|   | OF THE SECURITIES EXCHANGE   ACT OF 1934 |
|--------|---------------------------------------------------------|

|   | For the quarterly period ended September 30, 2010 |
|--------|---------------------------------------------------|

|   | OR |
|--------|----|

|   | [   ]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------------------------|

|   | For the transition period from _____________ to _____________ |
|--------|---------------------------------------------------------------|

| Tennessee(State or other jurisdiction ofincorporation or organization)                    | 26-0401680(I.R.S. Employer Identification No.) |
|-------------------------------------------------------------------------------------------|------------------------------------------------|
| 1430 Madison Street, Clarksville, Tennessee (Address of principal executive offices) | 37040(Zip Code)                                |

|  (Check one):                             |  Large Accelerated Filer [    ]     |  Accelerated Filer [    ] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------|
|                                                                                                                                                                                       |  Non-accelerated Filer [    ]  |  Smaller Reporting Company [ X ]              |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Page   |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|     | Part I. Financial Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item 1.  | Condensed Consolidated Balance Sheets as of September 30, 2010 (unaudited) and December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1      |
|     | Unaudited - Condensed Consolidated Statements of Operations for the Three Months  and Nine Months Ended September 30, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2      |
|     | Unaudited - Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Nine Months Ended September 30, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 3      |
|     | Unaudited - Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2010 and 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 4      |
|     | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 5      |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 20     |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                                                      | 33     |
| Item 4.  | Controls and Procedures                                                                                                                                         | 33     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|     | Part II.  Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| Item 1.  | Legal Proceedings                                                                                                                                               | 33     |
| Item 1A. | Risk Factors                                                                                                                                                    | 34     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 34     |
| Item 3.  | Defaults Upon Senior Securities                                                                                                                                 | 34     |
| Item 4.  | (Removed and Reserved)                                                                                                                                          | 34     |
| Item 5.  | Other Information                                                                                                                                               | 35     |
| Item 6.  | Exhibits                                                                                                                                                        | 35     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|     | SIGNATURES                                                                                                                                                      | 36     |

----

| First Advantage Bancorp                                                                                                                                                                                                                         |   |          |    |   |         |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
| Condensed Consolidated Balance Sheets                                                                                                                                                                                                           |   |          |    |   |         |   |
| (Dollars in thousands, except share and per share amounts)                                                                                                                                                                                      |   |          |    |   |         |   |
|                                                                                                                                                                                                                                            |   | September 30, |    |   | December 31, |   |
|                                                                                                                                                                                                                                            |   | 2010          |    |   | 2009         |   |
|                                                                                                                                                                                                                                            |   | (Unaudited)   |    |   |         |   |
| Assets                                                                                                                                                                                                                                          |   |          |    |   |         |   |
| Cash and due from banks                                                                                                                                                                                                                         |   | $             | 4,958   |   |         | $      | 9,204 |   |
| Interest-bearing demand deposits with banks                                                                                                                                                                                                     |   |          | 11,449  |   |         |   | 1,686 |   |
| Time deposits at other banks                                                                                                                                                                                                                    |   |          | 249     |   |         |   | - |   |
| Federal funds sold                                                                                                                                                                                                                              |   |          | 300     |   |         |   | 975 |   |
| Cash and cash equivalents                                                                                                                                                                                                                       |   |          | 16,956  |   |         |   | 11,865 |   |
|                                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| Available-for-sale securities, at fair value                                                                                                                                                                                                    |   |          | 71,925  |   |         |   | 98,739 |   |
| Other investments                                                                                                                                                                                                                               |   |          | 3,735   |   |         |   | - |   |
| Loans held for sale                                                                                                                                                                                                                             |   |          | 4,249   |   |         |   | 2,265 |   |
| Loans, net of allowance for loan losses of $3,075 and $2,813 at  September 30, 2010 and December 31, 2009, respectively                                                                                                               |   |          | 229,758 |   |         |   | 211,137 |   |
| Premises and equipment, net                                                                                                                                                                                                                     |   |          | 7,690   |   |         |   | 7,903 |   |
| Other real estate owned                                                                                                                                                                                                                         |   |          | 476     |   |         |   | 301 |   |
| Federal Home Loan Bank stock                                                                                                                                                                                                                    |   |          | 2,988   |   |         |   | 2,988 |   |
| Accrued interest receivable                                                                                                                                                                                                                     |   |          | 1,200   |   |         |   | 1,457 |   |
| Income taxes receivable                                                                                                                                                                                                                         |   |          | 1,454   |   |         |   | 2,529 |   |
| Deferred tax asset                                                                                                                                                                                                                              |   |          | 2,029   |   |         |   | 2,421 |   |
| Other assets                                                                                                                                                                                                                                    |   |          | 2,394   |   |         |   | 2,619 |   |
| Total assets                                                                                                                                                                                                                                    |   | $             | 344,854 |   |         | $      | 344,224 |   |
|                                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| Liabilities and Shareholders' Equity                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
|                                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| Liabilities                                                                                                                                                                                                                                     |   |          |    |   |         |   |   |   |
| Deposits                                                                                                                                                                                                                                        |   |          |    |   |         |   |   |   |
| Demand                                                                                                                                                                                                                                          |   | $             | 19,190  |   |         | $      | 19,426 |   |
| Savings, checking and money market                                                                                                                                                                                                              |   |          | 119,437 |   |         |   | 109,706 |   |
| Time certificates                                                                                                                                                                                                                               |   |          | 82,342  |   |         |   | 87,108 |   |
| Total deposits                                                                                                                                                                                                                                  |   |          | 220,969 |   |         |   | 216,240 |   |
|                                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| Securities sold under agreement to repurchase                                                                                                                                                                                                   |   |          | 6,004   |   |         |   | 6,883 |   |
| Federal Home Loan Bank advances                                                                                                                                                                                                                 |   |          | 13,000  |   |         |   | 13,000 |   |
| Borrowings with other banks                                                                                                                                                                                                                     |   |          | 35,000  |   |         |   | 35,000 |   |
| Interest payable and other liablilities                                                                                                                                                                                                         |   |          | 2,727   |   |         |   | 2,575 |   |
| Total liabilities                                                                                                                                                                                                                               |   |          | 277,700 |   |         |   | 273,698 |   |
| Commitments and contingencies                                                                                                                                                                                                                   |   |          | -       |   |         |   | - |   |
|                                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| Shareholders' Equity                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| Preferred stock, $0.01 par value, 10,000,000 shares authorized no shares outstanding at September 30, 2010 or December 31, 2009                                                                                                                 |   |          | -       |   |         |   | - |   |
| Common stock, $0.01 par value 50,000,000 shares authorized, 4,678,394 shares issued and 4,108,933 outstanding at  September 30, 2010 and 5,171,395 shares issued and   4,470,984 outstanding at December 31, 2009 |   |          | 47      |   |         |   | 52 |   |
| Additional paid-in-capital                                                                                                                                                                                                                      |   |          | 47,135  |   |         |   | 51,915 |   |
| Common stock acquired by benefit plans:                                                                                                                                                                                                         |   |          |    |   |         |   |   |   |
| Restricted stock                                                                                                                                                                                                                                |   |          | (896    | )      |         |   | (837 | ) |
| Unallocated common stock held by:                                                                                                                                                                                                               |   |          |    |   |         |   |   |   |
| Employee Stock Ownership Plan trust                                                                                                                                                                                                             |   |          | (3,496  | )      |         |   | (3,496 | ) |
| Benefit plans                                                                                                                                                                                                                                   |   |          | (2,352  | )      |         |   | (2,773 | ) |
| Retained earnings                                                                                                                                                                                                                               |   |          | 23,593  |   |         |   | 23,210 |   |
| Accumulated other comprehensive income                                                                                                                                                                                                          |   |          | 3,123   |   |         |   | 2,455 |   |
| Total shareholders' equity                                                                                                                                                                                                                      |   |          | 67,154  |   |         |   | 70,526 |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                                      |   | $             | 344,854 |   |         | $      | 344,224 |   |
|                                                                                                                                                                                                                                            |   |          |    |   |         |   |   |   |
| See accompanying notes to unaudited condensed consolidated financial statements.                                                                                                                                                                |   |

----

| First Advantage Bancorp                                                          |   |               |      |   |              |   |      |   |   |   |      |   |
|----------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|-----------|--------|--------|--------|-----------|--------|
| Unaudited - Condensed Consolidated Statements of Income                          |   |
| (Dollars in thousands, except share and per share data)                          |   |               |      |   |
|                                                                             |   | Three Months Ended |      |   | Nine Months Ended |   |
|                                                                             |   | September 30,      |      |   | September 30,     |   |
|                                                                             |   | 2010               |      |   | 2009              |   |      | 2010   |   |   | 2009      |   |
| Interest and dividend income                                                     |   |               |      |   |              |   |      |   |   |   |      |   |
| Loans                                                                            |   | $                  | 3,469     |   |              | $      | 2,904     |   |   | $      | 10,077    |   |   | $ | 8,257 |   |
| Investment securities                                                            |   |               | 840       |   |              |   | 1,358     |   |   |   | 2,883     |   |   |   | 4,371 |   |
| Other                                                                            |   |               | 73        |   |              |   | 78        |   |   |   | 196       |   |   |   | 214 |   |
| Total interest and dividend income                                               |   |               | 4,382     |   |              |   | 4,340     |   |   |   | 13,156    |   |   |   | 12,842 |   |
| Interest expense                                                                 |   |               |      |   |              |   |      |   |   |   |      |   |   |   |   |   |
| Deposits                                                                         |   |               | 758       |   |              |   | 1,097     |   |   |   | 2,493     |   |   |   | 3,494 |   |
| Borrowings                                                                       |   |               | 453       |   |              |   | 462       |   |   |   | 1,359     |   |   |   | 1,384 |   |
| Total interest expense                                                           |   |               | 1,211     |   |              |   | 1,559     |   |   |   | 3,852     |   |   |   | 4,878 |   |
| Net interest income                                                              |   |               | 3,171     |   |              |   | 2,781     |   |   |   | 9,304     |   |   |   | 7,964 |   |
| Provision for loan losses                                                        |   |               | 248       |   |              |   | 180       |   |   |   | 707       |   |   |   | 507 |   |
| Net interest income after provision for loan losses                              |   |               | 2,923     |   |              |   | 2,601     |   |   |   | 8,597     |   |   |   | 7,457 |   |
| Noninterest income                                                               |   |               |      |   |              |   |      |   |   |   |      |   |   |   |   |   |
| Service charges on deposit accounts and other fees                               |   |               | 299       |   |              |   | 341       |   |   |   | 903       |   |   |   | 918 |   |
| Loan servicing and other fees                                                    |   |               | 21        |   |              |   | 19        |   |   |   | 66        |   |   |   | 50 |   |
| Net gains on sales of mortgage loans held for sale                               |   |               | 327       |   |              |   | 279       |   |   |   | 890       |   |   |   | 977 |   |
| Net realized gain on sales of available-for-sale securities                      |   |               | -         |   |              |   | 2         |   |   |   | 77        |   |   |   | 7 |   |
| Insurance and brokerage commissions                                              |   |               | 42        |   |              |   | 39        |   |   |   | 112       |   |   |   | 101 |   |
| Other                                                                            |   |               | 8         |   |              |   | (9        | )      |   |   | 20        |   |   |   | 3 |   |
| Total noninterest income                                                         |   |               | 697       |   |              |   | 671       |   |   |   | 2,068     |   |   |   | 2,056 |   |
| Noninterest expense                                                              |   |               |      |   |              |   |      |   |   |   |      |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |               | 1,625     |   |              |   | 1,388     |   |   |   | 4,774     |   |   |   | 4,380 |   |
| Net occupancy                                                                    |   |               | 176       |   |              |   | 166       |   |   |   | 512       |   |   |   | 504 |   |
| Equipment                                                                        |   |               | 184       |   |              |   | 174       |   |   |   | 546       |   |   |   | 494 |   |
| Data processing                                                                  |   |               | 220       |   |              |   | 195       |   |   |   | 664       |   |   |   | 679 |   |
| Professional fees                                                                |   |               | 98        |   |              |   | 123       |   |   |   | 295       |   |   |   | 355 |   |
| Marketing                                                                        |   |               | 63        |   |              |   | 74        |   |   |   | 199       |   |   |   | 238 |   |
| Office expense                                                                   |   |               | 69        |   |              |   | 73        |   |   |   | 205       |   |   |   | 219 |   |
| Loan collection and repossession expense                                         |   |               | 36        |   |              |   | 13        |   |   |   | 162       |   |   |   | 21 |   |
| Other                                                                            |   |               | 402       |   |              |   | 459       |   |   |   | 1,319     |   |   |   | 1,551 |   |
| Total noninterest expense                                                        |   |               | 2,873     |   |              |   | 2,665     |   |   |   | 8,676     |   |   |   | 8,441 |   |
| Income before income taxes                                                       |   |               | 747       |   |              |   | 607       |   |   |   | 1,989     |   |   |   | 1,072 |   |
| Provision for income taxes                                                       |   |               | 275       |   |              |   | 217       |   |   |   | 859       |   |   |   | 372 |   |
| Net income                                                                       |   | $                  | 472       |   |              | $      | 390       |   |   | $      | 1,130     |   |   | $ | 700 |   |
| Per common share:                                                                |   |               |      |   |              |   |      |   |   |   |      |   |   |   |   |   |
| Basic net income per common share                                                |   | $                  | 0.11      |   |              | $      | 0.09      |   |   | $      | 0.26      |   |   | $ | 0.16 |   |
| Diluted net income per common share                                              |   | $                  | 0.11      |   |              | $      | 0.09      |   |   | $      | 0.26      |   |   | $ | 0.15 |   |
| Dividends declared per common share                                              |   | $                  | 0.05      |   |              | $      | 0.05      |   |   | $      | 0.15      |   |   | $ | 0.15 |   |
| Basic weighted average common shares outstanding                                 |   |               | 4,161,187 |   |              |   | 4,482,274 |   |   |   | 4,322,544 |   |   |   | 4,514,591 |   |
| Diluted weighted average common shares outstanding                               |   |               | 4,200,300 |   |              |   | 4,543,308 |   |   |   | 4,360,368 |   |   |   | 4,580,379 |   |
|                                                                             |   |               |      |   |              |   |      |   |   |   |      |   |   |   |   |   |
| See accompanying notes to unaudited condensed consolidated financial statements. |   |

----

| First Advantage Bancorp                                                                               |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|--------|------------|--------|--------|-------------|--------|--------|---------------|--------|--------|---------------|--------|--------|--------|--------|
| Unaudited - Condensed Consolidated Statements of Stockholders' Equity                                 |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |
| Nine Months Ended September 30, 2010 and 2009                                                         |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |
| (Dollars in thousands, except share and per share amounts)                                            |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |
|                                                                                                  |   |         |      |   |    |   |   |       |   |   |        |   |   | Common        |   |   | Accumulated   |   |   |   |   |
|                                                                                                  |   |         |      |   |    |   |   | Additional |   |   |        |   |   | Stock         |   |   | Other         |   |   | Total  |   |
|                                                                                                  |   | Common Stock |      |   | Paid-in |   |   | Retained   |   |   | Acquired by |   |   | Comprehensive |   |   | Stockholders' |   |
|                                                                                                  |   | Shares       |      |   | Stock   |   |   | Capital    |   |   | Earnings    |   |   | Benefit Plans |   |   | Income        |   |   | Equity |   |
| Balance at January 1, 2009                                                                            |   |         | 5,264,683 |   |    | $      | 53     |       |   | $      | 52,258      |   |   | $             | 23,872 |   |          | $      | (7,744 | )      |   | $ | 1,822 |   |   | $ | 70,261 |   |
| Cumulative effect of change in   accounting principle, adoption of   FSP 115-2 and 124-2    |   |         |      | 22     |    |   |   |       |   |   |        | (22    | )      |          |   | -      |          |
| Comprehensive income, net of tax:                                                                     |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   Net income                                                                                |   |         |      |   |    |   | -      |       |   |   | -           |   |   |          | 700    |   |          |   | -      |   |   |   | - |   |   |   | 700 |   |
| Change in unrealized appreciation of    available-for-sale securities, net of tax |   |         |      | -      |    |   |   |       |   |   |        | -      |   |          |   | -      |          |   |   | 615    |   |   |   | 615 |   |
| Total comprehensive income                                                                            |   |         |      |   |    |   | -      |       |   |   | -           |   |   |          | -      |   |          |   | -      |   |   |   | - |   |   |   | 1,315 |   |
| Treasury stock purchase/retire                                                                        |   |         | (92,988   | )      |    |   | (1     | )          |   |   | (891        | )      |   |          |   |   |          |   |   |   |   |   |   |   |   |   | (892 | ) |
| Dividends paid ($0.15 per common share)                                                               |   |         |      |   |    |   | -      |       |   |   |        |   |   |          | (786   | )      |          |   | -      |   |   |   | - |   |   |   | (786 | ) |
| (Purchase)/release restricted stock plan shares, net                                                  |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   | 380    |   |   |   |   |   |   |   | 380 |   |
| Stock-based compensation expense                                                                      |   |         |      |   |    |   | -      |       |   |   | 450         |   |   |          | -      |   |          |   | -      |   |   |   | - |   |   |   | 450 |   |
| Balance at September 30, 2009                                                                         |   |         | 5,171,695 |   |    | $      | 52     |       |   | $      | 51,817      |   |   | $             | 23,808 |   |          | $      | (7,364 | )      |   | $ | 2,415 |   |   | $ | 70,728 |   |
|                                                                                                  |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2010                                                                            |   |         | 5,171,395 |   |    | $      | 52     |       |   | $      | 51,915      |   |   | $             | 23,210 |   |          | $      | (7,106 | )      |   | $ | 2,455 |   |   | $ | 70,526 |   |
| Comprehensive income:                                                                                 |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   Net income                                                                                |   |         |      |   |    |   | -      |       |   |   | -           |   |   |          | 1,130  |   |          |   | -      |   |   |   | - |   |   |   | 1,130 |   |
| Change in unrealized appreciation of    available-for-sale securities, net of tax      |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |   | 668    |   |   |   | 668 |   |
| Total comprehensive income                                                                            |   |         |      |   |    |   | -      |       |   |   | -           |   |   |          | -      |   |          |   | -      |   |   |   | - |   |   |   | 1,798 |   |
| Treasury stock purchase/retire                                                                        |   |         | (493,001  | )      |    |   | (5     | )          |   |   | (5,274      | )      |   |          |   |   |          |   |   |   |   |   |   |   |   |   | (5,279 | ) |
| Dividends paid ($0.15 per common share)                                                               |   |         |      |   |    |   | -      |       |   |   | -           |   |   |          | (747   | )      |          |   | -      |   |   |   | - |   |   |   | (747 | ) |
| (Purchase)/release restricted stock plan shares, net                                                  |   |         |      |   |    |   | -      |       |   |   | -           |   |   |          | -      |   |          |   | 362    |   |   |   | - |   |   |   | 362 |   |
| Stock-based compensation expense                                                                      |   |         |      |   |    |   | -      |       |   |   | 494         |   |   |          | -      |   |          |   | -      |   |   |   | - |   |   |   | 494 |   |
| Balance at September 30, 2010                                                                         |   |         | 4,678,394 |   |    | $      | 47     |       |   | $      | 47,135      |   |   | $             | 23,593 |   |          | $      | (6,744 | )      |   | $ | 3,123 |   |   | $ | 67,154 |   |
|                                                                                                  |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to unaudited condensed financial statements.                                   |   |         |      |   |    |   |   |       |   |   |        |   |   |          |   |   |          |   |

----

| First Advantage Bancorp                                                                               |   |              |    |   |   |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|--------|--------|
| Unaudited - Condensed Consolidated Statements of Cash Flows                                           |   |              |    |   |   |   |
| (Dollars in thousands)                                                                                |   |              |    |   |   |   |
|                                                                                                  |   | Nine Months Ended |    |
|                                                                                                  |   | September 30,     |    |
|                                                                                                  |   | 2010              |    |   | 2009   |   |
| Operating activities                                                                                  |   |              |    |   |   |   |
| Net income                                                                                            |   | $                 | 1,130   |   |   | $      | 700 |   |
| Adjustments to reconcile net income to net cash  provided by (used in) operating activities |   |              |    |   |   |   |   |   |
| Provision for loan losses                                                                             |   |              | 707     |   |   |   | 507 |   |
| Depreciation, amortization and accretion                                                              |   |              | 621     |   |   |   | 546 |   |
| Deferred income taxes                                                                                 |   |              | (22     | )      |   |   | (11 | ) |
| Funding of mortgage loans held for sale                                                               |   |              | (39,156 | )      |   |   | (46,234 | ) |
| Proceeds from sales of mortgage loans held for sale                                                   |   |              | 38,062  |   |   |   | 45,468 |   |
| Net gains on sales of mortgage loans held for sale                                                    |   |              | (890    | )      |   |   | (977 | ) |
| Net realized gain on sales of available-for-sale securities                                           |   |              | (77     | )      |   |   | 7 |   |
| Net loss on disposal of premises and equipment                                                        |   |              | 2       |   |   |   | 17 |   |
| Stock-based compensation                                                                              |   |              | 494     |   |   |   | 450 |   |
| Change in other assets                                                                                |   |              | 470     |   |   |   | (91 | ) |
| Increase in other liabilities                                                                         |   |              | 1,227   |   |   |   | 891 |   |
| Net cash provided by operating activities                                                             |   |              | 2,568   |   |   |   | 1,273 |   |
|                                                                                                  |   |              |    |   |   |   |   |   |
| Investing activities                                                                                  |   |              |    |   |   |   |   |   |
| Purchases of other investments                                                                        |   |              | (3,735  | )      |   |   | - |   |
| Purchases of securities available-for-sale                                                            |   |              | (7,201  | )      |   |   | (27,908 | ) |
| Proceeds from maturities of and repayments of available-for-sale securities                           |   |              | 35,006  |   |   |   | 44,318 |   |
| Net change in loans                                                                                   |   |              | (19,975 | )      |   |   | (23,828 | ) |
| Purchase of premises and equipment                                                                    |   |              | (242    | )      |   |   | (578 | ) |
| Proceeds from sales of premises and equipment                                                         |   |              | -       |   |   |   | 15 |   |
| Proceeds from sale of other real estate owned                                                         |   |              | 484     |   |   |   | - |   |
| Net cash provided by (used in)  investing activities                                        |   |              | 4,337   |   |   |   | (7,981 | ) |
|                                                                                                  |   |              |    |   |   |   |   |   |
| Financing activities                                                                                  |   |              |    |   |   |   |   |   |
| Net increase in demand deposits, money market, checking and  savings accounts               |   |              | 9,495   |   |   |   | 20,933 |   |
| Net change in certificates of deposit                                                                 |   |              | (4,766  | )      |   |   | 190 |   |
| Net change in repurchase agreement and other short-term borrowings                                    |   |              | (879    | )      |   |   | 2,968 |   |
| Net change Federal Home Loan Bank advances - short term                                               |   |              | -       |   |   |   | (10,550 | ) |
| Purchase and retirement of Company common stock                                                       |   |              | (5,279  | )      |   |   | (892 | ) |
| Dividends paid                                                                                        |   |              | (747    | )      |   |   | (786 | ) |
| Stock (purchased)/retired  - restricted stock compensation plans, net                       |   |              | 362     |   |   |   | 380 |   |
| Net cash (used in) provided by financing activities                                                   |   |              | (1,814  | )      |   |   | 12,243 |   |
| (Decrease)/increase in cash and cash equivalents                                                      |   |              | 5,091   |   |   |   | 5,535 |   |
| Cash and cash equivalents, beginning of period                                                        |   |              | 11,865  |   |   |   | 12,243 |   |
| Cash and cash equivalents, end of period                                                              |   | $                 | 16,956  |   |   | $      | 17,778 |   |
| Supplemental cash flow information:                                                                   |   |              |    |   |   |   |   |   |
| Other real estate owned acquired through foreclosure of real estate loans                             |   |              | 647     |   |   |   | 60 |   |
| Transfer of other real estate to loans                                                                |   |              | 140     |   |   |   | - |   |
| See accompanying notes to unaudited condensed consolidated financial statements.                      |   |              |    |   |   |   |   |   |

----

----

----

| (Dollars in thousands, except share and per share amounts) |   | Three Months Ended September 30, |      |   | Nine Months Ended September 30, |   |
|------------------------------------------------------------|--------|----------------------------------|-----------|--------|---------------------------------|--------|
|                                                       |   | 2010                             |      |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |
| Net income                                                 |   | $                                | 472       |   |                            | $      | 390 |   |   | $ | 1,130 |   |   | $ | 700 |   |
|                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average shares - Basic EPS                        |   |                             | 4,161,187 |   |                            |   | 4,482,274 |   |   |   | 4,322,544 |   |   |   | 4,514,591 |   |
| Weighted-average restricted shares -                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| 2007 Deferred Compensation Plan                            |   |                             | 9,776     |   |                            |   | 36,432 |   |   |   | 9,607 |   |   |   | 33,779 |   |
| 2008 Equity Incentive Plan                                 |   |                             | -         |   |                            |   | - |   |   |   | - |   |   |   | 8,624 |   |
| Weighted-average shares -                                  |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| ESOP committed to be released - diluted EPS                |   |                             | 29,337    |   |                            |   | 24,602 |   |   |   | 28,217 |   |   |   | 23,385 |   |
| Weighted-average shares - Diluted EPS                      |   |                             | 4,200,300 |   |                            |   | 4,543,308 |   |   |   | 4,360,368 |   |   |   | 4,580,379 |   |
| Basic earnings per common share                            |   | $                                | 0.11      |   |                            | $      | 0.09 |   |   | $ | 0.26 |   |   | $ | 0.16 |   |
| Diluted earnings per common share                          |   | $                                | 0.11      |   |                            | $      | 0.09 |   |   | $ | 0.26 |   |   | $ | 0.15 |   |

----

|                                  |   | At September 30,       |    |   | At December 31,        |   |
|---------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                  |   | 2010                   |    |   | 2009                   |   |
|                                  |   | Amount                 |    |   | Percent                |   |   | Amount |   |   | Percent |   |
|                                  |   | (Dollars in thousands) |    |   | (Dollars in thousands) |   |
| Real estate loans:                    |   |                   |    |   |                   |   |   |   |   |   |   |   |
| Permanent loans:                      |   |                   |    |   |                   |   |   |   |   |   |   |   |
| One-to-four family                    |   | $                      | 44,456  |   |                   |   | 19.1 | % |   | $ | 44,582 |   |   |   | 20.8 | % |
| Multi-family                          |   |                   | 16,255  |   |                   |   | 7.0 |   |   |   | 13,695 |   |   |   | 6.4 |   |
| Nonresidential                        |   |                   | 77,360  |   |                   |   | 33.2 |   |   |   | 63,910 |   |   |   | 29.9 |   |
| Construction loans:                   |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four family                    |   |                   | 19,328  |   |                   |   | 8.3 |   |   |   | 13,880 |   |   |   | 6.5 |   |
| Multi-family                          |   |                   | 80      |   |                   |   | N/M |   |   |   | 3,060 |   |   |   | 1.4 |   |
| Nonresidential                        |   |                   | 5,698   |   |                   |   | 2.4 |   |   |   | 9,941 |   |   |   | 4.6 |   |
| Land loans                            |   |                   | 22,686  |   |                   |   | 9.7 |   |   |   | 20,849 |   |   |   | 9.7 |   |
| Total real estate loans               |   |                   | 185,863 |   |                   |   | 79.7 |   |   |   | 169,917 |   |   |   | 79.3 |   |
|                                  |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                             |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Home equity loans and lines of credit |   |                   | 18,044  |   |                   |   | 7.8 |   |   |   | 16,445 |   |   |   | 7.7 |   |
| Auto loans                            |   |                   | 648     |   |                   |   | 0.3 |   |   |   | 850 |   |   |   | 0.4 |   |
| Deposit loans                         |   |                   | 394     |   |                   |   | 0.2 |   |   |   | 257 |   |   |   | 0.1 |   |
| Other                                 |   |                   | 2,297   |   |                   |   | 1.0 |   |   |   | 2,339 |   |   |   | 1.1 |   |
| Total consumer loans                  |   |                   | 21,383  |   |                   |   | 9.3 |   |   |   | 19,891 |   |   |   | 9.3 |   |
|                                  |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans                      |   |                   | 25,501  |   |                   |   | 11.0 |   |   |   | 24,069 |   |   |   | 11.3 |   |
|                                  |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                           |   |                   | 232,747 |   |                   |   | 100.0 | % |   |   | 213,877 |   |   |   | 100.0 | % |
| Allowance for loan losses             |   |                   | (3,075  | )      |                   |   |   |   |   |   | (2,813 | ) |   |   |   |   |
| Net deferred loan costs               |   |                   | 86      |   |                   |   |   |   |   |   | 73 |   |   |   |   |   |
| Loans receivable, net                 |   | $                      | 229,758 |   |                   |   |   |   |   | $ | 211,137 |   |   |   |   |   |
|                                  |   |                   |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                  | .      |   |   | At September 30, 2010  |   |
|---------------------------------------|--------|--------|--------|------------------------|--------|
|                                  |   |   |   |                   |   |   |        Multi-family and |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   | One- to                |   |   |          Nonresidential |   |   |   |   |   |   |   |   |   |   |   | Total |   |
|                                  |   |   |   | Four-Family            |   |   | Real Estate |   |   | Construction |   |   | Land |   |   | Consumer |   |   | Commercial |   |   | Loans |   |
|                                  |   |   |   | (Dollars in thousands) |   |
|                                  |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts due in:                       |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One year or less                      |   |   | $      | 9,663                  |   |   | $ | 11,370 |   |   | $ | 23,946 |   |   | $ | 10,000 |   |   | $ | 13,235 |   |   | $ | 7,429 |   |   | $ | 75,643 |   |
| More than one year to three years     |   |   |   | 14,215                 |   |   |   | 50,328 |   |   |   | 1,160 |   |   |   | 10,036 |   |   |   | 2,481 |   |   |   | 10,843 |   |   |   | 89,063 |   |
| More than three years to five years   |   |   |   | 5,914                  |   |   |   | 28,320 |   |   |   | - |   |   |   | 2,432 |   |   |   | 1,456 |   |   |   | 2,795 |   |   |   | 40,917 |   |
| More than five years to fifteen years |   |   |   | 5,769                  |   |   |   | 3,597 |   |   |   | - |   |   |   | 218 |   |   |   | 4,211 |   |   |   | 4,434 |   |   |   | 18,229 |   |
| More than fifteen years               |   |   |   | 8,895                  |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | 8,895 |   |
| Total                                 |   |   | $      | 44,456                 |   |   | $ | 93,615 |   |   | $ | 25,106 |   |   | $ | 22,686 |   |   | $ | 21,383 |   |   | $ | 25,501 |   |   | $ | 232,747 |   |
|                                  |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   | At December 31, 2009   |   |   |
|                                  |   |   |   |                   |   |   |   |   |    Multi-family and  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   | One- to                |   |   |          Nonresidential |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Total |   |
|                                  |   |   |   | Four-Family            |   |   |     Real Estate |   |   | Construction |   |   | Land |   |   | Consumer |   |   | Commercial |   |   | Loans |   |
|                                  |   |   |   | (Dollars in thousands) |   |   |
|                                  |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts due in:                       |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One year or less                      |   |   | $      | 9,913                  |   |   | $ | 16,383 |   |   | $ | 24,139 |   |   | $ | 9,244 |   |   | $ | 13,320 |   |   | $ | 7,299 |   |   | $ | 80,298 |   |
| More than one year to three years     |   |   |   | 10,867                 |   |   |   | 15,928 |   |   |   | 1,246 |   |   |   | 9,441 |   |   |   | 2,278 |   |   |   | 7,219 |   |   |   | 46,979 |   |
| More than three years to five years   |   |   |   | 6,784                  |   |   |   | 38,444 |   |   |   | 1,496 |   |   |   | 1,861 |   |   |   | 1,794 |   |   |   | 4,603 |   |   |   | 54,982 |   |
| More than five years to fifteen years |   |   |   | 7,553                  |   |   |   | 6,850 |   |   |   | - |   |   |   | 303 |   |   |   | 2,499 |   |   |   | 4,948 |   |   |   | 22,153 |   |
| More than fifteen years               |   |   |   | 9,465                  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,465 |   |
| Total                                 |   |   | $      | 44,582                 |   |   | $ | 77,605 |   |   | $ | 26,881 |   |   | $ | 20,849 |   |   | $ | 19,891 |   |   | $ | 24,069 |   |   | $ | 213,877 |   |

----

| As of September 30, 2010        |   |                   |    |   | Floating or      |        |   |   |   |
|---------------------------------|--------|------------------------|---------|--------|------------------|-------------|--------|--------|--------|
|                            |   | Fixed Rates            |    |   | Adjustable Rates |        |   | Total  |   |
|                            |   | (Dollars in thousands) |    |
| One-to-four family              |   | $                      | 33,490  |   |             | $           | 1,303  |   |   | $ | 34,793 |   |
| Multi-family and nonresidential |   |                   | 71,319  |   |             |        | 10,926 |   |   |   | 82,245 |   |
| Construction                    |   |                   | 789     |   |             |        | 371    |   |   |   | 1,160 |   |
| Land                            |   |                   | 1,751   |   |             |        | 10,935 |   |   |   | 12,686 |   |
| Consumer                        |   |                   | 4,766   |   |             |        | 3,382  |   |   |   | 8,148 |   |
| Commercial                      |   |                   | 11,264  |   |             |        | 6,808  |   |   |   | 18,072 |   |
| Total                           |   | $                      | 123,379 |   |             | $           | 33,725 |   |   | $ | 157,104 |   |
|                            |   |                   |    |   |             |        |   |   |   |   |   |   |
|                            |   |                   |    |   |             |        |   |   |   |   |   |   |
|  As of December 31, 2009   |   |                   |    |   |             | Floating or |   |   |   |   |   |
|                            |   | Fixed Rates            |    |   | Adjustable Rates |        |   | Total  |   |
|                            |   | (Dollars in thousands) |    |
| One-to-four family              |   | $                      | 33,102  |   |             | $           | 1,567  |   |   | $ | 34,669 |   |
| Multi-family and nonresidential |   |                   | 52,510  |   |             |        | 8,712  |   |   |   | 61,222 |   |
| Construction                    |   |                   | 1,496   |   |             |        | 1,246  |   |   |   | 2,742 |   |
| Land                            |   |                   | 1,811   |   |             |        | 9,793  |   |   |   | 11,604 |   |
| Consumer                        |   |                   | 5,404   |   |             |        | 1,168  |   |   |   | 6,572 |   |
| Commercial                      |   |                   | 11,583  |   |             |        | 5,187  |   |   |   | 16,770 |   |
| Total                           |   | $                      | 105,906 |   |             | $           | 27,673 |   |   | $ | 133,579 |   |

----

| Non-performing Assets                                                                       |   | At September 30,       |   |   | At December 31, |   |
|---------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|-----------------|--------|
|                                                                                        |   | 2010                   |   |   | 2009            |   |
|                                                                                        |   | (Dollars in thousands) |   |
| Non-accrual loans:                                                                          |   |                   |   |   |            |   |
|    One- to four-family                                                       |   | $                      | 1,344  |   |            | $      | 888 |   |
|    Multi-family and nonresidential                                           |   |                   | 796    |   |            |   | 432 |   |
|    Construction                                                              |   |                   | -      |   |            |   | - |   |
|    Land                                                                      |   |                   | 292    |   |            |   | - |   |
|    Consumer                                                                  |   |                   | 268    |   |            |   | 65 |   |
|    Commercial                                                                |   |                   | 243    |   |            |   | 18 |   |
|       Total                                                   |   |                   | 2,943  |   |            |   | 1,403 |   |
|                                                                                        |   |                   |   |   |            |   |   |   |
| Accruing loans past due 90 days or more:                                                    |   |                   |   |   |            |   |   |   |
|    One- to four-family                                                       |   |                   | -      |   |            |   | - |   |
|    Multi-family and nonresidential                                           |   |                   | -      |   |            |   | - |   |
|    Construction                                                              |   |                   | -      |   |            |   | - |   |
|    Land                                                                      |   |                   | -      |   |            |   | - |   |
|    Consumer                                                                  |   |                   | -      |   |            |   | - |   |
|    Commercial                                                                |   |                   | -      |   |            |   | - |   |
|       Total                                                   |   |                   | -      |   |            |   | - |   |
|          Total of non-accrual and 90 days or   |   |                   | 2,943  |   |            |   | 1,403 |   |
|             more past due loans |   |                   |   |   |            |   |   |   |
|                                                                                        |   |                   |   |   |            |   |   |   |
| Real estate owned                                                                           |   |                   | 476    |   |            |   | 301 |   |
| Other non-performing assets                                                                 |   |                   | -      |   |            |   | - |   |
|          Total non-performing assets           |   | $                      | 3,419  |   |            | $      | 1,704 |   |
|                                                                                        |   |                   |   |   |            |   |   |   |
| Total non-performing loans to total loans                                                   |   |                   | 1.26   | %      |            |   | 0.66 | % |
| Total non-performing loans to total assets                                                  |   |                   | 0.85   | %      |            |   | 0.41 | % |
|  Total non-performing assets to total assets                                           |   |                   | 0.99   | %      |            |   | 0.50 | % |

----

|                                                          |   | September 30, 2010 |   |   | December 31, 2009 |   |
|---------------------------------------------------------------|--------|-------------------------|--------|--------|-------------------|--------|
| Impaired loans with an allocated allowance for loan losses    |   | $                       | -      |   |              | $      | 948 |   |
| Impaired loans without an allocated allowance for loan losses |   |                    | 1,344  |   |              |   | - |   |
| Total impaired loans                                          |   | $                       | 1,344  |   |              | $      | 948 |   |
|                                                          |   |                    |   |   |              |   |   |   |
| Allocated allowance on impaired loans                         |   | $                       | -      |   |              | $      | 141 |   |

|                            |   | At September 30,       |   |   | At December 31,        |   |
|---------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                            |   | 2010                   |   |   | 2009                   |   |
|                            |   |                   |   |   |                   |   |   | % of |   |   |   |   |   |   |   |   | % of |   |
|                            |   |                   |   |   | % of                   |   |   | Loans in |   |   |   |   |   | % of |   |   | Loans in |   |
|                            |   |                   |   |   | Allowance              |   |   | Category |   |   |   |   |   | Allowance |   |   | Category |   |
|                            |   |                   |   |   | to Total               |   |   | to Total |   |   |   |   |   | to Total |   |   | to Total |   |
|                            |   | Amount                 |   |   | Allowance              |   |   | Loans |   |   | Amount |   |   | Allowance |   |   | Loans |   |
|                            |   | (Dollars in thousands) |   |   | (Dollars in thousands) |   |
| One-to-four family              |   | $                      | 280    |   |                   |   | 9.1 | % |   |   | 19.2 | % |   | $ | 280 |   |   |   | 10.0 | % |   |   | 20.8 | % |
| Multi-family and nonresidential |   |                   | 1,136  |   |                   |   | 36.9 |   |   |   | 40.4 |   |   |   | 1,125 |   |   |   | 40.0 |   |   |   | 36.8 |   |
| Construction                    |   |                   | 160    |   |                   |   | 5.2 |   |   |   | 10.7 |   |   |   | 160 |   |   |   | 5.7 |   |   |   | 12.2 |   |
| Land                            |   |                   | 341    |   |                   |   | 11.1 |   |   |   | 9.7 |   |   |   | 286 |   |   |   | 10.2 |   |   |   | 9.7 |   |
| Consumer                        |   |                   | 250    |   |                   |   | 8.1 |   |   |   | 9.2 |   |   |   | 200 |   |   |   | 7.1 |   |   |   | 9.3 |   |
| Commercial                      |   |                   | 908    |   |                   |   | 29.6 |   |   |   | 10.8 |   |   |   | 762 |   |   |   | 27.1 |   |   |   | 11.2 |   |
| Total allowance for loan losses |   | $                      | 3,075  |   |                   |   | 100.0 | % |   |   | 100.0 | % |   | $ | 2,813 |   |   |   | 100.0 | % |   |   | 100.0 | % |

----

----

|                                                                          |   | Nine Months Ended      |   |   | Year Ended   |   |
|-------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------------|--------|
|                                                                          |   | September 30,          |   |   | December 31, |   |
|                                                                          |   | 2010                   |   |   | 2009         |   |
|                                                                          |   | (Dollars in thousands) |   |
| Allowance for loan losses at beginning of period                              |   | $                      | 2,813  |   |         | $      | 2,175 |   |
| Provision (Credit) for loan losses                                            |   |                   | 707    |   |         |   | 868 |   |
| Charge offs:                                                                  |   |                   |   |   |         |   |   |   |
| One-to-four family                                                            |   |                   | 297    |   |         |   | 44 |   |
| Multi-family and nonresidential                                               |   |                   | -      |   |         |   | - |   |
| Construction                                                                  |   |                   | -      |   |         |   | - |   |
| Land                                                                          |   |                   | -      |   |         |   | - |   |
| Consumer                                                                      |   |                   | 99     |   |         |   | 68 |   |
| Commercial                                                                    |   |                   | 67     |   |         |   | 150 |   |
| Total charge-offs                                                             |   |                   | 463    |   |         |   | 262 |   |
| Recoveries:                                                                   |   |                   |   |   |         |   |   |   |
| One-to-four family                                                            |   |                   | 4      |   |         |   | - |   |
| Multi-family and nonresidential                                               |   |                   | -      |   |         |   | - |   |
| Construction                                                                  |   |                   | -      |   |         |   | - |   |
| Land                                                                          |   |                   | -      |   |         |   | - |   |
| Consumer                                                                      |   |                   | 5      |   |         |   | 13 |   |
| Commercial                                                                    |   |                   | 9      |   |         |   | 19 |   |
| Total recoveries                                                              |   |                   | 18     |   |         |   | 32 |   |
| Net charge-offs                                                               |   |                   | 445    |   |         |   | 230 |   |
| Allowance for loan losses at end of period                                    |   | $                      | 3,075  |   |         | $      | 2,813 |   |
| Allowance for loan losses to nonperforming loans                              |   |                   | 104.49 | %      |         |   | 200.50 | % |
| Allowance for loan losses to total loans outstanding at the end of the period |   |                   | 1.32   | %      |         |   | 1.31 | % |
| Net charge-offs to average loans outstanding during the year                  |   |                   | 0.20   | %      |         |   | 0.12 | % |

----

|                    |   | September 30,          |   |   | December 31, |   |
|-------------------------|--------|------------------------|--------|--------|--------------|--------|
|                    |   | 2010                   |   |   | 2009         |   |
|                    |   | (Dollars in thousands) |   |
|                    |   |                   |   |   |         |   |
| Special mention assets  |   | $                      | 2,534  |   |         | $      | 222 |   |
| Substandard assets      |   |                   | 4,715  |   |         |   | 3,241 |   |
| Doubtful assets         |   |                   | 307    |   |         |   | - |   |
| Loss assets             |   |                   | -      |   |         |   | - |   |
| Total classified assets |   | $                      | 7,556  |   |         | $      | 3,463 |   |

|                                       |   |      |   |   |       |   |   |       |   |   |        |        |
|--------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|-------------|
| September 30, 2010                         |   |
| (Dollars in thousands)                     |   |
|                                       |   |      |   |   | Gross      |   |   | Gross      |   |   | Approximate |        |
|                                       |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair        |        |
| Available-for-sale                         |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value       |        |
| U. S. Treasury                             |   | $         | 4,739  |   |       | $      | 1,596  |       |   | $      | -           |        |   | $ | 6,335 |   |
| U. S. Government agencies and corporations |   |      | 999    |   |       |   | 52     |       |   |   | -           |        |   |   | 1,051 |   |
| Mortgage-backed securities                 |   |      | 49,430 |   |       |   | 2,758  |       |   |   | -           |        |   |   | 52,188 |   |
| Collateralized mortgage obligations        |   |      | 4,119  |   |       |   | 127    |       |   |   | -           |        |   |   | 4,246 |   |
| State and political subdivisions           |   |      | 7,556  |   |       |   | 385    |       |   |   | -           |        |   |   | 7,941 |   |
| Corporate debt securities                  |   |      | 21     |   |       |   | 143    |       |   |   | -           |        |   |   | 164 |   |
|      Total        |   | $         | 66,864 |   |       | $      | 5,061  |       |   | $      | -           |        |   | $ | 71,925 |   |
|                                       |   |      |   |   |       |   |   |       |   |   |        |        |   |   |   |   |
| December 31, 2009                          |   |
|   (Dollars in thousands)              |   |
|                                       |   |      |   |   |       | Gross  |   |       | Gross  |   |        | Approximate |   |
|                                       |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair        |        |
| Available-for-sale                         |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value       |        |
| U. S. Treasury                             |   | $         | 4,765  |   |       | $      | 1,296  |       |   | $      | -           |        |   | $ | 6,061 |   |
| U. S. Government agencies and corporations |   |      | 13,879 |   |       |   | 509    |       |   |   | (90         | )           |   |   | 14,298 |   |
| Mortgage-backed securities                 |   |      | 62,825 |   |       |   | 2,337  |       |   |   | (76         | )           |   |   | 65,086 |   |
| Collateralized mortgage obligations        |   |      | 4,795  |   |       |   | -      |       |   |   | (85         | )           |   |   | 4,710 |   |
| State and political subdivisions           |   |      | 8,466  |   |       |   | 178    |       |   |   | (90         | )           |   |   | 8,554 |   |
| Corporate debt securities                  |   |      | 30     |   |       |   | -      |       |   |   | -           |        |   |   | 30 |   |
|      Total        |   | $         | 94,760 |   |       | $      | 4,320  |       |   | $      | (341        | )           |   | $ | 98,739 |   |

----

| (Dollars in thousands)                                             |   | September 30, 2010 |   |
|--------------------------------------------------------------------|--------|--------------------|--------|
|                                                               |   | Available-for-sale |   |
|                                                               |   | Amortized          |   |   | Fair |   |
|                                                               |   | Cost               |   |   | Value |   |
| Due in one year or less                                            |   | $                  | -      |   |   | $ | - |   |
| Due after one but within five years                                |   |               | -      |   |   |   | - |   |
| Due after five but within ten years                                |   |               | 10,933 |   |   |   | 12,832 |   |
| Due after ten years                                                |   |               | 2,382  |   |   |   | 2,659 |   |
|                                                               |   |               | 13,315 |   |   |   | 15,491 |   |
| Mortgage-backed securities and collateralized mortgage obligations |   |               | 53,549 |   |   |   | 56,434 |   |
|      Total                                     |   | $                  | 66,864 |   |   | $ | 71,925 |   |

|                                            |   | September 30, 2010     |   |
|-------------------------------------------------|--------|------------------------|--------|
|                                            |   | (Dollars in thousands) |   |
|                                            |   | Less Than 12 months    |   |   | 12 months or more |   |   | Total |   |   |   |   |
|                                            |   | Approximate            |   |   | Gross |   |   | Approximate |   | Gross |   |   | Approximate |   | Gross |   |
|                                            |   | Fair                   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| Available-for-sale                              |   | Value                  |   |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| U. S. Government agencies and corporations |   | $                      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Mortgage-backed securities                      |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Collateralized mortgage obligations             |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| State and political subdivisions                |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Trust preferred securities                      |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Total             |   | $                      | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | December 31, 2009      |   |
|                                            |   | (Dollars in thousands) |   |
|                                            |   | Less Than 12 months    |   |   | 12 months or more |   |   | Total |   |   |   |   |   |
|                                            |   | Approximate            |   |   | Gross |   |   | Approximate |   | Gross |   |   | Approximate |   | Gross |   |
|                                            |   | Fair                   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| Available-for-sale                              |   | Value                  |   |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| U. S. Government agencies and corporations |   | $                      | 4,910  |   |   | $ | (90 | ) |   | $ | - |   |   | $ | - |   |   | $ | 4,910 |   |   | $ | (90 | ) |
| Mortgage-backed securities                      |   |                   | 5,975  |   |   |   | (76 | ) |   |   | - |   |   |   | - |   |   |   | 5,975 |   |   |   | (76 | ) |
| Collateralized mortgage obligations             |   |                   | 4,710  |   |   |   | (85 | ) |   |   | - |   |   |   | - |   |   |   | 4,710 |   |   |   | (85 | ) |
| State and political subdivisions                |   |                   | 1,083  |   |   |   | (21 | ) |   |   | 545 |   |   |   | (69 | ) |   |   | 1,628 |   |   |   | (90 | ) |
| Trust preferred securities                      |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Total             |   | $                      | 16,678 |   |   | $ | (272 | ) |   | $ | 545 |   |   | $ | (69 | ) |   | $ | 17,223 |   |   | $ | (341 | ) |

----

|   (Dollars in thousands)                               |   |   |   |   |                                                          |   |
|-------------------------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------|--------|
| September 30, 2010                                          |   | Total  |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Assets:                                                     |   |   |   |   |                                                          |   |   |   |   |   |   |   |
|      Available for sale securities |   | $      | 71,925 |   |                                                          |   | -- |   |   | $ | 71,761 |   |   | $ | 164 |   |

|                                                    |   |   |   |
|---------------------------------------------------------|--------|--------|--------|
| Balance, January 1, 2010                                |   | $      | 30     |   |
| Purchases, sales, issuances and settlements             |   |   | (9     | ) |
| Unrealized gains included in other comprehensive income |   |   | 143    |   |
| Balance, September 30, 2010                             |   | $      | 164    |   |

----

| September 30, 2010      |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Gains (Losses) Nine Months Ended September 30, 2010 |   |
|-------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-----------------------------------------------------|--------|
| (Dollars in thousands)  |   |
| Impaired loans          |   |    | --     |   |    |   | --     |    |   | $      | 1,344                                               |   |   | $ | (57 | ) |
| Other real estate owned |   |    | --     |   |    |   | --     |    |   |   | 476                                                 |   |   |   | ( 26 | ) |

----

|                                          |   | At September 30,       |    |
|-----------------------------------------------|--------|------------------------|---------|
|                                          |   | 2010                   |    |   | 2009 |   |
|                                          |   | CarryingAmount         |    |   | FairValue |   |   | CarryingAmount |   |   | FairValue |   |
|                                          |   | (Dollars in thousands) |    |
| Financial assets                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                     |   | $                      | 4,958   |   |   | $ | 4,958 |   |   | $ | 17,778 |   |   | $ | 17,778 |   |
| Available-for-sale securities                 |   |                   | 71,925  |   |   |   | 71,925 |   |   |   | 113,527 |   |   |   | 113,507 |   |
| Loans held for sale                           |   |                   | 4,249   |   |   |   | 4,249 |   |   |   | 2,609 |   |   |   | 2,609 |   |
| Loans, net of allowance for loan losses       |   |                   | 229,758 |   |   |   | 229,210 |   |   |   | 199,693 |   |   |   | 200,063 |   |
| FHLB stock                                    |   |                   | 2,988   |   |   |   | 2,988 |   |   |   | 2,988 |   |   |   | 2,988 |   |
| Interest receivable                           |   |                   | 1,200   |   |   |   | 1,200 |   |   |   | 1,475 |   |   |   | 1,475 |   |
|                                          |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                      |   | $                      | 220,969 |   |   | $ | 221,344 |   |   | $ | 207,930 |   |   | $ | 208,393 |   |
| Securities sold under agreement to repurchase |   |                   | 6,004   |   |   |   | 6,004 |   |   |   | 8,015 |   |   |   | 8,015 |   |
| Interest payable                              |   |                   | 439     |   |   |   | 439 |   |   |   | 559 |   |   |   | 559 |   |
| FHLB advances                                 |   |                   | 13,000  |   |   |   | 13,996 |   |   |   | 28,000 |   |   |   | 28,675 |   |
| Other borrowings                              |   |                   | 35,000  |   |   |   | 38,102 |   |   |   | 35,000 |   |   |   | 36,483 |   |
| Forward sale commitments                      |   |                   | 12      |   |   |   | 12 |   |   |   | 20 |   |   |   | 20 |   |
| Loan commitments                              |   |                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

----

----

----

----

----

|                                  |                                  |   |  Average Balance Sheet for the    |    |
|---------------------------------------|---------------------------------------|--------|----------------------------------------|---------|
|                                  |                                  |   |  Three Months Ended September 30, |    |
|                                  |                                  |   |                                   |    |   | 2010 |   |   |   |   |   |   |   |   | 2009 |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                  |                                  |   | Average                                |    |   | Income/ |   |   | Yield/ |   |   | Average |   |   | Income/ |   |   | Yield/ |   |
|                                  |                                  |   | Balance                                |    |   | Expense |   |   | Rate |   |   | Balance |   |   | Expense |   |   | Rate |   |
|                                  |                                  |   |  (Dollars in thousands)           |    |
| ASSETS:                               |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:              |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Interest-earning deposits             |   | $                                      | 19,375  |   |   | $ | 20 |   |   |   | 0.41 | % |   | $ | 8,870 |   |   | $ | 40 |   |   |   | 1.79 | % |
|                                  | Loans                                 |   |                                   | 230,700 |   |   |   | 3,469 |   |   |   | 5.97 | % |   |   | 193,887 |   |   |   | 2,904 |   |   |   | 5.94 | % |
|                                  | Investment securities                 |   |                                   | 76,015  |   |   |   | 840 |   |   |   | 4.38 | % |   |   | 116,709 |   |   |   | 1,358 |   |   |   | 4.62 | % |
|                                  | Other interest-earning assets         |   |                                   | 4,837   |   |   |   | 53 |   |   |   | 4.35 | % |   |   | 5,958 |   |   |   | 38 |   |   |   | 2.53 | % |
|                                  | Total interest-earning assets         |   |                                   | 330,927 |   |   |   | 4,382 |   |   |   | 5.25 | % |   |   | 325,424 |   |   |   | 4,340 |   |   |   | 5.29 | % |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets            |                                  |   | 16,815                                 |    |   |   |   |   |   |   |   |   |   |   | 22,440 |   |   |   |   |   |   |   |   |   |
| Total                                 |                                  |   | $                                      | 347,742 |   |   |   |   |   |   |   |   |   |   | $ | 347,864 |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY: |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Interest-bearing deposits             |   |                                   | 203,198 |   |   |   | 758 |   |   |   | 1.48 | % |   |   | 191,410 |   |   |   | 1,097 |   |   |   | 2.27 | % |
|                                  | FHLB advances and other borrowings    |   |                                   | 19,861  |   |   |   | 124 |   |   |   | 2.48 | % |   |   | 33,350 |   |   |   | 133 |   |   |   | 1.58 | % |
|                                  | Long-term borrowings at other banks   |   |                                   | 35,000  |   |   |   | 329 |   |   |   | 3.73 | % |   |   | 35,000 |   |   |   | 329 |   |   |   | 3.73 | % |
| Total Interest-Bearing Liabilities    |                                  |   | 258,059                                |    |   |   | 1,211 |   |   |   | 1.86 | % |   |   | 259,760 |   |   |   | 1,559 |   |   |   | 2.38 | % |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Noninterest-bearing deposits          |   |                                   | 17,537  |   |   |   |   |   |   |   |   |   |   |   | 15,314 |   |   |   |   |   |   |   |   |   |
|                                  | Other noninterest-bearing liabilities |   |                                   | 4,177   |   |   |   |   |   |   |   |   |   |   |   | 2,492 |   |   |   |   |   |   |   |   |   |
|                                  | Shareholders' equity                  |   |                                   | 67,969  |   |   |   |   |   |   |   |   |   |   |   | 70,298 |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                 |                                  |   | $                                      | 347,742 |   |   |   |   |   |   |   |   |   |   | $ | 347,864 |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                   |                                  |   |                                   |    |   | $ | 3,171 |   |   |   |   |   |   |   |   |   |   | $ | 2,781 |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Yield on Earning Assets           |                                  |   |                                   |    |   |   |   |   |   |   | 3.80 | % |   |   |   |   |   |   |   |   |   |   | 3.39 | % |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread                  |                                  |   |                                   |    |   |   |   |   |   |   | 3.39 | % |   |   |   |   |   |   |   |   |   |   | 2.91 | % |
|                                  |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to    |                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | average interest-bearing liabilities  |   |                                   |    |   |   |   |   |   |   |   | 128.24 | % |   |   |   |   |   |   |   |   |   |   | 125.28 | % |

----

|                                                                                   |   |                                              |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                   |   | Three Months Ended                                |   |
|                                                                                   |   | September 30, 2010 Compared to September 30, 2009 |   |
|                                                                                   |   | Increase (Decrease) Due To                        |   |
|                                                                                   |   | Volume                                            |   |   | Rate   |   |   | Net    |   |
|                                                                                   |   | (Dollars in thousands)                            |   |
|     Interest earned on:                                            |   |                                              |   |   |   |   |   |   |   |
|        Interest-earning assets:                     |   |                                              |   |   |   |   |   |   |   |
|          Interest-earning demand deposits |   | $                                                 | (40    | )      |   | $      | 20     |   |   | $ | (20 | ) |
|          Loans                            |   |                                              | 526    |   |   |   | 39     |   |   |   | 565 |   |
|          Investment securities            |   |                                              | (291   | )      |   |   | (227   | )      |   |   | (518 | ) |
|          Other interest-earning assets    |   |                                              | (31    | )      |   |   | 46     |   |   |   | 15 |   |
|      Total Earning Assets                                     |   |                                              | 164    |   |   |   | (122   | )      |   |   | 42 |   |
|                                                                                   |   |                                              |   |   |   |   |   |   |   |   |   |   |
|     Interest paid on:                                              |   |                                              |   |   |   |   |   |   |   |   |   |   |
|        Interest bearing deposits                    |   |                                              | 1,745  |   |   |   | (2,084 | )      |   |   | (339 | ) |
|        FHLB advances and other borrowings           |   |                                              | 15     |   |   |   | (24    | )      |   |   | (9 | ) |
|        Long-term borrowings at other banks          |   |                                              | -      |   |   |   | -      |   |   |   | - |   |
|     Total Interest-Bearing Liabilities                             |   |                                              | 1,760  |   |   |   | (2,108 | )      |   |   | (348 | ) |
|     Change in Net Interest Income                                  |   | $                                                 | (1,596 | )      |   | $      | 1,986  |   |   | $ | 390 |   |

----

|                                                        |   | Three Months Ended September 30, |   |
|-------------------------------------------------------------|--------|----------------------------------|--------|
|                                                        |   | 2010                             |   |   | 2009 |   |   | % Change |   |
|                                                        |   |                             |   |   | (Dollars in thousands) |   |   |   |   |
| Non-interest income                                         |   |                             |   |   |   |   |   |   |   |
| Service charges on deposit accounts and other fees          |   |                             | 299    |   |   |   | 341 |   |   |   | (12.32 | ) % |
| Loan servicing and other fees                               |   |                             | 21     |   |   |   | 19 |   |   |   | 10.53 | % |
| Net gains on sales of mortgage loans held for sale          |   |                             | 327    |   |   |   | 279 |   |   |   | 17.20 | % |
| Net realized gain on sales of available-for-sale securities |   |                             | -      |   |   |   | 2 |   |   |   | (100.00 | ) % |
| Insurance and brokerage commission                          |   |                             | 42     |   |   |   | 39 |   |   |   | 7.69 | % |
| Other                                                       |   |                             | 8      |   |   |   | (9 | ) |   |   | (188.89 | ) % |
| Total noninterest income                                    |   | $                                | 697    |   |   | $ | 671 |   |   |   | 3.87 | % |

|                                     |   | Three Months Ended September 30, |   |
|------------------------------------------|--------|----------------------------------|--------|
|                                     |   | 2010                             |   |   | 2009 |   |   | % Change |   |
|                                     |   |                             |   |   | (Dollars in thousands) |   |   |   |   |
| Non-interest Expense                     |   |                             |   |   |   |   |   |   |   |
| Salaries and employee benefits           |   | $                                | 1,625  |   |   | $ | 1,388 |   |   |   | 17.07 | % |
| Net occupancy                            |   |                             | 176    |   |   |   | 166 |   |   |   | 6.02 | % |
| Equipment                                |   |                             | 184    |   |   |   | 174 |   |   |   | 5.75 | % |
| Data processing                          |   |                             | 220    |   |   |   | 195 |   |   |   | 12.82 | % |
| Professional fees                        |   |                             | 98     |   |   |   | 123 |   |   |   | (20.33 | ) % |
| Marketing                                |   |                             | 63     |   |   |   | 74 |   |   |   | (14.86 | ) % |
| Office expense                           |   |                             | 69     |   |   |   | 73 |   |   |   | (5.48 | ) % |
| Loan collection and repossession expense |   |                             | 36     |   |   |   | 13 |   |   |   | 176.92 | % |
| Other                                    |   |                             | 402    |   |   |   | 459 |   |   |   | (12.42 | ) % |
| Total non-interest expense               |   | $                                | 2,873  |   |   | $ | 2,665 |   |   |   | 7.80 | % |

----

----

|                                  |                                  |   |  Average Balance Sheet for the   |    |
|---------------------------------------|---------------------------------------|--------|---------------------------------------|---------|
|                                  |                                  |   |  Nine Months Ended September 30, |    |
|                                  |                                  |   |                                  |    |   | 2010 |   |   |   |   |   |   |   |   | 2009 |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                  |                                  |   | Average                               |    |   | Income/ |   |   | Yield/ |   |   | Average |   |   | Income/ |   |   | Yield/ |   |
|                                  |                                  |   | Balance                               |    |   | Expense |   |   | Rate |   |   | Balance |   |   | Expense |   |   | Rate |   |
|                                  |                                  |   |  (Dollars in thousands)          |    |
| ASSETS:                               |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:              |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Interest-earning deposits             |   | $                                     | 11,275  |   |   | $ | 27 |   |   |   | 0.32 | % |   | $ | 6,123 |   |   | $ | 109 |   |   |   | 2.38 | % |
|                                  | Loans                                 |   |                                  | 227,089 |   |   |   | 10,077 |   |   |   | 5.93 | % |   |   | 186,239 |   |   |   | 8,257 |   |   |   | 5.93 | % |
|                                  | Investment securities                 |   |                                  | 83,833  |   |   |   | 2,883 |   |   |   | 4.60 | % |   |   | 121,339 |   |   |   | 4,371 |   |   |   | 4.82 | % |
|                                  | Other interest-earning assets         |   |                                  | 4,971   |   |   |   | 169 |   |   |   | 4.55 | % |   |   | 5,702 |   |   |   | 105 |   |   |   | 2.46 | % |
|                                  | Total interest-earning assets         |   |                                  | 327,168 |   |   |   | 13,156 |   |   |   | 5.38 | % |   |   | 319,403 |   |   |   | 12,842 |   |   |   | 5.38 | % |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets            |                                  |   | 18,634                                |    |   |   |   |   |   |   |   |   |   |   | 21,245 |   |   |   |   |   |   |   |   |   |
| Total                                 |                                  |   | $                                     | 345,802 |   |   |   |   |   |   |   |   |   |   | $ | 340,648 |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY: |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Interest-bearing deposits             |   |                                  | 200,827 |   |   |   | 2,493 |   |   |   | 1.66 | % |   |   | 186,170 |   |   |   | 3,494 |   |   |   | 2.51 | % |
|                                  | FHLB advances and other borrowings    |   |                                  | 19,657  |   |   |   | 380 |   |   |   | 2.58 | % |   |   | 32,795 |   |   |   | 405 |   |   |   | 1.65 | % |
|                                  | Long-term borrowings at other banks   |   |                                  | 35,000  |   |   |   | 979 |   |   |   | 3.74 | % |   |   | 35,000 |   |   |   | 979 |   |   |   | 3.74 | % |
| Total Interest-Bearing Liabilities    |                                  |   | 255,484                               |    |   |   | 3,852 |   |   |   | 2.02 | % |   |   | 253,965 |   |   |   | 4,878 |   |   |   | 2.57 | % |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | Noninterest-bearing deposits          |   |                                  | 17,466  |   |   |   |   |   |   |   |   |   |   |   | 14,460 |   |   |   |   |   |   |   |   |   |
|                                  | Other noninterest-bearing liabilities |   |                                  | 3,907   |   |   |   |   |   |   |   |   |   |   |   | 2,415 |   |   |   |   |   |   |   |   |   |
|                                  | Shareholders' equity                  |   |                                  | 68,945  |   |   |   |   |   |   |   |   |   |   |   | 69,808 |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                 |                                  |   | $                                     | 345,802 |   |   |   |   |   |   |   |   |   |   | $ | 340,648 |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                   |                                  |   |                                  |    |   | $ | 9,304 |   |   |   |   |   |   |   |   |   |   | $ | 7,964 |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Yield on Earning Assets           |                                  |   |                                  |    |   |   |   |   |   |   | 3.80 | % |   |   |   |   |   |   |   |   |   |   | 3.33 | % |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread                  |                                  |   |                                  |    |   |   |   |   |   |   | 3.36 | % |   |   |   |   |   |   |   |   |   |   | 2.81 | % |
|                                  |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to    |                                  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  | average interest-bearing liabilities  |   |                                  |    |   |   |   |   |   |   |   | 128.06 | % |   |   |   |   |   |   |   |   |   |   | 125.77 | % |

----

|                                                                                   |   | Nine Months Ended                                 |   |
|----------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                                                   |   | September 30, 2010 Compared to September 30, 2009 |   |
|                                                                                   |   | Increase (Decrease) Due To                        |   |
|                                                                                   |   | Volume                                            |   |   | Rate |   |   | Net |   |
|                                                                                   |   | (Dollars in thousands)                            |   |
|     Interest earned on:                                            |   |                                              |   |   |   |   |   |   |   |
|        Interest-earning assets:                     |   |                                              |   |   |   |   |   |   |   |
|          Interest-earning demand deposits |   | $                                                 | (513   | ) |   | $ | 431 |   |   | $ | (82 | ) |
|          Loans                            |   |                                              | 1,801  |   |   |   | 19 |   |   |   | 1,820 |   |
|          Investment securities            |   |                                              | (1,235 | ) |   |   | (253 | ) |   |   | (1,488 | ) |
|          Other interest-earning assets    |   |                                              | (32    | ) |   |   | 96 |   |   |   | 64 |   |
|      Total Earning Assets                                     |   |                                              | 21     |   |   |   | 293 |   |   |   | 314 |   |
|                                                                                   |   |                                              |   |   |   |   |   |   |   |   |   |   |
|     Interest paid on:                                              |   |                                              |   |   |   |   |   |   |   |   |   |   |
|        Interest bearing deposits                    |   |                                              | 807    |   |   |   | (1,808 | ) |   |   | (1,001 | ) |
|        FHLB advances and other borrowings           |   |                                              | 54     |   |   |   | (79 | ) |   |   | (25 | ) |
|    Long-term borrowings at other banks                                  |   |                                              | -      |   |   |   | - |   |   |   | - |   |
|     Total Interest-Bearing Liabilities                             |   |                                              | 861    |   |   |   | (1,887 | ) |   |   | (1,026 | ) |
|     Change in Net Interest Income                                  |   | $                                                 | (840   | ) |   | $ | 2,180 |   |   | $ | 1,340 |   |

|                                                        |   | Nine Months Ended September 30, |   |
|-------------------------------------------------------------|--------|---------------------------------|--------|
|                                                        |   | 2010                            |   |   | 2009 |   |   | % Change |   |
|                                                        |   |  (Dollars in thousands)    |   |
| Non-interest income                                         |   |                            |   |   |   |   |   |   |   |
| Service charges on deposit accounts and other fees          |   |                            | 903    |   |   |   | 918 |   |   |   | (1.63 | ) % |
| Loan servicing and other fees                               |   |                            | 66     |   |   |   | 50 |   |   |   | 32.00 | % |
| Net gains on sales of mortgage loans held for sale          |   |                            | 890    |   |   |   | 977 |   |   |   | (8.90 | ) % |
| Net realized gain on sales of available-for-sale securities |   |                            | 77     |   |   |   | 7 |   |   |   | 1000.00 | % |
| Insurance and brokerage commission                          |   |                            | 112    |   |   |   | 101 |   |   |   | 10.89 | % |
| Other                                                       |   |                            | 20     |   |   |   | 3 |   |   |   | 566.67 | % |
| Total noninterest income                                    |   | $                               | 2,068  |   |   | $ | 2,056 |   |   |   | 0.58 | % |

----

|                                     |   | Nine Months Ended September 30, |   |
|------------------------------------------|--------|---------------------------------|--------|
|                                     |   | 2010                            |   |   | 2009 |   |   | % Change |   |
|                                     |   |  (Dollars in thousands)    |   |
| Non-interest expense                     |   |                            |   |   |   |   |   |   |   |
| Salaries and employee benefits           |   | $                               | 4,774  |   |   | $ | 4,380 |   |   |   | 9.00 | % |
| Net occupancy                            |   |                            | 512    |   |   |   | 504 |   |   |   | 1.59 | % |
| Equipment                                |   |                            | 546    |   |   |   | 494 |   |   |   | 10.53 | % |
| Data processing                          |   |                            | 664    |   |   |   | 679 |   |   |   | (2.21 | ) % |
| Professional fees                        |   |                            | 295    |   |   |   | 355 |   |   |   | (16.90 | ) % |
| Marketing                                |   |                            | 199    |   |   |   | 238 |   |   |   | (16.39 | ) % |
| Office expense                           |   |                            | 205    |   |   |   | 219 |   |   |   | (6.39 | ) % |
| Loan collection and repossession expense |   |                            | 162    |   |   |   | 21 |   |   |   | 671.43 | % |
| Other                                    |   |                            | 1,319  |   |   |   | 1,551 |   |   |   | (14.96 | ) % |
| Total non-interest expense               |   | $                               | 8,676  |   |   | $ | 8,441 |   |   |   | 2.78 | % |

----

| Tier 1 Core Capital (to adjusted total assets)      | 13.67% |
|-----------------------------------------------------|--------|
| Tangible Equity Ratio (to tangible assets)          | 13.67% |
| Tier 1 Risk-Based Capital (to risk-weighted assets) | 18.31% |
| Total Risk-Based Capital (to risk-weighted assets)  | 19.31% |

----

----

| Period                                  |   | Total Number ofShares Purchased |    |   | Average PricePaid Per Share |   |   | Total Number ofShares Purchasedas Part of PubliclyAnnounced Programs |   |   | MaximumNumber of SharesThat May Yet BePurchased Underthe Programs at theEnd of the Period |   |
|-----------------------------------------|--------|---------------------------------|---------|--------|-----------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------|--------|
| July 1, 2010 to July 31, 2010           |   |                            | 2,600   |   |                        | $      | 10.518 |                                                                 |   |   | 2,600                                                                                     |   |   |   | 291,193 |   |
| August 1, 2010 to August 31, 2010       |   |                            | 84,201  |   |                        |   | 10.708 |                                                                 |   |   | 76,500                                                                                    |   |   |   | 214,693 |   |
| September 1, 2010 to September 30, 2010 |   |                            | 30,600  |   |                        |   | 10.898 |                                                                 |   |   | 30,600                                                                                    |   |   |   | 184,093 |   |
| Total                                   |   |                            | 117,401 |   |                        | $      | 10.754 |                                                                 |   |   | 109,700                                                                                   |   |   |   | 184,093 |   |

----

| 3.1    | Charter of First Advantage Bancorp (1)                                                                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2    | Bylaws of First Advantage Bancorp (1)                                                                                                                                                                                   |
| 4.0    | Form of Stock Certificate of First Advantage Bancorp (1)                                                                                                                                                                |
| 31.1   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                                       |
| 31.2   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                                       |
| 32.0   | Section 1350 Certification                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                    |
| (1)    | Incorporated herein by reference to the exhibits to the Company’s Registration Statement on Form S-1 (File 333-144454), as amended, initially filed with the Securities and Exchange Commission on July 10, 2007. |

----

| Dated:  November 10, 2010 | By:/s/Earl O. Bradley, III |
|-------------------------------------|----------------------------|
|                                | Earl O. Bradley, III       |
|                                | Chief Executive Officer    |
|                                |                       |
|                                |                       |
|                                |                       |
| Dated:  November 10, 2010 | By:/s/Patrick C. Greenwell |
|                                | Patrick C. Greenwell       |
|                                | Chief Financial Officer    |

----