----

----

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

| Class                                   | Outstanding as of August 10, 2009 |
|-----------------------------------------|-----------------------------------|
| Common Stock, Par Value $0.10 per share | 2,625,140 Shares                  |

----

----

----

GUARA

|                                                                                                           |                                                                       | Page   |
|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|--------|
| PART I. FINANCIAL INFORMATION                                                                                  |
|                                                                                                           |                                                                       |   |
| Item 1.  Financial Statements                                                                        |                                                                       |
| Condensed 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 | 19                                                                         |
|                                                                                                           |                                                                       |   |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                                             | 26                                                                         |
|                                                                                                           |                                                                       |   |
| Item 4.  Controls and Procedures                                                                     | 27                                                                         |
|                                                                                                           |                                                                       |   |
| PART II. OTHER INFORMATION                                                                                     |
|                                                                                                           |                                                                       |   |
| Item 1.  Legal Proceedings                                                                           | 28                                                                         |
|                                                                                                           |                                                                       |   |
| Item 1A.  Risk factors                                                                               | 28                                                                         |
|                                                                                                           |                                                                       |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                 | 28                                                                         |
|                                                                                                           |                                                                       |   |
| Item 3.  Defaults Upon Senior Securities                                                             | 28                                                                         |
|                                                                                                           |                                                                       |   |
| Item 4.  Submission of Matters to a Vote of Security Holders                                         | 28                                                                         |
|                                                                                                           |                                                                       |   |
| Item 5.  Other Information                                                                           | 29                                                                         |
|                                                                                                           |                                                                       |   |
| Item 6.  Exhibits                                                                                    | 29                                                                         |
|                                                                                                           |                                                                       |   |
| Signatures                                                                                                     |                                                                       |

----

Table of Contents

GUARANT

| ASSETS                                                                                                                       |   | 6/30/09 |        |   | 12/31/08 |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------|--------|----------|--------|
| Cash                                                                                                                         |   | $       | 3,489,898   |   |     | $      | 3,826,567 |   |
| Interest-bearing deposits in other financial institutions                                                                    |   |    | 40,529,599  |   |     |   | 11,270,448 |   |
| Cash and cash equivalents                                                                                                    |   |    | 44,019,497  |   |     |   | 15,097,015 |   |
| Interest-bearing deposits                                                                                                    |   |    | 21,404,000  |   |     |   | - |   |
| Available-for-sale securities                                                                                                |   |    | 108,504,661 |   |     |   | 65,505,339 |   |
| Held-to-maturity securities                                                                                                  |   |    | 510,363     |   |     |   | 556,465 |   |
| Stock in Federal Home Loan Bank, at cost                                                                                     |   |    | 6,730,100   |   |     |   | 6,730,100 |   |
| Mortgage loans held for sale                                                                                                 |   |    | 3,592,915   |   |     |   | 1,933,798 |   |
| Loans receivable, net of allowance for loan losses of June 30, 2009 - $14,264,462 - December 31, 2008 - $16,728,492          |   |    | 527,216,656 |   |     |   | 556,393,243 |   |
| Accrued interest receivable:                                                                                                 |   |    |        |   |     |   |   |   |
| Loans                                                                                                                        |   |    | 1,973,445   |   |     |   | 2,310,062 |   |
| Investments                                                                                                                  |   |    | 609,351     |   |     |   | 322,388 |   |
| Prepaid expenses and other assets                                                                                            |   |    | 6,677,335   |   |     |   | 4,065,359 |   |
| Foreclosed assets held for sale                                                                                              |   |    | 5,366,465   |   |     |   | 5,655,257 |   |
| Premises and equipment                                                                                                       |   |    | 12,152,973  |   |     |   | 11,323,463 |   |
| Income taxes receivable                                                                                                      |   |    | 3,454,926   |   |     |   | 9,091 |   |
| Deferred income taxes                                                                                                        |   |    | 4,491,042   |   |     |   | 5,768,813 |   |
|                                                                                                                         |   | $       | 746,703,729 |   |     | $      | 675,670,393 |   |
|                                                                                                                         |   |    |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                         |   |    |        |   |     |   |   |   |
|                                                                                                                         |   |    |        |   |     |   |   |   |
| LIABILITIES                                                                                                                  |   |    |        |   |     |   |   |   |
| Deposits                                                                                                                     |   | $       | 525,425,902 |   |     | $      | 447,079,469 |   |
| Federal Home Loan Bank advances                                                                                              |   |    | 111,436,000 |   |     |   | 132,436,000 |   |
| Securities sold under agreements to repurchase                                                                               |   |    | 39,750,000  |   |     |   | 39,750,000 |   |
| Subordinated debentures                                                                                                      |   |    | 15,465,000  |   |     |   | 15,465,000 |   |
| Notes payable                                                                                                                |   |    | -           |   |     |   | 1,435,190 |   |
| Advances from borrowers for taxes and insurance                                                                              |   |    | 416,108     |   |     |   | 166,327 |   |
| Accrued expenses and other liabilities                                                                                       |   |    | 1,172,995   |   |     |   | 448,226 |   |
| Accrued interest payable                                                                                                     |   |    | 1,608,209   |   |     |   | 1,577,279 |   |
|                                                                                                                         |   |    | 695,274,214 |   |     |   | 638,357,491 |   |
|                                                                                                                         |   |    |        |   |     |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                |   |    | -           |   |     |   | - |   |
|                                                                                                                         |   |    |        |   |     |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                         |   |    |        |   |     |   |   |   |
| Capital Stock:                                                                                                               |   |    |        |   |     |   |   |   |
| Series A preferred stock, $0.01 par value; authorized 2,000,000 shares; issued and outstanding June 30, 2009 - 17,000 shares |   |    | 15,737,007  |   |     |   | - |   |
| Common stock, $0.10 par value; authorized 10,000,000 shares; issued June 30, 2009 and December 31, 2008 - 6,779,800 shares;  |   |    | 677,980     |   |     |   | 677,980 |   |
| Common stock warrants; June 30, 2009 - 459,459 shares                                                                        |   |    | 1,377,811   |   |     |   | - |   |
| Additional paid-in capital                                                                                                   |   |    | 58,532,921  |   |     |   | 58,535,159 |   |
| Unearned ESOP shares                                                                                                         |   |    | (774,930    | )      |     |   | (888,930 | ) |
| Retained earnings, substantially restricted                                                                                  |   |    | 36,421,003  |   |     |   | 39,114,189 |   |
| Accumulated other comprehensive income                                                                                       |   |    | 1,278,592   |   |     |   | 1,687,858 |   |
|                                                                                                                         |   |    | 113,250,384 |   |     |   | 99,126,256 |   |
| Treasury stock, at cost; June 30, 2009 and December 31, 2008 - 4,079,067and 4,077,567 shares, respectively                   |   |    | (61,820,869 | )      |     |   | (61,813,354 | ) |
|                                                                                                                         |   |    | 51,429,515  |   |     |   | 37,312,902 |   |
|                                                                                                                         |   | $       | 746,703,729 |   |     | $      | 675,670,393 |   |

----

Table of Contents

GUAR

|                                                          |   | Three months ended |       |   | Six months ended |   |
|---------------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                                          |   | 6/30/2009          |       |   | 6/30/2008        |   |   | 6/30/2009 |   |   | 6/30/2008 |   |
| Interest Income                                               |   |               |       |   |             |   |   |   |   |   |   |   |
| Loans                                                         |   | $                  | 7,412,658  |   |             | $      | 8,045,298 |   |   | $ | 14,857,367 |   |   | $ | 16,647,514 |   |
| Investment securities                                         |   |               | 1,074,845  |   |             |   | 829,023 |   |   |   | 1,904,241 |   |   |   | 1,404,188 |   |
| Other                                                         |   |               | 16,609     |   |             |   | 50,883 |   |   |   | 65,805 |   |   |   | 104,535 |   |
|                                                          |   |               | 8,504,112  |   |             |   | 8,925,204 |   |   |   | 16,827,413 |   |   |   | 18,156,237 |   |
| Interest Expense                                              |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                      |   |               | 3,943,129  |   |             |   | 3,520,038 |   |   |   | 7,978,435 |   |   |   | 7,506,570 |   |
| Federal Home Loan Bank advances                               |   |               | 785,395    |   |             |   | 762,156 |   |   |   | 1,567,645 |   |   |   | 1,495,445 |   |
| Subordinated debentures                                       |   |               | 255,946    |   |             |   | 255,946 |   |   |   | 511,892 |   |   |   | 511,892 |   |
| Other                                                         |   |               | 219,904    |   |             |   | 273,570 |   |   |   | 454,393 |   |   |   | 498,869 |   |
|                                                          |   |               | 5,204,374  |   |             |   | 4,811,710 |   |   |   | 10,512,365 |   |   |   | 10,012,776 |   |
| Net Interest Income                                           |   |               | 3,299,738  |   |             |   | 4,113,494 |   |   |   | 6,315,048 |   |   |   | 8,143,461 |   |
| Provision for Loan Losses                                     |   |               | 3,300,000  |   |             |   | 5,684,079 |   |   |   | 4,280,000 |   |   |   | 6,504,079 |   |
| Net Interest Income (Expense) After Provision for Loan Losses |   |               | (262       | )      |             |   | (1,570,585 | ) |   |   | 2,035,048 |   |   |   | 1,639,382 |   |
| Noninterest Income                                            |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Service charges                                               |   |               | 472,144    |   |             |   | 502,578 |   |   |   | 897,333 |   |   |   | 961,978 |   |
| Other fees                                                    |   |               | 15,107     |   |             |   | 7,811 |   |   |   | 26,452 |   |   |   | 14,209 |   |
| Gain (loss) on investment securities                          |   |               | 315,439    |   |             |   | (97,788 | ) |   |   | 315,439 |   |   |   | (97,788 | ) |
| Gain on sale of loans                                         |   |               | 444,373    |   |             |   | 257,428 |   |   |   | 799,783 |   |   |   | 488,505 |   |
| Income (loss) on foreclosed assets                            |   |               | 98,037     |   |             |   | (32,625 | ) |   |   | (52,675 | ) |   |   | (45,827 | ) |
| Other income                                                  |   |               | 177,363    |   |             |   | 183,006 |   |   |   | 345,103 |   |   |   | 381,184 |   |
|                                                          |   |               | 1,522,463  |   |             |   | 820,410 |   |   |   | 2,331,435 |   |   |   | 1,702,261 |   |
| Noninterest Expense                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                                |   |               | 1,978,967  |   |             |   | 1,920,095 |   |   |   | 4,011,427 |   |   |   | 3,811,557 |   |
| Occupancy                                                     |   |               | 475,471    |   |             |   | 407,105 |   |   |   | 956,735 |   |   |   | 794,693 |   |
| FDIC deposit insurance premiums                               |   |               | 670,500    |   |             |   | 62,499 |   |   |   | 945,030 |   |   |   | 124,998 |   |
| Data processing                                               |   |               | 103,856    |   |             |   | 92,517 |   |   |   | 214,458 |   |   |   | 182,333 |   |
| Advertising                                                   |   |               | 75,690     |   |             |   | 99,999 |   |   |   | 166,666 |   |   |   | 199,998 |   |
| Other expense                                                 |   |               | 730,838    |   |             |   | 630,885 |   |   |   | 1,485,571 |   |   |   | 1,200,929 |   |
|                                                          |   |               | 4,035,322  |   |             |   | 3,213,100 |   |   |   | 7,779,887 |   |   |   | 6,314,508 |   |
| Loss Before Income Taxes                                      |   |               | (2,513,121 | )      |             |   | (3,963,275 | ) |   |   | (3,413,404 | ) |   |   | (2,972,865 | ) |
| Credit for Income Taxes                                       |   |               | (881,039   | )      |             |   | (1,466,995 | ) |   |   | (1,189,202 | ) |   |   | (1,093,443 | ) |
| Net Loss                                                      |   |               | (1,632,082 | )      |             |   | (2,496,280 | ) |   |   | (2,224,202 | ) |   |   | (1,879,422 | ) |
| Preferred Stock Dividends and Discount Accretion              |   |               | 281,390    |   |             |   | - |   |   |   | 468,984 |   |   |   | - |   |
| Net Loss Available to Common Shareholders                     |   | $                  | (1,913,472 | )      |             | $      | (2,496,280 | ) |   | $ | (2,693,186 | ) |   | $ | (1,879,422 | ) |
|                                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic Loss Per Common Share                                   |   | $                  | (0.73      | )      |             | $      | (0.96 | ) |   | $ | (1.03 | ) |   | $ | (0.72 | ) |
| Diluted Loss Per Common Share                                 |   | $                  | (0.73      | )      |             | $      | (0.96 | ) |   | $ | (1.03 | ) |   | $ | (0.72 | ) |

----

Table of Contents

GUAR

|                                                                                                                      |   | 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                                                                                                                  |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (2,224,202 | ) |   |   | - |   |   |   | (2,224,202 | ) |
| Change in unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | (409,266 | ) |   |   | (409,266 | ) |
| Total comprehensive loss                                                                                                  |   |            |       |   |         |   |    |                  |   |   |                       |   |   |                 |       |   |           |   |     |              |   |   |                                   |   |   |   |       |   |   |   |   |   |   |   | (2,633,468 | ) |
| Preferred stock issued                                                                                                    |   |            | 15,622,189 |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   |       |   |   |   | - |   |   |   | 15,622,189 |   |
| Common stock warrants issued                                                                                              |   |            | -          |   |         |   | -       |                  |   |   | 1,377,811                  |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 1,377,811 |   |
| Preferred stock discount accretion                                                                                        |   |            | 114,818    |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (114,818   | ) |   |   | - |   |   |   | - |   |
| Preferred stock dividends accrued (5%)                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | -                                      |   |   |   | (354,166   | ) |   |   | - |   |   |   | (354,166 | ) |
| Stock award plans                                                                                                         |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | 47,448     |   |           |   | -        |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 47,448 |   |
| Treasury stock purchased                                                                                                  |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | -          |   |           |   | -        |              |   |   | (7,515                                 | )      |   |   | -          |   |   |   | - |   |   |   | (7,515 | ) |
| Release of ESOP shares                                                                                                    |   |            | -          |   |         |   | -       |                  |   |   | -                          |   |   |                 | (49,686    | )      |           |   | 114,000  |              |   |   | -                                      |   |   |   | -          |   |   |   | - |   |   |   | 64,314 |   |
| Balance, June 30, 2009                                                                                                    |   | $               | 15,737,007 |   |         | $      | 677,980 |                  |   | $      | 1,377,811                  |   |   | $                    | 58,532,921 |   |           | $      | (774,930 | )                 |   | $      | (61,820,869                            | )      |   | $      | 36,421,003 |   |   | $ | 1,278,592 |   |   | $ | 51,429,515 |   |

----

Table of Contents

GUARANT

|                                                                                                                      |   | Common Stock |    |   | Additional Paid-In Capital |   |       | Unearned ESOP Shares |   |   | Treasury Stock |   |   | Retained Earnings |        |   | Accumulated Other Comprehensive Income (Loss) |   |       | Total  |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|----------------------------|--------|------------|----------------------|--------|--------|----------------|--------|--------|-------------------|-------------|--------|-----------------------------------------------|--------|------------|--------|--------|
| Balance, January 1, 2008                                                                                                  |   | $            | 673,649 |   |                       | $      | 57,571,929 |                 |   | $      | (1,116,930     | )      |   | $                 | (60,348,204 | )      |                                          | $      | 45,402,449 |   |   | $ | 503,767 |   |   | $ | 42,686,660 |   |
| Comprehensive income                                                                                                      |   |         |    |   |                       |   |       |                 |   |   |           |   |   |              |        |   |                                          |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                  |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | -           |   |                                          |   | (1,879,422 | )      |   |   | - |   |   |   | (1,879,422 | ) |
| Change in unrealized appreciation on available-for-sale securities and effect of interest rate swaps, net of income taxes |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | -           |   |                                          |   | -          |   |   |   | (2,294,815 | ) |   |   | (2,294,815 | ) |
| Total comprehensive income                                                                                                |   |         |    |   |                       |   |       |                 |   |   |           |   |   |              |        |   |                                          |   |       |   |   |   |   |   |   |   | (4,174,237 | ) |
| Dividends ($0.36 per share)                                                                                               |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | -           |   |                                          |   | (931,013   | )      |   |   | - |   |   |   | (931,013 | ) |
| Stock award plans                                                                                                         |   |         | -       |   |                       |   | 48,476     |                 |   |   | -              |   |   |              | -           |   |                                          |   | -          |   |   |   | - |   |   |   | 48,476 |   |
| Stock options exercised                                                                                                   |   |         | 4,131   |   |                       |   | 550,280    |                 |   |   | -              |   |   |              | -           |   |                                          |   | -          |   |   |   | - |   |   |   | 554,411 |   |
| Release of ESOP shares                                                                                                    |   |         | -       |   |                       |   | 171,764    |                 |   |   | 114,000        |   |   |              | -           |   |                                          |   | -          |   |   |   | - |   |   |   | 285,764 |   |
| Treasury stock purchased                                                                                                  |   |         | -       |   |                       |   | -          |                 |   |   | -              |   |   |              | (1,465,150  | )      |                                          |   | -          |   |   |   | - |   |   |   | (1,465,150 | ) |
| Balance, June 30, 2008                                                                                                    |   | $            | 677,780 |   |                       | $      | 58,342,449 |                 |   | $      | (1,002,930     | )      |   | $                 | (61,813,354 | )      |                                          | $      | 42,592,014 |   |   | $ | (1,791,048 | ) |   | $ | 37,004,911 |   |

----

Table of Contents

GUARAN

|                                                           |   | 6/30/2009 |        |   | 6/30/2008 |   |
|----------------------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                           |   |      |        |   |      |   |
| Net loss                                                       |   | $         | (2,224,202  | )      |      | $      | (1,879,422 | ) |
| Items not requiring (providing) cash:                          |   |      |        |   |      |   |   |   |
| Deferred income taxes                                          |   |      | 1,518,133   |   |      |   | (1,781,997 | ) |
| Depreciation                                                   |   |      | 519,993     |   |      |   | 432,691 |   |
| Provision for loan losses                                      |   |      | 4,280,000   |   |      |   | 6,504,079 |   |
| Gain on loans and investment securities                        |   |      | (1,115,222  | )      |      |   | (390,717 | ) |
| Gain on sale of foreclosed assets                              |   |      | (88,296     | )      |      |   | (2,480 | ) |
| Accretion of gain on termination of interest rate swaps        |   |      | (508,746    | )      |      |   | - |   |
| Amortization of deferred income, premiums and discounts        |   |      | 126,982     |   |      |   | 12,565 |   |
| Stock award plan expense                                       |   |      | 47,448      |   |      |   | 48,476 |   |
| Origination of loans held for sale                             |   |      | (48,609,832 | )      |      |   | (29,460,245 | ) |
| Proceeds from sale of loans held for sale                      |   |      | 47,750,498  |   |      |   | 31,318,150 |   |
| Release of ESOP shares                                         |   |      | 64,314      |   |      |   | 285,764 |   |
| Changes in:                                                    |   |      |        |   |      |   |   |   |
| Accrued interest receivable                                    |   |      | 49,654      |   |      |   | 380,289 |   |
| Prepaid expenses and other assets                              |   |      | 139,929     |   |      |   | (61,141 | ) |
| Accounts payable and accrued expenses                          |   |      | 649,449     |   |      |   | 385,189 |   |
| Income taxes receivable                                        |   |      | (3,445,835  | )      |      |   | (561,226 | ) |
| Net cash provided by (used in) operating activities            |   |      | (845,733    | )      |      |   | 5,229,975 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                           |   |      |        |   |      |   |   |   |
| Net change in loans                                            |   |      | 22,975,678  |   |      |   | (47,928,718 | ) |
| Principal payments on held-to-maturity securities              |   |      | 31,310      |   |      |   | 45,097 |   |
| Principal payments on available-for-sale securities            |   |      | 5,945,457   |   |      |   | 1,035,092 |   |
| Proceeds from maturities of available-for-sale securities      |   |      | -           |   |      |   | 1,550,000 |   |
| Purchase of premises and equipment                             |   |      | (1,349,503  | )      |      |   | (1,813,959 | ) |
| Purchase of available-for-sale securities                      |   |      | (61,589,748 | )      |      |   | (55,304,401 | ) |
| Proceeds from sale of available-for-sale securities            |   |      | 12,683,212  |   |      |   | - |   |
| Purchase of interest-bearing deposits                          |   |      | (21,404,000 | )      |      |   | - |   |
| Purchase of Federal Home Loan Bank stock                       |   |      | -           |   |      |   | (2,156,100 | ) |
| Purchase of tax credit investments                             |   |      | (2,751,905  | )      |      |   | - |   |
| Proceeds from sale of foreclosed assets                        |   |      | 2,322,122   |   |      |   | 582,570 |   |
| Net cash used in investing activities                          |   |      | (43,137,377 | )      |      |   | (103,990,419 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES                           |   |      |        |   |      |   |   |   |
| Stock options exercised                                        |   |      | -           |   |      |   | 554,411 |   |
| Cash dividends paid on common stock                            |   |      | -           |   |      |   | (932,397 | ) |
| Net increase in demand deposits, NOW and savings accounts      |   |      | 124,707,128 |   |      |   | 17,588,346 |   |
| Net increase (decrease) in certificates of deposit             |   |      | (46,360,695 | )      |      |   | 10,946,317 |   |
| Net increase in securities sold under agreements to repurchase |   |      | -           |   |      |   | 29,900,705 |   |
| Proceeds from FHLB advances                                    |   |      | -           |   |      |   | 1,086,450,000 |   |
| Repayments of FHLB advances                                    |   |      | (21,000,000 | )      |      |   | (1,039,100,000 | ) |
| Proceeds from issuance of notes payable                        |   |      | -           |   |      |   | 1,064,000 |   |
| Repayments of notes payable                                    |   |      | (1,435,190  | )      |      |   | (347,000 | ) |
| Advances from borrowers for taxes and insurance                |   |      | 249,781     |   |      |   | 283,410 |   |
| Proceeds from preferred stock and warrants                     |   |      | 17,000,000  |   |      |   | - |   |
| Cash dividends paid on preferred stock                         |   |      | (247,917    | )      |      |   | - |   |
| Treasury stock purchased                                       |   |      | (7,515      | )      |      |   | (1,465,150 | ) |
| Net cash provided by financing activities                      |   |      | 72,905,592  |   |      |   | 104,942,642 |   |
| INCREASE IN CASH AND CASH EQUIVALENTS                          |   |      | 28,922,482  |   |      |   | 6,182,198 |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                 |   |      | 15,097,015  |   |      |   | 12,046,202 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                       |   | $         | 44,019,497  |   |      | $      | 18,228,400 |   |

----

Table of Contents

NOTE

|                       |   | Amortized Cost |        |   | Gross Unrealized Gains |   |      | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|----------------------------|--------|----------------|-------------|--------|------------------------|--------|-----------|---------------------------|--------|--------|------------------------|--------|
| As of June 30, 2009        |   |           |        |   |                   |   |      |                      |   |   |                   |   |
| Equity Securities:         |   |           |        |   |                   |   |      |                      |   |   |                   |   |
| FHLMC stock                |   | $              | 26,057      |   |                   | $      | -         |                      |   | $      | (9,565                 | )      |   | $ | 16,492 |   |
| Other                      |   |           | 474,767     |   |                   |   | 300,093   |                      |   |   | (45,214                | )      |   |   | 729,646 |   |
| Debt Securities:           |   |           |        |   |                   |   |      |                      |   |   |                   |   |   |   |   |   |
| U. S. government agencies  |   |           | 29,481,045  |   |                   |   | 109,396   |                      |   |   | (154,130               | )      |   |   | 29,436,311 |   |
| Mortgage-backed securities |   |           | 77,510,789  |   |                   |   | 932,073   |                      |   |   | (120,650               | )      |   |   | 78,322,212 |   |
|                       |   | $              | 107,492,658 |   |                   | $      | 1,341,562 |                      |   | $      | (329,559               | )      |   | $ | 108,504,661 |   |

----

Table of Contents

|                       |   | Amortized Cost |       |   | Gross Unrealized Gains |   |      | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|----------------------------|--------|----------------|------------|--------|------------------------|--------|-----------|---------------------------|--------|--------|------------------------|--------|
| As of December 31, 2008    |   |           |       |   |                   |   |      |                      |   |   |                   |   |
| Equity Securities:         |   |           |       |   |                   |   |      |                      |   |   |                   |   |
| FHLMC stock                |   | $              | 26,057     |   |                   | $      | -         |                      |   | $      | (6,639                 | )      |   | $ | 19,418 |   |
| Other                      |   |           | 572,087    |   |                   |   | 4,157     |                      |   |   | (34,611                | )      |   |   | 541,633 |   |
| Debt Securities:           |   |           |       |   |                   |   |      |                      |   |   |                   |   |   |   |   |   |
| U. S. government agencies  |   |           | 2,450,000  |   |                   |   | 24,130    |                      |   |   | -                      |   |   |   | 2,474,130 |   |
| Mortgage-backed securities |   |           | 61,304,310 |   |                   |   | 1,173,274 |                      |   |   | (7,426                 | )      |   |   | 62,470,158 |   |
|                       |   | $              | 64,352,454 |   |                   | $      | 1,201,561 |                      |   | $      | (48,676                | )      |   | $ | 65,505,339 |   |

|                                                         |   | Amortized Cost |        |   | Approximate Fair Value |   |
|--------------------------------------------------------------|--------|----------------|-------------|--------|------------------------|--------|
| Within one year                                              |   | $              | 7,500,000   |   |                   | $      | 7,533,614 |   |
| One through five years                                       |   |           | 19,531,045  |   |                   |   | 19,581,657 |   |
| After ten years                                              |   |           | 2,450,000   |   |                   |   | 2,321,040 |   |
| Mortgage-backed securities not due on a single maturity date |   |           | 77,510,789  |   |                   |   | 78,322,212 |   |
|                                                         |   | $              | 106,991,834 |   |                   | $      | 107,758,523 |   |

|                       |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|----------------------------|--------|----------------|---------|--------|------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|
| As of June 30, 2009        |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| Debt Securities:           |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| U. S. government agencies  |   | $              | 120,745 |   |                   | $      | -      |                      |   | $      | (3,623                 | )      |   | $ | 117,122 |   |
| Mortgage-backed securities |   |           | 389,618 |   |                   |   | 27,489 |                      |   |   | -                      |   |   |   | 417,107 |   |
|                       |   | $              | 510,363 |   |                   | $      | 27,489 |                      |   | $      | (3,623                 | )      |   | $ | 534,229 |   |

|                       |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized (Losses) |   |   | Approximate Fair Value |   |
|----------------------------|--------|----------------|---------|--------|------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|
| As of December 31, 2008    |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| Debt Securities:           |   |           |    |   |                   |   |   |                      |   |   |                   |   |
| U. S. government agencies  |   | $              | 135,538 |   |                   | $      | -      |                      |   | $      | (3,236                 | )      |   | $ | 132,302 |   |
| Mortgage-backed securities |   |           | 420,927 |   |                   |   | 24,565 |                      |   |   | (1,395                 | )      |   |   | 444,097 |   |
|                       |   | $              | 556,465 |   |                   | $      | 24,565 |                      |   | $      | (4,631                 | )      |   | $ | 576,399 |   |

----

Table of Contents

|                                                         |   | Amortized Cost |    |   | Approximate Fair Value |   |
|--------------------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|
| Five through ten years                                       |   | $              | 120,745 |   |                   | $      | 117,122 |   |
| Mortgage-backed securities not due on a single maturity date |   |           | 389,618 |   |                   |   | 417,107 |   |
|                                                         |   | $              | 510,363 |   |                   | $      | 534,229 |   |

----

Table of Contents

|                       |   | June 30, 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          |   | $                   | 16,492     |   |   | $ | (9,565 | ) |   | $ | 26,320 |   |   | $ | (45,214 | ) |   | $ | 42,812 |   |   | $ | (54,779 | ) |
| U. S. Government Agencies  |   |                | 6,446,751  |   |   |   | (157,753 | ) |   |   | - |   |   |   | - |   |   |   | 6,446,751 |   |   |   | (157,753 | ) |
| Mortgage-backed securities |   |                | 14,009,865 |   |   |   | (120,650 | ) |   |   | - |   |   |   | - |   |   |   | 14,009,865 |   |   |   | (120,650 | ) |
|                       |   | $                   | 20,473,108 |   |   | $ | (287,968 | ) |   | $ | 26,320 |   |   | $ | (45,214 | ) |   | $ | 20,499,428 |   |   | $ | (333,182 | ) |

|                       |   | December 31, 2008  |      |
|----------------------------|--------|-------------------------|-----------|
|                       |   | 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          |   | $                       | 56,342    |   |   | $ | (41,250 | ) |   | $ | - |   |   | $ | - |   |   | $ | 56,342 |   |   | $ | (41,250 | ) |
| U. S. Government Agencies  |   |                    | -         |   |   |   | - |   |   |   | 132,302 |   |   |   | (3,236 | ) |   |   | 132,302 |   |   |   | (3,236 | ) |
| Mortgage-backed securities |   |                    | 1,440,742 |   |   |   | (8,821 | ) |   |   | - |   |   |   | - |   |   |   | 1,440,742 |   |   |   | (8,821 | ) |
|                       |   | $                       | 1,497,084 |   |   | $ | (50,071 | ) |   | $ | 132,302 |   |   | $ | (3,236 | ) |   | $ | 1,629,386 |   |   | $ | (53,307 | ) |

|                                      |   | Number of shares       |    |   |                       |   |
|-------------------------------------------|--------|------------------------|---------|--------|----------------------------|--------|
|                                      |   | Incentive Stock Option |    |   | Non-Incentive Stock Option |   |   | Weighted Average Exercise Price |   |
|                                      |   |                   |    |   |                       |   |   |   |   |
| Balance outstanding as of January 1, 2009 |   |                   | 108,250 |   |                       |   | 116,704 |   |   | $ | 23.29 |   |
| Granted                                   |   |                   | 37,500  |   |                       |   | 20,000 |   |   | $ | 5.30 |   |
| Exercised                                 |   |                   | -       |   |                       |   | - |   |   |   | - |   |
| Forfeited                                 |   |                   | -       |   |                       |   | - |   |   |   | - |   |
| Balance outstanding as of June 30, 2009   |   |                   | 145,750 |   |                       |   | 136,704 |   |   | $ | 19.63 |   |
| Options exercisable as of June 30, 2009   |   |                   | 50,950  |   |                       |   | 87,704 |   |   | $ | 20.84 |   |

----

Table of Contents

|                           |   | For three months ended June 30, 2009 |       |   | For six months ended June 30, 2009 |   |
|--------------------------------|--------|-------------------------------------------|------------|--------|-----------------------------------------|--------|
|                           |   | Loss Available to Common Shareholders     |       |   | Average Common Shares Outstanding       |   |   | Per Common Share |   |   | Loss Available to Common Shareholders |   |   | Average Common Shares Outstanding |   |   | Per Common Share |   |
| Basic Loss Per Common Share    |   | $                                         | (1,913,472 | )      |                                    |   | 2,619,997 |   |   | $ | (0.73 | ) |   | $ | (2,693,186 | ) |   |   | 2,617,663 |   |   | $ | (1.03 | ) |
| Effect of Dilutive Securities: |   |                                      |       |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock Options                  |   |                                      |       |   |                                    |   | N/A |   |   |   |   |   |   |   |   |   |   |   | N/A |   |   |   |   |   |
| Diluted Loss Per Common Share  |   | $                                         | (1,913,472 | )      |                                    |   | 2,619,997 |   |   | $ | (0.73 | ) |   | $ | (2,693,186 | ) |   |   | 2,617,663 |   |   | $ | (1.03 | ) |

|                           |   | For three months ended June 30, 2008 |       |   | For six months ended June 30, 2008 |   |
|--------------------------------|--------|-------------------------------------------|------------|--------|-----------------------------------------|--------|
|                           |   | Loss Available to Common Shareholders     |       |   | Average Common Shares Outstanding       |   |   | Per Common Share |   |   | Loss Available to Common Shareholders |   |   | Average Common Shares Outstanding |   |   | Per Common Share |   |
| Basic Loss Per Common Share    |   | $                                         | (2,496,280 | )      |                                    |   | 2,599,233 |   |   | $ | (0.96 | ) |   | $ | (1,879,422 | ) |   |   | 2,602,257 |   |   | $ | (0.72 | ) |
| Effect of Dilutive Securities: |   |                                      |       |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock Options                  |   |                                      |       |   |                                    |   | N/A |   |   |   |   |   |   |   |   |   |   |   | N/A |   |   |   |   |   |
| Diluted Loss Per Common Share  |   | $                                         | (2,496,280 | )      |                                    |   | 2,599,233 |   |   | $ | (0.96 | ) |   | $ | (1,879,422 | ) |   |   | 2,602,257 |   |   | $ | (0.72 | ) |

|                                                                             |   | 6/30/2009 |     |   | 6/30/2008 |   |
|----------------------------------------------------------------------------------|--------|-----------|----------|--------|-----------|--------|
| Unrealized gains (losses) on available-for-sale securities                       |   | $         | 174,557  |   |      | $      | (3,740,351 | ) |
| Accretion of gains on interest rate swaps into income                            |   |      | (508,746 | )      |      |   | - |   |
| Less: Reclassification adjustment for realized (gains) losses included in income |   |      | (315,439 | )      |      |   | 97,788 |   |
| Other comprehensive loss, before tax effect                                      |   |      | (649,628 | )      |      |   | (3,642,563 | ) |
| Tax benefit                                                                      |   |      | (240,362 | )      |      |   | (1,347,748 | ) |
| Other comprehensive loss                                                         |   | $         | (409,266 | )      |      | $      | (2,294,815 | ) |

----

Table of Contents

|                                             |   | 6/30/2009 |      |   | 12/31/2008 |   |
|--------------------------------------------------|--------|-----------|-----------|--------|------------|--------|
|                                             |   |      |      |   |       |   |
| Unrealized gain on available-for-sale securities |   | $         | 1,012,003 |   |       | $      | 1,152,885 |   |
| Unrealized gain on interest rate swaps           |   |      | 1,017,508 |   |       |   | 1,526,254 |   |
|                                             |   |      | 2,029,511 |   |       |   | 2,679,139 |   |
| Tax effect                                       |   |      | 750,919   |   |       |   | 991,281 |   |
| Net of tax amount                                |   | $         | 1,278,592 |   |       | $      | 1,687,858 |   |

----

Table of Contents

----

Table of Contents

| 6/30/2009                      |   |           |   |   |           |   |    |           |   |   |             |   |
|--------------------------------|--------|----------------|--------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|
| Available-for-sale securities: |   | Level 1 inputs |   |   | Level 2 inputs |   |    | Level 3 inputs |   |   | Total fair value |   |
| Equity securities              |   | $              | 746    |   |           | $      | -       |           |   | $      | -                |   |   | $ | 746 |   |
| U.S. government agencies       |   |           | -      |   |           |   | 29,437  |           |   |   | -                |   |   |   | 29,437 |   |
| Mortgage-backed securities     |   |           | -      |   |           |   | 78,322  |           |   |   | -                |   |   |   | 78,322 |   |
|                           |   | $              | 746    |   |           | $      | 107,759 |           |   | $      | -                |   |   | $ | 108,505 |   |

| 12/31/2008                     |   |           |   |   |           |   |   |           |   |   |             |   |
|--------------------------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|------------------|--------|
| Available-for-sale securities: |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
| Equity securities              |   | $              | 561    |   |           | $      | -      |           |   | $      | -                |   |   | $ | 561 |   |
| U.S. government agencies       |   |           | -      |   |           |   | 2,474  |           |   |   | -                |   |   |   | 2,474 |   |
| Mortgage-backed securities     |   |           | -      |   |           |   | 62,470 |           |   |   | -                |   |   |   | 62,470 |   |
|                           |   | $              | 561    |   |           | $      | 64,944 |           |   | $      | -                |   |   | $ | 65,505 |   |

----

Table of Contents

| 6/30/2009      |   |           |   |   |           |   |   |           |   |   |             |   |
|----------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|------------------|--------|
|           |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
| Impaired loans |   | $              | -      |   |           |   | -      |           |   |   | 29,877           |   |   | $ | 29,877 |   |

| 12/31/2008     |   |           |   |   |           |   |   |           |   |   |             |   |
|----------------|--------|----------------|--------|--------|----------------|--------|--------|----------------|--------|--------|------------------|--------|
|           |   | Level 1 inputs |   |   | Level 2 inputs |   |   | Level 3 inputs |   |   | Total fair value |   |
| Impaired loans |   | $              | -      |   |           |   | -      |           |   |   | 32,706           |   |   | $ | 32,706 |   |

|                                                           |   | June 30, 2009   |        |   | December 31, 2008 |   |
|----------------------------------------------------------------|--------|-----------------|-------------|--------|-------------------|--------|
|                                                           |   | Carrying Amount |        |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
| Financial assets:                                              |   |            |        |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                      |   | $               | 44,019,497  |   |              | $      | 44,019,497 |   |   | $ | 15,097,015 |   |   | $ | 15,097,015 |   |
| Interest-bearing deposits                                      |   |            | 21,404,000  |   |              |   | 21,404,000 |   |   |   | - |   |   |   | - |   |
| Available-for-sale securities                                  |   |            | 108,504,661 |   |              |   | 108,504,661 |   |   |   | 65,505,339 |   |   |   | 65,505,339 |   |
| Held-to-maturity securities                                    |   |            | 510,363     |   |              |   | 534,229 |   |   |   | 556,465 |   |   |   | 576,399 |   |
| Federal Home Loan Bank stock                                   |   |            | 6,730,100   |   |              |   | 6,730,100 |   |   |   | 6,730,100 |   |   |   | 6,730,100 |   |
| Mortgage loans held for sale                                   |   |            | 3,592,915   |   |              |   | 3,592,915 |   |   |   | 1,933,798 |   |   |   | 1,933,798 |   |
| Loans, net                                                     |   |            | 527,216,656 |   |              |   | 535,182,726 |   |   |   | 556,393,243 |   |   |   | 575,444,855 |   |
| Interest receivable                                            |   |            | 2,582,796   |   |              |   | 2,582,796 |   |   |   | 2,632,450 |   |   |   | 2,632,450 |   |
| Financial liabilities:                                         |   |            |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                       |   |            | 525,425,902 |   |              |   | 530,748,457 |   |   |   | 447,079,469 |   |   |   | 456,127,421 |   |
| Federal Home Loan Bank advances                                |   |            | 111,436,000 |   |              |   | 108,060,873 |   |   |   | 132,436,000 |   |   |   | 134,713,550 |   |
| Securities sold under agreements to repurchase                 |   |            | 39,750,000  |   |              |   | 40,033,682 |   |   |   | 39,750,000 |   |   |   | 40,622,942 |   |
| Subordinated debentures                                        |   |            | 15,465,000  |   |              |   | 15,465,000 |   |   |   | 15,465,000 |   |   |   | 15,465,000 |   |
| Notes payable                                                  |   |            | -           |   |              |   | - |   |   |   | 1,435,190 |   |   |   | 1,435,190 |   |
| Interest payable                                               |   |            | 1,608,209   |   |              |   | 1,608,209 |   |   |   | 1,577,279 |   |   |   | 1,577,279 |   |
| Unrecognized financial instruments (net of contractual value): |   |            |        |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit                                   |   |            | -           |   |              |   | - |   |   |   | - |   |   |   | - |   |
| Unused lines of credit                                         |   |            | -           |   |              |   | - |   |   |   | - |   |   |   | - |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

Item 2.  Management’s 

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                                 |   | Three months ended 6/30/2009 |    |   | Three months ended 6/30/2008 |   |
|----------------------------------------------------------------------|--------|------------------------------|---------|--------|------------------------------|--------|
|                                                                 |   | Average Balance              |    |   | Interest                     |   |   | Yield / Cost |   |   | Average Balance |   |   | Interest |   |   | Yield / Cost |   |
| ASSETS                                                               |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning:                                                    |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                |   | $                            | 554,783 |   |                         | $      | 7,412 |   |   |   | 5.34 | % |   | $ | 552,631 |   |   | $ | 8,045 |   |   |   | 5.82 | % |
| Investment securities and interest-bearing deposits                  |   |                         | 140,293 |   |                         |   | 1,075 |   |   |   | 3.07 | % |   |   | 63,007 |   |   |   | 829 |   |   |   | 5.26 | % |
| Other assets                                                         |   |                         | 33,431  |   |                         |   | 17 |   |   |   | 0.20 | % |   |   | 7,765 |   |   |   | 51 |   |   |   | 2.63 | % |
| Total interest-earning                                               |   |                         | 728,507 |   |                         |   | 8,504 |   |   |   | 4.67 | % |   |   | 623,403 |   |   |   | 8,925 |   |   |   | 5.73 | % |
| Noninterest-earning                                                  |   |                         | 21,736  |   |                         |   |   |   |   |   |   |   |   |   | 21,961 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                            | 750,243 |   |                         |   |   |   |   |   |   |   |   | $ | 645,364 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                           |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing:                                                    |   |                         |    |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                     |   | $                            | 12,873  |   |                         |   | 29 |   |   |   | 0.90 | % |   | $ | 13,347 |   |   |   | 31 |   |   |   | 0.93 | % |
| Transaction accounts                                                 |   |                         | 210,892 |   |                         |   | 1,492 |   |   |   | 2.83 | % |   |   | 102,899 |   |   |   | 392 |   |   |   | 1.52 | % |
| Certificates of deposit                                              |   |                         | 274,375 |   |                         |   | 2,421 |   |   |   | 3.53 | % |   |   | 284,129 |   |   |   | 3,107 |   |   |   | 4.37 | % |
| FHLB advances                                                        |   |                         | 111,436 |   |                         |   | 786 |   |   |   | 2.82 | % |   |   | 116,738 |   |   |   | 762 |   |   |   | 2.61 | % |
| Securities sold under agreements to repurchase                       |   |                         | 39,750  |   |                         |   | 220 |   |   |   | 2.21 | % |   |   | 39,750 |   |   |   | 250 |   |   |   | 2.52 | % |
| Subordinated debentures                                              |   |                         | 15,465  |   |                         |   | 256 |   |   |   | 6.62 | % |   |   | 15,465 |   |   |   | 256 |   |   |   | 6.62 | % |
| Other borrowed funds                                                 |   |                         | -       |   |                         |   | - |   |   |   | 0.00 | % |   |   | 1,462 |   |   |   | 14 |   |   |   | 3.83 | % |
| Total interest-bearing                                               |   |                         | 664,791 |   |                         |   | 5,204 |   |   |   | 3.13 | % |   |   | 573,790 |   |   |   | 4,812 |   |   |   | 3.35 | % |
| Noninterest-bearing                                                  |   |                         | 30,934  |   |                         |   |   |   |   |   |   |   |   |   | 28,730 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                    |   |                         | 695,725 |   |                         |   |   |   |   |   |   |   |   |   | 602,520 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                           |   |                         | 54,518  |   |                         |   |   |   |   |   |   |   |   |   | 42,844 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                            | 750,243 |   |                         |   |   |   |   |   |   |   |   | $ | 645,364 |   |   |   |   |   |   |   |   |   |
| Net earning balance                                                  |   | $                            | 63,716  |   |                         |   |   |   |   |   |   |   |   | $ | 49,613 |   |   |   |   |   |   |   |   |   |
| Earning yield less costing rate                                      |   |                         |    |   |                         |   |   |   |   |   | 1.54 | % |   |   |   |   |   |   |   |   |   |   | 2.37 | % |
| Net interest income, and net yield spread on interest earning assets |   |                         |    |   |                         | $      | 3,300 |   |   |   | 1.81 | % |   |   |   |   |   | $ | 4,113 |   |   |   | 2.64 | % |
| Ratio of interest-earning assets to interest-bearing liabilities     |   |                         |    |   |                         |   | 110 | % |   |   |   |   |   |   |   |   |   |   | 109 | % |   |   |   |   |

----

Table of Contents

|                                                                 |   | Six months ended 6/30/2009 |    |   | Six months ended 6/30/2008 |   |
|----------------------------------------------------------------------|--------|----------------------------|---------|--------|----------------------------|--------|
|                                                                 |   | Average Balance            |    |   | Interest                   |   |   | Yield / Cost |   |   | Average Balance |   |   | Interest |   |   | Yield / Cost |   |
| ASSETS                                                               |   |                       |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning:                                                    |   |                       |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                |   | $                          | 558,854 |   |                       | $      | 14,857 |   |   |   | 5.32 | % |   | $ | 536,597 |   |   | $ | 16,648 |   |   |   | 6.21 | % |
| Investment securities and interest-bearing deposits                  |   |                       | 112,740 |   |                       |   | 1,904 |   |   |   | 3.38 | % |   |   | 53,540 |   |   |   | 1,404 |   |   |   | 5.24 | % |
| Other assets                                                         |   |                       | 55,232  |   |                       |   | 66 |   |   |   | 0.24 | % |   |   | 7,024 |   |   |   | 104 |   |   |   | 2.96 | % |
| Total interest-earning                                               |   |                       | 726,826 |   |                       |   | 16,827 |   |   |   | 4.63 | % |   |   | 597,161 |   |   |   | 18,156 |   |   |   | 6.08 | % |
| Noninterest-earning                                                  |   |                       | 21,371  |   |                       |   |   |   |   |   |   |   |   |   | 20,952 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                          | 748,197 |   |                       |   |   |   |   |   |   |   |   | $ | 618,113 |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                           |   |                       |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing:                                                    |   |                       |    |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                     |   | $                          | 12,423  |   |                       |   | 56 |   |   |   | 0.90 | % |   | $ | 12,994 |   |   |   | 82 |   |   |   | 1.26 | % |
| Transaction accounts                                                 |   |                       | 192,548 |   |                       |   | 2,636 |   |   |   | 2.74 | % |   |   | 101,003 |   |   |   | 954 |   |   |   | 1.89 | % |
| Certificates of deposit                                              |   |                       | 291,679 |   |                       |   | 5,285 |   |   |   | 3.62 | % |   |   | 280,463 |   |   |   | 6,471 |   |   |   | 4.61 | % |
| FHLB advances                                                        |   |                       | 112,714 |   |                       |   | 1,568 |   |   |   | 2.78 | % |   |   | 101,109 |   |   |   | 1,495 |   |   |   | 2.96 | % |
| Securities sold under agreements to repurchase                       |   |                       | 39,750  |   |                       |   | 452 |   |   |   | 2.27 | % |   |   | 34,805 |   |   |   | 475 |   |   |   | 2.73 | % |
| Subordinated debentures                                              |   |                       | 15,465  |   |                       |   | 512 |   |   |   | 6.62 | % |   |   | 15,465 |   |   |   | 512 |   |   |   | 6.62 | % |
| Other borrowed funds                                                 |   |                       | 230     |   |                       |   | 3 |   |   |   | 2.61 | % |   |   | 1,191 |   |   |   | 24 |   |   |   | 4.03 | % |
| Total interest-bearing                                               |   |                       | 664,809 |   |                       |   | 10,512 |   |   |   | 3.16 | % |   |   | 547,030 |   |   |   | 10,013 |   |   |   | 3.66 | % |
| Noninterest-bearing                                                  |   |                       | 31,426  |   |                       |   |   |   |   |   |   |   |   |   | 28,056 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                    |   |                       | 696,235 |   |                       |   |   |   |   |   |   |   |   |   | 575,086 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                           |   |                       | 51,962  |   |                       |   |   |   |   |   |   |   |   |   | 43,027 |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $                          | 748,197 |   |                       |   |   |   |   |   |   |   |   | $ | 618,113 |   |   |   |   |   |   |   |   |   |
| Net earning balance                                                  |   | $                          | 62,017  |   |                       |   |   |   |   |   |   |   |   | $ | 50,131 |   |   |   |   |   |   |   |   |   |
| Earning yield less costing rate                                      |   |                       |    |   |                       |   |   |   |   |   | 1.47 | % |   |   |   |   |   |   |   |   |   |   | 2.42 | % |
| Net interest income, and net yield spread on interest earning assets |   |                       |    |   |                       | $      | 6,315 |   |   |   | 1.74 | % |   |   |   |   |   | $ | 8,143 |   |   |   | 2.73 | % |
| Ratio of interest-earning assets to interest-bearing liabilities     |   |                       |    |   |                       |   | 109 | % |   |   |   |   |   |   |   |   |   |   | 109 | % |   |   |   |   |

----

Table of Contents

----

Table of Contents

|                                                       |   | 6/30/2009 |   |   | 12/31/2008 |   |   | 12/31/2007 |   |
|------------------------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
| Nonperforming loans                                        |   | $         | 28,592 |   |       | $      | 20,694 |       |   | $ | 7,254 |   |
| Real estate acquired in settlement of loans                |   |      | 5,366  |   |       |   | 5,655  |       |   |   | 727 |   |
| Total nonperforming assets                                 |   | $         | 33,958 |   |       | $      | 26,349 |       |   | $ | 7,981 |   |
|                                                       |   |      |   |   |       |   |   |       |   |   |   |   |
| Total nonperforming assets as a percentage of total assets |   |      | 4.55   | %      |       |   | 3.90   | %          |   |   | 1.41 | % |
| Allowance for loan losses                                  |   | $         | 14,264 |   |       | $      | 16,728 |       |   | $ | 5,963 |   |
| Allowance for loan losses as a percentage of gross loans   |   |      | 2.63   | %      |       |   | 2.92   | %          |   |   | 1.15 | % |

----

Table of Contents

Item 3.  Quantitative 

----

Table of Contents

| BP Change             |   |   | Estimated Net Portfolio Value |   |   | NPV as % of PV of Assets |   |
|-----------------------|--------|--------|-------------------------------|--------|--------|--------------------------|--------|
| in Rates              |   |   | $ Amount                      |   |   | $ Change                 |   |   | % Change |   |   | NPV Ratio |   |   | Change |   |
|  +200            |   |   |                          | 55,718 |   |                     |   | 772 |   |   |   | 1 | % |   |   | 7.63 | % |   |   | 0.25 | % |
|  +100            |   |   |                          | 55,429 |   |                     |   | 483 |   |   |   | 1 | % |   |   | 7.52 | % |   |   | 0.14 | % |
|     NC |   |   |                          | 54,946 |   |                     |   | - |   |   |   | - |   |   |   | 7.38 | % |   |   | - |   |
|   -100           |   |   |                          | 55,191 |   |                     |   | 245 |   |   |   | 0 | % |   |   | 7.33 | % |   |   | -0.05 | % |
|   -200           |   |   |                          | 57,510 |   |                     |   | 2,564 |   |   |   | 5 | % |   |   | 7.55 | % |   |   | 0.17 | % |

Item 4. Controls 

----

Table of Contents

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

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

| Period                          |   | (a) Total Number of Shares Purchased |   |   | (b) Average Price Paid per Share |   |   | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) |   |   | (d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|---------------------------------|--------|--------------------------------------|--------|--------|----------------------------------|--------|--------|------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------|--------|
| April 1, 2009 to April 30, 2009 |   |                                 | -      |   |                             |   | -      |                                                                                     |   |   | -                                                                                  |   |   |   | 200,277 |   |
| May 1, 2009 to May 31, 2009     |   |                                 | 1,500  |   |                             | $      | 5.01   |                                                                                     |   |   | 1,500                                                                              |   |   |   | 198,777 |   |
| June 1, 2009 to June 30, 2009   |   |                                 | -      |   |                             |   | -      |                                                                                     |   |   | -                                                                                  |   |   |   | 198,777 |   |
| Total                           |   |                                 | 1,500  |   |                             | $      | 5.01   |                                                                                     |   |   | 1,500                                                                              |   |   |   |   |   |

|   | (1) | The Company has a repurchase plan which was announced on August 20, 2007.  This plan authorizes the purchase by the Company of up to 350,000 shares of the Company’s common stock.  There is no expiration date for this plan.  There are no other repurchase plans in effect at this time. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | Submission of Matters to a Vote of Common Security Holders |
|---------|------------------------------------------------------------|

----

Table of Contents

| Director Election:                                         |   |      |      |   |           |   |
|------------------------------------------------------------|--------|-----------|-----------|--------|----------------|--------|
|                                                       |   |      |      |   |           |   |
| Nominee                                                    |   | Votes For |      |   | Votes Withheld |   |
|                                                       |   |      |      |   |           |   |
| James R. Batten                                            |   |      | 2,105,781 |   |           |   | 103,794 |   |
|                                                       |   |      |      |   |           |   |   |   |
| Shaun A. Burke                                             |   |      | 2,103,511 |   |           |   | 106,064 |   |
|                                                       |   |      |      |   |           |   |   |   |
| Kurt D. Hellweg                                            |   |      | 2,105,526 |   |           |   | 104,049 |   |
|                                                       |   |      |      |   |           |   |   |   |
| John F. Griesemer                                          |   |      | 2,105,281 |   |           |   | 104,294 |   |
|                                                       |   |      |      |   |           |   |   |   |
| Advisory (non-binding) proposal on executive compensation: |
|                                                       |   |      |      |   |           |   |   |   |
| Votes for                                                  |   |      | 1,975,819 |   |           |   |   |   |
|                                                       |   |      |      |   |           |   |   |   |
| Votes Against                                              |   |      | 156,929   |   |           |   |   |   |
|                                                       |   |      |      |   |           |   |   |   |
| Abstentions                                                |   |      | 76,827    |   |           |   |   |   |
|                                                       |   |      |      |   |           |   |   |   |
| Auditor Ratification:                                      |   |      |      |   |           |   |   |   |
|                                                       |   |      |      |   |           |   |   |   |
| Votes for                                                  |   |      | 2,180,715 |   |           |   |   |   |
|                                                       |   |      |      |   |           |   |   |   |
| Votes Against                                              |   |      | 27,598    |   |           |   |   |   |
|                                                       |   |      |      |   |           |   |   |   |
| Abstentions                                                |   |      | 1,262     |   |           |   |   |   |

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

|   | 11. | Statement re: computation of per share earnings (set forth in “Note 5: 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 |
|--------|------|------------------------------------------------------|

----

Table of Contents

SIGNA

| Signature and Title                                       |   | Date            |
|-----------------------------------------------------------|--------|-----------------|
|                                                      |   |            |
| /s/ Shaun A. Burke                                        |   | August 12, 2009 |
| Shaun A. Burke                                            |   |            |
| President and Chief Executive Officer                     |   |            |
| (Principal Executive Officer and Duly Authorized Officer) |   |            |
|                                                      |   |            |
|                                                      |   |            |
|                                                      |   |            |
| /s/ Carter Peters                                         |   | August 12, 2009 |
| Carter Peters                                             |   |            |
| Executive Vice President and Chief Financial Officer      |   |            |
| (Principal Financial and Accounting Officer)              |   |            |

----