of income taxes of $27,398 |   |          | 93,668   |   |         |   | -       |       |   |   | -                 |   |          |          | -         |                |   |    | 93,668 |   |   |   | 93,668 |   |
| Total comprehensive income                                                                              |   | $             | 22,825   |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                              |   |          |     |   |         |   | -       |       |   |   | -                 |   |          |          | 5,428,846 |                |   |    | 76,563 |   |   |   | 5,505,409 |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Net loss                                                                                                |   | $             | (297,214 | )      |         |   | -       |       |   |   | -                 |   |          |          | (297,214  | )                   |   |    | - |   |   |   | (297,214 | ) |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Change in unrealized appreciation of available-for-sale securities, net of income taxes of $39          |   |          | (3,810   | )      |         |   | -       |       |   |   | -                 |   |          |          | -         |                |   |    | (3,810 | ) |   |   | (3,810 | ) |
| Total comprehensive income                                                                              |   | $             | (301,024 | )      |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Net proceeds from issuance of 376,918 shares of common stock                                       |   |          |     |   |         |   | 3,769   |       |   |   | 2,961,521         |   |          |          | -         |                |   |    | - |   |   |   | 2,965,290 |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Acquisition of unearned ESOP shares                                                                     |   |          |     | (30    | )            |   |    | (301,500   | )      |   |              | -      |          |          |      | -                   |   |    |   | (301,530 | ) |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Balance, December 31, 2009                                                                              |   |          |     |   |         |   | 3,739   |       |   |   | 2,660,021         |   |          |          | 5,131,632 |                |   |    | 72,753 |   |   |   | 7,868,145 |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Net loss                                                                                                |   | $             | (467,052 | )      |         |   | -       |       |   |   | -                 |   |          |          | (467,052  | )                   |   |    | - |   |   |   | (467,052 | ) |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Change in unrealized appreciation of available-for-sale securities, net of income taxes of $4,284       |   |          | (16,163  | )      |         |   | -       |       |   |   | -                 |   |          |          | -         |                |   |    | (16,163 | ) |   |   | (16,163 | ) |
| Total comprehensive loss                                                                                |   | $             | (483,215 | )      |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Change in redemption value of ESOP shares subject to mandatory redemption                               |   |          |     |   |         | -      |    |       |   | -      |              |   |          | (1,005        | )         |                |   | -       |   |   |   | (1,005 | ) |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| ESOP shares committed for release                                                                       |   |          |     | -      |         |   |    | 503        |   |   |              | -      |          |          |      | -                   |   |    |   | 503 |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
|                                                                                                    |   |          |     |   |         |   |    |       |   |   |              |   |          |          |      |                |   |    |   |   |   |   |   |   |
| Balance, December 31, 2010                                                                              |   |          |     |   |         | $      | 3,739   |       |   | $      | 2,660,524         |   |          | $             | 4,663,575 |                |   | $       | 56,590 |   |   | $ | 7,384,428 |   |

----

|                                                                             |   | 2010   |        |   | 2009   |   |       | 2008   |   |
|----------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Operating Activities                                                             |   |   |        |   |   |   |       |   |   |
| Net loss                                                                         |   | $      | (467,052    | )      |   | $      | (297,214   | )      |   | $ | (70,843 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |   |        |   |   |   |       |   |   |   |   |   |
| Depreciation and amortization                                                    |   |   | 39,192      |   |   |   | 21,987     |   |   |   | 22,792 |   |
| Amortization and accretion of securities                                         |   |   | 10,339      |   |   |   | 5,019      |   |   |   | 1,409 |   |
| Provision for loan losses                                                        |   |   | 39,500      |   |   |   | 41,500     |   |   |   | 4,000 |   |
| Loss (gain) on disposal of equipment                                             |   |   | (100        | )      |   |   | (300       | )      |   |   | 50 |   |
| Gain on sale of loans held for sale                                              |   |   | (13,266     | )      |   |   | -          |   |   |   | - |   |
| Origination of loans held for sale                                               |   |   | (864,000    | )      |   |   | -          |   |   |   | - |   |
| Sale of loans held for sale                                                      |   |   | 877,266     |   |   |   | -          |   |   |   | - |   |
| Deferred income taxes                                                            |   |   | (8,232      | )      |   |   | 13,629     |   |   |   | 1,978 |   |
| Compensation cost on allocated ESOP shares                                       |   |   | 10,553      |   |   |   | 10,050     |   |   |   | - |   |
| Changes in:                                                                      |   |   |        |   |   |   |       |   |   |   |   |   |
| Interest receivable                                                              |   |   | (18,478     | )      |   |   | 4,413      |   |   |   | (1,135 | ) |
| Prepaid income taxes                                                             |   |   | 2,877       |   |   |   | 6,777      |   |   |   | (9,654 | ) |
| Other assets                                                                     |   |   | 17,210      |   |   |   | (50,920    | )      |   |   | (21,914 | ) |
| Other liabilities and interest payable                                           |   |   | 912         |   |   |   | (7,306     | )      |   |   | 6,567 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Net cash used in operating activities                                            |   |   | (373,279    | )      |   |   | (252,365   | )      |   |   | (66,750 | ) |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Investing Activities                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Net increase in loans                                                            |   |   | (2,587,640  | )      |   |   | (2,827,067 | )      |   |   | (1,042,989 | ) |
| Purchases of securities                                                          |   |   | (1,217,435  | )      |   |   | (1,519,579 | )      |   |   | (1,996,250 | ) |
| Net redemptions (purchases) of interest-earning deposits                         |   |   | (7,719,219  | )      |   |   | 603,773    |   |   |   | (2,050,000 | ) |
| Proceeds from maturities and calls of securities                                 |   |   | 1,095,000   |   |   |   | 1,610,000  |   |   |   | 2,000,000 |   |
| Purchases of Federal Home Loan Bank stock                                        |   |   | (500        | )      |   |   | (4,000     | )      |   |   | 120,300 |   |
| Principal reductions of mortgage backed securities                               |   |   | 876,532     |   |   |   | 924,644    |   |   |   | 821,428 |   |
| Proceeds from disposal of equipment                                              |   |   | 100         |   |   |   | 300        |   |   |   | - |   |
| Purchases of premises and equipment                                              |   |   | (675,486    | )      |   |   | (49,977    | )      |   |   | (162,456 | ) |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Net cash used in investing activities                                            |   |   | (10,228,648 | )      |   |   | (1,261,906 | )      |   |   | (2,309,967 | ) |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Financing Activities                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Net increase in savings, NOW and money market accounts                      |   |   | 9,513,550   |   |   |   | 969,589    |   |   |   | 819,787 |   |
| Net increase in time deposits                                                    |   |   | 1,515,818   |   |   |   | 219,025    |   |   |   | 380,589 |   |
| Net decrease in prepaid conversion costs                                         |   |   | -           |   |   |   | (300,781   | )      |   |   | (503,109 | ) |
| Net increase in subscription proceeds deposits                                   |   |   | -           |   |   |   | -          |   |   |   | 2,136,104 |   |
| Proceeds from issuance of common stock                                           |   |   | -           |   |   |   | 1,331,546  |   |   |   | - |   |
| Net increase (decrease) in advances from borrowers for taxes and insurance  |   |   | (2,567      | )      |   |   | 11,738     |   |   |   | 1,426 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Net cash provided by financing activities                                        |   |   | 11,026,801  |   |   |   | 2,231,117  |   |   |   | 2,834,797 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Increase in cash and cash equivalents                                            |   |   | 424,874     |   |   |   | 716,846    |   |   |   | 458,080 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year                                     |   |   | 1,311,198   |   |   |   | 594,352    |   |   |   | 136,272 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                                           |   | $      | 1,736,072   |   |   | $      | 1,311,198  |   |   | $ | 594,352 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Supplemental Cash Flows Information                                              |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Interest paid                                                                    |   | $      | 405,937     |   |   | $      | 420,471    |   |   | $ | 436,895 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Income taxes paid (net of refunds)                                               |   | $      | (15,058     | )      |   | $      | (36,388    | )      |   | $ | 924 |   |
|                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
| Non cash transactions:                                                           |   |   |        |   |   |   |       |   |   |   |   |   |

----

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

----

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

----

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

----

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

----

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

----

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

----

|   | Note 2: | Employee Stock Ownership Plan |
|--------|---------|-------------------------------|

|                            |   | 2010   |    |   | 2009   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|
|                            |   |   |    |   |   |   |
| Released shares                 |   |   | 1,005   |   |   |   | - |   |
| Shares committed for release    |   |   | 1,005   |   |   |   | 1,005 |   |
| Unreleased shares               |   |   | 28,143  |   |   |   | 29,148 |   |
|                            |   |   |    |   |   |   |   |   |
| Total                           |   |   | 30,153  |   |   |   | 30,153 |   |
|                            |   |   |    |   |   |   |   |   |
| Fair value of unreleased shares |   | $      | 295,502 |   |   | $      | 306,054 |   |

----

|   | Note 2: | Employee Stock Ownership Plan (Continued) |
|--------|---------|-------------------------------------------|

|   | Note 3: | Equity Incentive Plan |
|--------|---------|-----------------------|

----

|   | Note 3: | Equity Incentive Plan (Continued) |
|--------|---------|-----------------------------------|

|   | Note 4: | Loss Per Share |
|--------|---------|----------------|

|                               |   | Year Ended |     |   | Year Ended |   |
|------------------------------------|--------|------------|----------|--------|------------|--------|
|                               |   | 12/31/10   |     |   | 12/31/09   |   |
|                               |   |       |     |   |       |   |
| Net loss                           |   | $          | (467,052 | )      |       | $      | (297,214 | ) |
|                               |   |       |     |   |       |   |   |   |
| Average common shares outstanding  |   |       | 348,272  |   |       |   | 347,016 |   |
| Average common share stock options |   |       | -        |   |       |   | - |   |
| outstanding                        |   |       |     |   |       |   |   |   |
| Average diluted common shares      |   | $          | 348,272  |   |       | $      | 347,016 |   |
|                               |   |       |     |   |       |   |   |   |
| Loss per share:                    |   |       |     |   |       |   |   |   |
| Basic                              |   | $          | (1.34    | )      |       | $      | (0.86 | ) |
| Diluted                            |   |       | (1.34    | )      |       |   | (0.86 | ) |

----

|   | Note 5: | Available-For-Sale Securities |
|--------|---------|-------------------------------|

|                       |   | Amortized Cost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Estimated Fair Value |   |
|----------------------------|--------|----------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------------------|--------|
| December 31, 2010          |   |           |      |   |                 |   |   |                  |   |   |                 |   |
|                       |   |           |      |   |                 |   |   |                  |   |   |                 |   |
| U.S. Government agencies   |   | $              | 2,223,477 |   |                 | $      | 30,700 |                  |   | $      | 11,201               |   |   | $ | 2,242,976 |   |
| Mortgage-backed securities |   |           | 1,180,364 |   |                 |   | 52,066 |                  |   |   | -                    |   |   |   | 1,232,430 |   |
|                       |   |           |      |   |                 |   |   |                  |   |   |                 |   |   |   |   |   |
|                       |   | $              | 3,403,841 |   |                 | $      | 82,766 |                  |   | $      | 11,201               |   |   | $ | 3,475,406 |   |

|                                |   | Amortized Cost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Estimated Fair Value |   |
|-------------------------------------|--------|----------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|----------------------|--------|
| December 31, 2009    |   |           |      |   |                 |   |   |                  |   |   |                 |   |
|                                |   |           |      |   |                 |   |   |                  |   |   |                 |   |
| U.S. Government agencies            |   | $              | 2,014,241 |   |                 | $      | 21,482 |                  |   | $      | -                    |   |   | $ | 2,035,723 |   |
| Municipal securities                |   |           | 95,000    |   |                 |   | 1,850  |                  |   |   | -                    |   |   |   | 96,850 |   |
| Mortgage-backed securities     |   |           | 2,059,037 |   |                 |   | 68,679 |                  |   |   | -                    |   |   |   | 2,127,716 |   |
|                                |   |           |      |   |                 |   |   |                  |   |   |                 |   |   |   |   |   |
|                                |   | $              | 4,168,278 |   |                 | $      | 92,011 |                  |   | $      | -                    |   |   | $ | 4,260,289 |   |

|                       |   | AmortizedCost |      |   | FairValue |   |
|----------------------------|--------|---------------|-----------|--------|-----------|--------|
|                       |   |          |      |   |      |   |
| Within one year            |   | $             | -         |   |      | $      | - |   |
| One to five years          |   |          | 2,223,477 |   |      |   | 2,242,976 |   |
| Six to ten years           |   |          | -         |   |      |   | - |   |
| Mortgage-backed securities |   |          | 1,180,364 |   |      |   | 1,232,430 |   |
|                       |   |          |      |   |      |   |   |   |
| Totals                     |   | $             | 3,403,841 |   |      | $      | 3,475,406 |   |

----

|   | Note 5: | Available-For-Sale Securities (Continued) |
|--------|---------|-------------------------------------------|

| December 31, 2010                     |   |
|---------------------------------------|--------|
|                                  |   | Less Than 12 Months |   |   | 12 Months or More |   |   | Total |   |
| Description of Securities             |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies              |   | $ | 688,799 |   |   | $ | 11,201 |   |   | $ | - |   |   | $ | - |   |   | $ | 688,799 |   |   | $ | 11,201 |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   | $ | 688,799 |   |   | $ | 11,201 |   |   | $ | - |   |   | $ | - |   |   | $ | 688,799 |   |   | $ | 11,201 |   |

|   | Note 6: | Loans and Allowance for Loan Losses |
|--------|---------|-------------------------------------|

|                                           |   | 2010   |       |   | 2009   |   |
|------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Residential real estate                        |   |   |       |   |   |   |
| One-to-four family residential                 |   | $      | 13,714,806 |   |   | $      | 11,640,688 |   |
| Construction                                   |   |   | 138,000    |   |   |   | 199,588 |   |
| Nonresidential real estate                     |   |   | 913,589    |   |   |   | 884,172 |   |
| Commercial                                     |   |   | 579,352    |   |   |   | - |   |
| Consumer                                       |   |   | 134,903    |   |   |   | 169,368 |   |
|                                           |   |   |       |   |   |   |   |   |
| Total loans                                    |   |   | 15,480,650 |   |   |   | 12,893,816 |   |
|                                           |   |   |       |   |   |   |   |   |
| Less                                           |   |   |       |   |   |   |   |   |
| Net deferred loan fees, premiums and discounts |   |   | 1,801      |   |   |   | 2,607 |   |
| Allowance for loan losses                      |   |   | 103,000    |   |   |   | 63,500 |   |
|                                           |   |   |       |   |   |   |   |   |
| Net loans                                      |   | $      | 15,375,849 |   |   | $      | 12,827,709 |   |

----

|   | Note 6: | Loans and Allowance for Loan Losses (Continued) |
|--------|---------|-------------------------------------------------|

|                         |   | 2010   |    |   | 2009   |   |   | 2008   |   |
|------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                         |   |   |    |   |   |   |   |   |   |
| Balance, beginning of year   |   | $      | 63,500  |   |   | $      | 22,000 |   |   | $ | 18,000 |   |
|                         |   |   |    |   |   |   |   |   |   |   |   |   |
| Provision charged to expense |   |   | 39,500  |   |   |   | 41,500 |   |   |   | 4,000 |   |
|                         |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance, end of year         |   | $      | 103,000 |   |   | $      | 63,500 |   |   | $ | 22,000 |   |

----

|   | Note 6: | Loans and Allowance for Loan Losses (Continued) |
|--------|---------|-------------------------------------------------|

|                                |   | 1-4 Family  |       |   | Construction |   |    |           |   |   |       |   |   |     |    |   |   |   |
|-------------------------------------|--------|-------------|------------|--------|--------------|--------|---------|----------------|--------|--------|------------|--------|--------|----------|---------|--------|--------|--------|
|                                |   | Residential |       |   | Residential  |   |    | Nonresidential |   |   |       |   |   |     |    |   |   |   |
|                                |   | Real Estate |       |   | Real Estate  |   |    | Real Estate    |   |   | Commercial |   |   | Consumer |    |   | Total  |   |
| Allowance for loan losses:          |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |
| Balance, beginning                  |   | $           | 42,000     |   |         | $      | 10,500  |           |   | $      | 8,000      |   |   | $        | -       |   |   | $      | 3,000 |   |   | $ | 63,500 |   |
| Provision charged to                |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| expense                             |   |        | 12,000     |   |         |   | 4,500   |           |   |   | 1,000      |   |   |     | 22,000  |   |   |   | - |   |   |   | 39,500 |   |
|                                |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Balance, ending                     |   | $           | 54,000     |   |         | $      | 15,000  |           |   | $      | 9,000      |   |   | $        | 22,000  |   |   | $      | 3,000 |   |   | $ | 103,000 |   |
|                                |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Ending balance, Individually        |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| evaluated for impairment            |   | $           | -          |   |         | $      | -       |           |   | $      | -          |   |   | $        | -       |   |   | $      | - |   |   | $ | - |   |
|                                |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Ending balance:  General  |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| allowance for loan losses           |   | $           | 54,000     |   |         | $      | 15,000  |           |   | $      | 9,000      |   |   | $        | 22,000  |   |   | $      | 3,000 |   |   | $ | 103,000 |   |
|                                |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Loans:                              |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Ending balance:  Total    |   | $           | 13,714,806 |   |         | $      | 138,000 |           |   | $      | 913,589    |   |   | $        | 579,352 |   |   | $      | 134,903 |   |   | $ | 15,480,650 |   |
|                                |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| Ending balance:  Impaired |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| loans with a valuation              |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
| allowance                           |   | $           | -          |   |         | $      | -       |           |   | $      | -          |   |   | $        | -       |   |   | $      | - |   |   | $ | - |   |

|                 |   | 1-4 Family  |       |   | Construction |   |    |           |   |   |       |   |   |     |    |   |   |   |
|----------------------|--------|-------------|------------|--------|--------------|--------|---------|----------------|--------|--------|------------|--------|--------|----------|---------|--------|--------|--------|
|                 |   | Residential |       |   | Residential  |   |    | Nonresidential |   |   |       |   |   |     |    |   |   |   |
|                 |   | Real Estate |       |   | Real Estate  |   |    | Real Estate    |   |   | Commercial |   |   | Consumer |    |   | Total  |   |
|                 |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |
| Pass                 |   | $           | 13,714,806 |   |         | $      | 138,000 |           |   | $      | 913,589    |   |   | $        | 579,352 |   |   | $      | 134,903 |   |   | $ | 15,480,650 |   |
| Special Mention      |   |        | -          |   |         |   | -       |           |   |   | -          |   |   |     | -       |   |   |   | - |   |   |   | - |   |
| Substandard          |   |        | -          |   |         |   | -       |           |   |   | -          |   |   |     | -       |   |   |   | - |   |   |   | - |   |
| Substandard-Impaired |   |        | -          |   |         |   | -       |           |   |   | -          |   |   |     | -       |   |   |   | - |   |   |   | - |   |
|                 |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
|                 |   | $           | 13,714,806 |   |         | $      | 138,000 |           |   | $      | 913,589    |   |   | $        | 579,352 |   |   | $      | 134,903 |   |   | $ | 15,480,650 |   |
|                 |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |

----

|   | Note 6: | Loans and Allowance for Loan Losses (Continued) |
|--------|---------|-------------------------------------------------|

|           |   | 1-4 Family  |       |   | Construction |   |    |           |   |   |       |   |   |     |    |   |   |   |
|----------------|--------|-------------|------------|--------|--------------|--------|---------|----------------|--------|--------|------------|--------|--------|----------|---------|--------|--------|--------|
|           |   | Residential |       |   | Residential  |   |    | Nonresidential |   |   |       |   |   |     |    |   |   |   |
|           |   | Real Estate |       |   | Real Estate  |   |    | Real Estate    |   |   | Commercial |   |   | Consumer |    |   | Total  |   |
|           |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |
| Performing     |   | $           | 13,714,806 |   |         | $      | 138,000 |           |   | $      | 913,589    |   |   | $        | 579,352 |   |   | $      | 134,903 |   |   | $ | 15,480,650 |   |
| Non-performing |   |        | -          |   |         |   | -       |           |   |   | -          |   |   |     | -       |   |   |   | - |   |   |   | - |   |
|           |   |        |       |   |         |   |    |           |   |   |       |   |   |     |    |   |   |   |   |   |   |   |   |   |
|           |   | $           | 13,714,806 |   |         | $      | 138,000 |           |   | $      | 913,589    |   |   | $        | 579,352 |   |   | $      | 134,903 |   |   | $ | 15,480,650 |   |

|                                                        |   | December 31, |   |
|-------------------------------------------------------------|--------|--------------|--------|
|                                                        |   | 2010         |   |   | 2009 |   |
|                                                        |   |         |   |   |   |   |
| Impaired loans without a valuation allowance                |   | $            | -      |   |   | $ | - |   |
| Impaired loans with a valuation allowance                   |   |         | -      |   |   |   | - |   |
| Total impaired loans                                        |   | $            | -      |   |   | $ | - |   |
|                                                        |   |         |   |   |   |   |   |   |
| Valuation related to impaired loans                         |   | $            | -      |   |   | $ | - |   |
|                                                        |   |         |   |   |   |   |   |   |
| Total nonaccrual loans                                      |   | $            | -      |   |   | $ | - |   |
|                                                        |   |         |   |   |   |   |   |   |
| Total loans past due ninety days or more and still accruing |   | $            | -      |   |   | $ | - |   |

|                                            |   | Years Ended December 31, |   |
|-------------------------------------------------|--------|--------------------------|--------|
|                                            |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                            |   |                     |   |   |   |   |   |   |   |
| Average investments in impaired loans           |   | $                        | -      |   |   | $ | - |   |   | $ | - |   |
| Interest income that would have been recognized |   |                     |   |   |   |   |   |   |   |   |   |   |
| on impaired loans                               |   | $                        | -      |   |   | $ | - |   |   | $ | - |   |
| Interest income recorded on impaired loans      |   | $                        | -      |   |   | $ | - |   |   | $ | - |   |

----

|   | Note 6: | Loans and Allowance for Loan Losses (Continued) |
|--------|---------|-------------------------------------------------|

|                                    |   |       |   |   | Unpaid    |   |   |      |   |   | Average    |   |   | Interest   |   |
|-----------------------------------------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
|                                    |   | Recorded   |   |   | Principal |   |   | Related   |   |   | Recorded   |   |   | Income     |   |
|                                    |   | Investment |   |   | Balance   |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
|                                    |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |
| With no specific reserve recorded:      |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |
| Residential real estate - 1 to 4 family |   | $          | -      |   |      | $      | -      |      |   | $      | -          |   |   | $          | -      |   |   | $ | - |   |
| Residential real estate - Construction  |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Nonresidential real estate              |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial                              |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Consumer and other                      |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
|                                    |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| With an allowance recorded:             |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Residential real estate - 1 to 4 family |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Residential real estate - Construction  |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Nonresidential real estate              |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial                              |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Consumer and other                      |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
|                                    |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Total                                   |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Residential real estate - 1 to 4 family |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Residential real estate - Construction  |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Nonresidential real estate              |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial                              |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Consumer and other                      |   |       | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
|                                    |   |       |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Total                                   |   | $          | -      |   |      | $      | -      |      |   | $      | -          |   |   | $          | -      |   |   | $ | - |   |

|                                    |   |     |   |   |    |   |   |     |   |   |    |   |   |   |       |   | Greater  |   |
|-----------------------------------------|--------|----------|--------|--------|---------|--------|--------|----------|--------|--------|---------|--------|--------|--------|------------|--------|----------|--------|
|                                    |   |     |   |   | Greater |   |   |     |   |   |    |   |   |   |       |   | Than     |   |
|                                    |   | 30 - 89  |   |   | Than    |   |   | Total    |   |   |    |   |   |   |       |   | 90 Days  |   |
|                                    |   | Past Due |   |   | 90 Days |   |   | Past Due |   |   | Current |   |   | Total  |       |   | Accruing |   |
|                                    |   |     |   |   |    |   |   |     |   |   |    |   |   |   |       |   |     |   |   |
| Residential real estate - 1 to 4 family |   | $        | -      |   |    | $      | -      |     |   | $      | -       |   |   | $      | 13,714,806 |   |     | $      | 13,714,806 |   |   | $ | - |   |
| Residential real estate - Construction  |   |     | -      |   |    |   | -      |     |   |   | -       |   |   |   | 138,000    |   |     |   | 138,000 |   |   |   | - |   |
| Nonresidential real estate              |   |     | -      |   |    |   | -      |     |   |   | -       |   |   |   | 913,589    |   |     |   | 913,589 |   |   |   | - |   |
| Commercial                              |   |     | -      |   |    |   | -      |     |   |   | -       |   |   |   | 579,352    |   |     |   | 579,352 |   |   |   | - |   |
| Consumer and other                      |   |     | -      |   |    |   | -      |     |   |   | -       |   |   |   | 134,903    |   |     |   | 134,903 |   |   |   | - |   |
|                                    |   |     |   |   |    |   |   |     |   |   |    |   |   |   |       |   |     |   |   |   |   |   |   |   |
|                                    |   | $        | -      |   |    | $      | -      |     |   | $      | -       |   |   | $      | 15,480,650 |   |     | $      | 15,480,650 |   |   | $ | - |   |

----

|   | Note 7: | Premises and Equipment |
|--------|---------|------------------------|

|                          |   | 2010   |      |   | 2009   |   |
|-------------------------------|--------|--------|-----------|--------|--------|--------|
|                          |   |   |      |   |   |   |
| Land                          |   | $      | 447,401   |   |   | $      | 132,400 |   |
| Buildings and improvements    |   |   | 636,119   |   |   |   | 412,494 |   |
| Furniture and fixtures        |   |   | 350,009   |   |   |   | 213,149 |   |
|                          |   |   | 1,433,529 |   |   |   | 758,043 |   |
| Less accumulated depreciation |   |   | 375,783   |   |   |   | 336,591 |   |
|                          |   |   |      |   |   |   |   |   |
| Net premises and equipment    |   | $      | 1,057,746 |   |   | $      | 421,452 |   |

|   | Note 8: | Interest-bearing Deposits |
|--------|---------|---------------------------|

| 2011   |   | $      | 4,260,160  |   |
|--------|--------|--------|------------|--------|
| 2012   |   |   | 3,775,324  |   |
| 2013   |   |   | 3,088,182  |   |
| 2014   |   |   | 619,660    |   |
| 2015   |   |   | 995,421    |   |
|   |   |   |       |   |
|   |   | $      | 12,738,747 |   |

|                     |   |   |    |   | December 31, |   |    |   |   |
|--------------------------|--------|--------|---------|--------|--------------|--------|---------|--------|--------|
|                     |   | 2010   |    |   | 2009         |   |    | 2008   |   |
|                     |   |   |    |   |         |   |    |   |   |
| Certificates of deposits |   | $      | 315,420 |   |         | $      | 380,393 |   |   | $ | 409,263 |   |
| Savings                  |   |   | 88,520  |   |         |   | 35,183  |   |   |   | 28,740 |   |
| Now accounts             |   |   | 1,243   |   |         |   | 2,002   |   |   |   | 2,561 |   |
|                     |   |   |    |   |         |   |    |   |   |   |   |   |
|                     |   | $      | 405,183 |   |         | $      | 417,578 |   |   | $ | 440,564 |   |

----

|   | Note 9: | Income Taxes |
|--------|---------|--------------|

|                    |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                    |   |   |    |   |   |   |    |   |   |
| Current                 |   | $      | (12,181 | )      |   | $      | (29,561 | )      |   | $ | (11,204 | ) |
| Deferred                |   |   | (8,232  | )      |   |   | 13,629  |   |   |   | 1,978 |   |
|                    |   |   |    |   |   |   |    |   |   |   |   |   |
| Credit for income taxes |   | $      | (20,413 | )      |   | $      | (15,932 | )      |   | $ | (9,226 | ) |

|                                               |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                               |   |   |    |   |   |   |    |   |   |
| Computed at the statutory rate (15%)               |   | $      | (72,965 | )      |   | $      | (46,943 | )      |   | $ | (12,010 | ) |
| Increase (decrease) resulting from:                |   |   |    |   |   |   |    |   |   |   |   |   |
| Tax exempt dividends                               |   |   | -       |   |   |   | -       |   |   |   | (74 | ) |
| Nondeductible expenses                             |   |   | 288     |   |   |   | 170     |   |   |   | 128 |   |
| State income taxes                                 |   |   | -       |   |   |   | -       |   |   |   | (4,764 | ) |
| Change to effective rate applied to deferred taxes |   |   | -       |   |   |   | -       |   |   |   | 8,446 |   |
| Changes in deferred tax asset valuation allowance  |   |   | 55,367  |   |   |   | 39,288  |   |   |   | - |   |
| Other                                              |   |   | (3,103  | )      |   |   | (8,447  | )      |   |   | (952 | ) |
|                                               |   |   |    |   |   |   |    |   |   |   |   |   |
| Credit for income taxes                            |   | $      | (20,413 | )      |   | $      | (15,932 | )      |   | $ | (9,226 | ) |

|                            |   | 2010   |    |   | 2009   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax assets:            |   |   |    |   |   |   |
| Allowance for loan losses       |   | $      | 22,660  |   |   | $      | 13,970 |   |
| Charitable contributions        |   |   | 876     |   |   |   | 567 |   |
| Accrued compensated absences    |   |   | 3,385   |   |   |   | 2,560 |   |
| ESOP expense                    |   |   | 4,533   |   |   |   | 2,211 |   |
| Net operating loss carryforward |   |   | 94,655  |   |   |   | 39,288 |   |
|                            |   |   |    |   |   |   |   |   |
|                            |   |   | 126,109 |   |   |   | 58,596 |   |

----

|   | Note 9: | Income Taxes (Continued) |
|--------|---------|--------------------------|

|                                              |   | 2010   |    |   | 2009   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred tax liabilities:                         |   |   |    |   |   |   |
| Unrealized gain on available-for-sale securities  |   |   | (14,975 | )      |   |   | (19,259 | ) |
| Depreciation temporary difference                 |   |   | (19,856 | )      |   |   | (16,340 | ) |
| Other                                             |   |   | (512    | )      |   |   | (114 | ) |
|                                              |   |   | (35,343 | )      |   |   | (35,713 | ) |
|                                              |   |   |    |   |   |   |   |   |
| Net deferred tax asset before valuation allowance |   |   | 90,766  |   |   |   | 22,883 |   |

| Valuation allowance:       |   |   |    |   |   |   |
|----------------------------|--------|--------|---------|--------|--------|--------|
| Beginning balance          |   |   | (39,288 | )      |   |   | - |   |
| Increase during the period |   |   | (55,367 | )      |   |   | (39,288 | ) |
| Ending balance             |   |   | (94,655 | )      |   |   | (39,288 | ) |
|                       |   |   |    |   |   |   |   |   |
| Net deferred tax liability |   | $      | (3,889  | )      |   | $      | (16,405 | ) |

|   | Note 10: | Regulatory Matters |
|--------|----------|--------------------|

----

|   | Note 10: | Regulatory Matters (Continued) |
|--------|----------|--------------------------------|

|                                          |   | Actual |      |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|-----------------------------------------------|--------|--------|-----------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                          |   | Amount |      |   | Ratio                         |   |   | Amount                                                           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2010:                      |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total capital(to risk-weighted assets)        |   | $      | 6,621,000 |   |                          |   | 50.6   | %                                                                |   | $ | 1,048,000 |   |   |   | 8.0 | % |   | $ | 1,310,000 |   |   |   | 10.0 | % |
|                                          |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I capital(to risk-weighted assets)       |   |   | 6,518,000 |   |                          |   | 49.8   | %                                                                |   |   | N/A |   |   |   | N/A |   |   |   | 786,000 |   |   |   | 6.0 | % |
|                                          |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I capital(to average assets)             |   |   | 6,518,000 |   |                          |   | 19.8   | %                                                                |   |   | 1,316,000 |   |   |   | 4.0 | % |   |   | 1,645,000 |   |   |   | 5.0 | % |
|                                          |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible capital(to adjusted tangible assets) |   |   | 6,518,000 |   |                          |   | 19.8   | %                                                                |   |   | 494,000 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | N/A |   |

|                                          |   | Actual |      |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|-----------------------------------------------|--------|--------|-----------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                          |   | Amount |      |   | Ratio                         |   |   | Amount                                                           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2009:                      |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total capital(to risk-weighted assets)        |   | $      | 6,866,000 |   |                          |   | 74.2   | %                                                                |   | $ | 741,000 |   |   |   | 8.0 | % |   | $ | 926,000 |   |   |   | 10.0 | % |
|                                          |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I capital(to risk-weighted assets)       |   |   | 6,802,000 |   |                          |   | 73.5   | %                                                                |   |   | N/A |   |   |   | N/A |   |   |   | 555,000 |   |   |   | 6.0 | % |
|                                          |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I capital(to average assets)             |   |   | 6,802,000 |   |                          |   | 30.7   | %                                                                |   |   | 886,000 |   |   |   | 4.0 | % |   |   | 1,107,000 |   |   |   | 5.0 | % |
|                                          |   |   |      |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible capital(to adjusted tangible assets) |   |   | 6,802,000 |   |                          |   | 30.7   | %                                                                |   |   | 332,000 |   |   |   | 1.5 | % |   |   | N/A |   |   |   | N/A |   |

----

|   | Note 10: | Regulatory Matters (Continued) |
|--------|----------|--------------------------------|

|                                                |   | December 31 |      |
|-----------------------------------------------------|--------|-------------|-----------|
|                                                |   | 2010        |      |   | 2009 |   |
| GAAP Capital                                        |   |        |      |   |   |   |
| Adjustment for regulatory capital:                  |   | $           | 6,575,000 |   |   | $ | 6,874,000 |   |
| Reverse the effect of net unrealized gains recorded |   |        |      |   |   |   |   |   |
| in accumulated other comprehensive income           |   |        | (57,000   | ) |   |   | (72,000 | ) |
| Tangible Capital                                    |   |        | 6,518,000 |   |   |   | 6,802,000 |   |
| Tier 1 capital (core capital)                       |   |        | 6,518,000 |   |   |   | 6,802,000 |   |
| Qualifying general valuation allowance              |   |        | 103,000   |   |   |   | 64,000 |   |
| Risk-based capital                                  |   |        | 6,621,000 |   |   |   | 6,866,000 |   |

|   | Note 11: | Related Party Transactions |
|--------|----------|----------------------------|

|                       |   | 2010   |     |   | 2009   |   |
|----------------------------|--------|--------|----------|--------|--------|--------|
|                       |   |   |     |   |   |   |
| Balance, beginning of year |   | $      | 228,202  |   |   | $      | 234,445 |   |
| New loans                  |   |   | 180,000  |   |   |   | - |   |
| Repayments                 |   |   | (408,202 | )      |   |   | (6,243 | ) |
|                       |   | $      | -        |   |   | $      | 228,202 |   |

----

|   | Note 12: | Employee Benefit Plan |
|--------|----------|-----------------------|

|   | Note 13: | Contractual Services |
|--------|----------|----------------------|

|   | Note 14: | Fair Value of Financial Instruments |
|--------|----------|-------------------------------------|

|   | 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. |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Note 14: | Fair Value of Financial Instruments (Continued) |
|--------|----------|-------------------------------------------------|

| Description                                               |   | Total  |      |   | Quoted Prices in Active Markets For Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|
|  Assets:                        At December 31, 2010 |   |   |      |   |                                                           |   |   |                                          |   |   |                                      |   |
|  U.S. Government agencies                                                                                                                                                    |   | $      | 2,242,976 |   |                                                           | $      | -      |                                          |   | $      | 2,242,976                                 |   |   | $ | - |   |
|  Mortgage-backed securities                                                                                                                                                  |   |   | 1,232,430 |   |                                                           |   | -      |                                          |   |   | 1,232,430                                 |   |   |   | - |   |
|  Total                                                                                                                                                                       |   | $      | 3,475,406 |   |                                                           | $      | -      |                                          |   | $      | 3,475,406                                 |   |   | $ | - |   |
|  Assets:                        At December 31, 2009 |   |   |      |   |                                                           |   |   |                                          |   |   |                                      |   |   |   |   |   |
|  U.S. Government agencies                                                                                                                                                    |   | $      | 2,035,723 |   |                                                           | $      | -      |                                          |   | $      | 2,035,723                                 |   |   | $ | - |   |
|  Municipal securities                                                                                                                                                        |   |   | 96,850    |   |                                                           |   | -      |                                          |   |   | 96,850                                    |   |   |   | - |   |
|  Mortgage-backed securities                                                                                                                                                  |   |   | 2,127,716 |   |                                                           |   | -      |                                          |   |   | 2,127,716                                 |   |   |   | - |   |
|  Total                                                                                                                                                                       |   | $      | 4,260,289 |   |                                                           | $      | -      |                                          |   | $      | 4,260,289                                 |   |   | $ | - |   |

----

|   | Note 14: | Fair Value of Financial Instruments (Continued) |
|--------|----------|-------------------------------------------------|

|   | Cash and Due From Banks, Interest-earning Deposits and Federal Home Loan Bank Stock |
|--------|-------------------------------------------------------------------------------------|

|   | Loans and Interest Receivable |
|--------|-------------------------------|

|   | Deposits and Interest Payable |
|--------|-------------------------------|

|   | Advances From Borrowers for Taxes and Insurance |
|--------|-------------------------------------------------|

|                                            |   | December 31, 2010 |       |   | December 31, 2009 |   |
|-------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                            |   | Carrying Amount   |       |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
| Financial assets                                |   |              |       |   |              |   |   |   |   |   |   |   |
| Cash and due from banks                         |   | $                 | 1,736,072  |   |              | $      | 1,736,072 |   |   | $ | 1,311,198 |   |   | $ | 1,311,198 |   |
| Interest-earning deposits in other              |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| institutions                                    |   |              | 11,915,446 |   |              |   | 11,915,446 |   |   |   | 4,196,227 |   |   |   | 4,196,227 |   |
| Loans, net of allowance for loan losses         |   |              | 15,375,849 |   |              |   | 15,476,510 |   |   |   | 12,827,709 |   |   |   | 12,952,930 |   |
| Federal Home Loan Bank Stock                    |   |              | 26,700     |   |              |   | 26,700 |   |   |   | 26,200 |   |   |   | 26,200 |   |
| Interest receivable                             |   |              | 100,803    |   |              |   | 100,803 |   |   |   | 82,325 |   |   |   | 82,325 |   |
| Financial liabilities                           |   |              |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                        |   |              | 26,307,996 |   |              |   | 26,811,591 |   |   |   | 15,278,628 |   |   |   | 15,482,658 |   |
| Advances from borrowers for taxes and insurance |   |              | 21,232     |   |              |   | 21,232 |   |   |   | 23,799 |   |   |   | 23,799 |   |
| Interest payable                                |   |              | 520        |   |              |   | 520 |   |   |   | 1,274 |   |   |   | 1,274 |   |

----

|   | Note 15: | Significant Estimates, Concentrations, and Current Economic Conditions |
|--------|----------|------------------------------------------------------------------------|

|   | Note 16: | Commitments and Credit Risk Mortgage |
|--------|----------|--------------------------------------|

----

|   | Note 16: | Commitments and Credit Risk Mortgage (Continued) |
|--------|----------|--------------------------------------------------|

|                      |   | 2010    |    |
|---------------------------|--------|---------|---------|
|                      |   | First   |    |   | Second |   |   | Third |   |   | Fourth |   |
|                      |   | Quarter |    |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                      |   |    |    |   |   |   |   |   |   |   |   |   |
| Total interest income     |   | $       | 254,438 |   |   | $ | 267,816 |   |   | $ | 259,696 |   |   | $ | 273,920 |   |
| Total interest expense    |   |    | 92,833  |   |   |   | 93,916 |   |   |   | 101,649 |   |   |   | 116,785 |   |
| Net interest income       |   |    | 161,605 |   |   |   | 173,900 |   |   |   | 158,047 |   |   |   | 157,135 |   |
| Provision for loan losses |   |    | -       |   |   |   | 35,500 |   |   |   | - |   |   |   | 4,000 |   |
| Net loss                  |   |    | (71,560 | ) |   |   | (135,685 | ) |   |   | (108,839 | ) |   |   | (150,968 | ) |
| Basic loss per share      |   |    | (0.21   | ) |   |   | (0.39 | ) |   |   | (0.31 | ) |   |   | (0.43 | ) |

|                      |   | 2009    |    |
|---------------------------|--------|---------|---------|
|                      |   | First   |    |   | Second |   |   | Third |   |   | Fourth |   |
|                      |   | Quarter |    |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                      |   |    |    |   |   |   |   |   |   |   |   |   |
| Total interest income     |   | $       | 250,398 |   |   | $ | 255,123 |   |   | $ | 267,610 |   |   | $ | 258,570 |   |
| Total interest expense    |   |    | 106,020 |   |   |   | 108,738 |   |   |   | 107,381 |   |   |   | 95,439 |   |
| Net interest income       |   |    | 144,378 |   |   |   | 146,385 |   |   |   | 160,229 |   |   |   | 163,131 |   |
| Provision for loan losses |   |    | 8,000   |   |   |   | 9,000 |   |   |   | 4,000 |   |   |   | 20,500 |   |
| Net loss                  |   |    | (65,711 | ) |   |   | (100,444 | ) |   |   | (73,518 | ) |   |   | (57,541 | ) |
| Basic loss per share      |   |    | (0.19   | ) |   |   | (0.29 | ) |   |   | (0.21 | ) |   |   | (0.17 | ) |

----

|                                             |   |   |      |   |   |   |
|--------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Assets                                           |   |   |      |   |   |   |
|                                             |   | 2010   |      |   | 2009   |   |
|                                             |   |   |      |   |   |   |
| Cash and due from banks                          |   | $      | 92,161    |   |   | $      | 121,217 |   |
| Interest-earning deposits in other institutions  |   |   | 761,587   |   |   |   | 902,874 |   |
| Investment in bank subsidiary                    |   |   | 6,594,929 |   |   |   | 6,878,216 |   |
| Interest receivable                              |   |   | 9,757     |   |   |   | 6,510 |   |
|                                             |   |   |      |   |   |   |   |   |
| Total assets                                     |   | $      | 7,458,434 |   |   | $      | 7,908,817 |   |
|                                             |   |   |      |   |   |   |   |   |
| Liabilities and Equity                           |   |   |      |   |   |   |   |   |
|                                             |   |   |      |   |   |   |   |   |
| Liabilities                                      |   |   |      |   |   |   |   |   |
| Accounts payable                                 |   | $      | 21,835    |   |   | $      | 21,014 |   |
| Other liabilities                                |   |   | 31,066    |   |   |   | 9,608 |   |
|                                             |   |   |      |   |   |   |   |   |
| Total liabilities                                |   |   | 52,901    |   |   |   | 30,622 |   |
|                                             |   |   |      |   |   |   |   |   |
| Temporary Equity                                 |   |   |      |   |   |   |   |   |
| ESOP shares subject to manditory redemption      |   |   | 21,105    |   |   |   | 10,050 |   |
|                                             |   |   |      |   |   |   |   |   |
| Stockholders’ Equity                       |   |   |      |   |   |   |   |   |
| Common stock                                     |   |   | 3,739     |   |   |   | 3,739 |   |
| Preferred stock                                  |   |   | -         |   |   |   | - |   |
| Additional paid-in capital                       |   |   | 2,660,524 |   |   |   | 2,660,021 |   |
| Retained earnings                                |   |   | 4,720,165 |   |   |   | 5,204,385 |   |
|                                             |   |   |      |   |   |   |   |   |
| Total stockholders’ equity                 |   |   | 7,384,428 |   |   |   | 7,868,145 |   |
|                                             |   |   |      |   |   |   |   |   |
| Total liabilities and stockholders’ equity |   | $      | 7,458,434 |   |   | $      | 7,908,817 |   |

----

|                                  |   | 2010   |     |   | 2009   |   |
|---------------------------------------|--------|--------|----------|--------|--------|--------|
| Operating Income (Loss):              |   |   |     |   |   |   |
| Interest income                       |   | $      | 18,422   |   |   | $      | 14,427 |   |
| Equity in net loss of bank subsidiary |   |   | (283,287 | )      |   |   | (109,838 | ) |
|                                  |   |   |     |   |   |   |   |   |
| Operating Loss                        |   |   | (264,865 | )      |   |   | (95,411 | ) |
|                                  |   |   |     |   |   |   |   |   |
| Non-interest Expense                  |   |   |     |   |   |   |   |   |
| Salaries and employee benefits        |   |   | 17,245   |   |   |   | 16,602 |   |
| Legal expense                         |   |   | 40,992   |   |   |   | 50,929 |   |
| Audit fees and exams                  |   |   | 129,028  |   |   |   | 121,204 |   |
| Other                                 |   |   | 14,922   |   |   |   | 13,068 |   |
|                                  |   |   |     |   |   |   |   |   |
| Total non-interest expense            |   |   | 202,187  |   |   |   | 201,803 |   |
|                                  |   |   |     |   |   |   |   |   |
| Loss Before Income Taxes              |   |   | (467,052 | )      |   |   | (297,214 | ) |
|                                  |   |   |     |   |   |   |   |   |
| Credit for Income Taxes               |   |   | -        |   |   |   | - |   |
|                                  |   |   |     |   |   |   |   |   |
| Net Loss                              |   | $      | (467,052 | )      |   | $      | (297,214 | ) |
|                                  |   |   |     |   |   |   |   |   |

----

|                                                     |   | 2010   |     |   | 2009   |   |
|----------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Operating Activities                                     |   |   |     |   |   |   |
| Net loss                                                 |   | $      | (467,052 | )      |   | $      | (297,214 | ) |
| Adjustments to reconcile net income (loss) to net cash   |   |   |     |   |   |   |   |   |
| used in operating activities:                            |   |   |     |   |   |   |   |   |
| Equity in net loss of bank subsidiary                    |   |   | 283,287  |   |   |   | 109,838 |   |
| Compensation cost on allocated ESOP shares               |   |   | 10,553   |   |   |   | 10,050 |   |
| Changes in:                                              |   |   |     |   |   |   |   |   |
| Interest receivable                                      |   |   | (3,247   | )      |   |   | (6,510 | ) |
| Accounts payable                                         |   |   | 821      |   |   |   | 21,014 |   |
| Other liabilities                                        |   |   | 5,295    |   |   |   | 9,608 |   |
|                                                     |   |   |     |   |   |   |   |   |
| Net cash used in operating activities                    |   |   | (170,343 | )      |   |   | (153,214 | ) |
|                                                     |   |   |     |   |   |   |   |   |
| Investing Activities                                     |   |   |     |   |   |   |   |   |
| Investment in bank subsidiary                            |   |   | -        |   |   |   | (2,290,345 | ) |
| Net redemptions (purchases) of interest-earning deposits |   |   | 141,287  |   |   |   | (902,874 | ) |
|                                                     |   |   |     |   |   |   |   |   |
| Net cash provided by (used in) investing activities      |   |   | 141,287  |   |   |   | (3,193,219 | ) |
|                                                     |   |   |     |   |   |   |   |   |
| Financing Activities                                     |   |   |     |   |   |   |   |   |
| Proceeds from issuance of common stock                   |   |   | -        |   |   |   | 3,467,650 |   |
|                                                     |   |   |     |   |   |   |   |   |
| Increase (Decrease) in Cash and Cash Equivalents         |   |   | (29,056  | )      |   |   | 121,217 |   |
|                                                     |   |   |     |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year             |   |   | 121,217  |   |   |   | - |   |
|                                                     |   |   |     |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                   |   | $      | 92,161   |   |   | $      | 121,217 |   |
|                                                     |   |   |     |   |   |   |   |   |
| Supplemental Cash Flows Information                      |   |   |     |   |   |   |   |   |
|                                                     |   |   |     |   |   |   |   |   |
| Interest paid                                            |   | $      | -        |   |   | $      | - |   |
|                                                     |   |   |     |   |   |   |   |   |
| Income taxes paid (net of refunds)                       |   | $      | -        |   |   | $      | - |   |