| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|---|--------------------------------------------------------------------|

|   | EXCHANGE ACT OF 1934 |
|--------|----------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------|

|   | OHIO LEGACY CORP                                       |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

| Ohio                                                           | 34-1903890                            |
|----------------------------------------------------------------|---------------------------------------|
| (State or other jurisdiction of incorporation or organization) | I.R.S. Employer Identification Number |

|   | 600 South Main St., North Canton, Ohio  44720 |   |
|--------|---------------------------------------------------------|--------|
|   | (Address of principal executive offices)                |   |

|   | OHIO LEGACY CORP                                       |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

|   | (330) 499-1900                |   |
|--------|-------------------------------|--------|
|   | Registrant's telephone number |   |

|   | Large accelerated filer o | Accelerated filer o    |   |
|--------|---------------------------|-----------------------------|--------|
|   | Non-accelerated filer o   | Smaller reporting company x |   |

----

----

|                                                                |   | Page   |
|---------------------------------------------------------------------|--------|--------|
| PART I - FINANCIAL INFORMATION                                      |   |   |
|                                                                |   |   |
| Item 1. Financial Statements                                        |   | 3      |
|                                                                |   |   |
| Item 2. Management’s Discussion and Analysis                  |   | 22     |
|                                                                |   |   |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk  |   | 30     |
|                                                                |   |   |
| Item 4T. Controls and Procedures                                    |   | 30     |
|                                                                |   |   |
| PART II - OTHER INFORMATION                                         |   |   |
|                                                                |   |   |
| Item 1. Legal Proceedings                                           |   | 30     |
|                                                                |   |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |   | 31     |
|                                                                |   |   |
| Item 3. Defaults Upon Senior Securities                             |   | 31     |
|                                                                |   |   |
| Item 4. Removed and Reserved                                        |   | 31     |
|                                                                |   |   |
| Item 5. Other Information                                           |   | 31     |
|                                                                |   |   |
| Item 6. Exhibits                                                    |   | 32     |
|                                                                |   |   |
| SIGNATURES                                                          |   | 33     |

----

| OHIO LEGACY CORP                           |
|--------------------------------------------|
| CONSOLIDATED BALANCE SHEETS(Unaudited)     |
| As of March 31, 2011 and December 31, 2010 |
|                                       |
|                                       |

|                                                                                                         |   | March 31, |        |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------------|--------|
|                                                                                                         |   | 2011      |        |   | 2010         |   |
|                                                                                                         |   |      |        |   |         |   |
| ASSETS                                                                                                       |   |      |        |   |         |   |
| Cash and due from banks                                                                                      |   | $         | 1,258,327   |   |         | $      | 1,121,473 |   |
| Federal funds sold and interest-bearing deposits in financial institutions                                   |   |      | 37,071,587  |   |         |   | 31,560,745 |   |
| Cash and cash equivalents                                                                                    |   |      | 38,329,914  |   |         |   | 32,682,218 |   |
| Certificate of deposit in financial institution                                                              |   |      | 100,000     |   |         |   | 100,000 |   |
| Securities available for sale                                                                                |   |      | 16,816,032  |   |         |   | 25,206,895 |   |
| Securities held to maturity (fair value March 31, 2011 - $2,896,914, December 31, 2010 - $2,885,216)         |   |      | 2,815,800   |   |         |   | 2,815,634 |   |
| Loans held for sale                                                                                          |   |      | 222,235     |   |         |   | 636,794 |   |
| Loans, net of allowance of $3,110,033 and $3,055,766 at March 31, 2011 and December 31, 2010                 |   |      | 101,953,427 |   |         |   | 101,146,194 |   |
| Federal bank stock                                                                                           |   |      | 1,518,000   |   |         |   | 1,557,700 |   |
| Premises and equipment, net                                                                                  |   |      | 3,369,985   |   |         |   | 3,461,455 |   |
| Assets acquired in settlement of loans                                                                       |   |      | 2,252,175   |   |         |   | 2,351,302 |   |
| Accrued interest receivable and other assets                                                                 |   |      | 789,785     |   |         |   | 658,779 |   |
| Total assets                                                                                                 |   | $         | 168,167,353 |   |         | $      | 170,616,971 |   |
|                                                                                                         |   |      |        |   |         |   |   |   |
| Commitments and contingent liabilities                                                                       |   |      | -           |   |         |   | - |   |
|                                                                                                         |   |      |        |   |         |   |   |   |
|                                                                                                         |   |      |        |   |         |   |   |   |
| LIABILITIES                                                                                                  |   |      |        |   |         |   |   |   |
| Deposits:                                                                                                    |   |      |        |   |         |   |   |   |
| Noninterest-bearing demand                                                                                   |   | $         | 21,045,328  |   |         | $      | 20,760,836 |   |
| Interest-bearing demand                                                                                      |   |      | 9,636,888   |   |         |   | 9,564,745 |   |
| Savings                                                                                                      |   |      | 62,978,215  |   |         |   | 59,285,422 |   |
| Certificates of deposit, net                                                                                 |   |      | 51,725,405  |   |         |   | 53,604,644 |   |
| Total deposits                                                                                               |   |      | 145,385,836 |   |         |   | 143,215,647 |   |
| Repurchase agreements                                                                                        |   |      | 5,507,566   |   |         |   | 4,391,252 |   |
| Long-term Federal Home Loan Bank advances                                                                    |   |      | -           |   |         |   | 5,000,000 |   |
| Capital lease obligations                                                                                    |   |      | 398,429     |   |         |   | 407,593 |   |
| Accrued interest payable and other liabilities                                                               |   |      | 813,758     |   |         |   | 1,131,963 |   |
| Total liabilities                                                                                            |   | $         | 152,105,589 |   |         | $      | 154,146,455 |   |
|                                                                                                         |   |      |        |   |         |   |   |   |
|                                                                                                         |   |      |        |   |         |   |   |   |
| SHAREHOLDERS' EQUITY                                                                                         |   |      |        |   |         |   |   |   |
| Preferred stock, no par value, 500,000 shares authorized, none outstanding                                   |   |      | -           |   |         |   | - |   |
| Common stock, no par value,                                                                                  |   |      |        |   |         |   |   |   |
| March 31, 2011 and December 31, 2010: 22,500,000 shared authorized, 19,714,564 shares issued and outstanding |   |      | 35,654,897  |   |         |   | 35,603,803 |   |
| Accumulated deficit                                                                                          |   |      | (19,757,578 | )      |         |   | (19,289,011 | ) |
| Accumulated other comprehensive income                                                                       |   |      | 164,445     |   |         |   | 155,724 |   |
| Total shareholders' equity                                                                                   |   |      | 16,061,764  |   |         |   | 16,470,516 |   |
|                                                                                                         |   |      |        |   |         |   |   |   |
| Total liabilities and shareholders' equity                                                                   |   | $         | 168,167,353 |   |         | $      | 170,616,971 |   |

----

| OHIO LEGACY CORP                                        |   |
|---------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                   |   |
| (Unaudited)                                             |   |
|                                                    |   |   |   |   |   |   |
|                                                    |   | For the Three Months Ended |   |
|                                                    |   | March 31, |   |
|                                                    |   | 2011 |   |   | 2010 |   |
| Interest and dividend income:                           |   |   |   |   |   |   |
| Loans, including fees                                   |   | $ | 1,393,962 |   |   | $ | 1,503,851 |   |
| Securities, taxable                                     |   |   | 147,963 |   |   |   | 260,248 |   |
| Securities, tax-exempt                                  |   |   | 27,172 |   |   |   | 28,542 |   |
| Interest-bearing deposits, federal funds sold and other |   |   | 17,920 |   |   |   | 12,508 |   |
| Dividends on federal bank stock                         |   |   | 19,625 |   |   |   | 15,275 |   |
| Total interest and dividend income                      |   |   | 1,606,642 |   |   |   | 1,820,424 |   |
|                                                    |   |   |   |   |   |   |   |   |
| Interest expense:                                       |   |   |   |   |   |   |   |   |
| Deposits                                                |   |   | 325,972 |   |   |   | 519,614 |   |
| Long-term Federal Home Loan Bank advances               |   |   | 13,754 |   |   |   | 114,488 |   |
| Repurchase agreements                                   |   |   | 2,591 |   |   |   | 1,083 |   |
| Capital leases                                          |   |   | 16,332 |   |   |   | 17,690 |   |
| Investor notes                                          |   |   | - |   |   |   | 9,693 |   |
| Total interest expense                                  |   |   | 358,649 |   |   |   | 662,568 |   |
| Net interest income                                     |   |   | 1,247,993 |   |   |   | 1,157,856 |   |
| Provision for loan losses                               |   |   | 23,772 |   |   |   | 76,772 |   |
| Net interest income after provision for loan losses     |   |   | 1,224,221 |   |   |   | 1,081,084 |   |
| Noninterest income:                                     |   |   |   |   |   |   |   |   |
| Service charges and other fees                          |   |   | 153,194 |   |   |   | 169,430 |   |
| Trust and brokerage fees                                |   |   | 165,838 |   |   |   | - |   |
| Gain on sales of securities available for sale, net     |   |   | 32,999 |   |   |   | - |   |
| Gain on sale of loans                                   |   |   | 26,747 |   |   |   | 3,465 |   |
| Gain (loss) on disposition of other real estate owned   |   |   | (35,299 | ) |   |   | 11,543 |   |
| Loss on disposition of fixed assets                     |   |   | (1,337 | ) |   |   | (1,506 | ) |
| Other income                                            |   |   | 10,212 |   |   |   | 14,849 |   |
| Total noninterest income                                |   |   | 352,354 |   |   |   | 197,781 |   |
|                                                    |   |   |   |   |   |   |   |   |
| Noninterest expense:                                    |   |   |   |   |   |   |   |   |
| Salaries and benefits                                   |   |   | 1,045,550 |   |   |   | 969,861 |   |
| Occupancy and equipment                                 |   |   | 245,836 |   |   |   | 214,699 |   |
| Professional fees                                       |   |   | 134,651 |   |   |   | 271,847 |   |
| Franchise tax                                           |   |   | 53,800 |   |   |   | 9,050 |   |
| Data processing                                         |   |   | 179,995 |   |   |   | 152,706 |   |
| Marketing and advertising                               |   |   | 22,948 |   |   |   | 65,087 |   |
| Stationery and supplies                                 |   |   | 18,448 |   |   |   | 16,880 |   |
| Deposit expense and insurance                           |   |   | 113,209 |   |   |   | 200,819 |   |
| Investor expenses                                       |   |   | - |   |   |   | 517,222 |   |
| Other expenses                                          |   |   | 230,705 |   |   |   | 190,384 |   |
| Total noninterest expense                               |   |   | 2,045,142 |   |   |   | 2,608,555 |   |
| Net loss before income taxes                            |   |   | (468,567 | ) |   |   | (1,329,690 | ) |
| Income tax benefit                                      |   |   | - |   |   |   | - |   |
| Net loss                                                |   | $ | (468,567 | ) |   | $ | (1,329,690 | ) |
|                                                    |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |
| Basic loss per share                                    |   | $ | (0.02 | ) |   | $ | (0.13 | ) |
| Diluted loss per share                                  |   | $ | (0.02 | ) |   | $ | (0.13 | ) |

----

| (Unaudited)                                                                                                                    |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                           |   |   |   |   |   |   |
|                                                                                                                           |   | For the Three Months Ended |   |
|                                                                                                                           |   | March 31, |   |
|                                                                                                                           |   | 2011 |   |   | 2010 |   |
|                                                                                                                           |   |   |   |   |   |   |
| Balance, beginning of period                                                                                                   |   | $ | 16,470,516 |   |   | $ | 2,366,511 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                                               |   |   | 51,094 |   |   |   | 2,143 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| Proceeds on sale of common stock, net                                                                                          |   |   | - |   |   |   | 16,714,781 |   |
|                                                                                                                           |   |   |   |   |   |   |   |   |
| Comprehensive income (loss):                                                                                                   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                              |   |   | (468,567 | ) |   |   | (1,329,690 | ) |
| Net unrealized income (loss) on securities available for sale arising during the period, including effect of reclassifications |   |   | 8,721 |   |   |   | 128,180 |   |
| Total comprehensive income (loss)                                                                                              |   |   | (459,846 | ) |   |   | (1,201,510 | ) |
| Balance, end of period                                                                                                         |   | $ | 16,061,764 |   |   | $ | 17,881,925 |   |

----

| OHIO LEGACY CORP                                                         |   |
|--------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                    |   |
| (Unaudited)                                                              |   |
|                                                                     |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |
|                                                                     |   | For the Three Months Ended |   |
|                                                                     |   | March 31, |   |
|                                                                     |   | 2011 |   |   | 2010 |   |
|                                                                     |   |   |   |   |   |   |
| Cash flows from operating activities:                                    |   |   |   |   |   |   |
| Net loss                                                                 |   | $ | (468,567 | ) |   | $ | (1,329,690 | ) |
| Adjustments to reconcile net loss to net cash from operating activities: |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                |   |   | 23,772 |   |   |   | 76,772 |   |
| Depreciation and amortization                                            |   |   | 94,761 |   |   |   | 83,904 |   |
| Loss on disposition of fixed assets                                      |   |   | 1,337 |   |   |   | 1,506 |   |
| Securities amortization and accretion, net                               |   |   | 87,268 |   |   |   | 48,674 |   |
| Origination of loans held for sale                                       |   |   | (719,150 | ) |   |   | - |   |
| Proceeds from sales of loans held for sale                               |   |   | 1,383,656 |   |   |   | 198,712 |   |
| Loss (gain) on disposition of real estate owned                          |   |   | 35,299 |   |   |   | (11,543 | ) |
| Gain on sale of securities available for sale                            |   |   | (32,999 | ) |   |   | - |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Gain on sale of loans held for sale                                      |   |   | (26,747 | ) |   |   | (3,465 | ) |
| Stock based compensation expense                                         |   |   | 51,094 |   |   |   | 2,143 |   |
| Net change in:                                                           |   |   |   |   |   |   |   |   |
| Accrued interest receivable and other assets                             |   |   | (131,006 | ) |   |   | (209,838 | ) |
| Accrued interest payable and other liabilities                           |   |   | (318,205 | ) |   |   | (270 | ) |
| Deferred loan fees                                                       |   |   | 23,203 |   |   |   | (5,522 | ) |
| Net cash from operating activities                                       |   |   | 3,717 |   |   |   | (1,148,617 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                    |   |   |   |   |   |   |   |   |
| Purchases of securities available for sale                               |   |   | (984,645 | ) |   |   | (2,034,779 | ) |
| (Purchases) or redemptions of federal bank stock                         |   |   | 39,700 |   |   |   | - |   |
| Maturities, calls and paydowns of securities available for sale          |   |   | 4,377,950 |   |   |   | 1,361,656 |   |
| Sales of securities available for sale                                   |   |   | 4,951,844 |   |   |   | - |   |
| Proceeds from sale of other real estate owned                            |   |   | 191,101 |   |   |   | 430,648 |   |
| Participation loans purchased                                            |   |   | (725,000 | ) |   |   | - |   |
| Net change in loans                                                      |   |   | (479,681 | ) |   |   | 4,105,987 |   |
| Proceeds from sale of premises and equipment                             |   |   | 13,250 |   |   |   | - |   |
| Acquisition of premises and equipment                                    |   |   | (17,879 | ) |   |   | (221,405 | ) |
| Net cash from investing activities                                       |   |   | 7,341,982 |   |   |   | 3,642,107 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                     |   |   |   |   |   |   |   |   |
| Net change in deposits                                                   |   |   | 2,170,189 |   |   |   | 843,952 |   |
| Net change in repurchase agreements                                      |   |   | 1,116,314 |   |   |   | (389,856 | ) |
| Repayment of capital lease obligations                                   |   |   | (9,164 | ) |   |   | (7,806 | ) |
| Repayments of FHLB advances                                              |   |   | (5,000,000 | ) |   |   | (8,500,000 | ) |
| Net proceeds from issuance of common stock                               |   |   | - |   |   |   | 16,714,781 |   |
| Net cash from financing activities                                       |   |   | (1,722,661 | ) |   |   | 8,661,071 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents                                  |   |   | 5,647,696 |   |   |   | 11,154,561 |   |
| Cash and cash equivalents at beginning of period                         |   |   | 32,682,218 |   |   |   | 24,165,790 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                               |   | $ | 38,329,914 |   |   | $ | 35,320,351 |   |

----

|                                                        |   | For the Three Months Ended |    |
|-------------------------------------------------------------|--------|----------------------------|---------|
|                                                        |   | March 31,                  |    |
|                                                        |   | 2011                       |    |   | 2010 |   |
| Supplemental disclosures of cash flow information:          |   |                       |    |   |   |   |
| Cash received during the period:                            |   |                       |    |   |   |   |
| Federal income tax refund                                   |   | $                          | -       |   |   | $ | - |   |
|                                                        |   |                       |    |   |   |   |   |   |
| Cash paid during the period for:                            |   |                       |    |   |   |   |   |   |
| Interest                                                    |   |                       | 395,200 |   |   |   | 702,853 |   |
| Federal income taxes                                        |   |                       | -       |   |   |   | - |   |
| Non-cash transactions:                                      |   |                       |    |   |   |   |   |   |
| Transfer of loans to assets acquired in settlement of loans |   |                       | 127,272 |   |   |   | 212,510 |   |

----

----

----

----

|                                                     |   | For the Three Months Ended |       |
|----------------------------------------------------------|--------|----------------------------|------------|
|                                                     |   | March 31,                  |       |
|                                                     |   | 2011                       |       |   | 2010 |   |
| BASIC:                                                   |   |                       |       |   |   |   |
| Net loss                                                 |   | $                          | (468,567   | ) |   | $ | (1,329,690 | ) |
| Weighted average common shares outstanding               |   |                       | 19,714,564 |   |   |   | 10,186,786 |   |
| Basic loss per share                                     |   | $                          | (0.02      | ) |   | $ | (0.13 | ) |
|                                                     |   |                       |       |   |   |   |   |   |
|                                                     |   |                       |       |   |   |   |   |   |
| DILUTED:                                                 |   |                       |       |   |   |   |   |   |
| Net loss                                                 |   | $                          | (468,567   | ) |   | $ | (1,329,690 | ) |
| Weighted average common shares outstanding               |   |                       | 19,714,564 |   |   |   | 10,186,786 |   |
| Dilutive effect of stock options                         |   |                       | -          |   |   |   | - |   |
| Dilutive effect of stock warrants                        |   |                       | -          |   |   |   | - |   |
| Total common shares and dilutive potential common shares |   |                       | 19,714,564 |   |   |   | 10,186,786 |   |
| Diluted loss per common share                            |   | $                          | (0.02      | ) |   | $ | (0.13 | ) |

|                                                                       |   |      |       |   | Gross      |   |    | Gross      |   |   |    |   |
|----------------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|---------|------------|--------|--------|---------|--------|
|                                                                       |   | Amortized |       |   | Unrealized |   |    | Unrealized |   |   | Fair    |   |
| Available for sale, carried at fair value:                                 |   | Cost      |       |   | Gains      |   |    | Losses     |   |   | Value   |   |
| March 31, 2011                                                             |   |      |       |   |       |   |    |       |   |   |    |   |
| U.S. Government-sponsored enterprises                                      |   | $         | 4,792,632  |   |       | $      | 4,821   |       |   | $      | -       |   |   | $ | 4,797,453 |   |
| Mortgage-backed securities issued by U.S. Government-sponsored enterprises |   |      | 11,306,732 |   |       |   | 282,672 |       |   |   | (5,203  | )      |   |   | 11,584,201 |   |
| Other mortgage-backed securities                                           |   |      | 309,822    |   |       |   | -       |       |   |   | (67,594 | )      |   |   | 242,228 |   |
| Equity securities                                                          |   |      | 39,900     |   |       |   | 152,250 |       |   |   | -       |   |   |   | 192,150 |   |
|    Total                                                    |   | $         | 16,449,086 |   |       | $      | 439,743 |       |   | $      | (72,797 | )      |   | $ | 16,816,032 |   |

| December 31, 2010                                                          |   |   |       |   |   |   |    |   |   |   |    |   |
|----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| U.S. Government-sponsored enterprises                                      |   | $      | 8,261,724  |   |   | $      | 3,424   |   |   | $      | (1,722  | )      |   | $ | 8,263,426 |   |
| Mortgage-backed securities issued by U.S. Government-sponsored enterprises |   |   | 16,228,702 |   |   |   | 396,481 |   |   |   | -       |   |   |   | 16,625,183 |   |
| Other mortgage-backed securities                                           |   |   | 316,644    |   |   |   | -       |   |   |   | (69,078 | )      |   |   | 247,566 |   |
| Equity securities                                                          |   |   | 41,600     |   |   |   | 29,120  |   |   |   | -       |   |   |   | 70,720 |   |
|    Total                                                    |   | $      | 24,848,670 |   |   | $      | 429,025 |   |   | $      | (70,800 | )      |   | $ | 25,206,895 |   |

----

|                                        |   |      |      |   | Gross      |   |   | Gross      |   |   |   |   |
|---------------------------------------------|--------|-----------|-----------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                        |   | Amortized |      |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
| Held to maturity, carried at amortized cost |   | Cost      |      |   | Gains      |   |   | Losses     |   |   | Value  |   |
| March 31, 2011                              |   |      |      |   |       |   |   |       |   |   |   |   |
| Municipal securities                        |   | $         | 2,815,800 |   |       | $      | 81,114 |       |   | $      | -      |   |   | $ | 2,896,914 |   |
|                                        |   |      |      |   |       |   |   |       |   |   |   |   |   |   |   |   |
|  December 31, 2010                     |   |      |      |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Municipal securities                        |   | $         | 2,815,634 |   |       | $      | 69,582 |       |   | $      | -      |   |   | $ | 2,885,216 |   |

|                       |   | Held-to-maturity |      |   | Available for sale |   |
|----------------------------|--------|------------------|-----------|--------|--------------------|--------|
|                       |   | Carrying Amount  |      |   | Fair Value         |   |   | Fair Value |   |
|                       |   |             |      |   |               |   |   |   |   |
| Due in one year or less    |   |             | -         |   |               |   | - |   |   |   | - |   |
| Due from one to five years |   | $                | 634,857   |   |               | $      | 659,783 |   |   | $ | 1,502,627 |   |
| Due from five to ten years |   |             | 629,962   |   |               |   | 658,087 |   |   |   | 3,294,826 |   |
| Due after ten years        |   |             | 1,550,981 |   |               |   | 1,579,044 |   |   |   | - |   |
| Equity securities          |   |             | -         |   |               |   | - |   |   |   | 192,150 |   |
| Mortgage-backed securities |   |             | -         |   |               |   | - |   |   |   | 11,826,429 |   |
| Total                      |   | $                | 2,815,800 |   |               | $      | 2,896,914 |   |   | $ | 16,816,032 |   |

|                                                                       |   | Less than 12 months |      |   | 12 Months or More |   |   | Total  |   |
|----------------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|--------|--------|--------|
|                                                                       |   | Fair                |      |   | Unrealized        |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| March 31, 2011:                                                            |   | Value               |      |   | Loss              |   |   | Value  |   |   | Loss |   |   | Value |   |   | Loss |   |
| Available for sale:                                                        |   |                |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities issued by U.S. Government-sponsored enterprises |   | $                   | 1,960,188 |   |              | $      | (5,203 | )      |   | $ | - |   |   | $ | - |   |   |   | 1,960,188 |   |   |   | (5,203 | ) |
| Other mortgage-backed securities                                           |   |                | -         |   |              |   | -      |   |   |   | 242,228 |   |   |   | (67,594 | ) |   | $ | 242,228 |   |   | $ | (67,594 | ) |
|    Total                                                    |   | $                   | 1,960,188 |   |              | $      | (5,203 | )      |   | $ | 242,228 |   |   | $ | (67,594 | ) |   | $ | 2,202,416 |   |   | $ | (72,797 | ) |

|                             |   | Less than 12 months |      |   | 12 Months or More |   |   | Total  |   |
|----------------------------------|--------|---------------------|-----------|--------|-------------------|--------|--------|--------|--------|
|                             |   | Fair                |      |   | Unrealized        |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| December 31, 2010:               |   | Value               |      |   | Loss              |   |   | Value  |   |   | Loss |   |   | Value |   |   | Loss |   |
| Available for sale:              |   |                |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies         |   | $                   | 2,555,180 |   |              | $      | (1,722 | )      |   | $ | - |   |   | $ | - |   |   | $ | 2,555,180 |   |   | $ | (1,722 | ) |
| Other mortgage-backed securities |   |                | -         |   |              |   | -      |   |   |   | 247,566 |   |   |   | (69,078 | ) |   |   | 247,566 |   |   |   | (69,078 | ) |
|    Total          |   | $                   | 2,555,180 |   |              | $      | (1,722 | )      |   | $ | 247,566 |   |   | $ | (69,078 | ) |   | $ | 2,802,746 |   |   | $ | (70,800 | ) |

----

|                            |   | March 31, 2011 |        |   | December 31, 2010 |   |
|---------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                            |   | Balance        |        |   | Percent           |   |   | Balance |   |   | Percent |   |
| Residential real estate         |   | $              | 32,044,752  |   |              |   | 30.5 | % |   | $ | 30,320,666 |   |   |   | 29.1 | % |
| Multifamily real estate         |   |           | 5,311,184   |   |              |   | 5.0 | % |   |   | 7,465,237 |   |   |   | 7.2 | % |
| Commercial real estate          |   |           | 42,755,786  |   |              |   | 40.7 | % |   |   | 42,222,715 |   |   |   | 40.4 | % |
| Construction                    |   |           | 2,956,287   |   |              |   | 2.8 | % |   |   | 2,137,849 |   |   |   | 2.1 | % |
| Commercial                      |   |           | 14,506,096  |   |              |   | 13.8 | % |   |   | 15,114,240 |   |   |   | 14.5 | % |
| Consumer and home equity        |   |           | 7,538,592   |   |              |   | 7.2 | % |   |   | 7,013,694 |   |   |   | 6.7 | % |
| Total Loans                     |   |           | 105,112,697 |   |              |   | 100.0 | % |   |   | 104,274,401 |   |   |   | 100.0 | % |
| Less: Allowance for loan losses |   |           | (3,110,033  | )      |              |   |   |   |   |   | (3,055,766 | ) |   |   |   |   |
| Net Deferred Loan Fees          |   |           | (49,237     | )      |              |   |   |   |   |   | (72,441 | ) |   |   |   |   |
| Loans, net                      |   | $              | 101,953,427 |   |              |   |   |   |   | $ | 101,146,194 |   |   |   |   |   |

|                                   |   | For the Three Months Ended |      |
|----------------------------------------|--------|----------------------------|-----------|
|                                   |   | March 31,                  |      |
|                                   |   | 2011                       |      |   | 2010 |   |
|                                   |   |                       |      |   |   |   |
| Balance, beginning of period           |   | $                          | 3,055,766 |   |   | $ | 3,945,670 |   |
| Provision for loan losses              |   |                       | 23,772    |   |   |   | 76,772 |   |
| Loans charged-off                      |   |                       | (174      | ) |   |   | (3,896 | ) |
| Recoveries of charged-off loans        |   |                       | 30,669    |   |   |   | 14,460 |   |
|                                   |   |                       |      |   |   |   |   |   |
| Balance, end of period                 |   | $                          | 3,110,033 |   |   | $ | 4,033,006 |   |
|                                   |   |                       |      |   |   |   |   |   |
| Balance as a percentage of total loans |   |                       | 2.96      | % |   |   | 4.01 | % |

|                       |   | 1-4 family residential |    |   | 1-4 family rental |   |     | Multi-family real state |   |   | Home Equity |   |   | Consumer |   |   | Commercial |   |   | Commercial Secured by Trust Assets |   |
|----------------------------|--------|------------------------|---------|--------|-------------------|--------|----------|-------------------------|--------|--------|-------------|--------|--------|----------|--------|--------|------------|--------|--------|------------------------------------|--------|
|                       |   |                   |    |   |              |   |     |                    |   |   |        |   |   |     |   |   |       |   |   |                               |   |
| Balance, December 31, 2010 |   | $                      | 183,507 |   |              | $      | 331,184  |                    |   | $      | 454,670     |   |   | $        | 93,187 |   |       | $      | 10,818 |                               |   | $ | 275,473 |   |   | $ | 12,095 |   |
| Provision for loan losses  |   |                   | 9,963   |   |              |   | (115,792 | )                       |   |   | 71,951      |   |   |     | 2,873  |   |       |   | 2,116  |                               |   |   | 45,004 |   |   |   | 9 |   |
| Charge-offs                |   |                   | -       |   |              |   | -        |                    |   |   | -           |   |   |     | -      |   |       |   | (174   | )                                  |   |   | - |   |   |   | - |   |
| Recoveries                 |   |                   | -       |   |              |   | -        |                    |   |   | -           |   |   |     | -      |   |       |   | 498    |                               |   |   | 473 |   |   |   | - |   |
| Balance, March 31, 2011    |   | $                      | 193,470 |   |              | $      | 215,392  |                    |   | $      | 526,621     |   |   | $        | 96,060 |   |       | $      | 13,258 |                               |   | $ | 320,950 |   |   | $ | 12,104 |   |

----

|                       |   | Commercial real estate |    |   |           |   |      |         |   |
|----------------------------|--------|------------------------|---------|--------|----------------|--------|-----------|--------------|--------|
|                       |   | Non-owner occupied     |    |   | Owner Occupied |   |      | Construction |   |   | Total |   |
|                       |   |                   |    |   |           |   |      |         |   |   |   |   |
| Balance, December 31, 2010 |   | $                      | 509,739 |   |           | $      | 1,043,458 |         |   | $ | 141,635 |   |   | $ | 3,055,766 |   |
| Provision for loan losses  |   |                   | 27,878  |   |           |   | (20,409   | )            |   |   | 179 |   |   |   | 23,772 |   |
| Charge-offs                |   |                   | -       |   |           |   | -         |         |   |   | - |   |   |   | (174 | ) |
| Recoveries                 |   |                   | -       |   |           |   | 23,698    |         |   |   | 6,000 |   |   |   | 30,669 |   |
| Balance, March 31, 2011    |   | $                      | 537,617 |   |           | $      | 1,046,747 |         |   | $ | 147,814 |   |   | $ | 3,110,033 |   |

|                                                         |   | March 31, |      |   | December 31, |   |
|--------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                         |   | 2011      |      |   | 2010         |   |
|                                                         |   |      |      |   |         |   |
| Loans past due over 90 days still on accrual                 |   | $         | 14,832    |   |         | $      | 11,495 |   |
| Nonaccrual loans, includes smaller balance homogeneous loans |   |      | 3,519,307 |   |         |   | 3,452,602 |   |
| Impaired loans, included in nonaccrual loans                 |   |      | 3,353,189 |   |         |   | 3,409,242 |   |
| Impaired loans with no allowance for loan losses allocated   |   |      | 3,021,975 |   |         |   | 3,371,759 |   |
| Amount of the allowance for loan losses allocated            |   |      | 125,330   |   |         |   | 6,435 |   |

|                               |   | Loans Collectively Evaluated for Impairment |      |   | Loans Individually Evaluated for Impairment |   |        | Total                   |   |
|------------------------------------|--------|---------------------------------------------|-----------|--------|---------------------------------------------|--------|-------------|-------------------------|--------|
| March 31, 2011                     |   | Allowance for Loan Loss                     |      |   | Recorded Investment                         |   |        | Allowance for Loan Loss |   |   | Recorded Investment |   |   | Allowance for Loan Loss |   |   | Recorded Investment |   |
| 1-4 family residential mortgage    |   | $                                           | 187,035   |   |                                        | $      | 27,544,902  |                    |   | $ | 6,435 |   |   | $ | 366,702 |   |   | $ | 193,470 |   |   | $ | 27,911,604 |   |
| 1-4 family rental property         |   |                                        | 215,392   |   |                                        |   | 3,936,483   |                    |   |   | - |   |   |   | 196,666 |   |   |   | 215,392 |   |   |   | 4,133,149 |   |
| Multi-family real estate           |   |                                        | 526,621   |   |                                        |   | 5,311,184   |                    |   |   | - |   |   |   | - |   |   |   | 526,621 |   |   |   | 5,311,184 |   |
| Home equity                        |   |                                        | 96,060    |   |                                        |   | 6,481,116   |                    |   |   | - |   |   |   | 11,940 |   |   |   | 96,060 |   |   |   | 6,493,056 |   |
| Consumer                           |   |                                        | 13,259    |   |                                        |   | 1,045,536   |                    |   |   | - |   |   |   | - |   |   |   | 13,259 |   |   |   | 1,045,536 |   |
| Commercial                         |   |                                        | 247,583   |   |                                        |   | 8,157,975   |                    |   |   | 73,367 |   |   |   | 296,290 |   |   |   | 320,950 |   |   |   | 8,454,265 |   |
| Commercial secured by trust assets |   |                                        | 12,104    |   |                                        |   | 6,051,831   |                    |   |   | - |   |   |   | - |   |   |   | 12,104 |   |   |   | 6,051,831 |   |
| Commercial real estate:            |   |                                        |      |   |                                        |   |        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-owner occupied                 |   |                                        | 521,438   |   |                                        |   | 18,973,726  |                    |   |   | 16,179 |   |   |   | 234,150 |   |   |   | 537,617 |   |   |   | 19,207,876 |   |
| Owner occupied                     |   |                                        | 1,017,397 |   |                                        |   | 22,292,978  |                    |   |   | 29,349 |   |   |   | 1,254,931 |   |   |   | 1,046,746 |   |   |   | 23,547,909 |   |
| Construction and development       |   |                                        | 147,814   |   |                                        |   | 1,963,777   |                    |   |   | - |   |   |   | 992,510 |   |   |   | 147,814 |   |   |   | 2,956,287 |   |
| Total                              |   | $                                           | 2,984,703 |   |                                        | $      | 101,759,508 |                    |   | $ | 125,330 |   |   | $ | 3,353,189 |   |   | $ | 3,110,033 |   |   | $ | 105,112,697 |   |

|                               |   | Loans Collectively Evaluated for Impairment |      |   | Loans Individually Evaluated for Impairment |   |        | Total                   |   |
|------------------------------------|--------|---------------------------------------------|-----------|--------|---------------------------------------------|--------|-------------|-------------------------|--------|
| December 31, 2010                  |   | Allowance for Loan Loss                     |      |   | Recorded Investment                         |   |        | Allowance for Loan Loss |   |   | Recorded Investment |   |   | Allowance for Loan Loss |   |   | Recorded Investment |   |
| 1-4 family residential mortgage    |   | $                                           | 177,072   |   |                                        | $      | 23,716,528  |                    |   | $ | 6,435 |   |   | $ | 164,170 |   |   | $ | 183,507 |   |   | $ | 23,880,698 |   |
| 1-4 family rental property         |   |                                        | 331,184   |   |                                        |   | 6,161,295   |                    |   |   | - |   |   |   | 278,673 |   |   |   | 331,184 |   |   |   | 6,439,968 |   |
| Multi-family real estate           |   |                                        | 454,670   |   |                                        |   | 7,396,465   |                    |   |   | - |   |   |   | 68,772 |   |   |   | 454,670 |   |   |   | 7,465,237 |   |
| Home equity                        |   |                                        | 93,187    |   |                                        |   | 6,277,141   |                    |   |   | - |   |   |   | - |   |   |   | 93,187 |   |   |   | 6,277,141 |   |
| Consumer                           |   |                                        | 10,818    |   |                                        |   | 736,553     |                    |   |   | - |   |   |   | - |   |   |   | 10,818 |   |   |   | 736,553 |   |
| Commercial                         |   |                                        | 275,473   |   |                                        |   | 8,818,892   |                    |   |   | - |   |   |   | 247,731 |   |   |   | 275,473 |   |   |   | 9,066,623 |   |
| Commercial secured by trust assets |   |                                        | 12,095    |   |                                        |   | 6,047,617   |                    |   |   | - |   |   |   | - |   |   |   | 12,095 |   |   |   | 6,047,617 |   |
| Commercial real estate:            |   |                                        |      |   |                                        |   |        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-owner occupied                 |   |                                        | 509,739   |   |                                        |   | 18,112,082  |                    |   |   | - |   |   |   | 174,750 |   |   |   | 509,739 |   |   |   | 18,286,832 |   |
| Owner occupied                     |   |                                        | 1,043,458 |   |                                        |   | 22,594,876  |                    |   |   | - |   |   |   | 1,341,007 |   |   |   | 1,043,458 |   |   |   | 23,935,883 |   |
| Construction and development       |   |                                        | 141,635   |   |                                        |   | 1,003,710   |                    |   |   | - |   |   |   | 1,134,139 |   |   |   | 141,635 |   |   |   | 2,137,849 |   |
| Total                              |   | $                                           | 3,049,331 |   |                                        | $      | 100,865,159 |                    |   | $ | 6,435 |   |   | $ | 3,409,242 |   |   | $ | 3,055,766 |   |   | $ | 104,274,401 |   |

----

|                                   |   |    March 31, 2011 |      |   |   December 31, 2010 |   |
|----------------------------------------|--------|-----------------------------|-----------|--------|--------------------------|--------|
|                                   |   | Average Recorded Investment |      |   | Recorded Investment      |   |   | Allowance for Loan Losses Allocated |   |   | Recorded Investment |   |   | Allowance for Loan Losses Allocated |   |
| With no related allowance recorded:    |   |                        |      |   |                     |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential mortgage        |   | $                           | 254,349   |   |                     | $      | 329,219 |   |   | $ | - |   |   | $ | 126,687 |   |   | $ | - |   |
| 1-4 family rental property             |   |                        | 224,190   |   |                     |   | 196,666 |   |   |   | - |   |   |   | 278,673 |   |   |   | - |   |
| Multi-family real estate               |   |                        | 45,848    |   |                     |   | - |   |   |   | - |   |   |   | 68,772 |   |   |   | - |   |
| Home equity                            |   |                        | 3,980     |   |                     |   | 11,940 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                             |   |                        | 212,184   |   |                     |   | 148,754 |   |   |   | - |   |   |   | 247,731 |   |   |   | - |   |
| Commercial real estate:                |   |                        |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-owner occupied                     |   |                        | 194,150   |   |                     |   | 172,350 |   |   |   | - |   |   |   | 174,750 |   |   |   | - |   |
| Owner occupied                         |   |                        | 1,227,597 |   |                     |   | 1,170,536 |   |   |   | - |   |   |   | 1,341,007 |   |   |   | - |   |
| Construction and development           |   |                        | 1,055,427 |   |                     |   | 992,510 |   |   |   | - |   |   |   | 1,134,139 |   |   |   | - |   |
|                                   |   |                        |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:            |   |                        |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 Single family residential mortgage |   |                        | 31,048    |   |                     |   | 37,483 |   |   |   | 6,435 |   |   |   | 37,483 |   |   |   | 6,435 |   |
| Commercial                             |   |                        | 40,851    |   |                     |   | 147,535 |   |   |   | 73,367 |   |   |   | - |   |   |   | - |   |
| Commercial real estate:                |   |                        |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-owner occupied                     |   |                        | 15,207    |   |                     |   | 61,800 |   |   |   | 16,179 |   |   |   | - |   |   |   | - |   |
| Owner occupied                         |   |                        | 18,349    |   |                     |   | 84,396 |   |   |   | 29,349 |   |   |   | - |   |   |   | - |   |
|                                   |   | $                           | 3,323,180 |   |                     | $      | 3,353,189 |   |   | $ | 125,330 |   |   | $ | 3,409,242 |   |   | $ | 6,435 |   |

|                                           |   | March 31, 2010 |      |
|------------------------------------------------|--------|----------------|-----------|
|                                           |   |           |      |
| Average of impaired loans during the period    |   | $              | 5,625,690 |   |
| Interest income recognized during impairment   |   |           | -         |   |
| Cash-basis income recognized during impairment |   |           | -         |   |

|                                |   |               |        |   | Days Past Due |   |    |       |   |   |                                    |   |
|-------------------------------------|--------|--------------------|-------------|--------|---------------|--------|---------|------------|--------|--------|-----------------------------------------|--------|
| March 31, 2011                      |   | Loans Not Past Due |        |   | 30-59 Days    |   |    | 60-89 Days |   |   | 90 Days or Greater & Still Accruing |   |   | 90 Days or Greater & Non-Accruing |   |   | Total Past Due |   |   | Total |   |
| 1-4 family residential mortgage     |   | $                  | 27,124,487  |   |          | $      | 420,415 |       |   | $      | -                                       |   |   | $ | - |   |   | $ | 366,702 |   |   | $ | 787,117 |   |   | $ | 27,911,604 |   |
| 1-4 family rental property          |   |               | 3,936,483   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 196,666 |   |   |   | 196,666 |   |   |   | 4,133,149 |   |
| Multi-family real estate            |   |               | 5,311,184   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,311,184 |   |
| Home equity loans                   |   |               | 6,377,311   |   |          |   | 73,896  |       |   |   | 29,909                                  |   |   |   | - |   |   |   | 11,940 |   |   |   | 115,745 |   |   |   | 6,493,056 |   |
| Consumer                            |   |               | 853,161     |   |          |   | 295     |       |   |   | 15,445                                  |   |   |   | 10,518 |   |   |   | 166,117 |   |   |   | 192,375 |   |   |   | 1,045,536 |   |
| Commercial                          |   |               | 7,833,281   |   |          |   | 320,380 |       |   |   | -                                       |   |   |   | 4,314 |   |   |   | 296,290 |   |   |   | 620,984 |   |   |   | 8,454,265 |   |
| Commericial secured by trust assets |   |               | 6,051,831   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,051,831 |   |
|  Commercial real estate:       |   |               |        |   |          |   |    |       |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Non-owner occupied                  |   |               | 18,973,726  |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 234,150 |   |   |   | 234,150 |   |   |   | 19,207,876 |   |
| Owner occupied                      |   |               | 22,216,564  |   |          |   | 76,413  |       |   |   | -                                       |   |   |   | - |   |   |   | 1,254,932 |   |   |   | 1,331,345 |   |   |   | 23,547,909 |   |
| Construction and development        |   |               | 1,963,777   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 992,510 |   |   |   | 992,510 |   |   |   | 2,956,287 |   |
| Total                               |   | $                  | 100,641,805 |   |          | $      | 891,399 |       |   | $      | 45,354                                  |   |   | $ | 14,832 |   |   | $ | 3,519,307 |   |   | $ | 4,470,892 |   |   | $ | 105,112,697 |   |

----

|                               |   |               |        |   | Days Past Due |   |    |       |   |   |                                    |   |
|------------------------------------|--------|--------------------|-------------|--------|---------------|--------|---------|------------|--------|--------|-----------------------------------------|--------|
|  December 31, 2010            |   | Loans Not Past Due |        |   | 30-59 Days    |   |    | 60-89 Days |   |   | 90 Days or Greater & Still Accruing |   |   | 90 Days or Greater & Non-Accruing |   |   | Total Past Due |   |   | Total |   |
| 1-4 family residential mortgage    |   | $                  | 23,367,952  |   |          | $      | 207,521 |       |   | $      | 141,055                                 |   |   | $ | - |   |   | $ | 164,170 |   |   | $ | 512,746 |   |   | $ | 23,880,698 |   |
| 1-4 family rental property         |   |               | 6,161,295   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 278,673 |   |   |   | 278,673 |   |   |   | 6,439,968 |   |
| Multi-family real estate           |   |               | 7,396,465   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 68,772 |   |   |   | 68,772 |   |   |   | 7,465,237 |   |
| Home equity loans                  |   |               | 6,192,016   |   |          |   | 74,621  |       |   |   | 10,504                                  |   |   |   | - |   |   |   | - |   |   |   | 85,125 |   |   |   | 6,277,141 |   |
| Consumer                           |   |               | 676,801     |   |          |   | 4,898   |       |   |   | -                                       |   |   |   | 11,495 |   |   |   | 43,359 |   |   |   | 59,752 |   |   |   | 736,553 |   |
| Commercial                         |   |               | 8,751,090   |   |          |   | 8,889   |       |   |   | 58,913                                  |   |   |   | - |   |   |   | 247,731 |   |   |   | 315,533 |   |   |   | 9,066,623 |   |
| Commercial secured by trust assets |   |               | 6,047,617   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 6,047,617 |   |
|  Commercial real estate:      |   |               |        |   |          |   |    |       |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   | - |   |
| Non-owner occupied                 |   |               | 18,050,282  |   |          |   | 61,800  |       |   |   | -                                       |   |   |   | - |   |   |   | 174,750 |   |   |   | 236,550 |   |   |   | 18,286,832 |   |
| Owner occupied                     |   |               | 22,594,876  |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 1,341,007 |   |   |   | 1,341,007 |   |   |   | 23,935,883 |   |
|  Construction and development |   |               | 1,003,709   |   |          |   | -       |       |   |   | -                                       |   |   |   | - |   |   |   | 1,134,140 |   |   |   | 1,134,140 |   |   |   | 2,137,849 |   |
| Total                              |   | $                  | 100,242,103 |   |          | $      | 357,729 |       |   | $      | 210,472                                 |   |   | $ | 11,495 |   |   | $ | 3,452,602 |   |   | $ | 4,032,298 |   |   | $ | 104,274,401 |   |

| March 31, 2011                           |   | Not Rated |       |   | Pass   |   |       | Special Mention |   |   | Substandard |   |   | Doubtful |      |   | Total  |   |
|------------------------------------------|--------|-----------|------------|--------|--------|--------|------------|-----------------|--------|--------|-------------|--------|--------|----------|-----------|--------|--------|--------|
|                                     |   |      |       |   |   |   |       |            |   |   |        |   |   |     |      |   |   |   |
|  1-4 Family residential mortgage    |   | $         | 23,033,478 |   |   | $      | 3,495,701  |            |   | $      | 438,513     |   |   | $        | 792,710   |   |   | $      | 151,202 |   |   | $ | 27,911,604 |   |
|  1-4 family rental property         |   |      | 130,000    |   |   |   | 3,238,402  |            |   |   | 370,545     |   |   |     | 394,202   |   |   |   | - |   |   |   | 4,133,149 |   |
|  Multi-family real estate           |   |      | -          |   |   |   | 2,515,888  |            |   |   | 1,998,773   |   |   |     | 796,523   |   |   |   | - |   |   |   | 5,311,184 |   |
|  Home equity loans                  |   |      | 6,377,095  |   |   |   | 83,347     |            |   |   | 2,311       |   |   |     | 30,303    |   |   |   | - |   |   |   | 6,493,056 |   |
|  Consumer                           |   |      | 1,045,536  |   |   |   | -          |            |   |   | -           |   |   |     | -         |   |   |   | - |   |   |   | 1,045,536 |   |
|  Commercial                         |   |      | -          |   |   |   | 7,826,701  |            |   |   | 279,884     |   |   |     | 264,803   |   |   |   | 82,877 |   |   |   | 8,454,265 |   |
|  Commercial secured by trust assets |   |      |       |   |   |   | 6,051,831  |            |   |   | -           |   |   |     | -         |   |   |   | - |   |   |   | 6,051,831 |   |
|  Commercial real estate:            |   |      |       |   |   |   |       |            |   |   |        |   |   |     |      |   |   |   |   |   |   |   |   |   |
|  Non-owner occupied                 |   |      | -          |   |   |   | 14,668,359 |            |   |   | 3,515,251   |   |   |     | 962,466   |   |   |   | 61,800 |   |   |   | 19,207,876 |   |
|  Owner occupied                     |   |      | 537,468    |   |   |   | 18,001,532 |            |   |   | 1,647,757   |   |   |     | 3,238,439 |   |   |   | 122,713 |   |   |   | 23,547,909 |   |
|  Construction and development       |   |      | 546,791    |   |   |   | 1,385,662  |            |   |   | 31,324      |   |   |     | 992,510   |   |   |   |   |   |   |   | 2,956,287 |   |
|  Total                              |   | $         | 31,670,368 |   |   | $      | 57,267,423 |            |   | $      | 8,284,358   |   |   | $        | 7,471,956 |   |   | $      | 418,592 |   |   | $ | 105,112,697 |   |

----

| December 31, 2010                        |   | Not Rated |       |   | Pass   |   |       | Special Mention |   |   | Substandard |   |   | Doubtful |      |   | Total  |   |
|------------------------------------------|--------|-----------|------------|--------|--------|--------|------------|-----------------|--------|--------|-------------|--------|--------|----------|-----------|--------|--------|--------|
|                                     |   |      |       |   |   |   |       |            |   |   |        |   |   |     |      |   |   |   |
|  1-4 family residential mortgage    |   | $         | 23,135,647 |   |   | $      | 392,160    |            |   | $      | -           |   |   | $        | 197,341   |   |   | $      | 155,550 |   |   | $ | 23,880,698 |   |
|  1-4 family rental property         |   |      | -          |   |   |   | 5,413,008  |            |   |   | 453,930     |   |   |     | 573,030   |   |   |   | - |   |   |   | 6,439,968 |   |
|  Multi-family real estate           |   |      | 91,908     |   |   |   | 4,350,194  |            |   |   | 1,591,890   |   |   |     | 1,431,245 |   |   |   | - |   |   |   | 7,465,237 |   |
|  Home equity loans                  |   |      | 6,055,818  |   |   |   | 200,000    |            |   |   | 2,582       |   |   |     | 18,741    |   |   |   | - |   |   |   | 6,277,141 |   |
|  Consumer                           |   |      | 736,553    |   |   |   | -          |            |   |   | -           |   |   |     | -         |   |   |   | - |   |   |   | 736,553 |   |
|  Commercial                         |   |      | -          |   |   |   | 8,403,145  |            |   |   | 311,832     |   |   |     | 281,043   |   |   |   | 70,603 |   |   |   | 9,066,623 |   |
|  Commercial secured by trust assets |   |      | -          |   |   |   | 6,047,617  |            |   |   | -           |   |   |     | -         |   |   |   | - |   |   |   | 6,047,617 |   |
|  Commercial real estate:            |   |      |       |   |   |   |       |            |   |   |        |   |   |     |      |   |   |   |   |   |   |   |   |   |
|  Non-owner occupied                 |   |      | -          |   |   |   | 13,879,607 |            |   |   | 3,434,311   |   |   |     | 972,914   |   |   |   | - |   |   |   | 18,286,832 |   |
|  Owner occupied                     |   |      | -          |   |   |   | 18,659,084 |            |   |   | 1,722,292   |   |   |     | 3,427,262 |   |   |   | 127,245 |   |   |   | 23,935,883 |   |
|  Construction and development       |   |      | 262,922    |   |   |   | 592,301    |            |   |   | 32,824      |   |   |     | 1,249,802 |   |   |   | - |   |   |   | 2,137,849 |   |
|  Total                              |   | $         | 30,282,848 |   |   | $      | 57,937,116 |            |   | $      | 7,549,661   |   |   | $        | 8,151,378 |   |   | $      | 353,398 |   |   | $ | 104,274,401 |   |

|           |   | Residential |       |   |        |   |      |     |   |
|----------------|--------|-------------|------------|--------|-------------|--------|-----------|----------|--------|
| March 31, 2011 |   | 1-4 family  |       |   | Home Equity |   |      | Consumer |   |   | Total |   |
| Performing     |   | $           | 27,544,902 |   |        | $      | 6,481,116 |     |   | $ | 879,419 |   |   | $ | 34,905,437 |   |
| Nonperforming  |   |        | 366,702    |   |        |   | 11,940    |     |   |   | 166,117 |   |   |   | 544,759 |   |
| Total          |   | $           | 27,911,604 |   |        | $      | 6,493,056 |     |   | $ | 1,045,536 |   |   | $ | 35,450,196 |   |

|             |   | Residential |       |   |        |   |      |     |   |
|------------------|--------|-------------|------------|--------|-------------|--------|-----------|----------|--------|
| December31, 2010 |   | 1-4 Family  |       |   | Home Equity |   |      | Consumer |   |   | Total |   |
| Performing       |   | $           | 23,716,528 |   |        | $      | 6,277,141 |     |   | $ | 693,194 |   |   | $ | 30,686,863 |   |
| Nonperforming    |   |        | 164,170    |   |        |   | -         |     |   |   | 43,359 |   |   |   | 207,529 |   |
| Total            |   | $           | 23,880,698 |   |        | $      | 6,277,141 |     |   | $ | 736,553 |   |   | $ | 30,894,392 |   |

|                                  |   | March 31, |      |   | December 31, |   |
|---------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                  |   | 2011      |      |   | 2010         |   |
| Interest in limited liability company |   | $         | 1,305,437 |   |         | $      | 1,305,437 |   |
| Residential real estate               |   |      | 174,712   |   |         |   | 401,111 |   |
| Commercial real estate                |   |      |      |   |         |   | - |   |
| Multi-family real estate              |   |      | 389,525   |   |         |   | 320,753 |   |
| Land development                      |   |      | 382,501   |   |         |   | 324,001 |   |
| Total                                 |   | $         | 2,252,175 |   |         | $      | 2,351,302 |   |

----

|                                                           |   | March 31, |       |   | December 31, |   |
|----------------------------------------------------------------|--------|-----------|------------|--------|--------------|--------|
|                                                           |   | 2011      |       |   | 2010         |   |
| Available for sale securities                                  |   | $         | 16,816,032 |   |         | $      | 25,206,895 |   |
|                                                           |   |      |       |   |         |   |   |   |
| Quoted prices on active markets for identical assets (Level 1) |   |      |       |   |         |   |   |   |
| Equity securities                                              |   |      | 192,150    |   |         |   | 70,720 |   |
| Significant other observable inputs (Level 2)                  |   |      |       |   |         |   |   |   |
| U.S. government sponsored enterprises                          |   |      | 4,797,453  |   |         |   | 8,263,426 |   |
| Mortgage-backed securities issued by U.S. Government-          |   |      |       |   |         |   |   |   |
| sponsored enterprises                                          |   |      | 11,584,201 |   |         |   | 16,625,183 |   |
| Other mortgage backed securities                               |   |      | 242,228    |   |         |   | 247,566 |   |
| Significant unobservable inputs (Level 3)                      |   |      | -          |   |         |   | - |   |

----

|                                    |   | Fair Value Measurements Using |   |
|-----------------------------------------|--------|-------------------------------|--------|
|                                    |   |                          |   |   | Significant |   |   |   |   |   |   |   |
|                                    |   | Quoted Prices in              |   |   | Other |   |   | Significant |   |   |   |   |
|                                    |   | Active Markets for            |   |   | Observable |   |   | Unobservable |   |   |   |   |
|                                    |   | Identical Assets              |   |   | Inputs |   |   | Inputs |   |   |   |   |
|                                    |   | (Level 1)                     |   |   | (Level 2) |   |   | (Level 3) |   |   | Total |   |
| March 31, 2011:                         |   |                          |   |   |   |   |   |   |   |   |   |   |
| Impaired loans:                         |   |                          |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential mortgage         |   |                          | -      |   |   |   | - |   |   | $ | 360,267 |   |   | $ | 360,267 |   |
| 1-4 family rental property              |   |                          | -      |   |   |   | - |   |   |   | 196,666 |   |   |   | 196,666 |   |
| Home equity                             |   |                          |   |   |   |   |   |   |   |   | 11,940 |   |   |   | 11,940 |   |
| Multi-family real estate                |   |                          | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                              |   |                          | -      |   |   |   | - |   |   |   | 222,923 |   |   |   | 222,923 |   |
| Commercial real estate:                 |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-owner occupied                      |   |                          | -      |   |   |   | - |   |   |   | 217,971 |   |   |   | 217,971 |   |
| Owner occupied                          |   |                          | -      |   |   |   | - |   |   |   | 1,225,582 |   |   |   | 1,225,582 |   |
| Construction and development            |   |                          | -      |   |   |   | - |   |   |   | 992,510 |   |   |   | 992,510 |   |
|                                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets acquired in settlement of loans: |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                             |   |                          | -      |   |   |   | - |   |   |   | 174,711 |   |   |   | 174,711 |   |
| Construction                            |   |                          | -      |   |   |   | - |   |   |   | 324,001 |   |   |   | 324,001 |   |
|                                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                      |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans:                         |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family residential mortgage         |   |                          | -      |   |   |   | - |   |   | $ | 157,735 |   |   | $ | 157,735 |   |
| 1-4 family rental property              |   |                          | -      |   |   |   | - |   |   |   | 278,673 |   |   |   | 278,673 |   |
| Multi-family real estate                |   |                          | -      |   |   |   | - |   |   |   | 68,772 |   |   |   | 68,772 |   |
| Commercial                              |   |                          | -      |   |   |   | - |   |   |   | 247,731 |   |   |   | 247,731 |   |
| Commercial real estate:                 |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-owner occupied                      |   |                          | -      |   |   |   | - |   |   |   | 174,750 |   |   |   | 174,750 |   |
| Owner occupied                          |   |                          | -      |   |   |   | - |   |   |   | 1,341,007 |   |   |   | 1,341,007 |   |
| Construction and development            |   |                          | -      |   |   |   | - |   |   |   | 1,134,139 |   |   |   | 1,134,139 |   |
|                                    |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets acquired in settlement of loans: |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                             |   |                          | -      |   |   |   | - |   |   |   | 401,112 |   |   |   | 401,112 |   |
| Construction                            |   |                          | -      |   |   |   | - |   |   |   | 324,001 |   |   |   | 324,001 |   |

|                                            |   | March 31, 2011   |         |   | December 31, 2010    |   |
|-------------------------------------------------|--------|------------------|--------------|--------|----------------------|--------|
|                                            |   | Carrying Amounts |         |   | Estimated Fair Value |   |   | Carrying Amounts |   |   | Estimated Fair Value |   |
| Financial assets                                |   |             |         |   |                 |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $                | 38,330,000   |   |                 | $      | 38,330,000 |   |   | $ | 32,682,000 |   |   | $ | 32,682,000 |   |
| Certificate of deposit in financial institution |   |             | 100,000      |   |                 |   | 100,000 |   |   |   | 100,000 |   |   |   | 100,000 |   |
| Securities available for sale                   |   |             | 16,816,000   |   |                 |   | 16,816,000 |   |   |   | 25,207,000 |   |   |   | 25,207,000 |   |
| Securities held to maturity                     |   |             | 2,816,000    |   |                 |   | 2,897,000 |   |   |   | 2,816,000 |   |   |   | 2,885,000 |   |
| Loans held for sale                             |   |             | 222,000      |   |                 |   | 226,000 |   |   |   | 637,000 |   |   |   | 637,000 |   |
| Loans, net                                      |   |             | 101,953,000  |   |                 |   | 101,119,000 |   |   |   | 101,146,000 |   |   |   | 100,206,000 |   |
| Federal bank stock                              |   |             | 1,518,000    |   |                 | NA     |   |   |   | 1,557,700 |   |   | NA |   |
| Accrued interest receivable                     |   |             | 438,000      |   |                 |   | 438,000 |   |   |   | 429,000 |   |   |   | 429,000 |   |
|                                            |   |             |         |   |                 |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |             |         |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                           |   |             |         |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                        |   |             | (145,386,000 | )      |                 |   | (145,786,000 | ) |   |   | (143,216,000 | ) |   |   | (143,669,000 | ) |
| Repurchase agreements                           |   |             | (5,508,000   | )      |                 |   | (5,508,000 | ) |   |   | (4,391,000 | ) |   |   | (4,391,000 | ) |
| Federal Home Loan Bank advances                 |   |             | -            |   |                 |   | - |   |   |   | (5,000,000 | ) |   |   | (5,013,000 | ) |
| Accrued interest payable                        |   |             | (49,000      | )      |                 |   | (49,000 | ) |   |   | (69,000 | ) |   |   | (69,000 | ) |

----

|                   |   | 2011    |      |
|------------------------|--------|---------|-----------|
|                   |   | Options |      |   | Weighted Average Exercise Price |   |
| Outstanding, January 1 |   |    | 1,330,400 |   |   | $ | 2.30 |   |
| Granted                |   |    | -         |   |   |   | - |   |
| Forfeited              |   |    | (500      | ) |   |   | 2.30 |   |
| Exercised              |   |    | -         |   |   |   | - |   |
| Outstanding, March 31  |   |    | 1,329,900 |   |   | $ | 2.30 |   |

|                            |   | 2010      |          |
|---------------------------------|--------|-----------|---------------|
| Risk-free interest rate         |   |      | 1.11% - 1.83% |   |
| Expected term                   |   | 6.5 years |          |
| Expected stock price volatility |   |      | 0.298         |   |
| Dividend yield                  |   |      | 0%            |   |

----

| For the remainder of 2011 |   | $      | 156,390 |   |
|---------------------------|--------|--------|---------|--------|
| 2012                      |   |   | 207,151 |   |
| 2013                      |   |   | 207,151 |   |
| 2014                      |   |   | 207,151 |   |
| 2015                      |   |   | 103,127 |   |
| Total                     |   | $      | 880,970 |   |

|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   | To Be Well-       |   |
|----------------------------------------|--------|--------|--------|--------|-------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|--------|--------|--------|-------------------|--------|
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   | Capitalized Under |   |
|                                   |   |   |   |   |        |   |   | Consent Order     |   |   | For Capital       |   |   | Prompt Corrective |   |
|                                   |   | Actual |   |   | Requirement |   |   | Adequacy Purposes |   |   | Action Provisions |   |
| (Dollars in thousands)                 |   | Amount |   |   | Ratio       |   |   | Amount            |   |   | Ratio             |   |   | Amount            |   |   | Ratio  |   |   | Amount            |   |   | Ratio |   |
| March 31, 2011:                        |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |
| Total capital to risk-weighted assets  |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |
| Premier Bank & Trust               |   | $      | 17,015 |   |        |   | 16.4   | %                 |   | $      | 13,732            |   |   |              | 13.25  | %      |   | $      | 8,291  |              |   |   | 8.0 | % |   | $ | 10,364 |   |   |   | 10.0 | % |
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital to risk-weighted assets |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Premier Bank & Trust               |   |   | 15,705 |   |        |   | 15.2   | %                 |   | na     |              |   | na     |              |   |   | 4,145  |   |   |              | 4.0    | % |   |   | 6,218 |   |   |   | 6.0 | % |
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital to average assets       |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Premier Bank & Trust               |   |   | 15,705 |   |        |   | 9.4    | %                 |   | $      | 14,657            |   |   |              | 8.75   | %      |   |   | 6,700  |              |   |   | 4.0 | % |   |   | 8,375 |   |   |   | 5.0 | % |
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                     |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital to risk-weighted assets  |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Premier Bank & Trust               |   | $      | 17,507 |   |        |   | 17.1   | %                 |   | $      | 13,552            |   |   |              | 13.25  | %      |   | $      | 8,182  |              |   |   | 8.0 | % |   | $ | 10,228 |   |   |   | 10.0 | % |
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital to risk-weighted assets |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Premier Bank & Trust               |   |   | 16,207 |   |        |   | 15.8   | %                 |   | na     |              |   | na     |              |   |   | 4,091  |   |   |              | 4.0    | % |   |   | 6,137 |   |   |   | 6.0 | % |
|                                   |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 capital to average assets       |   |   |   |   |        |   |   |              |   |   |              |   |   |              |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Premier Bank & Trust               |   |   | 16,207 |   |        |   | 9.6    | %                 |   | $      | 14,716            |   |   |              | 8.75   | %      |   |   | 6,727  |              |   |   | 4.0 | % |   |   | 8,409 |   |   |   | 5.0 | % |

----

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| ·   | competition in the industry and markets in which we operate; |
|--------------------|--------------------------------------------------------------|

| ·   | rapid changes in technology affecting the financial services industry; |
|--------------------|------------------------------------------------------------------------|

| ·   | changes in government regulation; |
|--------------------|-----------------------------------|

| ·   | general economic and business conditions; |
|--------------------|-------------------------------------------|

| ·   | changes in industry conditions created by state and federal legislation and regulations; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | changes in general interest rates and the impact of future interest rate changes on our profitability, capital adequacy and the fair value of our financial assets and liabilities; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to retain existing customers and attract new customers; |
|--------------------|---------------------------------------------------------------------|

| ·   | our development of new products and services and their success in the marketplace; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | the adequacy of our allowance for loan losses; and |
|--------------------|----------------------------------------------------|

| ·   | our anticipated loan and deposit account growth, expense levels, liquidity and capital resources and projections of earnings. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Total assets decreased $2.4 million from $170.6 million to $168.2 million as the Company reduced the leverage in the balance sheet through the repayment of $5 million in debt with the Federal Home Loan Bank. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Liquidity remained high with cash and cash equivalents increasing $5.6 million to $38.3 million. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | Total deposits increased $2.2 million from $143.2 million to $145.4 million with a continuation of the trend by depositors to invest in money market funds reducing time deposits. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Total shareholders’ equity decreased $409,000 from $16.5 million to $16.1 million due to the operating loss recorded by the Company for the first quarter of 2011. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Bank’s capital ratios exceeded the minimum ratios required by the Consent Order; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Net loans increased modestly by $807,000 to $102.0 million. |
|--------------------|-------------------------------------------------------------|

| ·   | Nonperforming assets (including nonaccrual loans, loans past due ninety days and still accruing interest and assets acquired in settlement of loans) were nearly unchanged at $5.8 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company incurred a net loss of $468,567 for the first quarter of 2011, down from $1.3 million for the same quarter in 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net interest income improved by $90,137 compared to the same period in 2010. |
|--------------------|------------------------------------------------------------------------------|

| ·   | The provision for loan loss was $23,772 compared to $76,772 for the same period in 2010. |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | Noninterest expense decreased by $563,413 principally due to the absence of investor expenses of $517,222 recorded in the first quarter of 2010 in connection with the assignment of promissory notes from Excel Financial to the Company in connection with the assignment of the Stock Purchase Agreement to Excel Bancorp by Excel Financial. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Credit quality is expected to remain a primary focus of the Company, and costs associated with credit administration and collection efforts will remain high; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Commercial lending,  with an emphasis on commercial and industrial lending, and new services in trust, brokerage and wealth management are expected to expand; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating expenses associated with the change in management during 2010 and new services are expected to be higher than the historical compensation costs at the Company; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest income related to the introduction of trust, investment and wealth management services during the second quarter of 2010 is expected to expand. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Bank’s costs associated with its regulatory risk profile including FDIC insurance and regulatory examination costs will remain high until asset quality and earnings improve. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|                                                                   |   | Three Months Ended March 31, |    |
|------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                   |   | 2011                         |    |   | 2010 |   |
|                                                                   |   |                         |    |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                                                   |   | Average                      |    |   | Earned/ |   |   | Yield/ |   |   | Average |   |   | Earned/ |   |   | Yield/ |   |
| (Dollars in Thousands)                                                 |   | Balance                      |    |   | Paid |   |   | Rate |   |   | Balance |   |   | Paid |   |   | Rate |   |
| Assets                                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                               |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits in                                           |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other financial institutions and federal funds sold                    |   | $                            | 32,306  |   |   | $ | 18 |   |   |   | 0.22 | % |   | $ | 27,651 |   |   | $ | 12 |   |   |   | 0.18 | % |
| Securities available for sale                                          |   |                         | 22,335  |   |   |   | 148 |   |   |   | 2.65 | % |   |   | 26,539 |   |   |   | 260 |   |   |   | 3.92 | % |
| Securities held to maturity                                            |   |                         | 2,816   |   |   |   | 27 |   |   |   | 3.86 | % |   |   | 2,997 |   |   |   | 29 |   |   |   | 3.81 | % |
| Federal agency stock                                                   |   |                         | 1,556   |   |   |   | 20 |   |   |   | 5.04 | % |   |   | 1,267 |   |   |   | 15 |   |   |   | 4.82 | % |
| Loans (1)                                                              |   |                         | 100,745 |   |   |   | 1,394 |   |   |   | 5.61 | % |   |   | 96,991 |   |   |   | 1,504 |   |   |   | 6.29 | % |
|   Total interest-earning assets                              |   |                         | 159,758 |   |   |   | 1,607 |   |   |   | 4.08 | % |   |   | 155,445 |   |   |   | 1,820 |   |   |   | 4.75 | % |
| Noninterest-earning assets                                             |   |                         | 8,304   |   |   |   |   |   |   |   |   |   |   |   | 10,428 |   |   |   |   |   |   |   |   |   |
| Total assets                                                           |   | $                            | 168,062 |   |   |   |   |   |   |   |   |   |   | $ | 165,873 |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing demand deposits                                       |   | $                            | 9,322   |   |   | $ | 7 |   |   |   | 0.31 | % |   | $ | 9,535 |   |   | $ | 16 |   |   |   | 0.67 | % |
| Savings accounts                                                       |   |                         | 14,548  |   |   |   | 16 |   |   |   | 0.43 | % |   |   | 16,879 |   |   |   | 37 |   |   |   | 0.90 | % |
| Money market accounts                                                  |   |                         | 47,916  |   |   |   | 80 |   |   |   | 0.68 | % |   |   | 40,089 |   |   |   | 86 |   |   |   | 0.87 | % |
| Certificates of deposit                                                |   |                         | 52,015  |   |   |   | 223 |   |   |   | 1.74 | % |   |   | 56,968 |   |   |   | 381 |   |   |   | 2.71 | % |
| Total interest-bearing deposits                                        |   |                         | 123,801 |   |   |   | 326 |   |   |   | 1.07 | % |   |   | 123,471 |   |   |   | 520 |   |   |   | 1.71 | % |
| Other Borrowings                                                       |   |                         | 6,293   |   |   |   | 33 |   |   |   | 2.11 | % |   |   | 16,525 |   |   |   | 142 |   |   |   | 3.51 | % |
|       Total Interest-bearing liabilities |   |                         | 130,094 |   |   |   | 359 |   |   |   | 1.12 | % |   |   | 139,996 |   |   |   | 662 |   |   |   | 1.92 | % |
| Noninterest-bearing demand deposits                                    |   |                         | 20,785  |   |   |   |   |   |   |   |   |   |   |   | 15,320 |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing liabilities                                        |   |                         | 881     |   |   |   |   |   |   |   |   |   |   |   | 817 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                      |   |                         | 151,760 |   |   |   |   |   |   |   |   |   |   |   | 156,133 |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                                                   |   |                         | 16,302  |   |   |   |   |   |   |   |   |   |   |   | 9,740 |   |   |   |   |   |   |   |   |   |
|     Total liabilities and                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       shareholders' equity               |   | $                            | 168,062 |   |   |   |   |   |   |   |   |   |   | $ | 165,873 |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income; interest rate spread (2)                          |   |                         |    |   |   | $ | 1,248 |   |   |   | 2.96 | % |   |   |   |   |   | $ | 1,158 |   |   |   | 2.83 | % |
| Net earning assets                                                     |   | $                            | 29,664  |   |   |   |   |   |   |   |   |   |   | $ | 15,449 |   |   |   |   |   |   |   |   |   |
| Net interest margin (3)                                                |   |                         |    |   |   |   |   |   |   |   | 3.17 | % |   |   |   |   |   |   |   |   |   |   | 3.02 | % |
|                                                                   |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to interest-bearing liabilities        |   |                         | 1.23    |   |   |   | X |   |   |   |   |   |   |   | 1.11 |   |   |   | X |   |   |   |   |   |

| (1) | Net of net deferred loan fees and costs and loans in process. Non-accrual loans are reported in non-interest earning assets in this table. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

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

| (3) | Net interest margin represents net interest income, annualized, divided by average interest-earning assets. |
|-----|-------------------------------------------------------------------------------------------------------------|

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----

----

----

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| Exhibit Number |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                              |
|----------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1            |   | Stock Purchase Agreement, dated as of November 15, 2009, by and among Excel Financial, LLC, Ohio Legacy Corp and Ohio Legacy Bank, National Association (incorporated herein by reference to Exhibit 99.2 to Ohio Legacy Corp’s Current Report on Form 8-K filed on November 16, 2009 (File No. 0-31673))                                                     |
| 3.1            |   | Second Amended and Restated Articles of Incorporation of Ohio Legacy Corp as filed with the Ohio Secretary of State on August 5, 2003 (incorporated herein by reference to Exhibit 3.1 to Ohio Legacy Corp’s Quarterly Report on Form 10QSB for the fiscal quarter ended June 30, 2003 (File No. 0-31673))                                                    |
| 3.2            |   | Amendment to Article Fourth of the Second Amended and Restated Articles of Incorporation of Ohio Legacy Corp as filed with the Ohio Secretary of State on February 5, 2010 (incorporated herein by reference to Exhibit 3.2 to Ohio Legacy Corp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (File No. 0-31673))                  |
| 3.3            |   | Code of Regulations of Ohio Legacy Corp (incorporated herein by reference to Exhibit 3.2 to Ohio Legacy Corp’s Annual Report on Form 10KSB for the fiscal year ended December 31, 2003 (File No. 0-31673))                                                                                                                                                    |
| 3.4            |   | Amendment No. 1 to Code of Regulations of Ohio Legacy Corp (incorporated herein by reference to Exhibit 3.2 to Ohio Legacy Corp’s Annual Report on Form 10KSB for the fiscal year ended December 31, 2003 (File No. 0-31673))                                                                                                                                 |
| 10.1*          |   | Ohio Legacy Corp. 2010 Equity and Cash Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Ohio Legacy Corp’s Current Report on Form 8-K filed May 20, 2010 (File No. 0-31673))                                                                                                                                                               |
| 10.2*     |   | Form of Incentive Stock Option Award Agreement under Ohio Legacy Corp. 2010 Equity and Cash Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Ohio Legacy Corp’s Current Report on Form 8-K filed July 15, 2010 (File No. 0-31673))                                                                                                         |
| 10.3*          |   | Form of Nonqualified Stock Option Award Agreement under Ohio Legacy Corp. 2010 Equity and Cash Incentive Plan (incorporated herein by reference to Exhibit 10.2 to Ohio Legacy Corp’s Current Report on Form 8-K filed July 15, 2010 (File No. 0-31673))                                                                                                      |
| 10.4*          |   | Amended and Restated Employment Agreement, dated as of May 24, 2005, by and among Ohio Legacy Corp, Ohio Legacy Bank, N.A., and Michael D. Kramer (incorporated herein by reference to Exhibit 10.11 to Ohio Legacy Corp’s Current Report on Form 8-K filed May 26, 2005 (File No. 0-31673))                                                                  |
| 10.5*          |   | Change in Control Agreement, dated as of December 18, 2007, by and between Ohio Legacy Bank and Gregory A. Spradlin (incorporated herein by reference to Exhibit 10.13 to Ohio Legacy Corp’s Annual Report on Form 10KSB for the fiscal year ended December 31, 2007 (File No. 0-31673))                                                                      |
| 10.6*          |   | Change in Control Agreement, dated as of February 4, 2009, by and between Ohio Legacy Bank and Vanessa Richards (incorporated herein by reference to Exhibit 10.8 to Ohio Legacy Corp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (File No. 0-31673))                                                                            |
| 10.7*          |   | Form of Stock Option and Warrant Cancellation and Surrender Agreement, effective as of February 19, 2010, by and between Ohio Legacy Corp and each of its directors and executive officers (incorporated herein by reference to Exhibit 10.7 to Ohio Legacy Corp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (File No. 0-31673)) |
| 10.8*     |   | Termination Agreement, effective as of February 19, 2010, by and between Ohio Legacy Corp and D. Michael Kramer (incorporated herein by reference to Exhibit 10.8 to Ohio Legacy Corp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (File No. 0-31673))                                                                            |
| 10.9*          |   | Termination Agreement, effective as of February 19, 2010, by and between Ohio Legacy Corp and Vanessa Richards (incorporated herein by reference to Exhibit 10.9 to Ohio Legacy Corp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (File No. 0-31673))                                                                             |
| 10.10*         |   | Termination Agreement, effective as of February 19, 2010, by and between Ohio Legacy Corp and Gregory A. Spradlin (incorporated herein by reference to Exhibit 10.10 to Ohio Legacy Corp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (File No. 0-31673))                                                                         |
| 21             |   | Subsidiary of Ohio Legacy Corp                                                                                                                                                                                                                                                                                                                                      |
| 23             |   | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                            |
| 31.1           |   | Rule 13a-14(a)/15d-14(a) Certification (Principal Executive Officer)                                                                                                                                                                                                                                                                                                |
| 31.2           |   | Rule 13a-14(a)/15d-14(a) Certification (Principal Financial Officer)                                                                                                                                                                                                                                                                                                |
| 32.1           |   | Section 1350 Certification (Principal Executive Officer and Principal Financial Officer)                                                                                                                                                                                                                                                                            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                |

----

|        |                                                             |   |   |   |   |
|-------------|------------------------------------------------------------------|--------|--------|--------|--------|
| By:    | /s/ Rick L. Hull                                                 |   |   |   |   |
|        | Rick L. Hull, President and Chief Executive Officer and Director |   |   |   |
|        | (principal executive officer)                                    |   |   |   |
|        |                                                             |   |   |   |   |
| Date:  | May 13, 2011                                                     |   |   |   |   |

|      |                                                                     |   |   |   |   |
|-----------|--------------------------------------------------------------------------|--------|--------|--------|--------|
| By:  | /s/ Jane Marsh                                                           |   |   |   |   |
|      | Jane Marsh, Senior Vice President, Chief Financial Officer and Treasurer |   |   |   |
|      | (principal financial officer and principal accounting officer)           |   |   |   |

----