----

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| Delaware                                                       | 43-1792717                        |
|----------------------------------------------------------------|-----------------------------------|
|                                                           |                              |
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
|                                                           |                              |
| 1341 West Battlefield                                          |                              |
| Springfield, Missouri                                          | 65807                             |
| (Address of principal executive offices)                       | (Zip Code)                        |

| Class                                   | Outstanding as of November 3, 2010 |
|-----------------------------------------|------------------------------------|
| Common Stock, Par Value $0.10 per share | 2,652,487 Shares                   |

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GU

|                                                                                                           |                                                                       | Page   |
|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|--------|
| Item 1.  Financial StatementsCondensed Consolidated Financial Statements (Unaudited):                |                                                                       |
|                                                                                                           | Condensed Consolidated Statements of Financial Condition                   | 3      |
|                                                                                                           | Condensed Consolidated Statements of Operations                            | 4      |
|                                                                                                           | Condensed Consolidated Statements of  Stockholders’ Equity | 5      |
|                                                                                                           | Condensed Consolidated Statements of Cash Flows                            | 7      |
|                                                                                                           | Notes to Condensed Consolidated Financial Statements                       | 8      |
|                                                                                                           |                                                                       |   |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18                                                                         |
|                                                                                                           |                                                                       |   |
| Item 3.  Quantitative and Qualitative Disclosures about Market Risk                                  | 24                                                                         |
|                                                                                                           |                                                                       |   |
| Item 4.  Controls and Procedures                                                                     | 25                                                                         |
|                                                                                                           |                                                                       |   |
| PART II. OTHER INFORMATION                                                                                     |
|                                                                                                           |                                                                       |   |
| Item 1.  Legal Proceedings                                                                           | 27                                                                         |
|                                                                                                           |                                                                       |   |
| Item 1A.  Risk factors                                                                               |                                                                       | 27     |
|                                                                                                           |                                                                       |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                 | 27                                                                         |
|                                                                                                           |                                                                       |   |
| Item 3.  Defaults Upon Senior Securities                                                             | 27                                                                         |
|                                                                                                           |                                                                       |   |
| Item 4.  (Removed and Reserved)                                                                      | 27                                                                         |
|                                                                                                           |                                                                       |   |
| Item 5.  Other Information                                                                           | 27                                                                         |
|                                                                                                           |                                                                       |   |
| Item 6.  Exhibits                                                                                    | 27                                                                         |
|                                                                                                           |                                                                       |   |
| Signatures                                                                                                     |                                                                       |

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Table of Contents

PART 

U

| ASSETS                                                                                                                                                 |   | 9/30/10 |        |   | 12/31/09 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|----------|--------|
| Cash                                                                                                                                                   |   | $       | 5,144,273   |   |     | $      | 4,527,813 |   |
| Interest-bearing deposits in other financial institutions                                                                                              |   |    | 20,100,765  |   |     |   | 28,488,884 |   |
| Cash and cash equivalents                                                                                                                              |   |    | 25,245,038  |   |     |   | 33,016,697 |   |
| Interest-bearing deposits                                                                                                                              |   |    | 17,785,000  |   |     |   | 16,560,802 |   |
| Available-for-sale securities                                                                                                                          |   |    | 101,034,764 |   |     |   | 102,659,251 |   |
| Held-to-maturity securities                                                                                                                            |   |    | 273,256     |   |     |   | 472,783 |   |
| Stock in Federal Home Loan Bank, at cost                                                                                                               |   |    | 5,381,200   |   |     |   | 5,976,600 |   |
| Mortgage loans held for sale                                                                                                                           |   |    | 3,637,312   |   |     |   | 3,465,080 |   |
| Loans receivable, net of allowance for loan losses of September 30, 2010 - $12,540,590 - December 31, 2009 - $14,076,123                               |   |    | 492,954,944 |   |     |   | 525,038,053 |   |
| Accrued interest receivable:                                                                                                                           |   |    |        |   |     |   |   |   |
| Loans                                                                                                                                                  |   |    | 1,906,645   |   |     |   | 2,014,418 |   |
| Investments and interest-bearing deposits                                                                                                              |   |    | 573,520     |   |     |   | 657,145 |   |
| Prepaid expenses and other assets                                                                                                                      |   |    | 6,438,151   |   |     |   | 6,731,409 |   |
| Prepaid FDIC deposit insurance premiums                                                                                                                |   |    | 3,252,833   |   |     |   | 4,135,875 |   |
| Foreclosed assets held for sale                                                                                                                        |   |    | 18,008,451  |   |     |   | 6,759,648 |   |
| Premises and equipment                                                                                                                                 |   |    | 11,453,945  |   |     |   | 11,817,516 |   |
| Bank owned life insurance                                                                                                                              |   |    | 10,365,381  |   |     |   | 10,069,540 |   |
| Income taxes receivable                                                                                                                                |   |    | 4,185,640   |   |     |   | 3,718,970 |   |
| Deferred income taxes                                                                                                                                  |   |    | 3,176,820   |   |     |   | 4,686,065 |   |
|                                                                                                                                                   |   | $       | 705,672,900 |   |     | $      | 737,779,852 |   |
|                                                                                                                                                   |   |    |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                   |   |    |        |   |     |   |   |   |
|                                                                                                                                                   |   |    |        |   |     |   |   |   |
| LIABILITIES                                                                                                                                            |   |    |        |   |     |   |   |   |
| Deposits                                                                                                                                               |   | $       | 493,687,036 |   |     | $      | 513,051,102 |   |
| Federal Home Loan Bank advances                                                                                                                        |   |    | 101,050,000 |   |     |   | 116,050,000 |   |
| Securities sold under agreements to repurchase                                                                                                         |   |    | 39,750,000  |   |     |   | 39,750,000 |   |
| Subordinated debentures                                                                                                                                |   |    | 15,465,000  |   |     |   | 15,465,000 |   |
| Advances from borrowers for taxes and insurance                                                                                                        |   |    | 475,344     |   |     |   | 135,610 |   |
| Accrued expenses and other liabilities                                                                                                                 |   |    | 726,500     |   |     |   | 519,385 |   |
| Accrued interest payable                                                                                                                               |   |    | 1,005,382   |   |     |   | 1,398,122 |   |
|                                                                                                                                                   |   |    | 652,159,262 |   |     |   | 686,369,219 |   |
|                                                                                                                                                   |   |    |        |   |     |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                          |   |    | -           |   |     |   | - |   |
|                                                                                                                                                   |   |    |        |   |     |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                                                   |   |    |        |   |     |   |   |   |
| Capital Stock:                                                                                                                                         |   |    |        |   |     |   |   |   |
| Series A preferred stock, $0.01 par value; authorized 2,000,000 shares;issued and outstanding September 30, 2010 and December 31, 2009 - 17,000 shares |   |    | 16,081,459  |   |     |   | 15,874,788 |   |
| Common stock, $0.10 par value; authorized 10,000,000 shares;issued September 30, 2010 and December 31, 2009 - 6,779,800 shares;                        |   |    | 677,980     |   |     |   | 677,980 |   |
| Common stock warrants; September 30, 2010 and December 31, 2009 - 459,459 shares                                                                       |   |    | 1,377,811   |   |     |   | 1,377,811 |   |
| Additional paid-in capital                                                                                                                             |   |    | 58,506,029  |   |     |   | 58,523,646 |   |
| Unearned ESOP shares                                                                                                                                   |   |    | (489,930    | )      |     |   | (660,930 | ) |
| Retained earnings, substantially restricted                                                                                                            |   |    | 36,388,105  |   |     |   | 35,741,705 |   |
| Accumulated other comprehensive income                                                                                                                 |   |    |        |   |     |   |   |   |
| Unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes                                        |   |    | 2,799,593   |   |     |   | 1,696,502 |   |
|                                                                                                                                                   |   |    | 115,341,047 |   |     |   | 113,231,502 |   |
| Treasury stock, at cost; September 30, 2010 and December 31, 2009 -4,080,220 and 4,079,067 shares, respectively                                        |   |    | (61,827,409 | )      |     |   | (61,820,869 | ) |
|                                                                                                                                                   |   |    | 53,513,638  |   |     |   | 51,410,633 |   |
|                                                                                                                                                   |   | $       | 705,672,900 |   |     | $      | 737,779,852 |   |

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Table of Contents

A

|                                               |   | Three months ended |      |   | Nine months ended |   |
|----------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                               |   | 9/30/2010          |      |   | 9/30/2009         |   |   | 9/30/2010 |   |   | 9/30/2009 |   |
| Interest Income                                    |   |               |      |   |              |   |   |   |   |   |   |   |
| Loans                                              |   | $                  | 6,861,717 |   |              | $      | 7,402,215 |   |   | $ | 21,244,834 |   |   | $ | 22,259,582 |   |
| Investment securities                              |   |               | 866,386   |   |              |   | 979,708 |   |   |   | 2,724,195 |   |   |   | 2,787,883 |   |
| Other                                              |   |               | 117,806   |   |              |   | 152,412 |   |   |   | 370,777 |   |   |   | 314,283 |   |
|                                               |   |               | 7,845,909 |   |              |   | 8,534,335 |   |   |   | 24,339,806 |   |   |   | 25,361,748 |   |
| Interest Expense                                   |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                           |   |               | 2,346,081 |   |              |   | 3,816,803 |   |   |   | 7,654,209 |   |   |   | 11,795,238 |   |
| Federal Home Loan Bank advances                    |   |               | 768,569   |   |              |   | 791,470 |   |   |   | 2,334,875 |   |   |   | 2,359,115 |   |
| Subordinated debentures                            |   |               | 255,945   |   |              |   | 255,945 |   |   |   | 767,837 |   |   |   | 767,837 |   |
| Other                                              |   |               | 289,240   |   |              |   | 221,864 |   |   |   | 864,807 |   |   |   | 676,257 |   |
|                                               |   |               | 3,659,835 |   |              |   | 5,086,082 |   |   |   | 11,621,728 |   |   |   | 15,598,447 |   |
| Net Interest Income                                |   |               | 4,186,074 |   |              |   | 3,448,253 |   |   |   | 12,718,078 |   |   |   | 9,763,301 |   |
| Provision for Loan Losses                          |   |               | 850,000   |   |              |   | 670,000 |   |   |   | 2,750,000 |   |   |   | 4,950,000 |   |
| Net Interest Income After                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                          |   |               | 3,336,074 |   |              |   | 2,778,253 |   |   |   | 9,968,078 |   |   |   | 4,813,301 |   |
| Noninterest Income                                 |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Service charges                                    |   |               | 386,967   |   |              |   | 455,638 |   |   |   | 1,173,517 |   |   |   | 1,352,971 |   |
| Other fees                                         |   |               | 8,805     |   |              |   | 14,913 |   |   |   | 22,473 |   |   |   | 41,365 |   |
| Gain on sale of investment securities              |   |               | 41,471    |   |              |   | 341,596 |   |   |   | 215,359 |   |   |   | 657,035 |   |
| Gain on sale of loans                              |   |               | 472,082   |   |              |   | 314,440 |   |   |   | 1,129,621 |   |   |   | 1,114,223 |   |
| Loss on foreclosed assets                          |   |               | (33,152   | )      |              |   | (14,045 | ) |   |   | (43,865 | ) |   |   | (66,720 | ) |
| Other income                                       |   |               | 302,948   |   |              |   | 217,826 |   |   |   | 934,657 |   |   |   | 562,929 |   |
|                                               |   |               | 1,179,121 |   |              |   | 1,330,368 |   |   |   | 3,431,762 |   |   |   | 3,661,803 |   |
| Noninterest Expense                                |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                     |   |               | 2,110,001 |   |              |   | 1,963,962 |   |   |   | 6,298,459 |   |   |   | 5,975,389 |   |
| Occupancy                                          |   |               | 431,556   |   |              |   | 435,022 |   |   |   | 1,276,283 |   |   |   | 1,391,757 |   |
| FDIC deposit insurance premiums                    |   |               | 304,069   |   |              |   | 330,000 |   |   |   | 928,492 |   |   |   | 1,275,030 |   |
| Data processing                                    |   |               | 122,133   |   |              |   | 107,063 |   |   |   | 336,555 |   |   |   | 321,521 |   |
| Advertising                                        |   |               | 75,000    |   |              |   | 75,000 |   |   |   | 225,000 |   |   |   | 241,666 |   |
| Other expense                                      |   |               | 663,862   |   |              |   | 480,909 |   |   |   | 2,036,501 |   |   |   | 1,966,480 |   |
|                                               |   |               | 3,706,621 |   |              |   | 3,391,956 |   |   |   | 11,101,290 |   |   |   | 11,171,843 |   |
| Income (Loss) Before Income Taxes                  |   |               | 808,574   |   |              |   | 716,665 |   |   |   | 2,298,550 |   |   |   | (2,696,739 | ) |
| Provision (Credit) for Income Taxes                |   |               | 286,370   |   |              |   | 142,202 |   |   |   | 807,977 |   |   |   | (1,047,000 | ) |
| Net Income (Loss)                                  |   |               | 522,204   |   |              |   | 574,463 |   |   |   | 1,490,573 |   |   |   | (1,649,739 | ) |
| Preferred Stock Dividends and Discount Accretion   |   |               | 281,391   |   |              |   | 281,391 |   |   |   | 844,173 |   |   |   | 750,376 |   |
| Net Income (Loss) Available to Common Shareholders |   | $                  | 240,813   |   |              | $      | 293,072 |   |   | $ | 646,400 |   |   | $ | (2,400,115 | ) |
|                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic Income (Loss) Per Common Share               |   | $                  | 0.09      |   |              | $      | 0.11 |   |   | $ | 0.24 |   |   | $ | (0.92 | ) |
| Diluted Income (Loss) Per Common Share             |   | $                  | 0.09      |   |              | $      | 0.11 |   |   | $ | 0.24 |   |   | $ | (0.92 | ) |

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Table of Contents

AR

|                                                                                                                      |   | Preferred Stock |       |   | Common Stock |   |    | Common Stock Warrants |   |   | Additional Paid-In Capital |   |   | Unearned ESOP Shares |       |   | Treasury Stock |   |     | Retained Earnings |   |   | Accumulated Other Comprehensive Income |   |   | Total  |       |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|--------------|--------|---------|-----------------------|--------|--------|----------------------------|--------|--------|----------------------|------------|--------|----------------|--------|----------|-------------------|--------|--------|----------------------------------------|--------|--------|--------|------------|
| Balance, January 1, 2010                                                                                                  |   | $               | 15,874,788 |   |         | $      | 677,980 |                  |   | $      | 1,377,811                  |   |   | $                    | 58,523,646 |   |           | $      | (660,930 | )                 |   | $      | (61,820,869                            | )      |   | $      | 35,741,705 |   |   | $ | 1,696,502 |   |   | $ | 51,410,633 |   |
| Comprehensive income                                                                                                      |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                                |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | 1,490,573  |   |   |   | - |   |   |   | 1,490,573 |   |
| Change in unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | 1,103,091 |   |   |   | 1,103,091 |   |
| Total comprehensive income                                                                                                |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   | 2,593,664 |   |
| Preferred stock discount accretion                                                                                        |   |            | 206,671    |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (206,671   | ) |   |   | - |   |   |   | - |   |
| Preferred stock dividends (5%)                                                                                            |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (637,502   | ) |   |   | - |   |   |   | (637,502 | ) |
| Stock award plans                                                                                                         |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | 80,896     |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 80,896 |   |
| Treasury stock purchased                                                                                                  |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | (6,540                                 | )      |   |   | -          |   |   |   | - |   |   |   | (6,540 | ) |
| Release of ESOP shares                                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | (98,513    | )      |           |   | 171,000  |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 72,487 |   |
| Balance, September 30, 2010                                                                                               |   | $               | 16,081,459 |   |         | $      | 677,980 |                  |   | $      | 1,377,811                  |   |   | $                    | 58,506,029 |   |           | $      | (489,930 | )                 |   | $      | (61,827,409                            | )      |   | $      | 36,388,105 |   |   | $ | 2,799,593 |   |   | $ | 53,513,638 |   |

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Table of Contents

|                                                                                                                      |   | Preferred Stock |       |   | Common Stock |   |    | Common Stock Warrants |   |   | Additional Paid-In Capital |   |   | Unearned ESOP Shares |       |   | Treasury Stock |   |     | Retained Earnings |   |   | Accumulated Other Comprehensive Income |   |   | Total  |       |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------|------------|--------|--------------|--------|---------|-----------------------|--------|--------|----------------------------|--------|--------|----------------------|------------|--------|----------------|--------|----------|-------------------|--------|--------|----------------------------------------|--------|--------|--------|------------|
| Balance, January 1, 2009                                                                                                  |   | $               | -          |   |         | $      | 677,980 |                  |   | $      | -                          |   |   | $                    | 58,535,159 |   |           | $      | (888,930 | )                 |   | $      | (61,813,354                            | )      |   | $      | 39,114,189 |   |   | $ | 1,687,858 |   |   | $ | 37,312,902 |   |
| Comprehensive loss                                                                                                        |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                  |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (1,649,739 | ) |   |   | - |   |   |   | (1,649,739 | ) |
| Change in unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | 165,641 |   |   |   | 165,641 |   |
| Total comprehensive loss                                                                                                  |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   | (1,484,098 | ) |
| Preferred stock issued                                                                                                    |   |            | 15,622,189 |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   |       |   |   |   | - |   |   |   | 15,622,189 |   |
| Common stock warrants issued                                                                                              |   |            | -          |   |         |   | -       |                  |   |   | 1,377,811                  |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 1,377,811 |   |
| Preferred stock discount accretion                                                                                        |   |            | 183,708    |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (183,708   | ) |   |   | - |   |   |   | - |   |
| Preferred stock dividends accrued (5%)                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (566,667   | ) |   |   | - |   |   |   | (566,667 | ) |
| Stock award plans                                                                                                         |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | 70,699     |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 70,699 |   |
| Treasury stock purchased                                                                                                  |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | (7,515                                 | )      |   |   | -          |   |   |   | - |   |   |   | (7,515 | ) |
| Release of ESOP shares                                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | (74,010    | )      |           |   | 171,000  |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 96,990 |   |
| Balance, September 30, 2009                                                                                               |   | $               | 15,805,897 |   |         | $      | 677,980 |                  |   | $      | 1,377,811                  |   |   | $                    | 58,531,848 |   |           | $      | (717,930 | )                 |   | $      | (61,820,869                            | )      |   | $      | 36,714,075 |   |   | $ | 1,853,499 |   |   | $ | 52,422,311 |   |

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Table of Contents

SOL

|                                                          |   | 9/30/2010 |        |   | 9/30/2009 |   |
|---------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                          |   |      |        |   |      |   |
| Net income (loss)                                             |   | $         | 1,490,573   |   |      | $      | (1,649,739 | ) |
| Items not requiring (providing) cash:                         |   |      |        |   |      |   |   |   |
| Deferred income taxes                                         |   |      | 861,398     |   |      |   | 1,689,690 |   |
| Depreciation                                                  |   |      | 620,873     |   |      |   | 742,368 |   |
| Provision for loan losses                                     |   |      | 2,750,000   |   |      |   | 4,950,000 |   |
| Gain on loans and investment securities                       |   |      | (1,344,980  | )      |      |   | (1,771,258 | ) |
| Gain on sale of foreclosed assets                             |   |      | (15,710     | )      |      |   | (118,806 | ) |
| Accretion of gain on termination of interest rate swaps       |   |      | (508,746    | )      |      |   | (763,119 | ) |
| Amortization of deferred income, premiums and discounts       |   |      | 416,987     |   |      |   | 223,122 |   |
| Stock award plan expense                                      |   |      | 80,896      |   |      |   | 70,699 |   |
| Origination of loans held for sale                            |   |      | (52,563,214 | )      |      |   | (61,381,907 | ) |
| Proceeds from sale of loans held for sale                     |   |      | 53,520,603  |   |      |   | 62,777,067 |   |
| Release of ESOP shares                                        |   |      | 72,487      |   |      |   | 96,990 |   |
| Increase in cash surrender value of bank owned life insurance |   |      | (295,841    | )      |      |   | - |   |
| Changes in:                                                   |   |      |        |   |      |   |   |   |
| Accrued interest receivable                                   |   |      | 191,398     |   |      |   | (14,509 | ) |
| Prepaid expenses and other assets                             |   |      | 1,176,300   |   |      |   | 417,841 |   |
| Accounts payable and accrued expenses                         |   |      | (185,625    | )      |      |   | 324,505 |   |
| Income taxes receivable                                       |   |      | (466,670    | )      |      |   | (3,770,993 | ) |
| Net cash provided by operating activities                     |   |      | 5,800,729   |   |      |   | 1,821,951 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                          |   |      |        |   |      |   |   |   |
| Net change in loans                                           |   |      | 15,073,178  |   |      |   | 22,159,013 |   |
| Principal payments on held-to-maturity securities             |   |      | 199,642     |   |      |   | 46,240 |   |
| Principal payments on available-for-sale securities           |   |      | 10,496,971  |   |      |   | 9,796,901 |   |
| Proceeds from maturities of available-for-sale securities     |   |      | 28,956,500  |   |      |   | 6,500,000 |   |
| Purchase of premises and equipment                            |   |      | (257,302    | )      |      |   | (1,448,628 | ) |
| Purchase of available-for-sale securities                     |   |      | (50,688,976 | )      |      |   | (80,722,131 | ) |
| Proceeds from sale of available-for-sale securities           |   |      | 14,956,798  |   |      |   | 20,432,170 |   |
| Purchase of interest-bearing deposits                         |   |      | (12,501,000 | )      |      |   | (29,605,802 | ) |
| Proceeds from maturities of interest-bearing deposits         |   |      | 11,276,802  |   |      |   | 2,500,000 |   |
| Redemption of Federal Home Loan Bank stock                    |   |      | 595,400     |   |      |   | - |   |
| Purchase of tax credit investments                            |   |      | -           |   |      |   | (3,310,669 | ) |
| Capitalized costs on foreclosed assets held for sale          |   |      | (273,743    | )      |      |   | (51,115 | ) |
| Insurance proceeds on foreclosed assets held for sale         |   |      | 575,879     |   |      |   | - |   |
| Proceeds from sale of foreclosed assets held for sale         |   |      | 2,685,837   |   |      |   | 3,143,180 |   |
| Net cash provided by (used in) investing activities           |   |      | 21,095,986  |   |      |   | (50,560,841 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                          |   |      |        |   |      |   |   |   |
| Net increase in demand deposits, NOW and savings accounts     |   |      | 637,362     |   |      |   | 139,679,422 |   |
| Net decrease in certificates of deposit                       |   |      | (20,001,428 | )      |      |   | (81,021,606 | ) |
| Repayments of FHLB advances                                   |   |      | (15,000,000 | )      |      |   | (21,386,000 | ) |
| Repayments of notes payable                                   |   |      | -           |   |      |   | (1,435,190 | ) |
| Advances from borrowers for taxes and insurance               |   |      | 339,734     |   |      |   | 348,407 |   |
| Proceeds from preferred stock and warrants                    |   |      | -           |   |      |   | 17,000,000 |   |
| Cash dividends paid on preferred stock                        |   |      | (637,502    | )      |      |   | (460,417 | ) |
| Treasury stock purchased                                      |   |      | (6,540      | )      |      |   | (7,515 | ) |
| Net cash provided by (used in) financing activities           |   |      | (34,668,374 | )      |      |   | 52,717,101 |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS              |   |      | (7,771,659  | )      |      |   | 3,978,211 |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                |   |      | 33,016,697  |   |      |   | 15,097,015 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                      |   | $         | 25,245,038  |   |      | $      | 19,075,226 |   |

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|                                            |   | Amortized Cost |       |   | Gross Unrealized Gains |   |      | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|-------------------------------------------------|--------|----------------|------------|--------|------------------------|--------|-----------|---------------------------|--------|--------|------------------------|--------|
| As of September 30, 2010                        |   |           |       |   |                   |   |      |                      |   |   |                   |   |
| Equity Securities                               |   | $              | 102,212    |   |                   | $      | 10,608    |                      |   | $      | (36,838                | )      |   | $ | 75,982 |   |
| Debt Securities:                                |   |           |       |   |                   |   |      |                      |   |   |                   |   |   |   |   |   |
| U. S. government agencies                       |   |           | 26,441,257 |   |                   |   | 427,093   |                      |   |   | -                      |   |   |   | 26,868,350 |   |
| Government sponsored mortgage-backed securities |   |           | 70,047,496 |   |                   |   | 4,042,936 |                      |   |   | -                      |   |   |   | 74,090,432 |   |
|                                            |   | $              | 96,590,965 |   |                   | $      | 4,480,637 |                      |   | $      | (36,838                | )      |   | $ | 101,034,764 |   |

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|                                            |   | Amortized Cost |        |   | Gross Unrealized Gains |   |      | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|-------------------------------------------------|--------|----------------|-------------|--------|------------------------|--------|-----------|---------------------------|--------|--------|------------------------|--------|
| As of December 31, 2009                         |   |           |        |   |                   |   |      |                      |   |   |                   |   |
| Equity Securities                               |   | $              | 102,212     |   |                   | $      | 4,055     |                      |   | $      | (41,219                | )      |   | $ | 65,048 |   |
| Debt Securities:                                |   |           |        |   |                   |   |      |                      |   |   |                   |   |   |   |   |   |
| U. S. government agencies                       |   |           | 30,528,386  |   |                   |   | 98,160    |                      |   |   | (86,326                | )      |   |   | 30,540,220 |   |
| Government sponsored mortgage-backed securities |   |           | 69,844,555  |   |                   |   | 2,209,428 |                      |   |   | -                      |   |   |   | 72,053,983 |   |
|                                            |   | $              | 100,475,153 |   |                   | $      | 2,311,643 |                      |   | $      | (127,545               | )      |   | $ | 102,659,251 |   |

|                                                                              |   | Amortized Cost |       |   | Approximate Fair Value |   |
|-----------------------------------------------------------------------------------|--------|----------------|------------|--------|------------------------|--------|
| After one through five years                                                      |   | $              | 25,291,257 |   |                   | $      | 25,699,681 |   |
| After five through ten years                                                      |   |           | 1,150,000  |   |                   |   | 1,168,670 |   |
| Government sponsored mortgage-backed securities not due on a single maturity date |   |           | 70,047,496 |   |                   |   | 74,090,432 |   |
|                                                                              |   | $              | 96,488,753 |   |                   | $      | 100,958,783 |   |

|                                            |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|-------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|
| As of September 30, 2010                        |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| Debt Securities:                                |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| U. S. government agencies                       |   | $              | 2,238   |   |                   | $      | -      |                      |   | $      | -                      |   |   | $ | 2,238 |   |
| Government sponsored mortgage-backed securities |   |           | 271,018 |   |                   |   | 22,661 |                      |   |   | -                      |   |   |   | 293,679 |   |
|                                            |   | $              | 273,256 |   |                   | $      | 22,661 |                      |   | $      | -                      |   |   | $ | 295,917 |   |

|                                            |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|-------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|
| As of December 31, 2009                         |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| Debt Securities:                                |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| U. S. government agencies                       |   | $              | 114,119 |   |                   | $      | -      |                      |   | $      | (535                   | )      |   | $ | 113,584 |   |
| Government sponsored mortgage-backed securities |   |           | 358,664 |   |                   |   | 27,470 |                      |   |   | -                      |   |   |   | 386,134 |   |
|                                            |   | $              | 472,783 |   |                   | $      | 27,470 |                      |   | $      | (535                   | )      |   | $ | 499,718 |   |

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|                                                                              |   | Amortized Cost |    |   | Approximate Fair Value |   |
|-----------------------------------------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|
| Within one year                                                                   |   | $              | 2,238   |   |                   | $      | 2,238 |   |
| Government sponsored mortgage-backed securities not due on a single maturity date |   |           | 271,018 |   |                   |   | 293,679 |   |
|                                                                              |   | $              | 273,256 |   |                   | $      | 295,917 |   |

|                            |   |                |   |   | September 30, 2010 |   |   |       |   |
|---------------------------------|--------|---------------------|--------|--------|--------------------|--------|--------|------------|--------|
|                            |   |                |   |   |               |   |   |       |   |
|                            |   | Less than 12 Months |   |   | 12 Months or More  |   |   | Total      |   |
|  Description of Securities |   | Fair Value          |   |   | Unrealized Losses  |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                            |   |                |   |   |               |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Equity Securities               |   | $                   | -      |   |               | $      | -      |       |   | $ | 34,696 |   |   | $ | (36,838 | ) |   | $ | 34,696 |   |   | $ | (36,838 | ) |

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|                            |   |                |      |   | December 31, 2009 |   |    |       |   |
|---------------------------------|--------|---------------------|-----------|--------|-------------------|--------|---------|------------|--------|
|                            |   |                |      |   |              |   |    |       |   |
|                            |   | Less than 12 Months |      |   | 12 Months or More |   |    | Total      |   |
|  Description of Securities |   | Fair Value          |      |   | Unrealized Losses |   |    | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                            |   |                |      |   |              |   |    |       |   |   |   |   |   |   |   |   |   |   |
| Equity Securities               |   | $                   | -         |   |              | $      | -       |       |   | $ | 30,315 |   |   | $ | (41,219 | ) |   | $ | 30,315 |   |   | $ | (41,219 | ) |
| U. S. Government Agencies       |   |                | 7,021,911 |   |              |   | (86,861 | )          |   |   | - |   |   |   | - |   |   |   | 7,021,911 |   |   |   | (86,861 | ) |
|                            |   | $                   | 7,021,911 |   |              | $      | (86,861 | )          |   | $ | 30,315 |   |   | $ | (41,219 | ) |   | $ | 7,052,226 |   |   | $ | (128,080 | ) |

|                                         |   | Number of shares       |    |   |                       |   |
|----------------------------------------------|--------|------------------------|---------|--------|----------------------------|--------|
|                                         |   | Incentive Stock Option |    |   | Non-Incentive Stock Option |   |   | Weighted Average Exercise Price |   |
|                                         |   |                   |    |   |                       |   |   |   |   |
| Balance outstanding as of January 1, 2010    |   |                   | 148,750 |   |                       |   | 136,704 |   |   | $ | 19.40 |   |
| Granted                                      |   |                   | 45,000  |   |                       |   | 45,000 |   |   |   | 5.25 |   |
| Exercised                                    |   |                   | -       |   |                       |   | - |   |   |   | - |   |
| Forfeited                                    |   |                   | -       |   |                       |   | (10,875 | ) |   |   | 10.50 |   |
| Balance outstanding as of September 30, 2010 |   |                   | 193,750 |   |                       |   | 170,829 |   |   |   | 16.17 |   |
| Options exercisable as of September 30, 2010 |   |                   | 79,250  |   |                       |   | 89,329 |   |   |   | 21.49 |   |

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|                            |   | For three months ended September 30, 2010 |    |   | For nine months ended September 30, 2010 |   |
|---------------------------------|--------|-------------------------------------------|---------|--------|------------------------------------------|--------|
|                            |   | Income Available to Common Shareholders   |    |   | Average Common Shares Outstanding        |   |   | Per Common Share |   |   | Income Available to Common Shareholders |   |   | Average Common Shares Outstanding |   |   | Per Common Share |   |
| Basic Income Per Common Share   |   | $                                         | 240,813 |   |                                     |   | 2,646,828 |   |   | $ | 0.09 |   |   | $ | 646,400 |   |   |   | 2,641,593 |   |   | $ | 0.24 |   |
| Effect of Dilutive Securities:  |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock Warrants           |   |                                      |    |   |                                     |   | 18,283 |   |   |   |   |   |   |   |   |   |   |   | 16,751 |   |   |   |   |   |
| Diluted Income Per Common Share |   | $                                         | 240,813 |   |                                     |   | 2,665,111 |   |   | $ | 0.09 |   |   | $ | 646,400 |   |   |   | 2,658,344 |   |   | $ | 0.24 |   |
|                            |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | For three months ended September 30, 2009 |    |   | For nine months ended September 30, 2009 |   |
|----------------------------------------|--------|-------------------------------------------|---------|--------|------------------------------------------|--------|
|                                   |   | Income Available to Common Shareholders   |    |   | Average Common Shares Outstanding        |   |   | Per Common Share |   |   | Loss Available to Common Shareholders |   |   | Average Common Shares Outstanding |   |   | Per Common Share |   |
| Basic Income (Loss) Per Common Share   |   | $                                         | 293,072 |   |                                     |   | 2,625,181 |   |   | $ | 0.11 |   |   | $ | (2,400,115 | ) |   |   | 2,620,197 |   |   | $ | (0.92 | ) |
| Effect of Dilutive Securities:         |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock Warrants                  |   |                                      |    |   |                                     |   | 43,472 |   |   |   |   |   |   |   |   |   |   |   | N/A |   |   |   |   |   |
| Diluted Income (Loss) Per Common Share |   | $                                         | 293,072 |   |                                     |   | 2,668,653 |   |   | $ | 0.11 |   |   | $ | (2,400,115 | ) |   |   | 2,620,197 |   |   | $ | (0.92 | ) |

|                                                                    |   | 9/30/2010 |      |   | 9/30/2009 |   |
|-------------------------------------------------------------------------|--------|-----------|-----------|--------|-----------|--------|
| Unrealized gains on available-for-sale securities                       |   | $         | 2,475,043 |   |      | $      | 1,683,076 |   |
| Accretion of gains on interest rate swaps into income                   |   |      | (508,746  | )      |      |   | (763,119 | ) |
| Less: Reclassification adjustment for realized gains included in income |   |      | (215,359  | )      |      |   | (657,035 | ) |
| Other comprehensive income,  before tax effect                |   |      | 1,750,938 |   |      |   | 262,922 |   |
| Tax expense                                                             |   |      | 647,847   |   |      |   | 97,281 |   |
| Other comprehensive income                                              |   | $         | 1,103,091 |   |      | $      | 165,641 |   |

|                                             |   | 9/30/2010 |      |   | 12/31/2009 |   |
|--------------------------------------------------|--------|-----------|-----------|--------|------------|--------|
|                                             |   |      |      |   |       |   |
| Unrealized gain on available-for-sale securities |   | $         | 4,443,798 |   |       | $      | 2,184,098 |   |
| Unrealized gain on interest rate swaps           |   |      | -         |   |       |   | 508,746 |   |
|                                             |   |      | 4,443,798 |   |       |   | 2,692,844 |   |
| Tax effect                                       |   |      | 1,644,205 |   |       |   | 996,342 |   |
| Net of tax amount                                |   | $         | 2,799,593 |   |       | $      | 1,696,502 |   |

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| 9/30/2010                                       |   |           |   |   |           |   |    |           |   |   |             |   |
|-------------------------------------------------|--------|----------------|--------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|
|  Financial assets:                         |   |           |   |   |           |   |    |           |   |   |             |   |
|                                            |   | Level 1 inputs |   |   | Level 2 inputs |   |    | Level 3 inputs |   |   | Total fair value |   |
| Equity securities                               |   | $              | 76     |   |           | $      | -       |           |   | $      | -                |   |   | $ | 76 |   |
| Debt securities:                                |   |           |   |   |           |   |    |           |   |   |             |   |   |   |   |   |
| U.S. government agencies                        |   |           | -      |   |           |   | 26,868  |           |   |   | -                |   |   |   | 26,868 |   |
| Government sponsored mortgage-backed securities |   |           | -      |   |           |   | 74,091  |           |   |   | -                |   |   |   | 74,091 |   |
| Available-for-sale securities                   |   | $              | 76     |   |           | $      | 100,959 |           |   | $      | -                |   |   | $ | 101,035 |   |

| 12/31/2009                                      |   |           |   |   |           |   |    |           |   |   |             |   |
|-------------------------------------------------|--------|----------------|--------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|
| Financial assets:                               |   |           |   |   |           |   |    |           |   |   |             |   |
|                                            |   | Level 1 inputs |   |   | Level 2 inputs |   |    | Level 3 inputs |   |   | Total fair value |   |
| Equity securities                               |   | $              | 65     |   |           | $      | -       |           |   | $      | -                |   |   | $ | 65 |   |
| Debt securities:                                |   |           |   |   |           |   |    |           |   |   |             |   |   |   |   |   |
| U.S. government agencies                        |   |           | -      |   |           |   | 30,540  |           |   |   | -                |   |   |   | 30,540 |   |
| Government sponsored mortgage-backed securities |   |           | -      |   |           |   | 72,054  |           |   |   | -                |   |   |   | 72,054 |   |
| Available-for-sale securities                   |   | $              | 65     |   |           | $      | 102,594 |           |   | $      | -                |   |   | $ | 102,659 |   |

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| Impaired loans:                  |   |           |   |   |           |   |   |           |   |   |             |   |
|----------------------------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|------------------|--------|
|                             |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
| September 30, 2010               |   | $              | -      |   |           | $      | -      |           |   | $      | 10,276           |   |   | $ | 10,276 |   |
|                             |   |           |   |   |           |   |   |           |   |   |             |   |   |   |   |   |
| December 31, 2009                |   | $              | -      |   |           | $      | -      |           |   | $      | 17,186           |   |   | $ | 17,186 |   |
|                             |   |           |   |   |           |   |   |           |   |   |             |   |   |   |   |   |
| Foreclosed assets held for sale: |   |           |   |   |           |   |   |           |   |   |             |   |   |   |   |   |

|               |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
|--------------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|------------------|--------|
| September 30, 2010 |   | $              | -      |   |           | $      | -      |           |   | $      | 3,302            |   |   | $ | 3,302 |   |
|               |   |           |   |   |           |   |   |           |   |   |             |   |   |   |   |   |
| December 31, 2009  |   | $              | -      |   |           | $      | -      |           |   | $      | 3,897            |   |   | $ | 3,897 |   |

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|                                                           |   | September 30, 2010 |        |   | December 31, 2009 |   |
|----------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                                                           |   | Carrying Amount    |        |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
| Financial assets:                                              |   |               |        |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                      |   | $                  | 25,245,038  |   |              | $      | 25,245,038 |   |   | $ | 33,016,697 |   |   | $ | 33,016,697 |   |
| Interest-bearing deposits                                      |   |               | 17,785,000  |   |              |   | 17,785,000 |   |   |   | 16,560,802 |   |   |   | 16,560,802 |   |
| Held-to-maturity securities                                    |   |               | 273,256     |   |              |   | 295,917 |   |   |   | 472,783 |   |   |   | 499,718 |   |
| Federal Home Loan Bank stock                                   |   |               | 5,381,200   |   |              |   | 5,381,200 |   |   |   | 5,976,600 |   |   |   | 5,976,600 |   |
| Mortgage loans held for sale                                   |   |               | 3,637,312   |   |              |   | 3,637,312 |   |   |   | 3,465,080 |   |   |   | 3,465,080 |   |
| Loans, net                                                     |   |               | 492,954,944 |   |              |   | 501,291,177 |   |   |   | 525,038,053 |   |   |   | 529,941,646 |   |
| Interest receivable                                            |   |               | 2,480,165   |   |              |   | 2,480,165 |   |   |   | 2,671,563 |   |   |   | 2,671,563 |   |
| Financial liabilities:                                         |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                       |   |               | 493,687,036 |   |              |   | 496,679,401 |   |   |   | 513,051,102 |   |   |   | 517,380,184 |   |
| Federal Home Loan Bank advances                                |   |               | 101,050,000 |   |              |   | 102,999,565 |   |   |   | 116,050,000 |   |   |   | 112,377,239 |   |
| Securities sold under agreements to repurchase                 |   |               | 39,750,000  |   |              |   | 41,635,872 |   |   |   | 39,750,000 |   |   |   | 40,198,606 |   |
| Subordinated debentures                                        |   |               | 15,465,000  |   |              |   | 15,465,000 |   |   |   | 15,465,000 |   |   |   | 15,465,000 |   |
| Interest payable                                               |   |               | 1,005,382   |   |              |   | 1,005,382 |   |   |   | 1,398,122 |   |   |   | 1,398,122 |   |
| Unrecognized financial instruments (net of contractual value): |   |               |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit                                   |   |               | -           |   |              |   | - |   |   |   | - |   |   |   | - |   |
| Unused lines of credit                                         |   |               | -           |   |              |   | - |   |   |   | - |   |   |   | - |   |

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|                                                                 |   | Three months ended 9/30/2010 |    |   | Three months ended 9/30/2009 |   |
|----------------------------------------------------------------------|--------|------------------------------|---------|--------|------------------------------|--------|
|                                                                 |   | Average Balance              |    |   | Interest                     |   |   | Yield / Cost |   |   | Average Balance |   |   | Interest |   |   | Yield / Cost |   |
| ASSETS                                                               |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning:                                                    |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                |   | $                            | 508,037 |   |                         | $      | 6,862 |   |   |   | 5.40 | % |   | $ | 538,229 |   |   | $ | 7,402 |   |   |   | 5.50 | % |
| Investment securities                                                |   |                         | 112,139 |   |                         |   | 866 |   |   |   | 3.09 | % |   |   | 114,818 |   |   |   | 980 |   |   |   | 3.41 | % |
| Other assets                                                         |   |                         | 57,111  |   |                         |   | 118 |   |   |   | 0.83 | % |   |   | 60,674 |   |   |   | 152 |   |   |   | 1.00 | % |
| Total interest-earning                                               |   |                         | 677,287 |   |                         |   | 7,846 |   |   |   | 4.63 | % |   |   | 713,721 |   |   |   | 8,534 |   |   |   | 4.78 | % |
| Noninterest-earning                                                  |   |                         | 49,173  |   |                         |   |   |   |   |   |   |   |   |   | 24,933 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                            | 726,460 |   |                         |   |   |   |   |   |   |   |   | $ | 738,654 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                           |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing:                                                    |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                     |   | $                            | 18,269  |   |                         |   | 36 |   |   |   | 0.79 | % |   | $ | 13,275 |   |   |   | 31 |   |   |   | 0.93 | % |
| Transaction accounts                                                 |   |                         | 257,722 |   |                         |   | 917 |   |   |   | 1.42 | % |   |   | 230,104 |   |   |   | 1,693 |   |   |   | 2.94 | % |
| Certificates of deposit                                              |   |                         | 200,445 |   |                         |   | 1,394 |   |   |   | 2.78 | % |   |   | 247,712 |   |   |   | 2,093 |   |   |   | 3.38 | % |
| FHLB advances                                                        |   |                         | 113,115 |   |                         |   | 769 |   |   |   | 2.72 | % |   |   | 111,393 |   |   |   | 792 |   |   |   | 2.84 | % |
| Securities sold under agreements to repurchase                       |   |                         | 39,750  |   |                         |   | 288 |   |   |   | 2.90 | % |   |   | 39,750 |   |   |   | 221 |   |   |   | 2.22 | % |
| Subordinated debentures                                              |   |                         | 15,465  |   |                         |   | 256 |   |   |   | 6.62 | % |   |   | 15,465 |   |   |   | 256 |   |   |   | 6.62 | % |
| Other borrowed funds                                                 |   |                         | -       |   |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.00 | % |
| Total interest-bearing                                               |   |                         | 644,766 |   |                         |   | 3,660 |   |   |   | 2.27 | % |   |   | 657,699 |   |   |   | 5,086 |   |   |   | 3.09 | % |
| Noninterest-bearing                                                  |   |                         | 27,591  |   |                         |   |   |   |   |   |   |   |   |   | 28,807 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                    |   |                         | 672,357 |   |                         |   |   |   |   |   |   |   |   |   | 686,506 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                           |   |                         | 54,103  |   |                         |   |   |   |   |   |   |   |   |   | 52,148 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                            | 726,460 |   |                         |   |   |   |   |   |   |   |   | $ | 738,654 |   |   |   |   |   |   |   |   |   |
| Net earning balance                                                  |   | $                            | 32,521  |   |                         |   |   |   |   |   |   |   |   | $ | 56,022 |   |   |   |   |   |   |   |   |   |
| Earning yield less costing rate                                      |   |                         |    |   |                         |   |   |   |   |   | 2.36 | % |   |   |   |   |   |   |   |   |   |   | 1.69 | % |
| Net interest income, and net yield spread on interest earning assets |   |                         |    |   |                         | $      | 4,186 |   |   |   | 2.47 | % |   |   |   |   |   | $ | 3,448 |   |   |   | 1.93 | % |
| Ratio of interest-earning assets to interest-bearing liabilities     |   |                         |    |   |                         |   | 105 | % |   |   |   |   |   |   |   |   |   |   | 109 | % |   |   |   |   |

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|                                                                 |   | Nine months ended 9/30/2010 |    |   | Nine months ended 9/30/2009 |   |
|----------------------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|
|                                                                 |   | Average Balance             |    |   | Interest                    |   |   | Yield / Cost |   |   | Average Balance |   |   | Interest |   |   | Yield / Cost |   |
| ASSETS                                                               |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning:                                                    |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                |   | $                           | 518,579 |   |                        | $      | 21,245 |   |   |   | 5.46 | % |   | $ | 551,904 |   |   | $ | 22,260 |   |   |   | 5.38 | % |
| Investment securities                                                |   |                        | 113,450 |   |                        |   | 2,724 |   |   |   | 3.20 | % |   |   | 99,338 |   |   |   | 2,788 |   |   |   | 3.74 | % |
| Other assets                                                         |   |                        | 47,041  |   |                        |   | 371 |   |   |   | 1.05 | % |   |   | 70,118 |   |   |   | 314 |   |   |   | 0.60 | % |
| Total interest-earning                                               |   |                        | 679,070 |   |                        |   | 24,340 |   |   |   | 4.78 | % |   |   | 721,360 |   |   |   | 25,362 |   |   |   | 4.69 | % |
| Noninterest-earning                                                  |   |                        | 52,500  |   |                        |   |   |   |   |   |   |   |   |   | 23,621 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                           | 731,570 |   |                        |   |   |   |   |   |   |   |   | $ | 744,981 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                           |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing:                                                    |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                     |   | $                           | 16,766  |   |                        |   | 108 |   |   |   | 0.86 | % |   | $ | 12,710 |   |   |   | 87 |   |   |   | 0.91 | % |
| Transaction accounts                                                 |   |                        | 257,603 |   |                        |   | 3,206 |   |   |   | 1.66 | % |   |   | 205,204 |   |   |   | 4,329 |   |   |   | 2.81 | % |
| Certificates of deposit                                              |   |                        | 206,198 |   |                        |   | 4,341 |   |   |   | 2.81 | % |   |   | 276,862 |   |   |   | 7,379 |   |   |   | 3.55 | % |
| FHLB advances                                                        |   |                        | 115,061 |   |                        |   | 2,335 |   |   |   | 2.71 | % |   |   | 112,272 |   |   |   | 2,360 |   |   |   | 2.80 | % |
| Securities sold under agreements to repurchase                       |   |                        | 39,750  |   |                        |   | 864 |   |   |   | 2.90 | % |   |   | 39,750 |   |   |   | 673 |   |   |   | 2.26 | % |
| Subordinated debentures                                              |   |                        | 15,465  |   |                        |   | 768 |   |   |   | 6.62 | % |   |   | 15,465 |   |   |   | 768 |   |   |   | 6.62 | % |
| Other borrowed funds                                                 |   |                        | -       |   |                        |   | - |   |   |   | - |   |   |   | 152 |   |   |   | 3 |   |   |   | 2.63 | % |
| Total interest-bearing                                               |   |                        | 650,843 |   |                        |   | 11,622 |   |   |   | 2.38 | % |   |   | 662,415 |   |   |   | 15,599 |   |   |   | 3.14 | % |
| Noninterest-bearing                                                  |   |                        | 27,749  |   |                        |   |   |   |   |   |   |   |   |   | 30,541 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                    |   |                        | 678,592 |   |                        |   |   |   |   |   |   |   |   |   | 692,956 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                           |   |                        | 52,978  |   |                        |   |   |   |   |   |   |   |   |   | 52,025 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                           | 731,570 |   |                        |   |   |   |   |   |   |   |   | $ | 744,981 |   |   |   |   |   |   |   |   |   |
| Net earning balance                                                  |   | $                           | 28,227  |   |                        |   |   |   |   |   |   |   |   | $ | 58,945 |   |   |   |   |   |   |   |   |   |
| Earning yield less costing rate                                      |   |                        |    |   |                        |   |   |   |   |   | 2.40 | % |   |   |   |   |   |   |   |   |   |   | 1.55 | % |
| Net interest income, and net yield spread on interest earning assets |   |                        |    |   |                        | $      | 12,718 |   |   |   | 2.50 | % |   |   |   |   |   | $ | 9,763 |   |   |   | 1.80 | % |
| Ratio of interest-earning assets to interest-bearing liabilities     |   |                        |    |   |                        |   | 104 | % |   |   |   |   |   |   |   |   |   |   | 109 | % |   |   |   |   |

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|                                                       |   | 9/30/2010 |   |   | 12/31/2009 |   |   | 12/31/2008 |   |
|------------------------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
| Nonperforming loans                                        |   | $         | 20,319 |   |       | $      | 34,285 |       |   | $ | 20,694 |   |
| Real estate acquired in settlement of loans                |   |      | 18,008 |   |       |   | 6,760  |       |   |   | 5,655 |   |
| Total nonperforming assets                                 |   | $         | 38,327 |   |       | $      | 41,045 |       |   | $ | 26,349 |   |
|                                                       |   |      |   |   |       |   |   |       |   |   |   |   |
| Total nonperforming assets as a percentage of total assets |   |      | 5.43   | %      |       |   | 5.56   | %          |   |   | 3.90 | % |
| Allowance for loan losses                                  |   | $         | 12,541 |   |       | $      | 14,076 |       |   | $ | 16,728 |   |
| Allowance for loan losses as a percentage of gross loans   |   |      | 2.48   | %      |       |   | 2.61   | %          |   |   | 2.92 | % |

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| BP Change |   |   | Estimated Net Portfolio Value |   |   | NPV as % of PV Assets |   |
|-----------|--------|--------|-------------------------------|--------|--------|-----------------------|--------|
| In Rates  |   |   | $ Amount                      |   |   | $ Change              |   |   | % Change |   |   | NPV Ratio |   |   | Change |   |
| +200      |   |   |                          | 63,607 |   |                  |   | (1,773 | ) |   |   | -2.70 | % |   |   | 9.08 | % |   |   | -0.04 | % |
| +100      |   |   |                          | 64,385 |   |                  |   | (996 | ) |   |   | -1.50 | % |   |   | 9.09 | % |   |   | -0.03 | % |
| NC        |   |   |                          | 65,381 |   |                  |   | - |   |   |   | 0.00 | % |   |   | 9.12 | % |   |   | 0.00 | % |
| -100      |   |   |                          | 67,063 |   |                  |   | 1,682 |   |   |   | 2.60 | % |   |   | 9.24 | % |   |   | 0.12 | % |
| -200      |   |   |                          | 69,884 |   |                  |   | 4,503 |   |   |   | 6.90 | % |   |   | 9.51 | % |   |   | 0.39 | % |

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|   | 11. | Statement re: computation of per share earnings (set forth in “Note 5: Income (Loss) Per Common Share” of the Notes to Condensed Consolidated Financial Statement (unaudited)) |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31(i).1 | Certification of the Principal Executive Officer pursuant to Rule 13a -14(a) of the Exchange Act |
|--------|---------|--------------------------------------------------------------------------------------------------|

|   | 31(i).2 | Certification of the Principal Financial Officer pursuant to Rule 13a - 14(a) of the Exchange Act |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | 32.1 | CEO certification pursuant to 18 U.S.C. Section 1350 |
|--------|------|------------------------------------------------------|

|   | 32.2 | CFO certification pursuant to 18 U.S.C. Section 1350 |
|--------|------|------------------------------------------------------|

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G

| Signature and Title                                       | Date   |
|-----------------------------------------------------------|--------|
|                                                      |   |
| /s/ Shaun A. Burke                                        |   | November 15, 2010 |
| Shaun A. Burke                                            |   |
| President and Chief Executive Officer                     |   |
| (Principal Executive Officer and Duly Authorized Officer) |   |
|                                                      |   |
|                                                      |   |
| /s/ Carter Peters                                         |   | November 15, 2010 |
| Carter Peters                                             |   |
| Executive Vice President and Chief Financial Officer      |   |
| (Principal Financial and Accounting Officer)              |   |

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