----

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| Delaware                                                       | 20-1636029                              |
|----------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

| Large accelerated filer |  ̈ | Accelerated filer         |  ̈ |
|-------------------------|--------|---------------------------|--------|
| Non-accelerated filer   |  ̈ | Smaller reporting company | ý |

| Class                         | Outstanding as of May 13, 2010 |
|-------------------------------|-------------------------------------|
| Common Stock, $0.01 par value | 2,562,606                           |

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Table of Contents

TABLE OF CONTENTS

| PART I – FINANCIAL INFORMATION                                                                         | Page   |
|--------------------------------------------------------------------------------------------------------------|--------|
| Item 1.Financial Statements                                                                                  |   |
| Consolidated Statements of Financial Condition as of March 31, 2010 and June 30, 2009              | 1      |
| Consolidated Statements of Operations for the three and nine months ended March 31, 2010 and 2009       | 2      |
| Consolidated Statements of Stockholders’ Equity for the nine months ended March 31, 2010 and 2009 | 3      |
| Consolidated Statements of Cash Flows for the nine months ended March 31, 2010 and 2009                 | 5      |
| Notes to Unaudited Financial Statements                                                                      | 6      |
| Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations           | 12     |
| Item 3.Quantitative and Qualitative Disclosures About Market Risk                                            | 22     |
| Item 4T.Controls and Procedures                                                                              | 22     |
|                                                                                                         |   |
| PART II – OTHER INFORMATION                                                                       |   |
| Item 1.Legal Proceedings                                                                                     | 23     |
| Item 1A.Risk Factors                                                                                         | 23     |
| Item 2.Unregistered Sales of Equity Securities and Use of Proceeds                                           | 23     |
| Item 3.Defaults Upon Senior Securities                                                                       | 23     |
| Item 4.(Removed and Reserved)                                                                                | 23     |
| Item 5.Other Information                                                                                     | 23     |
| Item 6.Exhibits                                                                                              | 23     |
|                                                                                                         |   |
| SIGNATURES                                                                                                   | 24     |
|                                                                                                         |   |
| EXHIBIT INDEX                                                                                           | 25     |

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Table of Contents

PART I. – FINANCIAL INFORMATION

Item 1.  Financial Statements

ROYAL FINANCIAL, INC. AND SUBSIDIARY

|                                                                                                                                       |   | March 31, 2010 |       |   | June 30, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|--------------------|--------|
|                                                                                                                                       |   | (Unaudited)         |       |   |               |   |
| ASSETS                                                                                                                                     |   |                |       |   |               |   |
| Cash and non-interest-bearing balances in financial institutions                                                                           |   | $                   | 2,132,463  |   |               | $      | 2,764,827 |   |
| Interest-bearing balances in financial institutions                                                                                        |   |                | 752,573    |   |               |   | 401,098 |   |
| Federal funds sold                                                                                                                         |   |                | —    |   |               |   | 6,329 |   |
| Total cash and cash equivalents                                                                                                            |   |                | 2,885,036  |   |               |   | 3,172,254 |   |
| Securities available-for-sale                                                                                                              |   |                | 5,438,275  |   |               |   | 3,996,370 |   |
| Loans receivable, net of allowance for loan losses of $4,070,000 at March 31, 2010 and $5,225,000 at June 30, 2009               |   |                | 68,475,155 |   |               |   | 82,222,237 |   |
| Federal Home Loan Bank stock, at cost                                                                                                      |   |                | 381,300    |   |               |   | 381,300 |   |
| Premises and equipment, net                                                                                                                |   |                | 3,777,360  |   |               |   | 3,887,347 |   |
| Land available for sale                                                                                                                    |   |                | 686,556    |   |               |   | 686,556 |   |
| Accrued interest receivable                                                                                                                |   |                | 326,668    |   |               |   | 346,716 |   |
| Other real estate owned                                                                                                                    |   |                | 294,339    |   |               |   | 44,000 |   |
| Other assets                                                                                                                               |   |                | 449,430    |   |               |   | 111,650 |   |
|                                                                                                                                       |   |                |       |   |               |   |   |   |
| Total assets                                                                                                                               |   | $                   | 82,714,119 |   |               | $      | 94,848,430 |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                 |   |                |       |   |               |   |   |   |
| Liabilities                                                                                                                                |   |                |       |   |               |   |   |   |
| Deposits                                                                                                                                   |   | $                   | 64,322,323 |   |               | $      | 70,486,574 |   |
| Advances from borrowers for taxes and insurance                                                                                            |   |                | 255,851    |   |               |   | 591,046 |   |
| Federal Home Loan Bank advances                                                                                                            |   |                | 150,000    |   |               |   | 3,900,000 |   |
| Federal funds purchased                                                                                                                    |   |                | 67,561     |   |               |   | — |   |
| Accrued interest payable and other liabilities                                                                                             |   |                | 733,823    |   |               |   | 1,108,203 |   |
| Common stock in ESOP subject to contingent repurchase obligation                                                                           |   |                | 243,340    |   |               |   | 312,110 |   |
| Total liabilities                                                                                                                          |   |                | 65,772,898 |   |               |   | 76,397,933 |   |
| Stockholders’ equity                                                                                                                 |   |                |       |   |               |   |   |   |
| Preferred stock, $.01 par value per share, authorized 1,000,000 shares; no issues are outstanding                                          |   |                | —    |   |               |   | — |   |
| Common stock, $.01 par value per share, authorized 5,000,000 shares, 2,645,000 shares issued at March 31, 2010 and June 30, 2009 |   |                | 26,450     |   |               |   | 26,450 |   |
| Additional paid-in capital                                                                                                                 |   |                | 24,812,166 |   |               |   | 24,783,189 |   |
| Retained deficit                                                                                                                           |   |                | (5,235,863 | )      |               |   | (3,426,399 | ) |
| Treasury stock, 82,394 shares and 86,510 shares, at cost                                                                                   |   |                | (1,219,752 | )      |               |   | (1,280,875 | ) |
| Accumulated other comprehensive loss                                                                                                       |   |                | (61,725    | )      |               |   | (2,396 | ) |
| Unearned ESOP shares                                                                                                                       |   |                | (1,136,715 | )      |               |   | (1,337,362 | ) |
| Reclassification of ESOP shares                                                                                                            |   |                | (243,340   | )      |               |   | (312,110 | ) |
| Total stockholders’ equity                                                                                                           |   |                | 16,941,221 |   |               |   | 18,450,497 |   |
|                                                                                                                                       |   |                |       |   |               |   |   |   |
| Total liabilities and stockholders’ equity                                                                                           |   | $                   | 82,714,119 |   |               | $      | 94,848,430 |   |

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Table of Contents

ROYAL FINANCIAL, INC. AND SUBSIDIARY

|                                                                                                                                                                                                                                                                                                            |   | Three Months EndedMarch 31, |      |   | Nine Months EndedMarch 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                            |   | 2010                             |      |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
| Interest income                                                                                                                                                                                                                                                                                                 |   |                             |      |   |                            |   |   |   |   |   |   |   |
| Loans                                                                                                                                                                                                                                                                                                           |   | $                                | 989,884   |   |                            | $      | 1,232,627 |   |   | $ | 3,364,974 |   |   | $ | 4,187,274 |   |
| Securities, taxable                                                                                                                                                                                                                                                                                             |   |                             | 81,072    |   |                            |   | 32,164 |   |   |   | 147,469 |   |   |   | 144,949 |   |
| Federal funds sold and other                                                                                                                                                                                                                                                                                    |   |                             | 343       |   |                            |   | 269 |   |   |   | 1,121 |   |   |   | 9,502 |   |
| Total interest income                                                |   |                             | 1,071,299 |   |                            |   | 1,265,060 |   |   |   | 3,513,564 |   |   |   | 4,341,725 |   |
| Interest expense                                                                                                                                                                                                                                                                                                |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                        |   |                             | 146,662   |   |                            |   | 235,786 |   |   |   | 535,857 |   |   |   | 884,099 |   |
| Federal Home Loan Bank advances and other borrowings                                                                                                                                                                                                                                                            |   |                             | 4,366     |   |                            |   | 4,860 |   |   |   | 9,028 |   |   |   | 33,949 |   |
| Total interest expense                                                                                                                                                                                                                                                                                          |   |                             | 151,028   |   |                            |   | 240,646 |   |   |   | 544,885 |   |   |   | 918,048 |   |
| Net interest income                                                                                                                                                                                                                                                                                             |   |                             | 920,271   |   |                            |   | 1,024,414 |   |   |   | 2,968,679 |   |   |   | 3,423,677 |   |
| Provision for loan losses                                                                                                                                                                                                                                                                                       |   |                             | 360,393   |   |                            |   | 1,939,493 |   |   |   | 1,745,662 |   |   |   | 2,840,100 |   |
| Net interest income after provision for loan losses                                                                                                                                                                                                                                                             |   |                             | 559,878   |   |                            |   | (915,079 | ) |   |   | 1,223,017 |   |   |   | 583,577 |   |
| Non-interest income                                                                                                                                                                                                                                                                                             |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                                                                                                                                                                                                                                                                             |   |                             | 50,856    |   |                            |   | 64,130 |   |   |   | 172,881 |   |   |   | 218,897 |   |
| Earnings on cash surrender value of life insurance                                                                                                                                                                                                                                                              |   |                             | —   |   |                            |   | 16,683 |   |   |   | — |   |   |   | 114,866 |   |
| Gain on sale of securities                                                                                                                                                                                                                                                                                      |   |                             | —   |   |                            |   | 53,364 |   |   |   | — |   |   |   | 53,364 |   |
| Other income                                                                                                                                                                                                                                                                                                    |   |                             | 10,163    |   |                            |   | 10,069 |   |   |   | 28,215 |   |   |   | 41,622 |   |
| Total non-interest income                                                                                                                                                                                                                                                                                       |   |                             | 61,019    |   |                            |   | 144,246 |   |   |   | 201,096 |   |   |   | 428,749 |   |
| Non-interest expense                                                                                                                                                                                                                                                                                            |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                                                                                                                                                                                                                                                                  |   |                             | 507,190   |   |                            |   | 590,916 |   |   |   | 1,573,193 |   |   |   | 1,828,167 |   |
| Occupancy and equipment                                                                                                                                                                                                                                                                                         |   |                             | 168,858   |   |                            |   | 256,022 |   |   |   | 457,096 |   |   |   | 747,243 |   |
| Data processing                                                                                                                                                                                                                                                                                                 |   |                             | 63,017    |   |                            |   | 94,610 |   |   |   | 201,068 |   |   |   | 293,624 |   |
| Professional services                                                                                                                                                                                                                                                                                           |   |                             | 78,533    |   |                            |   | 163,425 |   |   |   | 418,615 |   |   |   | 537,447 |   |
| Director fees                                                                                                                                                                                                                                                                                                   |   |                             | 34,200    |   |                            |   | 38,400 |   |   |   | 108,200 |   |   |   | 113,500 |   |
| Supplies                                                                                                                                                                                                                                                                                                        |   |                             | 12,072    |   |                            |   | 13,514 |   |   |   | 36,864 |   |   |   | 30,240 |   |
| Marketing                                                                                                                                                                                                                                                                                                       |   |                             | 7,899     |   |                            |   | 992 |   |   |   | 29,647 |   |   |   | 8,596 |   |
| FDIC insurance expense                                                                                                                                                                                                                                                                                          |   |                             | 39,909    |   |                            |   | 70,824 |   |   |   | 85,729 |   |   |   | 87,700 |   |
| Insurance premiums                                                                                                                                                                                                                                                                                              |   |                             | 15,229    |   |                            |   | 15,703 |   |   |   | 47,122 |   |   |   | 47,043 |   |
| Foreclosed asset expense                                                                                                                                                                                                                                                                                        |   |                             | 41,558    |   |                            |   | 25,670 |   |   |   | 120,438 |   |   |   | 47,420 |   |
| Other                                                                                                                                                                                                                                                                                                           |   |                             | 28,350    |   |                            |   | 166,439 |   |   |   | 155,605 |   |   |   | 332,366 |   |
| Total non-interest expense                                                                                                                                                                                                                                                                                      |   |                             | 996,815   |   |                            |   | 1,436,515 |   |   |   | 3,233,577 |   |   |   | 4,073,346 |   |
| Net loss                                                                                                                                                                                                                                                                                                        |   | $                                | (375,918  | )      |                            | $      | (2,207,348 | ) |   | $ | (1,809,464 | ) |   | $ | (3,061,020 | ) |
|                                                                                                                                                                                                                                                                                                            |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per share                                                                                                                                                                                                                                                                                |   | $                                | (0.13     | )      |                            | $      | (0.92 | ) |   | $ | (0.74 | ) |   | $ | (1.28 | ) |
| Comprehensive loss                                                                                                                                                                                                                                                                                              |   | $                                | (435,247  | )      |                            | $      | (2,224,488 | ) |   | $ | (1,868,793 | ) |   | $ | (3,065,410 | ) |

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Table of Contents

ROYAL FINANCIAL, INC. AND SUBSIDIARY

| 2009                                                                                                             |   | Common Stock |    |   | AdditionalPaid-In Capital |   |       | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome |   |   | UnearnedESOP Shares |          |    | AmountReclassified on ESOP Shares |   |       | TreasuryStock |   |   | Total    |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|---------------------------|--------|------------|------------------|--------|--------|-------------------------------------|--------|--------|---------------------|---------------|---------|----------------------------------------|--------|------------|---------------|--------|--------|----------|--------|
| Balance at July 1, 2008                                                                                          |   | $            | 26,450  |   |                      | $      | 24,672,588 |             |   | $      | 8,759,470                           |   |   | $                   | 12,376        |    |                                   | $      | (1,604,774 | )             |   | $      | (643,264 | )      |   | $ | (1,326,286 | ) |   | $ | 29,896,560 |   |
| Comprehensive loss:                                                                                              |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                         |   |         | — |   |                      |   | —    |             |   |   | (3,061,020                          | )      |   |                | —       |    |                                   |   | —    |          |   |   | —  |   |   |   | — |   |   |   | (3,061,020 | ) |
| Change in fair value of securities available-for-sale, net                                                       |   |         | — |   |                      |   | —    |             |   |   | —                             |   |   |                | (4,390        | )  |                                   |   | —    |          |   |   | —  |   |   |   | — |   |   |   | (4,390 | ) |
|                                                                                                             |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Total comprehensive loss                                                                                         |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   | (3,065,410 | ) |
|                                                                                                             |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Reclassification due to change in fair value of common stock in ESOP subject to contingent repurchase obligation |   |         | — |   |                      |   | —    |             |   |   | —                             |   |   |                | —       |    |                                   |   | —    |          |   |   | 261,326  |   |   |   | — |   |   |   | 261,326 |   |
| Release of 15,870 of unearned ESOP shares                                                                        |   |         | — |   |                      |   | (102,800   | )                |   |   | —                             |   |   |                |  — |    |                                   |   | 200,558    |          |   |   | —  |   |   |   | — |   |   |   | 97,758 |   |
|                                                                                                             |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of 3,058 shares to RRP plan                                                                             |   |         | — |   |                      |   | (45,411    | )                |   |   | —                             |   |   |                | —       |    |                                   |   | —    |          |   |   | —  |   |   |   | 45,411 |   |   |   | — |   |
|                                                                                                             |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                                                                                         |   |         | — |   |                      |   | 228,050    |             |   |   | —                             |   |   |                | —       |    |                                   |   | —    |          |   |   | —  |   |   |   | — |   |   |   | 228,050 |   |
|                                                                                                             |   |         |    |   |                      |   |       |             |   |   |                                |   |   |                |          |    |                                   |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2009                                                                                   |   | $            | 26,450  |   |                      | $      | 24,747,427 |             |   | $      | 5,698,450                           |   |   | $                   | 7,986         |    |                                   | $      | (1,404,216 | )             |   | $      | (381,938 | )      |   | $ | (1,280,875 | ) |   | $ | 27,418,284 |   |

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Table of Contents

| 2010                                                                                                             |   | Common Stock |    |   | AdditionalPaid-InCapital |   |       | RetainedDeficit |   |   | AccumulatedOtherComprehensiveLoss |   |   | UnearnedESOPShares |    |   | AmountReclassified onESOP Shares |   |       | TreasuryStock |   |   | Total    |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|--------------------------|--------|------------|-----------------|--------|--------|-----------------------------------|--------|--------|--------------------|---------|--------|----------------------------------|--------|------------|---------------|--------|--------|----------|--------|
| Balance at July 1, 2009                                                                                          |   | $            | 26,450  |   |                     | $      | 24,783,189 |            |   | $      | (3,426,399                        | )      |   | $                  | (2,396  | )      |                             | $      | (1,337,362 | )             |   | $      | (312,110 | )      |   | $ | (1,280,875 | ) |   | $ | 18,450,497 |   |
| Comprehensive loss:                                                                                              |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                         |   |         | — |   |                     |   | —    |            |   |   | (1,809,464                        | )      |   |               | — |   |                             |   | —    |          |   |   | —  |   |   |   | — |   |   |   | (1,809,464 | ) |
| Change in fair value of securities available-for-sale, net                                                       |   |         | — |   |                     |   | —    |            |   |   | —                           |   |   |               | (59,329 | )      |                             |   | —    |          |   |   | —  |   |   |   | — |   |   |   | (59,329 | ) |
|                                                                                                             |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Total comprehensive loss                                                                                         |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   | (1,868,793 | ) |
|                                                                                                             |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Reclassification due to change in fair value of common stock in ESOP subject to contingent repurchase obligation |   |         | — |   |                     |   | —    |            |   |   | —                           |   |   |               | — |   |                             |   | —    |          |   |   | 68,770   |   |   |   | — |   |   |   | 68,770 |   |
| Release of 15,870 of unearned ESOP shares                                                                        |   |         | — |   |                     |   | (161,289   | )               |   |   | —                           |   |   |               | — |   |                             |   | 200,647    |          |   |   | —  |   |   |   | — |   |   |   | 39,358 |   |
|                                                                                                             |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of 4,116 shares to RRP plan                                                                             |   |         | — |   |                     |   | (61,123    | )               |   |   | —                           |   |   |               | — |   |                             |   | —    |          |   |   | —  |   |   |   | 61,123 |   |   |   | — |   |
|                                                                                                             |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                                                                                         |   |         | — |   |                     |   | 251,389    |            |   |   | —                           |   |   |               | — |   |                             |   | —    |          |   |   | —  |   |   |   | — |   |   |   | 251,389 |   |
|                                                                                                             |   |         |    |   |                     |   |       |            |   |   |                              |   |   |               |    |   |                             |   |       |          |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                                                                                        |   | $            | 26,450  |   |                     | $      | 24,812,166 |            |   | $      | (5,235,863                        | )      |   | $                  | (61,725 | )      |                             | $      | (1,136,715 | )             |   | $      | (243,340 | )      |   | $ | (1,219,752 | ) |   | $ | 16,941,221 |   |

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ROYAL FINANCIAL, INC. AND SUBSIDIARY

|                                                                            |   | 2010   |        |   | 2009   |   |
|---------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Cash flows from operating activities                                            |   |   |        |   |   |   |
| Net loss                                                                        |   | $      | (1,809,464  | )      |   | $      | (3,061,020 | ) |
| Adjustments to reconcile net loss to net cash from operating activities:        |   |   |        |   |   |   |   |   |
| Depreciation                                                                    |   |   | 158,892     |   |   |   | 277,728 |   |
| Provision for loan losses                                                       |   |   | 1,745,662   |   |   |   | 2,840,100 |   |
| Bank-owned life insurance income                                                |   |   | —     |   |   |   | (114,866 | ) |
|       Gain on sale of securities                  |   |   | —     |   |   |   | (53,364 | ) |
|       ESOP expense                                |   |   | 39,358      |   |   |   | 97,759 |   |
|       Stock-based compensation                    |   |   | 251,389     |   |   |   | 228,050 |   |
| Loss on sale of real estate owned                                               |   |   | 30,587      |   |   |   | — |   |
| Change in accrued interest receivable and other assets                          |   |   | (282,744    | )      |   |   | 14,456 |   |
| Change in other accrued interest payable and liabilities                        |   |   | (343,041    | )      |   |   | (555,902 | ) |
| Net cash used in operating activities                                           |   |   | (209,361    | )      |   |   | (327,059 | ) |
| Cash flows from investing activities                                            |   |   |        |   |   |   |   |   |
| Proceeds from maturities, calls, and pay downs of available for sale securities |   |   | 4,000,000   |   |   |   | 4,146,030 |   |
| Proceeds from sale of available for sale securities                             |   |   | —     |   |   |   | 3,688,992 |   |
| Purchase of available for sale securities                                       |   |   | (5,500,000  | )      |   |   | (4,000,000 | ) |
| Change in loans receivable                                                      |   |   | 11,675,581  |   |   |   | 413,630 |   |
| Purchase of Federal Home Loan Bank stock                                        |   |   | —     |   |   |   | (78,700 | ) |
| Purchase of premises and equipment                                              |   |   | (48,905     | )      |   |   | (33,121 | ) |
| Proceeds from sale of other real estate owned                                   |   |   | 44,913      |   |   |   | — |   |
| Proceeds from surrender of bank-owned life insurance                            |   |   | —     |   |   |   | 5,048,588 |   |
| Net cash from investing activities                                              |   |   | 10,171,589  |   |   |   | 9,185,419 |   |
| Cash flows from financing activities                                            |   |   |        |   |   |   |   |   |
| Net decrease in deposits                                                        |   |   | (6,164,251  | )      |   |   | (12,954,570 | ) |
| Proceeds from Federal Home Loan Bank advances                                   |   |   | 41,050,000  |   |   |   | 76,550,000 |   |
| Repayments of Federal Home Loan Bank advances                                   |   |   | (44,800,000 | )      |   |   | (74,950,000 | ) |
| Change in advances from borrowers for taxes and insurance                       |   |   | (335,195    | )      |   |   | (246,124 | ) |
| Net cash used in financing activities                                           |   |   | (10,249,446 | )      |   |   | (11,600,694 | ) |
| Net change in cash and cash equivalents                                         |   |   | (287,218    | )      |   |   | (2,742,334 | ) |
| Cash and cash equivalents                                                       |   |   |        |   |   |   |   |   |
| Beginning of the period                                                         |   |   | 3,172,254   |   |   |   | 5,924,849 |   |
|                                                                            |   |   |        |   |   |   |   |   |
| End of period                                                                   |   | $      | 2,885,036   |   |   | $      | 3,182,515 |   |
| Supplemental cash flow information:                                             |   |   |        |   |   |   |   |   |
| Interest paid                                                                   |   | $      | 550,141     |   |   | $      | 1,502,045 |   |
| Supplemental noncash disclosures:                                               |   |   |        |   |   |   |   |   |
| Common stock in ESOP subject to contingent repurchase obligation                |   | $      | 243,340     |   |   | $      | 381,938 |   |
|                                                                            |   |   |        |   |   |   |   |   |
| Transfer from loan portfolio to real estate owned                               |   | $      | 325,839     |   |   | $      | 434,250 |   |

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NOTES TO UNAUDITED FINANCIAL STATEMENTS

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Table of Contents

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Table of Contents

|                               |   | AmortizedCost |      |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |   |
|------------------------------------|--------|---------------|-----------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|--------|
| March 31, 2010                |   |          |      |   |                 |   |   |                  |   |   |      |   |
| U.S. government-sponsored entities |   | $             | 5,500,000 |   |                 | $      | 13,275 |                  |   | $      | (75,000   | )      |   | $ | 5,438,275 |   |
| June 30, 2009                 |   |          |      |   |                 |   |   |                  |   |   |      |   |   |   |   |   |
| U.S. government-sponsored entities |   | $             | 4,000,000 |   |                 | $      | 9,130  |                  |   | $      | (12,760   | )      |   | $ | 3,996,370 |   |

|                       |   | Amortized Cost |      |   | Fair Value |   |
|----------------------------|--------|----------------|-----------|--------|------------|--------|
| Due in one year or less    |   | $              | —   |   |       | $      | — |   |
| Due from one to five years |   |           | 3,000,000 |   |       |   | 2,925,000 |   |
| Due from five to ten years |   |           | 2,500,000 |   |       |   | 2,513,275 |   |
| Due after ten years        |   |           | —   |   |       |   | — |   |
|                       |   |           |      |   |       |   |   |   |
| Total                      |   | $              | 5,500,000 |   |       | $      | 5,438,275 |   |

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Table of Contents

|                      |   | March 31,2010 |       |   | June 30,2009 |   |
|---------------------------|--------|--------------------|------------|--------|-------------------|--------|
| Real estate loans:        |   |               |       |   |              |   |
| One-to-four family        |   | $                  | 28,458,617 |   |              | $      | 31,592,926 |   |
| Commercial                |   |               | 33,639,952 |   |              |   | 41,291,320 |   |
| Multi-family              |   |               | 3,976,531  |   |              |   | 4,418,550 |   |
| Total real estate loans   |   |               | 66,075,100 |   |              |   | 77,302,796 |   |
| Commercial loans          |   |               | 5,639,825  |   |              |   | 9,512,007 |   |
| Consumer loans:           |   |               |       |   |              |   |   |   |
| Home equity loans         |   |               | 743,569    |   |              |   | 514,923 |   |
| Other                     |   |               | 54,876     |   |              |   | 95,013 |   |
| Total consumer loans      |   |               | 798,445    |   |              |   | 609,936 |   |
| Loans, gross              |   |               | 72,513,370 |   |              |   | 87,424,739 |   |
|                      |   |               |       |   |              |   |   |   |
| Net deferred loan fees    |   |               | 31,785     |   |              |   | 22,498 |   |
| Allowance for loan losses |   |               | (4,070,000 | )      |              |   | (5,225,000 | ) |
|                      |   |               |       |   |              |   |   |   |
| Loans, net                |   | $                  | 68,475,155 |   |              | $      | 82,222,237 |   |

|                           |   | 2010   |       |   | 2009   |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|
| Balance at beginning of period |   | $      | 5,225,000  |   |   | $      | 2,060,000 |   |
| Provision for loan loss        |   |   | 1,745,662  |   |   |   | 2,840,100 |   |
| Charge offs                    |   |   | (2,903,021 | )      |   |   | (771,100 | ) |
| Recoveries                     |   |   | 2,359      |   |   |   | — |   |
|                           |   |   |       |   |   |   |   |   |
| Balance at end of period       |   | $      | 4,070,000  |   |   | $      | 4,129,000 |   |

|                                                                              |   | March 31,2010 |       |   | June 30,2009 |   |
|-----------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
| Loans with allocated allowance for loan loss at period end                        |   | $             | 320,751    |   |              | $      | 948,689 |   |
| Loans with no allocated allowance for loan loss at period end                     |   |          | 10,469,368 |   |              |   | 9,283,828 |   |
|                                                                              |   |          |       |   |              |   |   |   |
| Total impaired and non-performing loans                                           |   | $             | 10,790,119 |   |              | $      | 10,232,517 |   |
| Amount of the allowance for loan losses allocated to impaired loans at period end |   | $             | 110,000    |   |              | $      | 274,000 |   |
| Interest income recognized during impairment                                      |   |          | —    |   |              |   | — |   |
| Cash basis interest income recognized                                             |   |          | —    |   |              |   | — |   |
|                                                                              |   |          |       |   |              |   |   |   |
| Average impaired loans for the period end                                         |   | $             | 10,974,080 |   |              | $      | 10,798,286 |   |

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|                                         |   | March 31,2010 |       |   | June 30,2009 |   |
|----------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
| Loans past due over 90 days still on accrual |   | $                  | 152,188    |   |              | $      | 48,000 |   |
| Nonaccrual loans                             |   | $                  | 10,790,119 |   |              | $      | 9,178,000 |   |

|                                       |   | Three MonthsEnded March 31,2010 |      |   | Three MonthsEnded March 31,2009 |   |       | Nine MonthsEnded March 31,2010 |   |   | Nine MonthsEnded March 31,2009 |   |
|--------------------------------------------|--------|--------------------------------------|-----------|--------|--------------------------------------|--------|------------|-------------------------------------|--------|--------|-------------------------------------|--------|
| Basic and diluted loss per share           |   |                                 |      |   |                                 |   |       |                                |   |   |                                |   |
| Net loss as reported                       |   | $                                    | (375,918  | )      |                                 | $      | (2,207,348 | )                                   |   | $      | (1,809,464                          | )      |   | $ | (3,061,020 | ) |
| Weighted average common shares outstanding |   |                                 | 2,455,256 |   |                                 |   | 2,400,778  |                                |   |   | 2,454,218                           |   |   |   | 2,396,524 |   |
| Basic and diluted loss per share           |   | $                                    | (0.13     | )      |                                 | $      | (0.92      | )                                   |   | $      | (0.74                               | )      |   | $ | (1.28 | ) |

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|                                                  |   |            |      |   | Fair Value Measurements:                                    |   |
|-------------------------------------------------------|--------|-----------------|-----------|--------|-------------------------------------------------------------|--------|
|                                                  |   | Total FairValue |      |   | Quoted Prices inActive Markets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |
| Assets at March 31, 2010:                             |   |            |      |   |                                                        |   |   |   |   |
| Securities available-for-sale,                        |   |            |      |   |                                                        |   |   |   |   |
| U.S. government-sponsored entities                    |   | $               | 5,438,275 |   |                                                        | $      | — |   |   | $ | 5,438,275 |   |
| Assets at June 30, 2009:                              |   |            |      |   |                                                        |   |   |   |   |   |   |   |
| Securities available-for-sale     |   |            |      |   |                                                        |   |   |   |   |   |   |   |
| U.S. government-sponsored entities                    |   | $               | 3,996,370 |   |                                                        | $      | — |   |   | $ | 3,996,370 |   |

|                                                                                                                                                                                                                                                                                                                                       |   | March 31, 2010 |    |   | June 30, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                       |   | CarryingAmount      |    |   | FairValue          |   |   | CarryingAmount |   |   | FairValue |   |
| Financial assets:                                                                                                                                                                                                                                                                                                                          |   |                |    |   |               |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                  |   | $                   | 2,885   |   |               | $      | 2,885 |   |   | $ | 3,172 |   |   | $ | 3,172 |   |
| Securities available for sale                                                                                                                                                                                                                                                                                                              |   |                | 5,438   |   |               |   | 5,438 |   |   |   | 3,996 |   |   |   | 3,996 |   |
| Loans, net                                                                                                                                                                                                                                                                                                                                 |   |                | 68,475  |   |               |   | 68,746 |   |   |   | 82,222 |   |   |   | 81,989 |   |
| FHLB stock                                                                                                                                                                                                                                                                                                                                 |   |                | 381     |   |               |   | n/a |   |   |   | 381 |   |   |   | n/a |   |
| Accrued interest receivable                                                                                                                                                                                                                                                                                                                |   |                | 327     |   |               |   | 327 |   |   |   | 347 |   |   |   | 347 |   |
| Financial liabilities:                                                                                                                                                                                                                                                                                                                     |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                   |   | $                   | (64,322 | )      |               | $      | (65,596 | ) |   | $ | (70,487 | ) |   | $ | (72,128 | ) |
| Federal Home Loan Bank advances                                                                                                                                                                                                                                                                                                            |   |                | (150    | )      |               |   | (150 | ) |   |   | (3,900 | ) |   |   | (3,900 | ) |
| Advances from borrowers for taxes and insurance                                                                                                                                                                                                                                                                                            |   |                | (256    | )      |               |   | (256 | ) |   |   | (591 | ) |   |   | (591 | ) |
|    Federal funds purchased                                                  |   |                | (68     | )      |               |   | (68 | ) |   |   | – |   |   |   | – |   |
|    Accrued interest payable                                                 |   |                | (21     | )      |               |   | (21 | ) |   |   | (26 | ) |   |   | (26 | ) |

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Table of Contents

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

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Table of Contents

|                          |   | March 31,2010 |       |   | June 30,2009 |   |
|-------------------------------|--------|--------------------|------------|--------|-------------------|--------|
| Savings                       |   | $                  | 25,216,101 |   |              | $      | 25,684,002 |   |
| NOW accounts                  |   |               | 4,418,866  |   |              |   | 4,088,079 |   |
| Non-interest bearing checking |   |               | 5,525,203  |   |              |   | 5,760,935 |   |
| Money market                  |   |               | 2,414,309  |   |              |   | 3,466,828 |   |
| Transaction Accounts          |   |               | 37,574,479 |   |              |   | 38,999,844 |   |
|                          |   |               |       |   |              |   |   |   |
| Certificates of deposit       |   |               | 20,270,812 |   |              |   | 25,013,857 |   |
| IRAs                          |   |               | 6,477,032  |   |              |   | 6,472,873 |   |
| Time Deposits                 |   |               | 26,747,844 |   |              |   | 31,486,730 |   |
|                          |   |               |       |   |              |   |   |   |
| Total Deposits                |   | $                  | 64,322,323 |   |              | $      | 70,486,574 |   |

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Table of Contents

|                                                   |   | Three months ended March 31, |       |
|--------------------------------------------------------|--------|-----------------------------------|------------|
|                                                   |   | 2010                              |       |   | 2009 |   |
|                                                   |   | AverageBalance                    |       |   | Interest |   |   | AverageYield/Rate1) |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate(1) |   |
| Interest-earning assets:                               |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, net(2)                          |   | $                                 | 75,039,043 |   |   | $ | 989,884 |   |   |   | 5.28 | % |   | $ | 92,103,614 |   |   | $ | 1,232,627 |   |   |   | 5.35 | % |
| Securities available-for-sale(3)                       |   |                              | 8,656,266  |   |   |   | 81,072 |   |   |   | 3.75 |   |   |   | 3,231,893 |   |   |   | 32,164 |   |   |   | 3.98 |   |
| Interest-bearing balances in financial institutions(4) |   |                              | 551,418    |   |   |   | 216 |   |   |   | 0.16 |   |   |   | 63,607 |   |   |   | 12 |   |   |   | 0.08 |   |
| Federal funds sold                                     |   |                              | 173,975    |   |   |   | 127 |   |   |   | 0.29 |   |   |   | 177,383 |   |   |   | 257 |   |   |   | 0.58 |   |
| Federal Home Loan Bank stock(5)                        |   |                              | 381,300    |   |   |   | — |   |   |   | — |   |   |   | 381,300 |   |   |   | — |   |   |   | — |   |
| Total interest-earning assets                          |   |                              | 84,802,002 |   |   |   | 1,071,299 |   |   |   | 5.05 | % |   |   | 95,957,797 |   |   |   | 1,265,060 |   |   |   | 5.27 | % |
| Noninterest-earning assets                             |   |                              | 3,322,585  |   |   |   |   |   |   |   |   |   |   |   | 9,130,824 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                           |   | $                                 | 88,124,587 |   |   |   |   |   |   |   |   |   |   | $ | 105,088,621 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                          |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                              |   | $                                 | 59,362,141 |   |   |   | 146,662 |   |   |   | 0.99 | % |   | $ | 65,048,078 |   |   |   | 235,786 |   |   |   | 1.45 | % |
| FHLB advances                                          |   |                              | 4,342,222  |   |   |   | 4,260 |   |   |   | 0.39 |   |   |   | 3,533,889 |   |   |   | 4,818 |   |   |   | 0.55 |   |
| Federal funds purchased                                |   |                              | 68,461     |   |   |   | 106 |   |   |   | 0.62 |   |   |   | 16,670 |   |   |   | 42 |   |   |   | 1.00 |   |
| Total interest-bearing liabilities                     |   |                              | 63,772,824 |   |   |   | 151,028 |   |   |   | 0.95 | % |   |   | 68,598,637 |   |   |   | 240,646 |   |   |   | 1.40 | % |
| Noninterest-bearing liabilities                        |   |                              | 7,451,211  |   |   |   |   |   |   |   |   |   |   |   | 7,056,261 |   |   |   |   |   |   |   |   |   |
| Total equity capital(6)                           |   |                              | 16,900,552 |   |   |   |   |   |   |   |   |   |   |   | 29,433,723 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity capital                   |   | $                                 | 88,124,587 |   |   |   |   |   |   |   |   |   |   | $ | 105,088,621 |   |   |   |   |   |   |   |   |   |
| Net average interest-earning assets                    |   | $                                 | 21,029,178 |   |   |   |   |   |   |   |   |   |   | $ | 27,359,160 |   |   |   |   |   |   |   |   |   |
| Net interest income; interest rate spread(7)           |   |                              |       |   |   | $ | 920,271 |   |   |   | 4.11 | % |   |   |   |   |   | $ | 1,024,414 |   |   |   | 3.87 | % |
| Net interest margin(8)                            |   |                              |       |   |   |   |   |   |   |   | 4.34 | % |   |   |   |   |   |   |   |   |   |   | 4.27 | % |

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Table of Contents

|                                                   |   | Nine months ended March 31, |       |
|--------------------------------------------------------|--------|----------------------------------|------------|
|                                                   |   | 2010                             |       |   | 2009 |   |
|                                                   |   | AverageBalance                   |       |   | Interest |   |   | AverageYield/Rate(1) |   |   | AverageBalance |   |   | Interest |   |   | AverageYield/Rate(1) |   |
| Interest-earning assets:                               |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, net(2)                               |   | $                                | 80,560,000 |   |   | $ | 3,364,974 |   |   |   | 5.57 | % |   | $ | 93,329,244 |   |   | $ | 4,187,274 |   |   |   | 5.98 | % |
| Securities available-for-sale(3)                       |   |                             | 5,727,576  |   |   |   | 147,469 |   |   |   | 3.43 |   |   |   | 4,497,254 |   |   |   | 144,949 |   |   |   | 4.30 |   |
| Interest-bearing balances in financial institutions(4) |   |                             | 534,410    |   |   |   | 662 |   |   |   | 0.17 |   |   |   | 56,755 |   |   |   | 397 |   |   |   | 0.93 |   |
| Federal funds sold                                     |   |                             | 248,213    |   |   |   | 459 |   |   |   | 0.25 |   |   |   | 433,878 |   |   |   | 9,105 |   |   |   | 2.80 |   |
| Federal Home Loan Bank stock(5)                        |   |                             | 381,300    |   |   |   | — |   |   |   | — |   |   |   | 381,300 |   |   |   | — |   |   |   | — |   |
| Total interest-earning assets                          |   |                             | 87,451,499 |   |   |   | 3,513,564 |   |   |   | 5.36 | % |   |   | 98,698,431 |   |   |   | 4,341,725 |   |   |   | 5.87 | % |
| Noninterest-earning assets                             |   |                             | 2,712,434  |   |   |   |   |   |   |   |   |   |   |   | 11,629,245 |   |   |   |   |   |   |   |   |   |
| Total assets                                           |   | $                                | 90,163,933 |   |   |   |   |   |   |   |   |   |   | $ | 110,327,676 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                          |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits                              |   | $                                | 61,707,342 |   |   |   | 535,857 |   |   |   | 1.16 | % |   | $ | 68,855,202 |   |   |   | 884,099 |   |   |   | 1.71 | % |
| FHLB advances                                          |   |                             | 2,673,723  |   |   |   | 8,850 |   |   |   | 0.44 |   |   |   | 4,031,586 |   |   |   | 32,898 |   |   |   | 1.09 |   |
| Federal funds purchased                                |   |                             | 36,485     |   |   |   | 178 |   |   |   | 0.65 |   |   |   | 75,020 |   |   |   | 1,051 |   |   |   | 1.87 |   |
| Total interest-bearing liabilities                     |   |                             | 64,417,550 |   |   |   | 544,885 |   |   |   | 1.13 | % |   |   | 72,961,808 |   |   |   | 918,048 |   |   |   | 1.68 | % |
| Noninterest-bearing liabilities                        |   |                             | 8,905,982  |   |   |   |   |   |   |   |   |   |   |   | 7,503,245 |   |   |   |   |   |   |   |   |   |
| Total equity capital(6)                                |   |                             | 16,840,401 |   |   |   |   |   |   |   |   |   |   |   | 29,862,623 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity capital                   |   | $                                | 90,163,933 |   |   |   |   |   |   |   |   |   |   | $ | 110,327,676 |   |   |   |   |   |   |   |   |   |
|                                                   |   |                             |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net average interest-earning assets                    |   | $                                | 23,033,949 |   |   |   |   |   |   |   |   |   |   | $ | 25,736,623 |   |   |   |   |   |   |   |   |   |
| Net interest income; interest rate spread(7)           |   |                             |       |   |   | $ | 2,968,679 |   |   |   | 4.23 | % |   |   |   |   |   | $ | 3,423,677 |   |   |   | 4.19 | % |
| Net interest margin(8)                                 |   |                             |       |   |   |   |   |   |   |   | 4.53 | % |   |   |   |   |   |   |   |   |   |   | 4.63 | % |

| (1) | Yields and rates have been annualized where appropriate. |
|-----|----------------------------------------------------------|

| (2) | Includes non accrual loans.  Interest foregone on non-accrual loans was $237,000 and $100,000 for three months ended March 31, 2010 and 2009, respectively.  Interest foregone on non-accrual loans was $658,000 and $419,000 for the nine months ended March 31, 2010 and 2009, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Tax effective yield, assuming a 34% rate. |
|-----|-------------------------------------------|

| (4) | Includes interest-bearing demand deposits. |
|-----|--------------------------------------------|

| (5) | The FHLB Chicago discontinued the payment of dividends on its stock in the third quarter of 2007. |
|-----|---------------------------------------------------------------------------------------------------|

| (6) | Includes retained earnings (deficit) and accumulated other comprehensive income (loss). |
|-----|-----------------------------------------------------------------------------------------|

| (7) | Interest rate spread represents the differences between the weighted average yield on interest-earning assets and the weighted average rate on interest-bearing liabilities. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Net interest margin is net interest income divided by average interest-earning assets. |
|-----|----------------------------------------------------------------------------------------|

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|                  |   | March 31, 2010 |   |   | June 30, 2009 |   |   | March 31, 2009 |   |
|-----------------------|--------|---------------------|--------|--------|--------------------|--------|--------|---------------------|--------|
| Geographical Location |   | TotalLoans          |   |   | Impaired Loans     |   |   | %                   |   |   | Total Loans |   |   | Impaired Loans |   |   | % |   |   | Total Loans |   |   | Impaired Loans |   |   | % |   |
| Illinois              |   | $                   | 54,424 |   |               | $      | 5,618  |                |   |   | 52.07 | % |   | $ | 65,522 |   |   | $ | 6,399 |   |   |   | 62.54 | % |   | $ | 66,465 |   |   | $ | 7,352 |   |   |   | 52.09 | % |
| Florida               |   |                | 787    |   |               |   | 388    |                |   |   | 3.59 |   |   |   | 905 |   |   |   | 482 |   |   |   | 4.71 |   |   |   | 1,808 |   |   |   | 1,374 |   |   |   | 9.73 |   |
| Michigan              |   |                | 1,136  |   |               |   | 1,136  |                |   |   | 10.53 |   |   |   | 1,622 |   |   |   | 1,187 |   |   |   | 11.60 |   |   |   | 3,412 |   |   |   | 2,939 |   |   |   | 20.82 |   |
| Indiana               |   |                | 13,477 |   |               |   | 2,662  |                |   |   | 24.67 |   |   |   | 15,754 |   |   |   | 715 |   |   |   | 6.99 |   |   |   | 14,573 |   |   |   | 752 |   |   |   | 5.32 |   |
| Wisconsin             |   |                | 422    |   |               |   | 422    |                |   |   | 3.91 |   |   |   | 500 |   |   |   | 500 |   |   |   | 4.89 |   |   |   | 1,700 |   |   |   | 1,700 |   |   |   | 12.04 |   |
| Other States Combined |   |                | 2,267  |   |               |   | 564    |                |   |   | 5.23 |   |   |   | 3,122 |   |   |   | 949 |   |   |   | 9.27 |   |   |   | 3,242 |   |   |   | — |   |   |   | — |   |
|                  |   |                |   |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans           |   | $                   | 72,513 |   |               | $      | 10,790 |                |   |   | 100.00 | % |   | $ | 87,425 |   |   | $ | 10,232 |   |   |   | 100.00 | % |   | $ | 91,200 |   |   | $ | 14,117 |   |   |   | 100.00 | % |

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|                         |   | March 31, 2010 |    |   | June 30, 2009  |   |    | March 31, 2009 |   |
|------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|---------------------|--------|
| Loan Category                |   | Impaired Amount     |    |   | % of Total Impaired |   |    | Impaired Amount     |   |   | % of Total Impaired |   |   | Impaired Amount |   |   | % of Total Impaired |   |
| One-to-four family loans     |   | $                   | 1,220   |   |                |   | 11.31   | %                   |   | $ | 1,219 |   |   |   | 11.91 | % |   | $ | 3,955 |   |   |   | 27.21 | % |
| Commercial real estate loans |   |                | 8,495   |   |                |   | 78.73   |                |   |   | 7,297 |   |   |   | 71.32 |   |   |   | 7,850 |   |   |   | 56.61 |   |
| Multi-family loans           |   |                | 422     |   |                |   | 3.91    |                |   |   | 553 |   |   |   | 5.41 |   |   |   | 1,700 |   |   |   | 12.04 |   |
| Commercial loans             |   |                | 629     |   |                |   | 5.83    |                |   |   | 1,136 |   |   |   | 11.10 |   |   |   | 445 |   |   |   | 4.14 |   |
| Home Equity loans            |   |                | 24      |   |                |   | 22      |                |   |   | 27 |   |   |   | 0.26 |   |   |   | 167 |   |   |   | — |   |
| Other                        |   |                | — |   |                |   | — |                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                         |   |                |    |   |                |   |    |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                        |   | $                   | 10,790  |   |                |   | 100.00  | %                   |   | $ | 10,232 |   |   |   | 100.00 | % |   | $ | 14,117 |   |   |   | 100.00 | % |

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|                         |   | March 31, 2010 |    |   | June 30, 2009 |   |    | March 31, 2009 |   |
|------------------------------|--------|---------------------|---------|--------|--------------------|--------|---------|---------------------|--------|
|                         |   | 30-89 Days          |    |   | +90 Days           |   |    | 30-89 Days          |   |   | +90 Days |   |   | 30-89 Days |   |   | +90 Days |   |
| One-to-four family loans     |   | $                   | — |   |               | $      | 152     |                |   | $ | 291 |   |   | $ | — |   |   | $ | 1,227 |   |   | $ | — |   |
| Commercial real estate loans |   |                | — |   |               |   | — |                |   |   | — |   |   |   | — |   |   |   | 90 |   |   |   | — |   |
| Multi-family loans           |   |                | 88      |   |               |   | — |                |   |   | — |   |   |   | — |   |   |   | 82 |   |   |   | — |   |
| Commercial loans             |   |                | 300     |   |               |   | — |                |   |   | — |   |   |   | 48 |   |   |   | 1,070 |   |   |   | — |   |
| Home equity loans            |   |                | – |   |               |   | — |                |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Share loans                  |   |                | 9       |   |               |   | — |                |   |   |   |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                         |   |                |    |   |               |   |    |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loan delinquencies     |   | $                   | 397     |   |               | $      | 152     |                |   | $ | 291 |   |   | $ | 48 |   |   | $ | 2,469 |   |   | $ | — |   |

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4T.  Controls and Procedures

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PART II. – OTHER INFORMATION

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.  Defaults Upon Senior Securities

Item 4.  (Remove

Item 6.  Exhibits

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SIGNATURES

| Date:  May 14, 2010 | ROYAL FINANCIAL, INC. By: /s/Leonard Szwajkowski                                          Leonard SzwajkowskiChief Executive Officer and President                                   |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date:  May 14, 2010 | By: /s/Jodi A. Ojeda                                                      Jodi A. OjedaSenior Vice President andChief Financial Officer |

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EXHIBIT INDEX

| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                            |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                            |
| 32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |