----

----

----

| Message from the President                                  | 4      |
|-------------------------------------------------------------|--------|
|                                                        |   |
| Selected Financial Information                              | 6      |
|                                                        |   |
| Management's Discussion and Analysis of Financial Condition |   |
| and Results of Operations                                   | 7      |
|                                                        |   |
| Reports of Independent Registered Public Accounting Firm    | F-2    |
|                                                        |   |
| Consolidated Balance Sheets                                 | F-4    |
|                                                        |   |
| Consolidated Statements of Income                           | F-5    |
|                                                        |   |
| Consolidated Statements of Changes in Stockholders' Equity  | F-6    |
|                                                        |   |
| Consolidated Statements of Cash Flows                       | F-7    |
|                                                        |   |
| Notes to Consolidated Financial Statements                  | F-9    |

----

----

----

|                               |   | At December 31, |    |   | At June 30, |   |
|------------------------------------|--------|-----------------|---------|--------|-------------|--------|
|                               |   | 2010            |    |   | 2010        |   |   | 2009 |   |
|                               |   | (In thousands)  |    |
| Selected Financial Condition Data: |   |            |    |   |        |   |   |   |   |
| Total assets                       |   | $               | 205,015 |   |        | $      | 211,545 |   |   | $ | 201,191 |   |
| Cash and cash equivalents          |   |            | 3,298   |   |        |   | 7,340 |   |   |   | 11,356 |   |
| Loans receivable, net              |   |            | 178,524 |   |        |   | 175,867 |   |   |   | 163,825 |   |
| Allowance for loan losses          |   |            | 1,651   |   |        |   | 1,676 |   |   |   | 1,455 |   |
| Investment securities              |   |            | 10,421  |   |        |   | 14,643 |   |   |   | 14,487 |   |
| Deposits                           |   |            | 151,463 |   |        |   | 147,286 |   |   |   | 141,126 |   |
| Borrowings (1)                     |   |            | 32,173  |   |        |   | 43,368 |   |   |   | 40,788 |   |
| Total stockholders' equity         |   |            | 19,169  |   |        |   | 18,368 |   |   |   | 17,317 |   |

|                                               |   | Six Months Ended December 31,         |   |   | Years Ended June 30, |   |
|----------------------------------------------------|--------|---------------------------------------|--------|--------|----------------------|--------|
|                                               |   | 2010                                  |   |   | 2009                 |   |   | 2010 |   |   | 2009 |   |
|                                               |   |                                  |   |   | (Unaudited)          |   |   |   |   |   |   |   |
|                                               |   | (In thousands, except per share data) |   |
| Selected Operating Data:                           |   |                                  |   |   |                 |   |   |   |   |   |   |   |
| Interest and dividend income                       |   | $                                     | 5,679  |   |                 | $      | 5,234 |   |   | $ | 10,734 |   |   | $ | 10,551 |   |
| Interest expense                                   |   |                                  | 1,594  |   |                 |   | 1,944 |   |   |   | 3,680 |   |   |   | 4,709 |   |
| Net interest income                                |   |                                  | 4,085  |   |                 |   | 3,290 |   |   |   | 7,054 |   |   |   | 5,842 |   |
| Provision for loan losses                          |   |                                  | 23     |   |                 |   | 196 |   |   |   | 361 |   |   |   | 248 |   |
| Net interest income, after                         |   |                                  |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| provision for loan losses                          |   |                                  | 4,062  |   |                 |   | 3,094 |   |   |   | 6,693 |   |   |   | 5,594 |   |
| Non-interest income                                |   |                                  | 778    |   |                 |   | 524 |   |   |   | 1,085 |   |   |   | 870 |   |
| Non-interest expense                               |   |                                  | 3,497  |   |                 |   | 3,125 |   |   |   | 6,320 |   |   |   | 5,933 |   |
| Income before income taxes                         |   |                                  | 1,343  |   |                 |   | 493 |   |   |   | 1,458 |   |   |   | 531 |   |
| Income tax provision                               |   |                                  | 511    |   |                 |   | 175 |   |   |   | 519 |   |   |   | 181 |   |
| Net income                                         |   | $                                     | 832    |   |                 | $      | 318 |   |   | $ | 939 |   |   | $ | 350 |   |
|                                               |   |                                  |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share:  Basic and diluted |   | $                                     | 0.32   |   |                 | $      | 0.12 |   |   | $ | 0.36 |   |   | $ | 0.14 |   |

|                                                                                                                    |   | At or For the Six Months    |   |   | At or For the Years |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------|--------|
|                                                                                                                    |   | Ended December 31, (2) |   |   | Ended June 30,      |   |
|                                                                                                                    |   | 2010                        |   |   | 2009                |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                    |   | (Unaudited)                 |   |   | (Unaudited)         |   |   | (Unaudited) |   |   | (Unaudited) |   |
| Selected Financial Ratios and Other Data:                                                                               |   |                        |   |   |                |   |   |   |   |   |   |   |
|                                                                                                                    |   |                        |   |   |                |   |   |   |   |   |   |   |
| Performance Ratios:                                                                                                     |   |                        |   |   |                |   |   |   |   |   |   |   |
| Return on assets (ratio of net income to average total assets)                                                          |   |                        | 0.80   | %      |                |   | 0.32 | % |   |   | 0.47 | % |   |   | 0.18 | % |
| Return on equity (ratio of net income to average equity)                                                                |   |                        | 8.87   | %      |                |   | 3.63 | % |   |   | 5.30 | % |   |   | 2.05 | % |
| Interest rate spread   (3)                                                                               |   |                        | 3.89   | %      |                |   | 3.22 | % |   |   | 3.41 | % |   |   | 2.85 | % |
| Net interest margin    (4)                                                                          |   |                        | 4.13   | %      |                |   | 3.55 | % |   |   | 3.70 | % |   |   | 3.19 | % |
| Efficiency ratio           (5)                                   |   |                        | 71.92  | %      |                |   | 81.93 | % |   |   | 77.64 | % |   |   | 88.39 | % |
| Non-interest expense to average total assets                                                                            |   |                        | 3.36   | %      |                |   | 3.18 | % |   |   | 3.14 | % |   |   | 3.05 | % |
| Average interest-earning assets to average interest-bearing liabilities                                                 |   |                        | 115.37 | %      |                |   | 115.40 | % |   |   | 115.22 | % |   |   | 113.03 | % |
|                                                                                                                    |   |                        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                                                                                                   |   |                        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing assets to total assets                                                                                   |   |                        | 0.15   | %      |                |   | 0.37 | % |   |   | 0.21 | % |   |   | 0.37 | % |
| Non-performing loans to total loans                                                                                     |   |                        | 0.14   | %      |                |   | 0.40 | % |   |   | 0.21 | % |   |   | 0.45 | % |
| Allowance for loan losses to non-performing loans                                                                       |   |                        | 652.57 | %      |                |   | 236.85 | % |   |   | 452.97 | % |   |   | 197.42 | % |
| Allowance for loan losses to total loans                                                                                |   |                        | 0.92   | %      |                |   | 0.95 | % |   |   | 0.94 | % |   |   | 0.88 | % |
|                                                                                                                    |   |                        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                                                                                         |   |                        |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' equity to total assets at end of period                                                                   |   |                        | 9.35   | %      |                |   | 8.85 | % |   |   | 8.68 | % |   |   | 8.61 | % |
| Total capital to risk-weighted assets   (6)                                                              |   |                        | 12.30  | %      |                |   | 11.30 | % |   |   | 11.40 | % |   |   | 11.30 | % |
| Tier 1 capital to risk-weighted assets   (6)                                                             |   |                        | 11.30  | %      |                |   | 10.30 | % |   |   | 10.40 | % |   |   | 10.40 | % |
| Tier 1 capital to average assets              (6) |   |                        | 8.60   | %      |                |   | 8.10 | % |   |   | 8.50 | % |   |   | 8.00 | % |

| 1. | Includes securities sold under agreements to repurchase. |
|----|----------------------------------------------------------|

| 2. | Percentage calculations for the six month periods have been annualized. |
|----|-------------------------------------------------------------------------|

| 3. | The interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The net interest margin represents net interest income as a percent of average interest-earning assets for the period. |
|----|------------------------------------------------------------------------------------------------------------------------|

| 5. | The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income. |
|----|-------------------------------------------------------------------------------------------------------------------------|

| 6. | Calculation is for Georgetown Savings Bank. |
|----|---------------------------------------------|

----

----

----

----

|                                   |   | At December 31,        |    |   | At June 30, |   |
|----------------------------------------|--------|------------------------|---------|--------|-------------|--------|
|                                   |   | 2010                   |    |   | 2010        |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                   |   | Amount                 |    |   | Percent     |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                   |   | (Dollars in thousands) |    |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential loans:                     |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family                     |   | $                      | 70,685  |   |        |   | 39.25 | % |   | $ | 74,390 |   |   |   | 41.92 | % |   | $ | 82,140 |   |   |   | 49.74 | % |   | $ | 88,992 |   |   |   | 59.35 | % |   | $ | 93,806 |   |   |   | 72.97 | % |   | $ | 94,417 |   |   |   | 72.84 | % |
| Home equity loans                      |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and lines of credit                    |   |                   | 17,305  |   |        |   | 9.61 |   |   |   | 17,251 |   |   |   | 9.72 |   |   |   | 16,592 |   |   |   | 10.05 |   |   |   | 11,565 |   |   |   | 7.71 |   |   |   | 10,304 |   |   |   | 8.01 |   |   |   | 10,614 |   |   |   | 8.19 |   |
| Total residential mortgage loans       |   |                   | 87,990  |   |        |   | 48.86 |   |   |   | 91,641 |   |   |   | 51.64 |   |   |   | 98,732 |   |   |   | 59.79 |   |   |   | 100,557 |   |   |   | 67.06 |   |   |   | 104,110 |   |   |   | 80.98 |   |   |   | 105,031 |   |   |   | 81.03 |   |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans:                      |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family investment property |   |                   | 11,892  |   |        |   | 6.60 |   |   |   | 7,080 |   |   |   | 3.99 |   |   |   | 4,795 |   |   |   | 2.90 |   |   |   | 1,953 |   |   |   | 1.30 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Multi-family real estate               |   |                   | 14,121  |   |        |   | 7.84 |   |   |   | 14,085 |   |   |   | 7.94 |   |   |   | 8,226 |   |   |   | 4.98 |   |   |   | 3,601 |   |   |   | 2.40 |   |   |   | 975 |   |   |   | 0.76 |   |   |   | - |   |   |   | - |   |
| Commercial real estate                 |   |                   | 27,688  |   |        |   | 15.38 |   |   |   | 26,535 |   |   |   | 14.95 |   |   |   | 21,525 |   |   |   | 13.04 |   |   |   | 17,380 |   |   |   | 11.59 |   |   |   | 13,581 |   |   |   | 10.56 |   |   |   | 11,891 |   |   |   | 9.17 |   |
| Commercial business                    |   |                   | 12,475  |   |        |   | 6.93 |   |   |   | 11,010 |   |   |   | 6.21 |   |   |   | 8,364 |   |   |   | 5.06 |   |   |   | 5,595 |   |   |   | 3.73 |   |   |   | 2,157 |   |   |   | 1.68 |   |   |   | 1,473 |   |   |   | 1.14 |   |
| Total commercial loans                 |   |                   | 66,176  |   |        |   | 36.75 |   |   |   | 58,710 |   |   |   | 33.09 |   |   |   | 42,910 |   |   |   | 25.98 |   |   |   | 28,529 |   |   |   | 19.02 |   |   |   | 16,713 |   |   |   | 13.00 |   |   |   | 13,364 |   |   |   | 10.31 |   |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction loans:                    |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family                     |   |                   | 16,725  |   |        |   | 9.29 |   |   |   | 15,873 |   |   |   | 8.95 |   |   |   | 13,327 |   |   |   | 8.07 |   |   |   | 11,210 |   |   |   | 7.47 |   |   |   | 2,589 |   |   |   | 2.01 |   |   |   | 9,411 |   |   |   | 7.26 |   |
| Multi-family                           |   |                   | 7,730   |   |        |   | 4.29 |   |   |   | 7,161 |   |   |   | 4.03 |   |   |   | 2,786 |   |   |   | 1.69 |   |   |   | 7,293 |   |   |   | 4.86 |   |   |   | 2,833 |   |   |   | 2.20 |   |   |   | - |   |   |   | - |   |
| Non-residential                        |   |                   | 733     |   |        |   | 0.41 |   |   |   | 3,329 |   |   |   | 1.88 |   |   |   | 7,042 |   |   |   | 4.26 |   |   |   | 1,883 |   |   |   | 1.26 |   |   |   | 1,565 |   |   |   | 1.22 |   |   |   | 1,179 |   |   |   | 0.91 |   |
| Total construction loans               |   |                   | 25,188  |   |        |   | 13.99 |   |   |   | 26,363 |   |   |   | 14.86 |   |   |   | 23,155 |   |   |   | 14.02 |   |   |   | 20,386 |   |   |   | 13.59 |   |   |   | 6,987 |   |   |   | 5.43 |   |   |   | 10,590 |   |   |   | 8.17 |   |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                               |   |                   | 726     |   |        |   | 0.40 |   |   |   | 719 |   |   |   | 0.41 |   |   |   | 353 |   |   |   | 0.21 |   |   |   | 498 |   |   |   | 0.33 |   |   |   | 763 |   |   |   | 0.59 |   |   |   | 630 |   |   |   | 0.49 |   |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans:                           |   |                   | 180,080 |   |        |   | 100.00 | % |   |   | 177,433 |   |   |   | 100.00 | % |   |   | 165,150 |   |   |   | 100.00 | % |   |   | 149,970 |   |   |   | 100.00 | % |   |   | 128,573 |   |   |   | 100.00 | % |   |   | 129,615 |   |   |   | 100.00 | % |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other items:                           |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net deferred loan costs                |   |                   | 95      |   |        |   |   |   |   |   | 110 |   |   |   |   |   |   |   | 130 |   |   |   |   |   |   |   | 151 |   |   |   |   |   |   |   | 165 |   |   |   |   |   |   |   | 179 |   |   |   |   |   |
| Allowance for loan losses              |   |                   | (1,651  | )      |        |   |   |   |   |   | (1,676 | ) |   |   |   |   |   |   | (1,455 | ) |   |   |   |   |   |   | (1,212 | ) |   |   |   |   |   |   | (1,079 | ) |   |   |   |   |   |   | (1,016 | ) |   |   |   |   |
|                                   |   |                   |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans, net                       |   | $                      | 178,524 |   |        |   |   |   |   | $ | 175,867 |   |   |   |   |   |   | $ | 163,825 |   |   |   |   |   |   | $ | 148,909 |   |   |   |   |   |   | $ | 127,659 |   |   |   |   |   |   | $ | 128,778 |   |   |   |   |   |

----

----

----

----

----

----

----

----

----

|                                   |   | At December 31, |    |   | Six Months Ended December 31, |   |
|----------------------------------------|--------|-----------------|---------|--------|-------------------------------|--------|
|                                   |   | 2010            |    |   | 2010                          |   |   | 2009 |   |
|                                   |   |            |    |   | Weighted                      |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |
|                                   |   | Outstanding     |    |   | Average                       |   |   | Outstanding |   |   |   |   |   | Yield/ |   |   | Outstanding |   |   |   |   |   | Yield/ |   |
|                                   |   | Balance         |    |   | Rate                          |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                   |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   | (Unaudited) |   |
|                                   |   |            |    |   |                          |   |   | (Dollars in thousands) |   |
| Interest-earning assets:               |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                  |   | $               | 180,860 |   |                          |   | 5.89 | % |   | $ | 179,860 |   |   | $ | 5,443 |   |   |   | 6.05 | % |   | $ | 164,703 |   |   | $ | 4,917 |   |   |   | 5.97 | % |
| Investment securities (1)              |   |            | 13,532  |   |                          |   | 3.03 | % |   |   | 15,120 |   |   |   | 235 |   |   |   | 3.11 | % |   |   | 18,476 |   |   |   | 316 |   |   |   | 3.42 | % |
| Short-term investments                 |   |            | 1,808   |   |                          |   | 0.04 | % |   |   | 2,654 |   |   |   | 1 |   |   |   | 0.08 | % |   |   | 2,336 |   |   |   | 1 |   |   |   | 0.09 | % |
| Total interest-earning assets          |   |            | 196,200 |   |                          |   | 5.64 | % |   |   | 197,634 |   |   |   | 5,679 |   |   |   | 5.75 | % |   |   | 185,515 |   |   |   | 5,234 |   |   |   | 5.64 | % |
| Non-interest-earning assets            |   |            | 8,815   |   |                          |   |   |   |   |   | 10,484 |   |   |   | - |   |   |   |   |   |   |   | 11,077 |   |   |   | - |   |   |   |   |   |
| Total assets                           |   | $               | 205,015 |   |                          |   |   |   |   | $ | 208,118 |   |   |   | 5,679 |   |   |   |   |   |   | $ | 196,592 |   |   |   | 5,234 |   |   |   |   |   |
|                                   |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:          |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                       |   | $               | 12,205  |   |                          |   | 0.20 | % |   | $ | 11,999 |   |   |   | 13 |   |   |   | 0.22 | % |   | $  | 11,240 |   |   |   | 7 |   |   |   | 0.12 | % |
| NOW accounts                           |   |            | 15,148  |   |                          |   | 0.46 | % |   |   | 14,091 |   |   |   | 38 |   |   |   | 0.54 | % |   |   | 10,461 |   |   |   | 3 |   |   |   | 0.06 | % |
| Money market accounts                  |   |            | 57,438  |   |                          |   | 0.92 | % |   |   | 55,211 |   |   |   | 300 |   |   |   | 1.09 | % |   |   | 43,068 |   |   |   | 232 |   |   |   | 1.08 | % |
| Certificates of deposit                |   |            | 50,022  |   |                          |   | 2.18 | % |   |   | 55,509 |   |   |   | 648 |   |   |   | 2.33 | % |   |   | 56,452 |   |   |   | 911 |   |   |   | 3.23 | % |
| Total interest-bearing deposits        |   |            | 134,813 |   |                          |   | 1.27 | % |   |   | 136,810 |   |   |   | 999 |   |   |   | 1.46 | % |   |   | 121,221 |   |   |   | 1,153 |   |   |   | 1.90 | % |
| FHLB advances                          |   |            | 31,682  |   |                          |   | 3.24 | % |   |   | 33,965 |   |   |   | 594 |   |   |   | 3.50 | % |   |   | 39,006 |   |   |   | 790 |   |   |   | 4.05 | % |
| Repurchase agreements                  |   |            | 491     |   |                          |   | 0.50 | % |   |   | 524 |   |   |   | 1 |   |   |   | 0.38 | % |   |   | 529 |   |   |   | 1 |   |   |   | 0.38 | % |
| Total interest-bearing liabilities     |   |            | 166,986 |   |                          |   | 1.64 | % |   |   | 171,299 |   |   |   | 1,594 |   |   |   | 1.86 | % |   |   | 160,756 |   |   |   | 1,944 |   |   |   | 2.42 | % |
| Non-interest-bearing liabilities:      |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                        |   |            | 16,650  |   |                          |   |   |   |   |   | 16,290 |   |   |   |   |   |   |   |   |   |   |   | 16,840 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities |   |            | 2,210   |   |                          |   |   |   |   |   | 1,794 |   |   |   |   |   |   |   |   |   |   |   | 1,496 |   |   |   |   |   |   |   |   |   |
| Total liabilities                      |   |            | 185,846 |   |                          |   |   |   |   |   | 189,383 |   |   |   |   |   |   |   |   |   |   |   | 179,092 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                   |   |            | 19,169  |   |                          |   |   |   |   |   | 18,735 |   |   |   |   |   |   |   |   |   |   |   | 17,500 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity           |   | $               | 205,015 |   |                          |   |   |   |   | $ | 208,118 |   |   |   |   |   |   |   |   |   |   | $ | 196,592 |   |   |   |   |   |   |   |   |   |
|                                   |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                    |   |            |    |   |                          |   |   |   |   |   |   |   |   | $ | 4,085 |   |   |   |   |   |   |   |   |   |   | $ | 3,290 |   |   |   |   |   |
| Net interest rate spread (2)           |   |            |    |   |                          |   | 4.00 | % |   |   |   |   |   |   |   |   |   |   | 3.89 | % |   |   |   |   |   |   |   |   |   |   | 3.22 | % |
| Net interest-earning assets (3)        |   | $               | 29,214  |   |                          |   |   |   |   | $ | 26,335 |   |   |   |   |   |   |   |   |   |   | $ | 24,759 |   |   |   |   |   |   |   |   |   |
| Net interest margin (4)                |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   | 4.13 | % |   |   |   |   |   |   |   |   |   |   | 3.55 | % |
| Average of interest-earning            |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets to interest-bearing             |   |            |    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                            |   |            |    |   |                          |   | 117.49 | % |   |   |   |   |   |   |   |   |   |   | 115.37 | % |   |   |   |   |   |   |   |   |   |   | 115.40 | % |

----

| (1) | Consists entirely of taxable investment securities. |
|-----|-----------------------------------------------------|

| (2) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------|

----

|                                   |   | Fiscal Years Ended June 30, |    |
|----------------------------------------|--------|-----------------------------|---------|
|                                   |   | 2010                        |    |   | 2009 |   |
|                                   |   | Average                     |    |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |
|                                   |   | Outstanding                 |    |   |   |   |   | Yield/ |   |   | Outstanding |   |   |   |   |   | Yield/ |   |
|                                   |   | Balance                     |    |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                   |   | (Dollars in thousands)      |    |
| Interest-earning assets:               |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                  |   | $                           | 169,610 |   |   | $ | 10,110 |   |   |   | 5.96 | % |   | $ | 161,760 |   |   | $ | 9,725 |   |   |   | 6.01 | % |
| Investment securities (1)              |   |                        | 18,487  |   |   |   | 622 |   |   |   | 3.36 | % |   |   | 20,416 |   |   |   | 820 |   |   |   | 4.02 | % |
| Short-term investments                 |   |                        | 2,472   |   |   |   | 2 |   |   |   | 0.08 | % |   |   | 1,191 |   |   |   | 6 |   |   |   | 0.50 | % |
| Total interest-earning assets          |   |                        | 190,569 |   |   |   | 10,734 |   |   |   | 5.63 | % |   |   | 183,367 |   |   |   | 10,551 |   |   |   | 5.75 | % |
| Non-interest-earning assets            |   |                        | 10,661  |   |   |   | - |   |   |   |   |   |   |   | 11,114 |   |   |   | - |   |   |   |   |   |
| Total assets                           |   | $                           | 201,230 |   |   |   | 10,734 |   |   |   |   |   |   | $ | 194,481 |   |   |   | 10,551 |   |   |   |   |   |
|                                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:          |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                       |   | $                           | 11,647  |   |   |   | 20 |   |   |   | 0.17 | % |   | $ | 10,417 |   |   |   | 12 |   |   |   | 0.12 | % |
| NOW accounts                           |   |                        | 11,611  |   |   |   | 40 |   |   |   | 0.34 | % |   |   | 9,451 |   |   |   | 11 |   |   |   | 0.12 | % |
| Money market accounts                  |   |                        | 43,201  |   |   |   | 484 |   |   |   | 1.12 | % |   |   | 39,075 |   |   |   | 810 |   |   |   | 2.07 | % |
| Certificates of deposit                |   |                        | 56,887  |   |   |   | 1,658 |   |   |   | 2.91 | % |   |   | 51,065 |   |   |   | 1,777 |   |   |   | 3.48 | % |
| Total interest-bearing deposits        |   |                        | 123,346 |   |   |   | 2,202 |   |   |   | 1.79 | % |   |   | 110,008 |   |   |   | 2,610 |   |   |   | 2.37 | % |
| FHLB advances                          |   |                        | 41,590  |   |   |   | 1,476 |   |   |   | 3.55 | % |   |   | 51,710 |   |   |   | 2,097 |   |   |   | 4.06 | % |
| Repurchase agreements                  |   |                        | 465     |   |   |   | 2 |   |   |   | 0.43 | % |   |   | 514 |   |   |   | 2 |   |   |   | 0.39 | % |
| Total interest-bearing liabilities     |   |                        | 165,401 |   |   |   | 3,680 |   |   |   | 2.22 | % |   |   | 162,232 |   |   |   | 4,709 |   |   |   | 2.90 | % |
| Non-interest-bearing liabilities:      |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                        |   |                        | 16,289  |   |   |   |   |   |   |   |   |   |   |   | 13,676 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities |   |                        | 1,814   |   |   |   |   |   |   |   |   |   |   |   | 1,461 |   |   |   |   |   |   |   |   |   |
| Total liabilities                      |   |                        | 183,504 |   |   |   |   |   |   |   |   |   |   |   | 177,369 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                   |   |                        | 17,726  |   |   |   |   |   |   |   |   |   |   |   | 17,112 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity           |   | $                           | 201,230 |   |   |   |   |   |   |   |   |   |   | $ | 194,481 |   |   |   |   |   |   |   |   |   |
|                                   |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                    |   |                        |    |   |   | $ | 7,054 |   |   |   |   |   |   |   |   |   |   | $ | 5,842 |   |   |   |   |   |
| Net interest rate spread (2)           |   |                        |    |   |   |   |   |   |   |   | 3.41 | % |   |   |   |   |   |   |   |   |   |   | 2.85 | % |
| Net interest-earning assets (3)        |   | $                           | 25,168  |   |   |   |   |   |   |   |   |   |   | $ | 21,135 |   |   |   |   |   |   |   |   |   |
| Net interest margin (4)                |   |                        |    |   |   |   |   |   |   |   | 3.70 | % |   |   |   |   |   |   |   |   |   |   | 3.19 | % |
| Average of interest-earning            |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets to interest-bearing             |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities                            |   |                        |    |   |   |   |   |   |   |   | 115.22 | % |   |   |   |   |   |   |   |   |   |   | 113.03 | % |

----

| (1) | Consists entirely of taxable investment securities. |
|-----|-----------------------------------------------------|

| (2) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (4) | Net interest margin represents net interest income divided by average total interest-earning assets. |
|-----|------------------------------------------------------------------------------------------------------|

----

|                               |   | Six Months Ended December 31, |   |   | Fiscal Years Ended June 30, |   |
|------------------------------------|--------|-------------------------------|--------|--------|-----------------------------|--------|
|                               |   | 2010 vs. 2009                 |   |   | 2010 vs. 2009               |   |
|                               |   | Increase (Decrease) Due to    |   |   |                        |   |   | Increase (Decrease) Due to |   |   |   |   |
|                               |   | Volume                        |   |   | Rate                        |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
|                               |   | (In thousands)                |   |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:           |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                              |   | $                             | 452    |   |                        | $      | 74 |   |   | $ | 526 |   |   | $ | 472 |   |   | $ | (87 | ) |   | $ | 385 |   |
| Investment securities (1)          |   |                          | (57    | )      |                        |   | (24 | ) |   |   | (81 | ) |   |   | (77 | ) |   |   | (121 | ) |   |   | (198 | ) |
| Short-term investments             |   |                          | -      |   |                        |   | - |   |   |   | - |   |   |   | 6 |   |   |   | (10 | ) |   |   | (4 | ) |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets      |   |                          | 395    |   |                        |   | 50 |   |   |   | 445 |   |   |   | 401 |   |   |   | (218 | ) |   |   | 183 |   |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:      |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                   |   |                          | -      |   |                        |   | 6 |   |   |   | 6 |   |   |   | 1 |   |   |   | 7 |   |   |   | 8 |   |
| NOW accounts                       |   |                          | 1      |   |                        |   | 34 |   |   |   | 35 |   |   |   | 3 |   |   |   | 26 |   |   |   | 29 |   |
| Money market accounts              |   |                          | 65     |   |                        |   | 3 |   |   |   | 68 |   |   |   | 86 |   |   |   | (412 | ) |   |   | (326 | ) |
| Certificates of deposit            |   |                          | (15    | )      |                        |   | (248 | ) |   |   | (263 | ) |   |   | 203 |   |   |   | (322 | ) |   |   | (119 | ) |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing deposits    |   |                          | 51     |   |                        |   | (205 | ) |   |   | (154 | ) |   |   | 293 |   |   |   | (701 | ) |   |   | (408 | ) |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                      |   |                          | (102   | )      |                        |   | (94 | ) |   |   | (196 | ) |   |   | (410 | ) |   |   | (211 | ) |   |   | (621 | ) |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities |   |                          | (51    | )      |                        |   | (299 | ) |   |   | (350 | ) |   |   | (117 | ) |   |   | (912 | ) |   |   | (1,029 | ) |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income      |   | $                             | 446    |   |                        | $      | 349 |   |   | $ | 795 |   |   | $ | 518 |   |   | $ | 694 |   |   | $ | 1,212 |   |
|                               |   |                          |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

| At December 31, 2010   |   |   | At June 30, 2010       |   |
|------------------------|--------|--------|------------------------|--------|
| Changes in             |   |   |                   |   |   |   |   |   | Changes in |   |   |   |   |   |   |   |
| Interest Rates         |   |   | Net Interest           |   |   |   |   |   | Interest Rates |   |   | Net Interest |   |   |   |   |
| (Basis Points)         |   |   | Income                 |   |   | % Change |   |   | (Basis Points) |   |   | Income |   |   | % Change |   |
| (Dollars in thousands) |   |   | (Dollars in thousands) |   |
|                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   | 200    |   |                   | $      | 8,056 |   |   |   | -1.1% |   |   |   | 200 |   |   | $ | 6,417 |   |   |   | 0.7% |   |
|                   | 0      |   |                   | $      | 8,144 |   |   |   | 0.0% |   |   |   | 0 |   |   | $ | 6,372 |   |   |   | 0.0% |   |
|                   | -100   |   |                   | $      | 8,136 |   |   |   | -0.1% |   |   |   | -100 |   |   | $ | 6,428 |   |   |   | 0.9% |   |

----

----

----

----

|                                                             | Page        |
|------------------------------------------------------------------|-------------|
|                                                             |        |
| Reports of Independent Registered Public Accounting Firm         | F-2 to F-3  |
|                                                             |        |
| Consolidated Balance Sheets                                      | F-4         |
|                                                             |        |
| Consolidated Statements of Income                                | F-5         |
|                                                             |        |
| Consolidated Statements of Changes in Stockholders’ Equity | F-6         |
|                                                             |        |
| Consolidated Statements of Cash Flows                            | F-7 to F-8  |
|                                                             |        |
| Notes to Consolidated Financial Statements                       | F-9 to F-59 |

----

|   | /s/ SHATSWELL, MacLEOD & COMPANY, P.C. |
|--------|--------------------------------------------|
|   | SHATSWELL, MacLEOD & COMPANY, P.C.     |

----

----

| ASSETS                                                                            |   |
|-----------------------------------------------------------------------------------|--------|
|                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                              |   | December 31, |   |   | June 30, |   |
|                                                                              |   | 2010 |   |   | 2010 |   |   | 2009 |   |
|                                                                              |   | (In thousands) |   |
|                                                                              |   |   |   |   |   |   |   |   |   |
| Cash and due from banks                                                           |   | $ | 1,490 |   |   | $ | 3,879 |   |   | $ | 3,355 |   |
| Short-term investments                                                            |   |   | 1,808 |   |   |   | 3,461 |   |   |   | 8,001 |   |
| Total cash and cash equivalents                                                   |   |   | 3,298 |   |   |   | 7,340 |   |   |   | 11,356 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale, at fair value                                      |   |   | 7,219 |   |   |   | 10,925 |   |   |   | 9,528 |   |
| Securities held to maturity, at amortized cost (fair value $3,398,000 at December |   |   |   |   |   |   |   |   |   |   |   |   |
| 31, 2010, $3,927,000 at June 30, 2010 and $5,101,000 at June 30, 2009)            |   |   | 3,202 |   |   |   | 3,718 |   |   |   | 4,959 |   |
| Federal Home Loan Bank stock, at cost                                             |   |   | 3,111 |   |   |   | 3,111 |   |   |   | 3,111 |   |
| Loans held for sale                                                               |   |   | 685 |   |   |   | 1,559 |   |   |   | 269 |   |
| Loans, net of allowance for loan losses of $1,651,000 at December 31, 2010,       |   |   |   |   |   |   |   |   |   |   |   |   |
| $1,676,000 at June 30, 2010 and $1,455,000 at June 30, 2009                       |   |   | 178,524 |   |   |   | 175,867 |   |   |   | 163,825 |   |
| Premises and equipment, net                                                       |   |   | 3,961 |   |   |   | 4,017 |   |   |   | 4,212 |   |
| Accrued interest receivable                                                       |   |   | 777 |   |   |   | 794 |   |   |   | 714 |   |
| Bank-owned life insurance                                                         |   |   | 2,597 |   |   |   | 2,546 |   |   |   | 2,414 |   |
| Prepaid FDIC insurance                                                            |   |   | 514 |   |   |   | 610 |   |   |   | - |   |
| Other assets                                                                      |   |   | 1,127 |   |   |   | 1,058 |   |   |   | 803 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                      |   | $ | 205,015 |   |   | $ | 211,545 |   |   | $ | 201,191 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                              |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                          |   | $ | 151,463 |   |   | $ | 147,286 |   |   | $ | 141,126 |   |
| Securities sold under agreements to repurchase                                    |   |   | 491 |   |   |   | 407 |   |   |   | 520 |   |
| Short-term Federal Home Loan Bank advances                                        |   |   | 3,500 |   |   |   | 7,250 |   |   |   | - |   |
| Long-term Federal Home Loan Bank advances                                         |   |   | 28,182 |   |   |   | 35,711 |   |   |   | 40,268 |   |
| Mortgagors' escrow accounts                                                       |   |   | 598 |   |   |   | 455 |   |   |   | 407 |   |
| Accrued expenses and other liabilities                                            |   |   | 1,612 |   |   |   | 2,068 |   |   |   | 1,553 |   |
| Total liabilities                                                                 |   |   | 185,846 |   |   |   | 193,177 |   |   |   | 183,874 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments and contingencies (Note 14)                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' equity:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock, $0.10 par value per share:  1,000,000                  |   |   |   |   |   |   |   |   |   |   |   |   |
| shares authorized; none outstanding                                               |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock, $0.10 par value per share: 10,000,000                               |   |   |   |   |   |   |   |   |   |   |   |   |
| shares authorized; 2,777,250 shares issued                                        |   |   | 278 |   |   |   | 278 |   |   |   | 278 |   |
| Additional paid-in capital                                                        |   |   | 11,424 |   |   |   | 11,438 |   |   |   | 11,350 |   |
| Retained earnings                                                                 |   |   | 8,999 |   |   |   | 8,167 |   |   |   | 7,228 |   |
| Accumulated other comprehensive income                                            |   |   | 120 |   |   |   | 193 |   |   |   | 136 |   |
| Unearned compensation - ESOP (36,789, 40,886 and 49,078 shares unallocated        |   |   |   |   |   |   |   |   |   |   |   |   |
| at December 31, 2010, June 30, 2010 and 2009, respectively)                       |   |   | (368 | ) |   |   | (409 | ) |   |   | (491 | ) |
| Unearned compensation - Restricted stock (24,000 shares non-vested                |   |   |   |   |   |   |   |   |   |   |   |   |
| at December 31, 2010 and June 30, 2010)                                           |   |   | (100 | ) |   |   | (115 | ) |   |   | - |   |
| Treasury stock, at cost (138,863 shares)                                          |   |   | (1,184 | ) |   |   | (1,184 | ) |   |   | (1,184 | ) |
| Total stockholders' equity                                                        |   |   | 19,169 |   |   |   | 18,368 |   |   |   | 17,317 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                        |   | $ | 205,015 |   |   | $ | 211,545 |   |   | $ | 201,191 |   |

----

|                                                  |   | Six Months Ended                  |      |   | Years Ended |   |
|-------------------------------------------------------|--------|-----------------------------------|-----------|--------|-------------|--------|
|                                                  |   | December 31,                      |      |   | June 30,    |   |
|                                                  |   | 2010                              |      |   | 2009        |   |   | 2010 |   |   | 2009 |   |
|                                                  |   |                              |      |   | (Unaudited) |   |   |   |   |   |   |   |
|                                                  |   | (In thousands, except share data) |      |
|                                                  |   |                              |      |   |        |   |   |   |   |
| Interest and dividend income:                         |   |                              |      |   |        |   |   |   |   |   |   |   |
| Loans, including fees                                 |   | $                                 | 5,443     |   |        | $      | 4,917 |   |   | $ | 10,110 |   |   | $ | 9,725 |   |
| Securities                                            |   |                              | 235       |   |        |   | 316 |   |   |   | 622 |   |   |   | 820 |   |
| Short-term investments                                |   |                              | 1         |   |        |   | 1 |   |   |   | 2 |   |   |   | 6 |   |
| Total interest and dividend income                    |   |                              | 5,679     |   |        |   | 5,234 |   |   |   | 10,734 |   |   |   | 10,551 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                     |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                              |   |                              | 999       |   |        |   | 1,153 |   |   |   | 2,202 |   |   |   | 2,610 |   |
| Short-term Federal Home Loan Bank advances            |   |                              | 4         |   |        |   | 1 |   |   |   | 14 |   |   |   | 110 |   |
| Long-term Federal Home Loan Bank advances             |   |                              | 590       |   |        |   | 789 |   |   |   | 1,462 |   |   |   | 1,987 |   |
| Securities sold under agreements to repurchase        |   |                              | 1         |   |        |   | 1 |   |   |   | 2 |   |   |   | 2 |   |
| Total interest expense                                |   |                              | 1,594     |   |        |   | 1,944 |   |   |   | 3,680 |   |   |   | 4,709 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                   |   |                              | 4,085     |   |        |   | 3,290 |   |   |   | 7,054 |   |   |   | 5,842 |   |
| Provision for loan losses                             |   |                              | 23        |   |        |   | 196 |   |   |   | 361 |   |   |   | 248 |   |
| Net interest income, after provision for loan losses  |   |                              | 4,062     |   |        |   | 3,094 |   |   |   | 6,693 |   |   |   | 5,594 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income:                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Customer service fees                                 |   |                              | 307       |   |        |   | 332 |   |   |   | 645 |   |   |   | 633 |   |
| Mortgage banking income, net                          |   |                              | 417       |   |        |   | 181 |   |   |   | 378 |   |   |   | 219 |   |
| Income from bank-owned life insurance                 |   |                              | 51        |   |        |   | 10 |   |   |   | 60 |   |   |   | 8 |   |
| Other                                                 |   |                              | 3         |   |        |   | 1 |   |   |   | 2 |   |   |   | 10 |   |
| Total non-interest income                             |   |                              | 778       |   |        |   | 524 |   |   |   | 1,085 |   |   |   | 870 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expenses:                                |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                        |   |                              | 1,967     |   |        |   | 1,726 |   |   |   | 3,499 |   |   |   | 3,255 |   |
| Occupancy and equipment expenses                      |   |                              | 365       |   |        |   | 381 |   |   |   | 767 |   |   |   | 776 |   |
| Data processing expenses                              |   |                              | 224       |   |        |   | 223 |   |   |   | 442 |   |   |   | 378 |   |
| Professional fees                                     |   |                              | 233       |   |        |   | 207 |   |   |   | 360 |   |   |   | 275 |   |
| Advertising expenses                                  |   |                              | 105       |   |        |   | 104 |   |   |   | 274 |   |   |   | 205 |   |
| FDIC insurance                                        |   |                              | 106       |   |        |   | 97 |   |   |   | 214 |   |   |   | 252 |   |
| Other general and administrative expenses             |   |                              | 497       |   |        |   | 387 |   |   |   | 764 |   |   |   | 792 |   |
| Total non-interest expenses                           |   |                              | 3,497     |   |        |   | 3,125 |   |   |   | 6,320 |   |   |   | 5,933 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                            |   |                              | 1,343     |   |        |   | 493 |   |   |   | 1,458 |   |   |   | 531 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision                                  |   |                              | 511       |   |        |   | 175 |   |   |   | 519 |   |   |   | 181 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   | $                                 | 832       |   |        | $      | 318 |   |   | $ | 939 |   |   | $ | 350 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average number of common shares outstanding: |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                     |   |                              | 2,623,227 |   |        |   | 2,591,035 |   |   |   | 2,601,668 |   |   |   | 2,584,892 |   |
|                                                  |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share:                                 |   |                              |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                     |   | $                                 | 0.32      |   |        | $      | 0.12 |   |   | $ | 0.36 |   |   | $ | 0.14 |   |

----

|                                               |   |           |   |   |       |   |   |     |   |   | Accumulated   |   |   |          |   |   |             |   |   |     |   |   |   |   |
|----------------------------------------------------|--------|----------------|--------|--------|------------|--------|--------|----------|--------|--------|---------------|--------|--------|---------------|--------|--------|------------------|--------|--------|----------|--------|--------|--------|--------|
|                                               |   |           |   |   | Additional |   |   |     |   |   | Other         |   |   | Unearned      |   |   | Unearned         |   |   |     |   |   |   |   |
|                                               |   | Common         |   |   | Paid-in    |   |   | Retained |   |   | Comprehensive |   |   | Compensation- |   |   | Compensation-    |   |   | Treasury |   |   |   |   |
|                                               |   | Stock          |   |   | Capital    |   |   | Earnings |   |   | Income (Loss) |   |   | ESOP          |   |   | Restricted Stock |   |   | Stock    |   |   | Total  |   |
|                                               |   | (In thousands) |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |
| Balance at June 30, 2008                           |   | $              | 278    |   |       | $      | 11,393 |     |   | $      | 6,878         |   |   | $             | (19    | )      |             | $      | (573   | )        |   | $      | -      |   |   | $ | (1,184 | ) |   | $ | 16,773 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                              |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   |           | -      |   |       |   | -      |     |   |   | 350           |   |   |          | -      |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 350 |   |
| Net unrealized gain on securities                  |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| available for sale, net of related                 |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| tax effects of $84,000                             |   |           | -      |   |       |   | -      |     |   |   | -             |   |   |          | 155    |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 155 |   |
| Total comprehensive income                         |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   | 505 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP allocated or             |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| committed to be allocated (8,193 shares)           |   |           | -      |   |       |   | (43    | )        |   |   | -             |   |   |          | -      |   |             |   | 82     |     |   |   | -      |   |   |   | - |   |   |   | 39 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                           |   |           | 278    |   |       |   | 11,350 |     |   |   | 7,228         |   |   |          | 136    |   |             |   | (491   | )        |   |   | -      |   |   |   | (1,184 | ) |   |   | 17,317 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                              |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   |           | -      |   |       |   | -      |     |   |   | 939           |   |   |          | -      |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 939 |   |
| Net unrealized gain on securities                  |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| available for sale, net of related                 |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| tax effects of $32,000                             |   |           | -      |   |       |   | -      |     |   |   | -             |   |   |          | 57     |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 57 |   |
| Total comprehensive income                         |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   | 996 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP allocated or             |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| committed to be allocated (8,192 shares)           |   |           | -      |   |       |   | (41    | )        |   |   | -             |   |   |          | -      |   |             |   | 82     |     |   |   | -      |   |   |   | - |   |   |   | 41 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted stock granted in connection with equity |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| incentive plan (25,000 shares)                     |   |           | -      |   |       |   | 130    |     |   |   | -             |   |   |          | -      |   |             |   | -      |     |   |   | (130   | )      |   |   | - |   |   |   | - |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Forfeiture of restricted stock (1,000 shares)      |   |           | -      |   |       |   | (5     | )        |   |   | -             |   |   |          | -      |   |             |   | -      |     |   |   | 5      |   |   |   | - |   |   |   | - |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Share based compensation - options                 |   |           | -      |   |       |   | 4      |     |   |   | -             |   |   |          | -      |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 4 |   |
| Share based compensation - restricted stock        |   |           | -      |   |       |   | -      |     |   |   | -             |   |   |          | -      |   |             |   | -      |     |   |   | 10     |   |   |   | - |   |   |   | 10 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                           |   |           | 278    |   |       |   | 11,438 |     |   |   | 8,167         |   |   |          | 193    |   |             |   | (409   | )        |   |   | (115   | )      |   |   | (1,184 | ) |   |   | 18,368 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                              |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   |           | -      |   |       |   | -      |     |   |   | 832           |   |   |          | -      |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 832 |   |
| Net unrealized loss on securities                  |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| available for sale, net of related                 |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| tax effects of $40,000                             |   |           | -      |   |       |   | -      |     |   |   | -             |   |   |          | (73    | )      |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | (73 | ) |
| Total comprehensive income                         |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   | 759 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP allocated or             |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| committed to be allocated (4,097 shares)           |   |           | -      |   |       |   | (20    | )        |   |   | -             |   |   |          | -      |   |             |   | 41     |     |   |   | -      |   |   |   | - |   |   |   | 21 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Share based compensation - options                 |   |           | -      |   |       |   | 6      |     |   |   | -             |   |   |          | -      |   |             |   | -      |     |   |   | -      |   |   |   | - |   |   |   | 6 |   |
| Share based compensation - restricted stock        |   |           | -      |   |       |   | -      |     |   |   | -             |   |   |          | -      |   |             |   | -      |     |   |   | 15     |   |   |   | - |   |   |   | 15 |   |
|                                               |   |           |   |   |       |   |   |     |   |   |          |   |   |          |   |   |             |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                       |   | $              | 278    |   |       | $      | 11,424 |     |   | $      | 8,999         |   |   | $             | 120    |   |             | $      | (368   | )        |   | $      | (100   | )      |   | $ | (1,184 | ) |   | $ | 19,169 |   |

----

|                                                  |   | Six Months Ended |    |   | Years Ended |   |
|-------------------------------------------------------|--------|------------------|---------|--------|-------------|--------|
|                                                  |   | December 31,     |    |   | June 30,    |   |
|                                                  |   | 2010             |    |   | 2009        |   |   | 2010 |   |   | 2009 |   |
|                                                  |   |             |    |   | (Unaudited) |   |   |   |   |   |   |   |
|                                                  |   | (In thousands)   |    |
| Cash flows from operating activities:                 |   |             |    |   |        |   |   |   |   |   |   |   |
| Net income                                            |   | $                | 832     |   |        | $      | 318 |   |   | $ | 939 |   |   | $ | 350 |   |
| Adjustments to reconcile net income to net cash       |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| provided (used) by operating activities:              |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                             |   |             | 23      |   |        |   | 196 |   |   |   | 361 |   |   |   | 248 |   |
| Accretion of securities, net                          |   |             | (8      | )      |        |   | (14 | ) |   |   | (23 | ) |   |   | (34 | ) |
| Accretion of deferred loan fees and costs, net        |   |             | (40     | )      |        |   | (3 | ) |   |   | (22 | ) |   |   | (31 | ) |
| Depreciation and amortization expense                 |   |             | 141     |   |        |   | 175 |   |   |   | 343 |   |   |   | 360 |   |
| Decrease (increase) in accrued interest receivable    |   |             | 17      |   |        |   | (90 | ) |   |   | (80 | ) |   |   | (40 | ) |
| Income from bank-owned life insurance                 |   |             | (51     | )      |        |   | (10 | ) |   |   | (60 | ) |   |   | (8 | ) |
| Stock-based compensation expense                      |   |             | 42      |   |        |   | 20 |   |   |   | 55 |   |   |   | 39 |   |
| Loans originated for sale                             |   |             | (29,019 | )      |        |   | (8,014 | ) |   |   | (20,759 | ) |   |   | (12,015 | ) |
| Principal balance of loans sold                       |   |             | 29,893  |   |        |   | 7,762 |   |   |   | 19,480 |   |   |   | 11,746 |   |
| Prepaid FDIC insurance                                |   |             | 96      |   |        |   | (719 | ) |   |   | (610 | ) |   |   | - |   |
| Net change in other assets and liabilities            |   |             | (485    | )      |        |   | (296 | ) |   |   | 217 |   |   |   | 78 |   |
| Net cash provided (used) by operating activities      |   |             | 1,441   |   |        |   | (675 | ) |   |   | (159 | ) |   |   | 693 |   |
|                                                  |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                 |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Activity in securities available for sale:            |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Maturities, prepayments and calls                     |   |             | 5,604   |   |        |   | 1,193 |   |   |   | 5,206 |   |   |   | 7,447 |   |
| Purchases                                             |   |             | (2,006  | )      |        |   | (3,500 | ) |   |   | (6,500 | ) |   |   | (4,010 | ) |
| Maturities, prepayments and calls                     |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| of securities held to maturity                        |   |             | 519     |   |        |   | 675 |   |   |   | 1,250 |   |   |   | 1,326 |   |
| Purchase of Federal Home Loan Bank stock              |   |             | -       |   |        |   | - |   |   |   | - |   |   |   | (103 | ) |
| Loan originations, net                                |   |             | (2,640  | )      |        |   | (4,213 | ) |   |   | (13,546 | ) |   |   | (15,133 | ) |
| Principal balance of portfolio loans sold             |   |             | -       |   |        |   | 1,007 |   |   |   | 1,165 |   |   |   | - |   |
| Purchase of premises and equipment                    |   |             | (85     | )      |        |   | (54 | ) |   |   | (148 | ) |   |   | (114 | ) |
| Proceeds from redemption of bank-owned life insurance |   |             | -       |   |        |   | 112 |   |   |   | 112 |   |   |   | - |   |
| Purchase of bank-owned life insurance                 |   |             | -       |   |        |   | (184 | ) |   |   | (184 | ) |   |   | - |   |
| Net cash provided (used) by investing activities      |   |             | 1,392   |   |        |   | (4,964 | ) |   |   | (12,645 | ) |   |   | (10,587 | ) |
| (continued)                                           |   |             |    |   |        |   |   |   |   |   |   |   |   |   |   |   |

----

|                                               |   | Six Months Ended |   |   | Years Ended |   |
|----------------------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                               |   | December 31,     |   |   | June 30,    |   |
|                                               |   | 2010             |   |   | 2009        |   |   | 2010 |   |   | 2009 |   |
|                                               |   |             |   |   | (Unaudited) |   |   |   |   |   |   |   |
|                                               |   | (In thousands)   |   |
| Cash flows from financing activities:              |   |             |   |   |        |   |   |   |   |   |   |   |
| Net change in deposits                             |   |             | 4,177  |   |        |   | (4,496 | ) |   |   | 6,160 |   |   |   | 34,834 |   |
| Net change in securities sold under agreements     |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| to repurchase                                      |   |             | 84     |   |        |   | (103 | ) |   |   | (113 | ) |   |   | (32 | ) |
| Net change in Federal Home Loan Bank advances with |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| maturities of  three months or less      |   |             | (3,750 | )      |        |   | 6,050 |   |   |   | 7,250 |   |   |   | (14,000 | ) |
| Proceeds from Federal Home Loan Bank advances      |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| with maturities greater than three months          |   |             | 1,500  |   |        |   | 7,000 |   |   |   | 9,500 |   |   |   | 15,500 |   |
| Repayments of Federal Home Loan Bank advances      |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| with maturities greater than three months          |   |             | (9,029 | )      |        |   | (10,528 | ) |   |   | (14,057 | ) |   |   | (20,553 | ) |
| Net change in mortgagors' escrow accounts          |   |             | 143    |   |        |   | 5 |   |   |   | 48 |   |   |   | 46 |   |
| Net cash (used) provided by financing activities   |   |             | (6,875 | )      |        |   | (2,072 | ) |   |   | 8,788 |   |   |   | 15,795 |   |
|                                               |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents            |   |             | (4,042 | )      |        |   | (7,711 | ) |   |   | (4,016 | ) |   |   | 5,901 |   |
|                                               |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period   |   |             | 7,340  |   |        |   | 11,356 |   |   |   | 11,356 |   |   |   | 5,455 |   |
|                                               |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period         |   | $                | 3,298  |   |        | $      | 3,645 |   |   | $ | 7,340 |   |   | $ | 11,356 |   |
|                                               |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Supplementary information:                         |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Interest paid on deposit accounts                  |   | $                | 1,001  |   |        | $      | 1,157 |   |   | $ | 2,203 |   |   | $ | 2,615 |   |
| Interest paid on borrowings                        |   |             | 620    |   |        |   | 825 |   |   |   | 1,509 |   |   |   | 2,136 |   |
| Income taxes paid                                  |   |             | 879    |   |        |   | 127 |   |   |   | 128 |   |   |   | 110 |   |

----

| 1. | CORPORATE STRUCTURE |
|----|---------------------|

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

----

----

----

----

----

----

----

----

----

|                                                       |   | Six Months Ended |      |   | Years Ended |   |
|------------------------------------------------------------|--------|------------------|-----------|--------|-------------|--------|
|                                                       |   | December 31,     |      |   | June 30,    |   |
|                                                       |   | 2010             |      |   | 2009        |   |   | 2010 |   |   | 2009 |   |
|                                                       |   |             |      |   | (Unaudited) |   |   |   |   |   |   |   |
| Net income available to common stockholders                |   | $                | 832,000   |   |        | $      | 318,000 |   |   | $ | 939,000 |   |   | $ | 350,000 |   |
|                                                       |   |             |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Basic common shares:                                       |   |             |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                        |   |             | 2,638,387 |   |        |   | 2,638,387 |   |   |   | 2,638,387 |   |   |   | 2,638,387 |   |
| Less:  Weighted average unallocated ESOP shares  |   |             | (39,160   | )      |        |   | (47,352 | ) |   |   | (45,302 | ) |   |   | (53,495 | ) |
| Add:  Weighted average unvested restricted stock |   |             |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| shares with non-forfeitable dividend rights                |   |             | 24,000    |   |        |   | - |   |   |   | 8,583 |   |   |   | - |   |
| Basic weighted average common shares outstanding           |   |             | 2,623,227 |   |        |   | 2,591,035 |   |   |   | 2,601,668 |   |   |   | 2,584,892 |   |
|                                                       |   |             |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive potential common shares                           |   |             | -         |   |        |   | - |   |   |   | - |   |   |   | - |   |
|                                                       |   |             |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average common shares outstanding         |   |             | 2,623,227 |   |        |   | 2,591,035 |   |   |   | 2,601,668 |   |   |   | 2,584,892 |   |
|                                                       |   |             |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings per share                       |   | $                | 0.32      |   |        | $      | 0.12 |   |   | $ | 0.36 |   |   | $ | 0.14 |   |

----

----

----

| 3. | RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS |
|----|-------------------------------------------------|

| 4. | SHORT-TERM INVESTMENTS |
|----|------------------------|

|                       |   | December 31,   |   |   | June 30, |   |
|----------------------------|--------|----------------|--------|--------|----------|--------|
|                       |   | 2010           |   |   | 2010     |   |   | 2009 |   |
|                       |   | (In thousands) |   |
|                       |   |           |   |   |     |   |   |   |   |
| FHLB Ideal Way             |   | $              | 25     |   |     | $      | 3,403 |   |   | $ | 154 |   |
| Federal funds sold         |   |           | 1,782  |   |     |   | 57 |   |   |   | 7,846 |   |
| Shay Asset Management Fund |   |           | 1      |   |     |   | 1 |   |   |   | 1 |   |
|                       |   |           |   |   |     |   |   |   |   |   |   |   |
|                       |   | $              | 1,808  |   |     | $      | 3,461 |   |   | $ | 8,001 |   |

| 5. | SECURITIES |
|----|------------|

|                          |   |           |   |   | Gross      |   |   | Gross      |   |   |   |   |
|-------------------------------|--------|----------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                          |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                          |   | Cost           |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
|                          |   | (In thousands) |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| At December 31, 2010          |   |           |   |   |       |   |   |       |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| Securities available for sale |   |           |   |   |       |   |   |       |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| Government-sponsored          |   |           |   |   |       |   |   |       |   |   |   |   |
| enterprise obligations        |   | $              | 3,006  |   |       | $      | 4      |       |   | $      | (36    | )      |   | $ | 2,974 |   |
| Residential mortgage-backed   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| securities                    |   |           | 4,028  |   |       |   | 217    |       |   |   | -      |   |   |   | 4,245 |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Total securities              |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| available for sale            |   | $              | 7,034  |   |       | $      | 221    |       |   | $      | (36    | )      |   | $ | 7,219 |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities held to maturity   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Residential mortgage-backed   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| securities                    |   | $              | 3,202  |   |       | $      | 196    |       |   | $      | -      |   |   | $ | 3,398 |   |

----

|                          |   |           |   |   | Gross      |   |   | Gross      |   |   |   |   |
|-------------------------------|--------|----------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                          |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                          |   | Cost           |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
|                          |   | (In thousands) |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| At June 30, 2010              |   |           |   |   |       |   |   |       |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| Securities available for sale |   |           |   |   |       |   |   |       |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| Government-sponsored          |   |           |   |   |       |   |   |       |   |   |   |   |
| enterprise obligations        |   | $              | 5,000  |   |       | $      | 19     |       |   | $      | -      |   |   | $ | 5,019 |   |
| Residential mortgage-backed   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| securities                    |   |           | 5,627  |   |       |   | 279    |       |   |   | -      |   |   |   | 5,906 |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Total securities              |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| available for sale            |   | $              | 10,627 |   |       | $      | 298    |       |   | $      | -      |   |   | $ | 10,925 |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities held to maturity   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Residential mortgage-backed   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| securities                    |   | $              | 3,718  |   |       | $      | 209    |       |   | $      | -      |   |   | $ | 3,927 |   |

|                          |   |           |   |   | Gross      |   |   | Gross      |   |   |   |   |
|-------------------------------|--------|----------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                          |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                          |   | Cost           |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
|                          |   | (In thousands) |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| At June 30, 2009              |   |           |   |   |       |   |   |       |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| Securities available for sale |   |           |   |   |       |   |   |       |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |
| Government-sponsored          |   |           |   |   |       |   |   |       |   |   |   |   |
| enterprise obligations        |   | $              | 1,500  |   |       | $      | -      |       |   | $      | (2     | )      |   | $ | 1,498 |   |
| Residential mortgage-backed   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| securities                    |   |           | 7,819  |   |       |   | 216    |       |   |   | (5     | )      |   |   | 8,030 |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Total securities              |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| available for sale            |   | $              | 9,319  |   |       | $      | 216    |       |   | $      | (7     | )      |   | $ | 9,528 |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities held to maturity   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Residential mortgage-backed   |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| securities                    |   | $              | 4,959  |   |       | $      | 142    |       |   | $      | -      |   |   | $ | 5,101 |   |

----

|                        |   | Available for Sale |   |   | Held to Maturity |   |
|-----------------------------|--------|--------------------|--------|--------|------------------|--------|
|                        |   | Amortized          |   |   | Fair             |   |   | Amortized |   |   | Fair |   |
|                        |   | Cost               |   |   | Value            |   |   | Cost |   |   | Value |   |
|                        |   | (In thousands)     |   |
| After 1 year through        |   |               |   |   |             |   |   |   |   |   |   |   |
| 5 years                     |   | $                  | 1,006  |   |             | $      | 1,007 |   |   | $ | - |   |   | $ | - |   |
| After 5 years through       |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| 10 years                    |   |               | 500    |   |             |   | 503 |   |   |   | - |   |   |   | - |   |
| Over 10 years               |   |               | 1,500  |   |             |   | 1,464 |   |   |   | - |   |   |   | - |   |
|                        |   |               | 3,006  |   |             |   | 2,974 |   |   |   | - |   |   |   | - |   |
| Residential mortgage-backed |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| securities                  |   |               | 4,028  |   |             |   | 4,245 |   |   |   | 3,202 |   |   |   | 3,398 |   |
|                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                        |   | $                  | 7,034  |   |             | $      | 7,219 |   |   | $ | 3,202 |   |   | $ | 3,398 |   |

----

|                          |   | Less Than Twelve Months |   |   | Twelve Months Or Longer |   |
|-------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                          |   | Gross                   |   |   |                    |   |   | Gross |   |   |   |   |
|                          |   | Unrealized              |   |   | Fair                    |   |   | Unrealized |   |   | Fair |   |
|                          |   | Losses                  |   |   | Value                   |   |   | Losses |   |   | Value |   |
|                          |   | (In thousands)          |   |
| At December 31, 2010          |   |                    |   |   |                    |   |   |   |   |   |   |   |
|                          |   |                    |   |   |                    |   |   |   |   |   |   |   |
| Securities available for sale |   |                    |   |   |                    |   |   |   |   |   |   |   |
|                          |   |                    |   |   |                    |   |   |   |   |   |   |   |
| Government-sponsored          |   |                    |   |   |                    |   |   |   |   |   |   |   |
| enterprise obligations        |   | $                       | 36     |   |                    | $      | 1,464 |   |   | $ | - |   |   | $ | - |   |
| Residential mortgage-backed   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| securities                    |   |                    | -      |   |                    |   | - |   |   |   | - |   |   |   | - |   |
| Total temporarily impaired    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| securities                    |   | $                       | 36     |   |                    | $      | 1,464 |   |   | $ | - |   |   | $ | - |   |
|                          |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| At June 30, 2009              |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Government-sponsored          |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| enterprise obligations        |   | $                       | 2      |   |                    | $      | 1,498 |   |   | $ | - |   |   | $ | - |   |
| Residential mortgage-backed   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| securities                    |   |                    | 5      |   |                    |   | 1,455 |   |   |   | - |   |   |   | - |   |
| Total temporarily impaired    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| securities                    |   | $                       | 7      |   |                    | $      | 2,953 |   |   | $ | - |   |   | $ | - |   |

----

| 6. | LOANS AND SERVICING |
|----|---------------------|

|                                   |   | December 31, |    |   | June 30,       |   |
|----------------------------------------|--------|--------------|---------|--------|----------------|--------|
|                                   |   | 2010         |    |   | 2010           |   |   | 2009 |   |
|                                   |   |         |    |   | (In thousands) |   |   |   |   |
| Residential loans:                     |   |         |    |   |           |   |   |   |   |
| One-to-four family                     |   | $            | 70,685  |   |           | $      | 74,390 |   |   | $ | 82,140 |   |
| Home equity loans                      |   |         |    |   |           |   |   |   |   |   |   |   |
| and lines of credit                    |   |         | 17,305  |   |           |   | 17,251 |   |   |   | 16,592 |   |
| Total residential mortgage loans       |   |         | 87,990  |   |           |   | 91,641 |   |   |   | 98,732 |   |
|                                   |   |         |    |   |           |   |   |   |   |   |   |   |
| Commercial loans:                      |   |         |    |   |           |   |   |   |   |   |   |   |
| One-to-four family investment property |   |         | 11,892  |   |           |   | 7,080 |   |   |   | 4,795 |   |
| Multi-family real estate               |   |         | 14,121  |   |           |   | 14,085 |   |   |   | 8,226 |   |
| Commercial real estate                 |   |         | 27,688  |   |           |   | 26,535 |   |   |   | 21,525 |   |
| Commercial business                    |   |         | 12,475  |   |           |   | 11,010 |   |   |   | 8,364 |   |
| Total commercial loans                 |   |         | 66,176  |   |           |   | 58,710 |   |   |   | 42,910 |   |
|                                   |   |         |    |   |           |   |   |   |   |   |   |   |
| Construction loans:                    |   |         |    |   |           |   |   |   |   |   |   |   |
| One-to-four family                     |   |         | 16,725  |   |           |   | 15,873 |   |   |   | 13,327 |   |
| Multi-family                           |   |         | 7,730   |   |           |   | 7,161 |   |   |   | 2,786 |   |
| Non-residential                        |   |         | 733     |   |           |   | 3,329 |   |   |   | 7,042 |   |
| Total construction loans               |   |         | 25,188  |   |           |   | 26,363 |   |   |   | 23,155 |   |
|                                   |   |         |    |   |           |   |   |   |   |   |   |   |
| Consumer                               |   |         | 726     |   |           |   | 719 |   |   |   | 353 |   |
|                                   |   |         |    |   |           |   |   |   |   |   |   |   |
| Total loans                            |   |         | 180,080 |   |           |   | 177,433 |   |   |   | 165,150 |   |
|                                   |   |         |    |   |           |   |   |   |   |   |   |   |
| Other items:                           |   |         |    |   |           |   |   |   |   |   |   |   |
| Net deferred loan costs                |   |         | 95      |   |           |   | 110 |   |   |   | 130 |   |
| Allowance for loan losses              |   |         | (1,651  | )      |           |   | (1,676 | ) |   |   | (1,455 | ) |
|                                   |   |         |    |   |           |   |   |   |   |   |   |   |
| Total loans, net                       |   | $            | 178,524 |   |           | $      | 175,867 |   |   | $ | 163,825 |   |

----

|                           |   | Six Months Ended |   |   | Years Ended |   |
|--------------------------------|--------|------------------|--------|--------|-------------|--------|
|                           |   | December 31,     |   |   | June 30,    |   |
|                           |   | 2010             |   |   | 2010        |   |   | 2009 |   |
|                           |   | (In thousands)   |   |
|                           |   |             |   |   |        |   |   |   |   |
| Balance at beginning of period |   | $                | 1,676  |   |        | $      | 1,455 |   |   | $ | 1,212 |   |
| Provision for loan losses      |   |             | 23     |   |        |   | 361 |   |   |   | 248 |   |
| Recoveries                     |   |             | 6      |   |        |   | 15 |   |   |   | 10 |   |
| Charge-offs                    |   |             | (54    | )      |        |   | (155 | ) |   |   | (15 | ) |
|                           |   |             |   |   |        |   |   |   |   |   |   |   |
| Balance at end of period       |   | $                | 1,651  |   |        | $      | 1,676 |   |   | $ | 1,455 |   |

----

|                      |   | Residential        |   |   | Commercial                            |   |   | Construction                           |   |   |                     |   |   |                   |   |
|---------------------------|--------|--------------------|--------|--------|---------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------------------|--------|--------|------------------------|--------|
|                      |   | One-to-four family |   |   | Home equity loans and lines of credit |   |   | One-to-four family investment property |   |   | Multi-family real estate |   |   | Commercial real estate |   |   | Commercial business |   |   | One-to-four family |   |   | Multi-family |   |   | Non-residential |   |   | Consumer |   |   | Total |   |
|                      |   | (In thousands)     |   |
| Allowance for loan losses |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance            |   | $                  | 233    |   |                                  | $      | 320    |                                   |   | $      | 60                       |   |   | $                      | 106    |   |   | $ | 431 |   |   | $ | 304 |   |   | $ | 93 |   |   | $ | 83 |   |   | $ | 6 |   |   | $ | 15 |   |   | $ | 1,651 |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:           |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| individually evaluated    |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for impairment            |   | $                  | -      |   |                                  | $      | 36     |                                   |   | $      | -                        |   |   | $                      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 36 |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:           |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| collectively evaluated    |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for impairment            |   | $                  | 233    |   |                                  | $      | 284    |                                   |   | $      | 60                       |   |   | $                      | 106    |   |   | $ | 431 |   |   | $ | 304 |   |   | $ | 93 |   |   | $ | 83 |   |   | $ | 6 |   |   | $ | 15 |   |   | $ | 1,615 |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                     |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balance            |   | $                  | 70,685 |   |                                  | $      | 17,305 |                                   |   | $      | 11,892                   |   |   | $                      | 14,121 |   |   | $ | 27,688 |   |   | $ | 12,475 |   |   | $ | 16,725 |   |   | $ | 7,730 |   |   | $ | 733 |   |   | $ | 726 |   |   | $ | 180,080 |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:           |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| individually evaluated    |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for impairment            |   | $                  | 208    |   |                                  | $      | 45     |                                   |   | $      | -                        |   |   | $                      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 253 |   |
|                      |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:           |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| collectively evaluated    |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for impairment            |   | $                  | 70,477 |   |                                  | $      | 17,260 |                                   |   | $      | 11,892                   |   |   | $                      | 14,121 |   |   | $ | 27,688 |   |   | $ | 12,475 |   |   | $ | 16,725 |   |   | $ | 7,730 |   |   | $ | 733 |   |   | $ | 726 |   |   | $ | 179,827 |   |

----

|                                             |   | Loans delinquent for: |   |   |         |   |   |    |   |   |     |   |   | 90 days |   |   |   |   |
|--------------------------------------------------|--------|-----------------------|--------|--------|--------------|--------|--------|---------|--------|--------|----------|--------|--------|---------|--------|--------|--------|--------|
|                                             |   |                  |   |   |         |   |   | 90 days |   |   | Total    |   |   | Total   |   |   | Total  |   |   | or more |   |   | Non-accrual |   |
|                                             |   | 30 - 59 Days          |   |   | 60 - 89 Days |   |   | or more |   |   | Past Due |   |   | Current |   |   | Loans  |   |   | and accruing |   |   | Loans |   |
|                                             |   | (In thousands)        |   |
|                                             |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Residential loans:                               |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
| One-to-four family                               |   | $                     | 391    |   |         | $      | 138    |    |   | $      | -        |   |   | $       | 529    |   |   | $      | 70,156 |   |   | $ | 70,685 |   |   | $ | - |   |   | $ | - |   |
| Home equity loans and  lines of credit |   |                  | 19     |   |         |   | -      |    |   |   | 45       |   |   |    | 64     |   |   |   | 17,241 |   |   |   | 17,305 |   |   |   | - |   |   |   | 45 |   |
|                                             |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans:                                |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family investment property           |   |                  | -      |   |         |   | -      |    |   |   | -        |   |   |    | -      |   |   |   | 11,892 |   |   |   | 11,892 |   |   |   | - |   |   |   | - |   |
| Multi-family real estate                         |   |                  | -      |   |         |   | -      |    |   |   | -        |   |   |    | -      |   |   |   | 14,121 |   |   |   | 14,121 |   |   |   | - |   |   |   | - |   |
| Commercial real estate                           |   |                  | 314    |   |         |   | -      |    |   |   | -        |   |   |    | 314    |   |   |   | 27,374 |   |   |   | 27,688 |   |   |   | - |   |   |   | - |   |
| Commercial business                              |   |                  | -      |   |         |   | -      |    |   |   | -        |   |   |    | -      |   |   |   | 12,475 |   |   |   | 12,475 |   |   |   | - |   |   |   | - |   |
|                                             |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction loans:                              |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family                               |   |                  | -      |   |         |   | -      |    |   |   | -        |   |   |    | -      |   |   |   | 16,725 |   |   |   | 16,725 |   |   |   | - |   |   |   | - |   |
| Multi-family                                     |   |                  | -      |   |         |   | -      |    |   |   | -        |   |   |    | -      |   |   |   | 7,730 |   |   |   | 7,730 |   |   |   | - |   |   |   | - |   |
| Non-residential                                  |   |                  | -      |   |         |   | -      |    |   |   | -        |   |   |    | -      |   |   |   | 733 |   |   |   | 733 |   |   |   | - |   |   |   | - |   |
|                                             |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                         |   |                  | 9      |   |         |   | 1      |    |   |   | -        |   |   |    | 10     |   |   |   | 716 |   |   |   | 726 |   |   |   | - |   |   |   | - |   |
|                                             |   |                  |   |   |         |   |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                            |   | $                     | 733    |   |         | $      | 139    |    |   | $      | 45       |   |   | $       | 917    |   |   | $      | 179,163 |   |   | $ | 180,080 |   |   | $ | - |   |   | $ | 45 |   |

----

|                                             |   |           |   |   | Unpaid    |   |   |      |   |   | Average    |   |   | Interest   |   |
|--------------------------------------------------|--------|----------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
|                                             |   | Recorded       |   |   | Principal |   |   | Related   |   |   | Recorded   |   |   | Income     |   |
|                                             |   | Investment     |   |   | Balance   |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
|                                             |   | (In thousands) |   |
|                                             |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |
| Impaired loans without a valuation allowance     |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |
|                                             |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |
| Residential loans:                               |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |
| One-to-four family                               |   | $              | 208    |   |      | $      | 208    |      |   | $      | -          |   |   | $          | 209    |   |   | $ | 5 |   |
| Home equity loans and  lines of credit |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial loans:                                |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| One-to-four family investment property           |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Multi-family real estate                         |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial real estate                           |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial business                              |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Construction loans:                              |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| One-to-four family                               |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Multi-family                                     |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Non-residential                                  |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Consumer                                         |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
|                                             |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Total impaired with no related allowance         |   | $              | 208    |   |      | $      | 208    |      |   | $      | -          |   |   | $          | 209    |   |   | $ | 5 |   |
|                                             |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Impaired loans with a valuation allowance        |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
|                                             |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Residential loans:                               |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| One-to-four family                               |   | $              | -      |   |      | $      | -      |      |   | $      | -          |   |   | $          | -      |   |   | $ | - |   |
| Home equity loans and  lines of credit |   |           | 45     |   |      |   | 45     |      |   |   | 36         |   |   |       | 47     |   |   |   | 1 |   |
| Commercial loans:                                |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| One-to-four family investment property           |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Multi-family real estate                         |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial real estate                           |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Commercial business                              |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Construction loans:                              |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| One-to-four family                               |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Multi-family                                     |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Non-residential                                  |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
| Consumer                                         |   |           | -      |   |      |   | -      |      |   |   | -          |   |   |       | -      |   |   |   | - |   |
|                                             |   |           |   |   |      |   |   |      |   |   |       |   |   |       |   |   |   |   |   |   |
| Total with an allowance recorded                 |   | $              | 45     |   |      | $      | 45     |      |   | $      | 36         |   |   | $          | 47     |   |   | $ | 1 |   |

----

|                                                        |   | At December 31, |   |   | At June 30, |   |
|-------------------------------------------------------------|--------|-----------------|--------|--------|-------------|--------|
|                                                        |   | 2010            |   |   | 2010        |   |   | 2009 |   |
|                                                        |   | (In thousands)  |   |
|                                                        |   |            |   |   |        |   |   |   |   |
| Impaired loans without a valuation allowance                |   | $               | 208    |   |        | $      | 210 |   |   | $ | 282 |   |
|                                                        |   |            |   |   |        |   |   |   |   |   |   |   |
| Impaired loans with a valuation allowance                   |   |            | 45     |   |        |   | 160 |   |   |   | 455 |   |
|                                                        |   |            |   |   |        |   |   |   |   |   |   |   |
| Total impaired loans                                        |   | $               | 253    |   |        | $      | 370 |   |   | $ | 737 |   |
|                                                        |   |            |   |   |        |   |   |   |   |   |   |   |
| Valuation allowance related to impaired loans               |   | $               | 36     |   |        | $      | 87 |   |   | $ | 98 |   |
|                                                        |   |            |   |   |        |   |   |   |   |   |   |   |
| Total non-accrual loans                                     |   | $               | 45     |   |        | $      | 160 |   |   | $ | 737 |   |
|                                                        |   |            |   |   |        |   |   |   |   |   |   |   |
| Total loans past due ninety days or more and still accruing |   | $               | -      |   |        | $      | - |   |   | $ | - |   |

|                                         |   | Six Months Ended |   |   | Years Ended |   |
|----------------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                         |   | December 31,     |   |   | June 30,    |   |
|                                         |   | 2010             |   |   | 2010        |   |   | 2009 |   |
|                                         |   | (In thousands)   |   |
|                                         |   |             |   |   |        |   |   |   |   |
| Average investment in impaired loans         |   | $                | 313    |   |        | $      | 892 |   |   | $ | 650 |   |
|                                         |   |             |   |   |        |   |   |   |   |   |   |   |
| Interest income recognized on impaired loans |   | $                | 6      |   |        | $      | 40 |   |   | $ | 14 |   |
|                                         |   |             |   |   |        |   |   |   |   |   |   |   |
| Interest income recognized on a cash basis   |   |             |   |   |        |   |   |   |   |   |   |   |
| on impaired loans                            |   | $                | 1      |   |        | $      | 15 |   |   | $ | 13 |   |

----

|            |   | Residential        |   |   | Commercial                            |   |   | Construction                           |   |   |                     |   |   |                   |   |
|-----------------|--------|--------------------|--------|--------|---------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------------------|--------|--------|------------------------|--------|
|            |   | One-to-four family |   |   | Home equity loans and lines of credit |   |   | One-to-four family investment property |   |   | Multi-family real estate |   |   | Commercial real estate |   |   | Commercial business |   |   | One-to-four family |   |   | Multi-family |   |   | Non-residential |   |   | Consumer |   |   | Total |   |
|            |   | (In thousands)     |   |
|            |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Classification: |   |               |   |   |                                  |   |   |                                   |   |   |                     |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                  | 70,477 |   |                                  | $      | 17,260 |                                   |   | $      | 11,495                   |   |   | $                      | 14,121 |   |   | $ | 24,119 |   |   | $ | 12,475 |   |   | $ | 16,725 |   |   | $ | 7,730 |   |   | $ | 733 |   |   | $ | 726 |   |   | $ | 175,861 |   |
| Special mention |   |               | -      |   |                                  |   | -      |                                   |   |   | 397                      |   |   |                   | -      |   |   |   | 3,569 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,966 |   |
| Substandard     |   |               | 208    |   |                                  |   | 45     |                                   |   |   | -                        |   |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 253 |   |
| Doubtful        |   |               | -      |   |                                  |   | -      |                                   |   |   | -                        |   |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss            |   |               | -      |   |                                  |   | -      |                                   |   |   | -                        |   |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total loans     |   | $                  | 70,685 |   |                                  | $      | 17,305 |                                   |   | $      | 11,892                   |   |   | $                      | 14,121 |   |   | $ | 27,688 |   |   | $ | 12,475 |   |   | $ | 16,725 |   |   | $ | 7,730 |   |   | $ | 733 |   |   | $ | 726 |   |   | $ | 180,080 |   |

----

----

|                                    |   | Six Months Ended |   |   | Years Ended |   |
|-----------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                    |   | December 31,     |   |   | June 30,    |   |
|                                    |   | 2010             |   |   | 2010        |   |   | 2009 |   |
|                                    |   | (In thousands)   |   |
|                                    |   |             |   |   |        |   |   |   |   |
| Mortgage servicing rights:              |   |             |   |   |        |   |   |   |   |
| Balance at beginning of period          |   | $                | 222    |   |        | $      | 116 |   |   | $ | - |   |
| Additions                               |   |             | 298    |   |        |   | 128 |   |   |   | 117 |   |
| Disposals                               |   |             | -      |   |        |   | - |   |   |   | - |   |
| Amortization                            |   |             | (96    | )      |        |   | (22 | ) |   |   | (1 | ) |
| Balance at end of period                |   |             | 424    |   |        |   | 222 |   |   |   | 116 |   |
|                                    |   |             |   |   |        |   |   |   |   |   |   |   |
| Valuation allowances:                   |   |             |   |   |        |   |   |   |   |   |   |   |
| Balance at beginning of period          |   |             | -      |   |        |   | - |   |   |   | - |   |
| Additions                               |   |             | 33     |   |        |   | - |   |   |   | - |   |
| Recoveries                              |   |             | (29    | )      |        |   | - |   |   |   | - |   |
| Write-downs                             |   |             | -      |   |        |   | - |   |   |   | - |   |
| Balance at end of period                |   |             | 4      |   |        |   | - |   |   |   | - |   |
|                                    |   |             |   |   |        |   |   |   |   |   |   |   |
| Mortgage servicing assets, net          |   | $                | 420    |   |        | $      | 222 |   |   | $ | 116 |   |
|                                    |   |             |   |   |        |   |   |   |   |   |   |   |
| Fair value of mortgage servicing assets |   | $                | 461    |   |        | $      | 237 |   |   | $ | 119 |   |

----

| 7. | PREMISES AND EQUIPMENT |
|----|------------------------|

|                          |   | At             |   |   | At       |   |      |
|-------------------------------|--------|----------------|--------|--------|----------|--------|-----------|
|                          |   | December 31,   |   |   | June 30, |   | Estimated |
|                          |   | 2010           |   |   | 2010     |   |      | 2009 |   | Useful Lives |
|                          |   | (In thousands) |   |   |
| Premises:                     |   |           |   |   |     |   |      |   |   |   |
| Land                          |   | $              | 279    |   |     | $      | 279       |   |   | $ | 279 |   |   |
| Buildings and improvements    |   |           | 4,826  |   |     |   | 4,804     |   |   |   | 4,738 |   | 5 - 40 years |
| Equipment                     |   |           | 2,248  |   |     |   | 2,185     |   |   |   | 2,103 |   | 3 - 7 years |
|                          |   |           | 7,353  |   |     |   | 7,268     |   |   |   | 7,120 |   |   |
| Less accumulated depreciation |   |           |   |   |     |   |      |   |   |   |   |   |   |
| and amortization              |   |           | (3,392 | )      |     |   | (3,251    | ) |   |   | (2,908 | ) |   |
|                          |   |           |   |   |     |   |      |   |   |   |   |   |   |
|                          |   | $              | 3,961  |   |     | $      | 4,017     |   |   | $ | 4,212 |   |   |

----

| 8. | DEPOSITS |
|----|----------|

|                                  |   | At December 31, |    |   | At June 30, |   |
|---------------------------------------|--------|-----------------|---------|--------|-------------|--------|
|                                  |   | 2010            |    |   | 2010        |   |   | 2009 |   |
|                                  |   | (In thousands)  |    |
|                                  |   |            |    |   |        |   |   |   |   |
| Demand                                |   | $               | 16,650  |   |        | $      | 15,432 |   |   | $ | 15,727 |   |
| NOW                                   |   |            | 15,148  |   |        |   | 13,540 |   |   |   | 11,909 |   |
| Money market deposits                 |   |            | 57,438  |   |        |   | 50,877 |   |   |   | 45,949 |   |
| Regular and other savings             |   |            | 12,205  |   |        |   | 12,308 |   |   |   | 11,041 |   |
| Total non-certificate accounts        |   |            | 101,441 |   |        |   | 92,157 |   |   |   | 84,626 |   |
|                                  |   |            |    |   |        |   |   |   |   |   |   |   |
| Term certificates less than $100,000  |   |            | 26,591  |   |        |   | 28,141 |   |   |   | 30,962 |   |
| Term certificates of $100,000 or more |   |            | 23,431  |   |        |   | 26,988 |   |   |   | 25,538 |   |
| Total certificate accounts            |   |            | 50,022  |   |        |   | 55,129 |   |   |   | 56,500 |   |
|                                  |   |            |    |   |        |   |   |   |   |   |   |   |
| Total deposits                        |   | $               | 151,463 |   |        | $      | 147,286 |   |   | $ | 141,126 |   |

|                |   | At December 31,   |   |   | At June 30, |   |
|---------------------|--------|------------------------|--------|--------|------------------|--------|
|                |   | 2010                   |   |   | 2010             |   |   | 2009 |   |
|                |   |                   |   |   | Weighted         |   |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                |   |                   |   |   | Average          |   |   |   |   |   | Average |   |   |   |   |   | Average |   |
|                |   | Amount                 |   |   | Rate             |   |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
|                |   | (Dollars in thousands) |   |
|                |   |                   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within one year     |   | $                      | 38,767 |   |             |   | 2.17 | % |   | $ | 29,316 |   |   |   | 2.09 | % |   | $ | 35,593 |   |   |   | 3.35 | % |
| One to two years    |   |                   | 6,821  |   |             |   | 2.12 |   |   |   | 20,634 |   |   |   | 2.93 |   |   |   | 4,923 |   |   |   | 3.23 |   |
| Two to three years  |   |                   | 1,533  |   |             |   | 2.56 |   |   |   | 2,078 |   |   |   | 2.91 |   |   |   | 13,298 |   |   |   | 3.62 |   |
| Three to four years |   |                   | 2,376  |   |             |   | 2.44 |   |   |   | 2,032 |   |   |   | 2.84 |   |   |   | 732 |   |   |   | 3.04 |   |
| Four to five years  |   |                   | 525    |   |             |   | 1.98 |   |   |   | 1,069 |   |   |   | 2.27 |   |   |   | 1,954 |   |   |   | 2.90 |   |
|                |   |                   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | $                      | 50,022 |   |             |   | 2.18 | % |   | $ | 55,129 |   |   |   | 2.47 | % |   | $ | 56,500 |   |   |   | 3.39 | % |

----

| 9. | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE |
|----|------------------------------------------------|

| 10. | FEDERAL HOME LOAN BANK ADVANCES |
|-----|---------------------------------|

----

|                   |   | At December 31,        |   |   | At June 30, |   |
|------------------------|--------|------------------------|--------|--------|-------------|--------|
|                   |   | 2010                   |   |   | 2010        |   |   | 2009 |   |
|                   |   |                   |   |   | Weighted    |   |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                   |   |                   |   |   | Average     |   |   |   |   |   | Average |   |   |   |   |   | Average |   |
|                   |   | Amount                 |   |   | Rate        |   |   | Amount |   |   | Rate |   |   | Amount |   |   | Rate |   |
|                   |   | (Dollars in thousands) |   |
|                   |   |                   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within one year*       |   | $                      | 3,000  |   |        |   | 5.05 | % |   | $ | 10,500 |   |   |   | 4.31 | % |   | $ | 9,000 |   |   |   | 4.90 | % |
| One to two years       |   |                   | 1,500  |   |        |   | 2.89 |   |   |   | 1,000 |   |   |   | 3.83 |   |   |   | 12,500 |   |   |   | 4.29 |   |
| Two to three years*    |   |                   | 15,000 |   |        |   | 3.67 |   |   |   | 8,000 |   |   |   | 3.35 |   |   |   | 4,000 |   |   |   | 4.73 |   |
| Three to four years    |   |                   | 3,500  |   |        |   | 2.67 |   |   |   | 8,500 |   |   |   | 3.85 |   |   |   | 6,500 |   |   |   | 3.46 |   |
| Four to five years     |   |                   | 1,500  |   |        |   | 2.95 |   |   |   | 4,000 |   |   |   | 2.75 |   |   |   | 4,000 |   |   |   | 3.47 |   |
| After five years*      |   |                   | 3,600  |   |        |   | 3.65 |   |   |   | 3,600 |   |   |   | 3.65 |   |   |   | 4,100 |   |   |   | 3.68 |   |
|                   |   |                   | 28,100 |   |        |   | 3.61 |   |   |   | 35,600 |   |   |   | 3.73 |   |   |   | 40,100 |   |   |   | 4.19 |   |
| Amortizing advance,    |   |                   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| due March 5, 2012,     |   |                   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| requiring monthly      |   |                   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| principal and interest |   |                   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of $5,300              |   |                   | 82     |   |        |   | 4.90 |   |   |   | 111 |   |   |   | 4.90 |   |   |   | 168 |   |   |   | 4.90 |   |
|                   |   |                   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   | $                      | 28,182 |   |        |   | 3.62 | % |   | $ | 35,711 |   |   |   | 3.73 | % |   | $ | 40,268 |   |   |   | 4.19 | % |

|   | * | At December 31, 2010, includes advances callable by the FHLB prior to maturity aggregating $9,600,000 with a weighted average rate of 3.53%. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11. | INCOME TAXES |
|-----|--------------|

|                              |   | Six Months Ended |   |   | Years Ended |   |
|-----------------------------------|--------|------------------|--------|--------|-------------|--------|
|                              |   | December 31,     |   |   | June 30,    |   |
|                              |   | 2010             |   |   | 2010        |   |   | 2009 |   |
|                              |   | (In thousands)   |   |
| Current tax provision:            |   |             |   |   |        |   |   |   |   |
| Federal                           |   | $                | 381    |   |        | $      | 389 |   |   | $ | 88 |   |
| State                             |   |             | 102    |   |        |   | 88 |   |   |   | 22 |   |
|                              |   |             | 483    |   |        |   | 477 |   |   |   | 110 |   |
| Deferred tax provision (benefit): |   |             |   |   |        |   |   |   |   |   |   |   |
| Federal                           |   |             | 38     |   |        |   | 53 |   |   |   | 71 |   |
| State                             |   |             | 7      |   |        |   | (11 | ) |   |   | - |   |
|                              |   |             | 45     |   |        |   | 42 |   |   |   | 71 |   |
|                              |   |             |   |   |        |   |   |   |   |   |   |   |
| Change in valuation allowance     |   |             | (17    | )      |        |   | - |   |   |   | - |   |
|                              |   |             |   |   |        |   |   |   |   |   |   |   |
| Total tax provision               |   | $                | 511    |   |        | $      | 519 |   |   | $ | 181 |   |

|                                    |   | Six Months Ended |   |   | Years Ended |   |
|-----------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                    |   | December 31,     |   |   | June 30,    |   |
|                                    |   | 2010             |   |   | 2010        |   |   | 2009 |   |
|                                    |   |             |   |   |        |   |   |   |   |
| Statutory rate                          |   |             | 34.0   | %      |        |   | 34.0 | % |   |   | 34.0 | % |
| Increase (decrease) resulting from:     |   |             |   |   |        |   |   |   |   |   |   |   |
| State taxes, net of federal tax benefit |   |             | 5.4    |   |        |   | 3.5 |   |   |   | 2.7 |   |
| Bank-owned life insurance               |   |             | (1.3   | )      |        |   | (1.2 | ) |   |   | - |   |
| Stock compensation plans                |   |             | (1.4   | )      |        |   | (1.0 | ) |   |   | (2.8 | ) |
| Other, net                              |   |             | 1.4    |   |        |   | 0.3 |   |   |   | 0.2 |   |
|                                    |   |             |   |   |        |   |   |   |   |   |   |   |
| Effective tax rates                     |   |             | 38.1   | %      |        |   | 35.6 | % |   |   | 34.1 | % |

----

|                      |   | At December 31, |   |   | At June 30, |   |
|---------------------------|--------|-----------------|--------|--------|-------------|--------|
|                      |   | 2010            |   |   | 2010        |   |   | 2009 |   |
|                      |   | (In thousands)  |   |
| Deferred tax assets:      |   |            |   |   |        |   |   |   |   |
| Federal                   |   | $               | 850    |   |        | $      | 842 |   |   | $ | 827 |   |
| State                     |   |            | 250    |   |        |   | 245 |   |   |   | 211 |   |
|                      |   |            | 1,100  |   |        |   | 1,087 |   |   |   | 1,038 |   |
| Deferred tax liabilities: |   |            |   |   |        |   |   |   |   |   |   |   |
| Federal                   |   |            | (504   | )      |        |   | (511 | ) |   |   | (413 | ) |
| State                     |   |            | (119   | )      |        |   | (111 | ) |   |   | (86 | ) |
|                      |   |            | (623   | )      |        |   | (622 | ) |   |   | (499 | ) |
|                      |   |            |   |   |        |   |   |   |   |   |   |   |
| Net deferred tax asset    |   | $               | 477    |   |        | $      | 465 |   |   | $ | 539 |   |

|                              |   | At December 31, |   |   | At June 30, |   |
|-----------------------------------|--------|-----------------|--------|--------|-------------|--------|
|                              |   | 2010            |   |   | 2010        |   |   | 2009 |   |
|                              |   | (In thousands)  |   |
|                              |   |            |   |   |        |   |   |   |   |
| Deferred compensation             |   | $               | 385    |   |        | $      | 366 |   |   | $ | 320 |   |
| Net unrealized gain on securities |   |            |   |   |        |   |   |   |   |   |   |   |
| available for sale                |   |            | (65    | )      |        |   | (105 | ) |   |   | (73 | ) |
| Depreciation and amortization     |   |            | (348   | )      |        |   | (357 | ) |   |   | (371 | ) |
| Allowance for loan losses         |   |            | 659    |   |        |   | 669 |   |   |   | 581 |   |
| Mortgage servicing rights         |   |            | (168   | )      |        |   | (89 | ) |   |   | (46 | ) |
| Alternative minimum tax credit    |   |            | -      |   |        |   | - |   |   |   | 52 |   |
| Other, net                        |   |            | 14     |   |        |   | (19 | ) |   |   | 76 |   |
|                              |   |            |   |   |        |   |   |   |   |   |   |   |
| Net deferred tax asset            |   | $               | 477    |   |        | $      | 465 |   |   | $ | 539 |   |

|                                         |   | Six Months Ended |   |   | Years Ended |   |
|----------------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                         |   | December 31,     |   |   | June 30,    |   |
|                                         |   | 2010             |   |   | 2010        |   |   | 2009 |   |
|                                         |   | (In thousands)   |   |
|                                         |   |             |   |   |        |   |   |   |   |
| Balance at beginning of period               |   | $                | 465    |   |        | $      | 539 |   |   | $ | 694 |   |
| Deferred tax provision                       |   |             | (28    | )      |        |   | (42 | ) |   |   | (71 | ) |
| Deferred tax effects of net unrealized       |   |             |   |   |        |   |   |   |   |   |   |   |
| gain (loss) on securities available for sale |   |             | 40     |   |        |   | (32 | ) |   |   | (84 | ) |
|                                         |   |             |   |   |        |   |   |   |   |   |   |   |
| Balance at end of period                     |   | $                | 477    |   |        | $      | 465 |   |   | $ | 539 |   |

----

| 12. | MINIMUM REGULATORY CAPITAL REQUIREMENTS |
|-----|-----------------------------------------|

----

|                                   |   | Actual                 |   |   | MinimumCapitalRequirement |   |   | MinimumTo Be WellCapitalized UnderPrompt CorrectiveAction Provisions |   |
|----------------------------------------|--------|------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                   |   | Amount                 |   |   | Ratio                     |   |   | Amount                                                               |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                   |   | (Dollars in thousands) |   |
| At December 31, 2010                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $                      | 19,564 |   |                      |   | 12.3   | %                                                                    |   | $ | 12,706 |   |   |   | 8.0 | % |   | $ | 15,882 |   |   |   | 10.0 | % |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |                   | 17,951 |   |                      |   | 11.3   |                                                                 |   |   | 6,353 |   |   |   | 4.0 |   |   |   | 9,529 |   |   |   | 6.0 |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |                   | 17,951 |   |                      |   | 8.6    |                                                                 |   |   | 8,326 |   |   |   | 4.0 |   |   |   | 10,407 |   |   |   | 5.0 |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital to Tangible Assets    |   |                   | 17,951 |   |                      |   | 8.8    |                                                                 |   |   | 3,074 |   |   |   | 1.5 |   |   |   | N/A |   |   |   | N/A |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At June 30, 2010                       |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $                      | 18,645 |   |                      |   | 11.4   | %                                                                    |   | $ | 13,060 |   |   |   | 8.0 | % |   | $ | 16,326 |   |   |   | 10.0 | % |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |                   | 17,058 |   |                      |   | 10.4   |                                                                 |   |   | 6,530 |   |   |   | 4.0 |   |   |   | 9,795 |   |   |   | 6.0 |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |                   | 17,058 |   |                      |   | 8.5    |                                                                 |   |   | 8,050 |   |   |   | 4.0 |   |   |   | 10,062 |   |   |   | 5.0 |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital to Tangible Assets    |   |                   | 17,058 |   |                      |   | 8.1    |                                                                 |   |   | 3,170 |   |   |   | 1.5 |   |   |   | N/A |   |   |   | N/A |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At June 30, 2009                       |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   | $                      | 16,906 |   |                      |   | 11.3   | %                                                                    |   | $ | 12,015 |   |   |   | 8.0 | % |   | $ | 15,018 |   |   |   | 10.0 | % |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |                   | 15,551 |   |                      |   | 10.4   |                                                                 |   |   | 6,007 |   |   |   | 4.0 |   |   |   | 9,011 |   |   |   | 6.0 |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |                   | 15,551 |   |                      |   | 8.0    |                                                                 |   |   | 7,779 |   |   |   | 4.0 |   |   |   | 9,724 |   |   |   | 5.0 |   |
|                                   |   |                   |   |   |                      |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital to Tangible Assets    |   |                   | 15,551 |   |                      |   | 7.7    |                                                                 |   |   | 3,016 |   |   |   | 1.5 |   |   |   | N/A |   |   |   | N/A |   |

----

| 13. | EMPLOYEE BENEFIT PLANS |
|-----|------------------------|

----

----

| Years Ending |   |           |   |
|--------------|--------|----------------|--------|
| December 31, |   | Amount         |   |
|         |   | (In thousands) |   |
|         |   |           |   |
| 2011         |   | $              | 83     |   |
| 2012         |   |           | 89     |   |
| 2013         |   |           | 97     |   |
| 2014         |   |           | 104    |   |
| 2015         |   |           | 53     |   |
|         |   |           |   |   |
|         |   | $              | 426    |   |

|                      |   | At December 31, |    |   | At June 30, |   |
|---------------------------|--------|-----------------|---------|--------|-------------|--------|
|                      |   | 2010            |    |   | 2010        |   |   | 2009 |   |
|                      |   |            |    |   |        |   |   |   |   |
| Allocated                 |   |            | 54,999  |   |        |   | 54,999 |   |   |   | 46,807 |   |
| Committed to be allocated |   |            | 8,193   |   |        |   | 4,096 |   |   |   | 4,096 |   |
| Unallocated               |   |            | 36,789  |   |        |   | 40,886 |   |   |   | 49,078 |   |
| Paid out to participants  |   |            | (10,194 | )      |        |   | (8,613 | ) |   |   | (8,527 | ) |
|                      |   |            |    |   |        |   |   |   |   |   |   |   |
|                      |   |            | 89,787  |   |        |   | 91,368 |   |   |   | 91,454 |   |

----

|                    |   | 2010      |   |
|-------------------------|--------|-----------|--------|
|                    |   |      |   |
| Expected dividends      |   |      | -      | % |
| Expected term           |   | 6.4 years |   |
| Expected volatility     |   |      | 34     | % |
| Risk-free interest rate |   |      | 3.80   | % |

----

|                         |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   | Non-vested       |   |
|------------------------------|--------|------------------|--------|--------|---------------------------------|--------|--------|-----------------------------------------------------|--------|--------|---------------------------|--------|--------|------------------|--------|
|                         |   | Stock Options    |   |   | Restricted Stock                |   |
|                         |   | Number of Shares |   |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term (years) |   |   | Aggregate Intrinsic Value |   |   | Number of Shares |   |   | Weighted Average Grant Date Value |   |
|                         |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |
| Outstanding at beginning     |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |
| of period                    |   |             | 24,000 |   |                            | $      | 6.72   |                                                |   |   |                      |   |   |             |   |   | 24,000 |   |   | $ | 5.20 |   |
|                         |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |   |   |   |   |
| Granted                      |   |             | -      |   |                            | $      | -      |                                                |   |   |                      |   |   |             |   |   | - |   |   | $ | - |   |
|                         |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |   |   |   |   |
| Forfeited                    |   |             | -      |   |                            | $      | -      |                                                |   |   |                      |   |   |             |   |   | - |   |   | $ | - |   |
|                         |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |   |   |   |   |
| Outstanding at end of period |   |             | 24,000 |   |                            | $      | 6.72   |                                                |   |   | 9.15                      |   |   | $                | -      |   |   |   | 24,000 |   |   | $ | 5.20 |   |
|                         |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at       |   |             |   |   |                            |   |   |                                                |   |   |                      |   |   |             |   |   |   |   |   |   |   |   |   |   |
| end of period                |   |             | -      |   |                            | $      | -      |                                                |   |   | -                         |   |   | $                | -      |   |   |   |   |   |   |   |   |   |

----

| 14. | COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------|

|                                              |   | At December 31, |   |   | At June 30, |   |
|---------------------------------------------------|--------|-----------------|--------|--------|-------------|--------|
|                                              |   | 2010            |   |   | 2010        |   |   | 2009 |   |
|                                              |   | (In thousands)  |   |
|                                              |   |            |   |   |        |   |   |   |   |
| Commitments to grant loans                        |   | $               | 9,141  |   |        | $      | 10,953 |   |   | $ | 6,762 |   |
| Unadvanced funds on home equity lines of credit   |   |            | 10,386 |   |        |   | 10,617 |   |   |   | 11,731 |   |
| Unadvanced funds on commercial lines of credit    |   |            | 2,783  |   |        |   | 2,663 |   |   |   | 2,989 |   |
| Unadvanced funds on construction loans            |   |            | 8,609  |   |        |   | 5,728 |   |   |   | 5,691 |   |
| Unadvanced funds on other unsecured personal      |   |            |   |   |        |   |   |   |   |   |   |   |
| lines of credit                                   |   |            | 459    |   |        |   | 493 |   |   |   | 512 |   |
| Unadvanced funds on commercial real estate loans  |   |            | 30     |   |        |   | 70 |   |   |   | - |   |
| Unadvanced funds on residential real estate loans |   |            | 118    |   |        |   | 17 |   |   |   | - |   |

----

| Years Ending |   |           |   |
|--------------|--------|----------------|--------|
| December 31, |   | Payments       |   |
|         |   | (In thousands) |   |
|         |   |           |   |
| 2011         |   | $              | 173    |   |
| 2012         |   |           | 173    |   |
| 2013         |   |           | 172    |   |
| 2014         |   |           | 172    |   |
| 2015         |   |           | 158    |   |
| Thereafter   |   |           | 1,265  |   |
|         |   |           |   |   |
|         |   | $              | 2,113  |   |

----

| 15. | LOANS TO RELATED PARTIES |
|-----|--------------------------|

| 16. | DERIVATIVE FINANCIAL INSTRUMENTS |
|-----|----------------------------------|

----

|                             |   | June 30, 2010          |   |
|----------------------------------|--------|------------------------|--------|
|                             |   | Assets                 |   |   | Liabilities |   |
|                             |   | Balance Sheet Location |   |   | Fair Value |   |   | Balance Sheet Location |   |   | Fair Value |   |
|                             |   | (In thousands)         |   |
| Derivatives not designated       |   |                   |   |   |   |   |   |   |   |   |   |   |
| as hedging instruments:          |   |                   |   |   |   |   |   |   |   |   |   |   |
|                             |   |                   |   |   |   |   |   |   |   |   |   |   |
| Derivative loan commitments      |   | Other assets           |   |   | $ | 84 |   |   | N/A |   |   | $ | - |   |
|                             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward loan sale commitments    |   | N/A                    |   |   |   | - |   |   | Accrued expenses and other liabilities |   |   |   | 70 |   |
|                             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives not designated |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as hedging instruments           |   |                   |   |   |   | $ | 84 |   |   |   |   |   |   | $ | 70 |   |

----

| 17. | FAIR VALUE OF ASSETS AND LIABILITIES |
|-----|--------------------------------------|

----

----

|                          |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | TotalAssetsat Fair Value |   |
|-------------------------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|--------------------------|--------|
| At December 31, 2010          |   | (In thousands) |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |
| Assets                        |   |           |   |   |    |   |   |    |   |   |                     |   |
| Securities available for sale |   | $              | -      |   |    | $      | 7,219  |    |   | $      | -                        |   |   | $ | 7,219 |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| At June 30, 2010              |   |           |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| Assets                        |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| Securities available for sale |   | $              | -      |   |    | $      | 10,925 |    |   | $      | -                        |   |   | $ | 10,925 |   |
| Derivative loan commitments   |   |           | -      |   |    |   | -      |    |   |   | 84                       |   |   |   | 84 |   |
| Total assets                  |   | $              | -      |   |    | $      | 10,925 |    |   | $      | 84                       |   |   | $ | 11,009 |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| Liabilities                   |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| Forward loan sale commitments |   | $              | -      |   |    | $      | -      |    |   | $      | 70                       |   |   | $ | 70 |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| At June 30, 2009              |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
|                          |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| Assets                        |   |           |   |   |    |   |   |    |   |   |                     |   |   |   |   |   |
| Securities available for sale |   | $              | -      |   |    | $      | 9,528  |    |   | $      | -                        |   |   | $ | 9,528 |   |

----

|                    |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Assetsat Fair Value |   |
|-------------------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|---------------------|--------|
|                    |   | (In thousands) |   |
| At December 31, 2010    |   |           |   |   |    |   |   |    |   |   |                |   |
|                    |   |           |   |   |    |   |   |    |   |   |                |   |
| Impaired loans          |   | $              | -      |   |    | $      | -      |    |   | $      | 9                   |   |   | $ | 9 |   |
| Other real estate owned |   |           | -      |   |    |   | -      |    |   |   | 53                  |   |   |   | 53 |   |
|                    |   | $              | -      |   |    | $      | -      |    |   | $      | 62                  |   |   | $ | 62 |   |

|             |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Year EndedJune 30, 2010Fair ValueAdjustments |   |
|------------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|----------------------------------------------|--------|
|             |   | (In thousands) |   |
| At June 30, 2010 |   |           |   |   |    |   |   |    |   |   |                                         |   |
|             |   |           |   |   |    |   |   |    |   |   |                                         |   |   |   |   |   |
| Impaired loans   |   | $              | -      |   |    | $      | -      |    |   | $      | 73                                           |   |   | $ | 21 |   |

|             |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Year EndedJune 30, 2009Fair ValueAdjustments |   |
|------------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|----------------------------------------------|--------|
|             |   | (In thousands) |   |
| At June 30, 2009 |   |           |   |   |    |   |   |    |   |   |                                         |   |
|             |   |           |   |   |    |   |   |    |   |   |                                         |   |   |   |   |   |
| Impaired loans   |   | $              | -      |   |    | $      | -      |    |   | $      | 357                                          |   |   | $ | (51 | ) |

----

|                               |   | Fair Value Measurements               |   |
|------------------------------------|--------|---------------------------------------|--------|
|                               |   | Using Significant Unobservable Inputs |   |
|                               |   | Level 3                               |   |
|                               |   | Impaired Loans                        |   |   | Other Real Estate Owned |   |   | Derivative Loan Commitments |   |
|                               |   |                                  |   |   |   |   |   |   |   |
| Beginning balance, June 30, 2010   |   | $                                     | 73     |   |   | $ | - |   |   | $ | 84 |   |
| Transfers in and/or out of level 3 |   |                                  | (64    | ) |   |   | 53 |   |   |   | (84 | ) |
| Ending balance, December 31, 2010  |   | $                                     | 9      |   |   | $ | 53 |   |   | $ | - |   |

----

|                                  |   | At December 31, |    |   | At June 30, |   |
|---------------------------------------|--------|-----------------|---------|--------|-------------|--------|
|                                  |   | 2010            |    |   | 2010        |   |   | 2009 |   |
|                                  |   | Carrying        |    |   | Fair        |   |   | Carrying |   |   | Fair |   |   | Carrying |   |   | Fair |   |
|                                  |   | Amount          |    |   | Value       |   |   | Amount |   |   | Value |   |   | Amount |   |   | Value |   |
|                                  |   | (In thousands)  |    |
| Financial assets:                     |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents             |   | $               | 3,298   |   |        | $      | 3,298 |   |   | $ | 7,340 |   |   | $ | 7,340 |   |   | $ | 11,356 |   |   | $ | 11,356 |   |
| Securities available for sale         |   |            | 7,219   |   |        |   | 7,219 |   |   |   | 10,925 |   |   |   | 10,925 |   |   |   | 9,528 |   |   |   | 9,528 |   |
| Securities held to maturity           |   |            | 3,202   |   |        |   | 3,398 |   |   |   | 3,718 |   |   |   | 3,927 |   |   |   | 4,959 |   |   |   | 5,101 |   |
| FHLB stock                            |   |            | 3,111   |   |        |   | 3,111 |   |   |   | 3,111 |   |   |   | 3,111 |   |   |   | 3,111 |   |   |   | 3,111 |   |
| Loans held for sale                   |   |            | 685     |   |        |   | 693 |   |   |   | 1,559 |   |   |   | 1,559 |   |   |   | 269 |   |   |   | 274 |   |
| Loans, net                            |   |            | 178,524 |   |        |   | 180,972 |   |   |   | 175,867 |   |   |   | 181,276 |   |   |   | 163,825 |   |   |   | 164,670 |   |
| Accrued interest receivable           |   |            | 777     |   |        |   | 777 |   |   |   | 794 |   |   |   | 794 |   |   |   | 714 |   |   |   | 714 |   |
| Capitalized mortgage servicing rights |   |            | 420     |   |        |   | 461 |   |   |   | 222 |   |   |   | 237 |   |   |   | 116 |   |   |   | 119 |   |
|                                  |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                              |   |            | 151,463 |   |        |   | 151,859 |   |   |   | 147,286 |   |   |   | 148,511 |   |   |   | 141,126 |   |   |   | 143,018 |   |
| Securities sold under agreements      |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to repurchase                         |   |            | 491     |   |        |   | 491 |   |   |   | 407 |   |   |   | 407 |   |   |   | 520 |   |   |   | 520 |   |
| Short-term FHLB advances              |   |            | 3,500   |   |        |   | 3,500 |   |   |   | 7,250 |   |   |   | 7,250 |   |   |   | - |   |   |   | - |   |
| Long-term FHLB advances               |   |            | 28,182  |   |        |   | 28,774 |   |   |   | 35,711 |   |   |   | 36,430 |   |   |   | 40,268 |   |   |   | 40,967 |   |
| Mortgagors' escrow accounts           |   |            | 598     |   |        |   | 598 |   |   |   | 455 |   |   |   | 455 |   |   |   | 407 |   |   |   | 407 |   |
| Accrued interest payable              |   |            | 88      |   |        |   | 88 |   |   |   | 115 |   |   |   | 115 |   |   |   | 148 |   |   |   | 148 |   |
|                                  |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| On-balance sheet derivative           |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| financial instruments:                |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative loan commitments           |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Assets                              |   |            | -       |   |        |   | - |   |   |   | 84 |   |   |   | 84 |   |   |   | - |   |   |   | - |   |
| Forward loan sale commitments         |   |            |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| - Liabilities                         |   |            | -       |   |        |   | - |   |   |   | 70 |   |   |   | 70 |   |   |   | - |   |   |   | - |   |

----

| 18. | CONDENSED PARENT COMPANY FINANCIAL STATEMENTS |
|-----|-----------------------------------------------|

|                                       |   | December 31,   |   |   | June 30, |   |
|--------------------------------------------|--------|----------------|--------|--------|----------|--------|
|                                       |   | 2010           |   |   | 2010     |   |   | 2009 |   |
|                                       |   | (In thousands) |   |
|                                       |   |           |   |   |     |   |   |   |   |
| ASSETS                                     |   |           |   |   |     |   |   |   |   |
|                                       |   |           |   |   |     |   |   |   |   |
| Non-interest bearing deposit in the Bank   |   | $              | 712    |   |     | $      | 635 |   |   | $ | 1,083 |   |
| Loan to the Bank ESOP                      |   |           | 426    |   |     |   | 502 |   |   |   | 573 |   |
| Investment in subsidiary                   |   |           | 18,072 |   |     |   | 17,251 |   |   |   | 15,687 |   |
| Other assets                               |   |           | 2      |   |     |   | 1 |   |   |   | 1 |   |
|                                       |   |           |   |   |     |   |   |   |   |   |   |   |
| Total assets                               |   | $              | 19,212 |   |     | $      | 18,389 |   |   | $ | 17,344 |   |
|                                       |   |           |   |   |     |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY       |   |           |   |   |     |   |   |   |   |   |   |   |
|                                       |   |           |   |   |     |   |   |   |   |   |   |   |
| Other liabilities                          |   | $              | 43     |   |     | $      | 21 |   |   | $ | 27 |   |
| Stockholders' equity                       |   |           | 19,169 |   |     |   | 18,368 |   |   |   | 17,317 |   |
|                                       |   |           |   |   |     |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity |   | $              | 19,212 |   |     | $      | 18,389 |   |   | $ | 17,344 |   |

|                                                 |   | Six Months Ended |   |   | Years Ended |   |
|------------------------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                                 |   | December 31,     |   |   | June 30,    |   |
|                                                 |   | 2010             |   |   | 2009        |   |   | 2010 |   |   | 2009 |   |
|                                                 |   |             |   |   | (Unaudited) |   |   |   |   |   |   |   |
|                                                 |   | (In thousands)   |   |
|                                                 |   |             |   |   |        |   |   |   |   |   |   |   |
| Interest income -ESOP loan                           |   | $                | 20     |   |        | $      | 23 |   |   | $ | 46 |   |   | $ | 51 |   |
| Non-interest expense                                 |   |             | 51     |   |        |   | 26 |   |   |   | 66 |   |   |   | 51 |   |
| Loss before income taxes and equity in undistributed |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| net income of the Bank                               |   |             | (31    | )      |        |   | (3 | ) |   |   | (20 | ) |   |   | - |   |
| Applicable income tax benefit                        |   |             | 13     |   |        |   | 1 |   |   |   | 7 |   |   |   | - |   |
|                                                 |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in undistributed net income       |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| of subsidiary                                        |   |             | (18    | )      |        |   | (2 | ) |   |   | (13 | ) |   |   | - |   |
|                                                 |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Equity in undistributed net income of subsidiary     |   |             | 850    |   |        |   | 320 |   |   |   | 952 |   |   |   | 350 |   |
|                                                 |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                           |   | $                | 832    |   |        | $      | 318 |   |   | $ | 939 |   |   | $ | 350 |   |

----

|                                             |   | Six Months Ended |   |   | Years Ended |   |
|--------------------------------------------------|--------|------------------|--------|--------|-------------|--------|
|                                             |   | December 31,     |   |   | June 30,    |   |
|                                             |   | 2010             |   |   | 2009        |   |   | 2010 |   |   | 2009 |   |
|                                             |   |             |   |   | (Unaudited) |   |   |   |   |   |   |   |
|                                             |   | (In thousands)   |   |
|                                             |   |             |   |   |        |   |   |   |   |   |   |   |
| Cash flows from operating activities:            |   |             |   |   |        |   |   |   |   |   |   |   |
| Net income                                       |   | $                | 832    |   |        | $      | 318 |   |   | $ | 939 |   |   | $ | 350 |   |
| Adjustments to reconcile net income to net cash  |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| provided by operating activities:                |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Repayment of ESOP loan                           |   |             | 76     |   |        |   | 71 |   |   |   | 71 |   |   |   | 65 |   |
| Equity in undistributed income of subsidiary     |   |             | (850   | )      |        |   | (320 | ) |   |   | (952 | ) |   |   | (350 | ) |
| Other, net                                       |   |             | 19     |   |        |   | 17 |   |   |   | (6 | ) |   |   | (4 | ) |
| Net cash provided by operating activities        |   |             | 77     |   |        |   | 86 |   |   |   | 52 |   |   |   | 61 |   |
|                                             |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:            |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Capital contribution to the Bank                 |   |             | -      |   |        |   | - |   |   |   | (500 | ) |   |   | (750 | ) |
| Net cash used by investing activities            |   |             | -      |   |        |   | - |   |   |   | (500 | ) |   |   | (750 | ) |
|                                             |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents          |   |             | 77     |   |        |   | 86 |   |   |   | (448 | ) |   |   | (689 | ) |
|                                             |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period |   |             | 635    |   |        |   | 1,083 |   |   |   | 1,083 |   |   |   | 1,772 |   |
|                                             |   |             |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period       |   | $                | 712    |   |        | $      | 1,169 |   |   | $ | 635 |   |   | $ | 1,083 |   |

----

| 19. | QUARTERLY DATA (UNAUDITED) |
|-----|----------------------------|

|                         |   | Six Months Ended                      |   |   | Years Ended |   |
|------------------------------|--------|---------------------------------------|--------|--------|-------------|--------|
|                         |   | December 31,                          |   |   | June 30,    |   |
|                         |   | 2010                                  |   |   | 2010        |   |   | 2009 |   |
|                         |   | Second                                |   |   | First       |   |   | Fourth |   |   | Third |   |   | Second |   |   | First |   |   | Fourth |   |   | Third |   |   | Second |   |   | First |   |
|                         |   | Quarter                               |   |   | Quarter     |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                         |   | (In thousands, except per share data) |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income |   | $                                     | 2,849  |   |        | $      | 2,830 |   |   | $ | 2,806 |   |   | $ | 2,694 |   |   | $ | 2,622 |   |   | $ | 2,612 |   |   | $ | 2,638 |   |   | $ | 2,677 |   |   | $ | 2,686 |   |   | $ | 2,550 |   |
| Interest expense             |   |                                  | 737    |   |        |   | 857 |   |   |   | 872 |   |   |   | 864 |   |   |   | 913 |   |   |   | 1,031 |   |   |   | 1,120 |   |   |   | 1,217 |   |   |   | 1,204 |   |   |   | 1,168 |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income          |   |                                  | 2,112  |   |        |   | 1,973 |   |   |   | 1,934 |   |   |   | 1,830 |   |   |   | 1,709 |   |   |   | 1,581 |   |   |   | 1,518 |   |   |   | 1,460 |   |   |   | 1,482 |   |   |   | 1,382 |   |
| Provision for loan losses    |   |                                  | -      |   |        |   | 23 |   |   |   | 76 |   |   |   | 89 |   |   |   | 163 |   |   |   | 33 |   |   |   | 66 |   |   |   | 4 |   |   |   | 91 |   |   |   | 87 |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income, after   |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| provision for loan losses    |   |                                  | 2,112  |   |        |   | 1,950 |   |   |   | 1,858 |   |   |   | 1,741 |   |   |   | 1,546 |   |   |   | 1,548 |   |   |   | 1,452 |   |   |   | 1,456 |   |   |   | 1,391 |   |   |   | 1,295 |   |
| Non-interest income          |   |                                  | 470    |   |        |   | 308 |   |   |   | 251 |   |   |   | 310 |   |   |   | 285 |   |   |   | 239 |   |   |   | 319 |   |   |   | 218 |   |   |   | 185 |   |   |   | 148 |   |
| Non-interest expenses        |   |                                  | 1,821  |   |        |   | 1,676 |   |   |   | 1,596 |   |   |   | 1,599 |   |   |   | 1,597 |   |   |   | 1,528 |   |   |   | 1,546 |   |   |   | 1,566 |   |   |   | 1,416 |   |   |   | 1,405 |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes   |   |                                  | 761    |   |        |   | 582 |   |   |   | 513 |   |   |   | 452 |   |   |   | 234 |   |   |   | 259 |   |   |   | 225 |   |   |   | 108 |   |   |   | 160 |   |   |   | 38 |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision         |   |                                  | 294    |   |        |   | 217 |   |   |   | 178 |   |   |   | 166 |   |   |   | 74 |   |   |   | 101 |   |   |   | 69 |   |   |   | 33 |   |   |   | 53 |   |   |   | 26 |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                   |   | $                                     | 467    |   |        | $      | 365 |   |   | $ | 335 |   |   | $ | 286 |   |   | $ | 160 |   |   | $ | 158 |   |   | $ | 156 |   |   | $ | 75 |   |   | $ | 107 |   |   | $ | 12 |   |
|                         |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income per share:            |   |                                  |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted            |   | $                                     | 0.18   |   |        | $      | 0.14 |   |   | $ | 0.13 |   |   | $ | 0.11 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.03 |   |   | $ | 0.04 |   |   | $ | - |   |

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

| directors                       |               |
|---------------------------------|--------------------|
| J. Richard Murphy, Chairman     | Thomas L. Hamelin  |
| Mary L. Williams, Vice Chairman | Marybeth McInnis   |
| Robert E. Balletto              | Kathleen R. Sachs  |
| Keith N. Congdon                | Richard F. Spencer |
| Anthony S. Conte, Jr.           | David A. Splaine   |
| Stephen L. Flynn                | Robert T. Wyman    |
|                            | John H. Yeaton     |

| independent registered                 | legal counsel                           |
|----------------------------------------|-----------------------------------------|
| public accounting firm                 | Luse Gorman Pomerenk & Schick, P.C. |
| Shatswell, MacLeod & Company, P.C. | 5335 Wisconsin Avenue, N.W.             |
| 83 Pine Street                         | Suite 780                               |
| West Peabody, MA 01960-3635            | Washington, DC 20015                    |
| (978) 535-0206                         | (202) 274-2000                          |

| registrar and transfer agent   | stock listing      |
|--------------------------------|--------------------|
| Registrar and Transfer Company | OTC BULLETIN BOARD |
| 10 Commerce Drive              | SYMBOL: GTWN       |
| Cranford, NJ 07016             | WWW.OTCBB.COM      |
| (800) 368-5948                 |               |
| www.rtco.com                   |               |

----

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

----